They say all’s fair in love and war.
I say all’s fair in war and oil.
When it comes to digging for “black gold,” any stretch of land, water, or ice is fair game.
You can go from the deserts of Saudi Arabia to the dry dust of West Texas to the waters of the coastline to find this vital fuel…
Not to mention the cold desert of the Arctic.
It’s long been known that the Arctic holds oil frozen under its icy top layer, and getting to it is quite the challenge.
More so, even, than extracting oil out of the waters of the ocean.
The Arctic region encompasses 19 geological basins – only half of which have been actually explored.
In 2008, the United States Geological Survey estimated that there are 90 billion barrels of undiscovered, recoverable oil in 25 identified areas in the Arctic – 13% of all the undiscovered oil in the world.
Now, despite the challenges of the region, many nations around the world are determined to take control of this land and its abundant natural resources.
Which leads to some increasing tension, adding to the existing conflict I’ve discussed many times here in Oil & Energy Investor.
The Arctic situation has remained fairly stagnant for the last several years, at least compared to other areas of oil exploration.
But a move by one of America’s energy rivals has brought it back onto the map of world tensions…
I’m talking, of course, about Russia.
New Drones, New Technology
The United States and Russia have had a long and colorful history together.
An alliance during World War II escalated into a firm rivalry during the Cold War, and relations between the two never truly warmed back up to pre-Cold War levels.
And these days, Russia has been in the news regarding U.S. relations more so than usual.
But it’s what they’ve announced recently that has my attention.
Last week, Russia unveiled two drones – the ZALA 421-08M and ZALA 421-16E.
What makes these drones unique is that they don’t rely on GPS, and are designed to gather information about a vessel from 100 kilometers away.
Must See: The Defense Industry Is a Gold Mine – You Can’t Afford to Miss This $6 Company…
And they’ve been deployed to the Arctic to spot ships approaching oil and gas facilities in the region.
This is only the latest in a string of increased military involvement in the Arctic.
About the Author
Dr. Kent Moors is an internationally recognized expert in oil and natural gas policy, risk assessment, and emerging market economic development. He serves as an advisor to many U.S. governors and foreign governments. Kent details his latest global travels in his free Oil & Energy Investor e-letter. He makes specific investment recommendations in his newsletter, the Energy Advantage. For more active investors, he issues shorter-term trades in his Energy Inner Circle.
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