The United States and Canada are set to announce an agreement to begin negotiations over overlapping territorial claims in the Arctic, according to a Bloomberg report citing an anonymous source familiar with the situation.
The dispute centers on the Arctic seabed in parts of the Beaufort Sea, an area believed to contain significant oil reserves. Both countries have conflicting claims over the seabed located north of Alaska, Yukon, and the Northwest Territories. They plan to initiate discussions aimed at clearly defining their maritime boundary in this region.
The origin of the dispute dates back to an Anglo-Russian treaty from 1825, the terms of which were later inherited by the U.S. and Canada in the 19th century.
As they move forward, the U.S. and Canada aim to work together to negotiate and clarify their maritime boundary in the Beaufort Sea. This agreement comes at a time when both China and Russia are showing interest in Arctic territories, seeking to explore additional resources and trade routes.
More than a decade ago, the U.S. Geological Survey (USGS) estimated that the area north of the Arctic Circle could contain around 90 billion barrels of undiscovered, technically recoverable oil. This assessment was part of the first such evaluation conducted in 2008. Additionally, the region is believed to hold approximately 1,670 trillion cubic feet of technically recoverable natural gas and 44 billion barrels of recoverable natural gas liquids in 25 defined geological areas.
Despite the potential resources, drilling in the Arctic has become a contentious issue in recent years. Many oil companies are hesitant to explore in these harsh environments due to concerns that governments may halt oil and gas operations.
You Might Be Interested In
- Why Do People Buy Oil Stocks?
- Top 7 Brokers for Oil Trading: An In-Depth Review
- 7 Best Trading Platforms for Crude Oil in 2024