Russia Claims Mineral, Oil and Gas Reserves at North Pole

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Did you see that Russia has planted a rust-proof titanium flag on the seabed of the North Pole, about 4,200 metres below the surface of the water? Talk about a new cold war.

The Russians are laying claim to the vast mineral, oil, and gas reserves of the North Pole. Their effort to conquer and claim the Arctic did not impress the normally mild-mannered Canadians. “This isn’t the 15th century. You can’t go around the world and plant flags and say ‘we’re claiming this territory,’” said Canadian Foreign Minister Peter MacKay.

Maybe it is the 15th century, though. The global competition for scarce resources and tangible assets has reached a new phase. The popping of the US mortgage-lending bubble reminds people that metals and oil are more valuable than mortgages and CDOs. It wouldn’t surprise us at all to see more aggressive national claims made on off-shore oil and gas and minerals. This is bullish for prices, although bearish for geopolitical peace and harmony.

Dan Denning
The Daily Reckoning Australia

Do you think Russia should be able to claim the resources of the North Pole? Leave a message below.

Dan Denning
Dan Denning examines the geopolitical and economic events that can affect your investments domestically. He raises the questions you need to answer, in order to survive financially in these turbulent times.
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Comments

  1. If it’s bullish for prices (oil prices), how come WPL, OSH, and every other share price connected with oil is headed south?

    Reply
  2. No, Russia should not be allowed to do so. But the US has laid claim to Iraq’s oil. Nothing ever changes, and history repeats itself. The big players will grab whatever they can.

    Reply
  3. If I had to choose between oil supplies in a violent, sectarian driven and heavily populated country in one of the worlds most volatile regions, which would require a massive ground invasion and create years of hostility and resentment abroad, or simply tapping into oil supplies at the bottom of an ocean, I know where I’d pick.

    Reply
  4. All new things are well forgotten ones

    What is common in communism and capitalism?
    What is common in dictatorship and democracy?
    What is common in slavery and freedom?

    People: same type, same behavior, same ambitions, same end-result – poor gets poorer and rich gets richer

    Reply

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