An economic time bomb lurks under the icecaps

According to a joint-study conducted by a group of polar scientist and economists, the melting icecaps could prompt an “economic time bomb” to go off, costing the global economy TRILLIONS of dollars.

The common theory for the last two decades has been that melting icecaps would result in an economic “boom” of another kind. Companies would finally be able to exploit untapped reservoirs of natural gas and crude oil which had been trapped underneath thick sheaths of ice for centuries.

The Arctic ice, which melts and refreezes on an annual basis, is shrinking at an unheralded rate. Last year, “it collapsed to under 3.5m sqkm by mid-September, just 40% of its usual extent in the 1970s”. And since the ice is also becoming less thick, some scientists predict the Arctic Ocean will be largely free of summer ice by the end of the decade.

The growing concern is that, as the icecaps melt, the warming of the sea water will trigger offshore permafrost to release greater quantities of methane. “A giant reservoir of the greenhouse gas, in the form of gas hydrates on the East Siberian Arctic Shelf (ESAS), could be emitted, either slowly or catastrophically fast over a shorter time frame,” the researchers claim. “And that could result in “a $60 TRILLION global price tag.”

"This massive methane boost will have major implications for global economies and societies. Much of those costs would be borne by developing countries in the form of extreme weather, flooding and impacts on health and agricultural production," says Professor Peter Wadhams of Cambridge University, one of the authors of the study.

The poorer economies of Africa, Asia, and South America are expected to be impacted the most by all this. But since we live in a global economy, like a stone cast into a pond – the ripple effects can stretch across oceans.

"Neither the World Economic Forum nor the International Monetary Fund currently recognize the economic danger of Arctic change. [They must] pay much more attention to this invisible time-bomb. The impacts of just one [giant "pulse" of methane] approaches the $70-tn value of the world economy in 2012,” says Professor Gail Whiteman of the Rotterdam School of Management, another author involved in the study.

Shipping companies are preparing to deploy a record number of vessels across the north of Russia later this year in order to tap into the natural gas and oil preserves. The new Northern Sea Route uses the Bering Strait between Siberia and Alaska and is only passable a few months out of the year with an icebreaker. This shorted trip slashes travel costs up to 40%!

It’s only a matter of time until one of the drilling operations opens up a massive pocket of methane gas and releases the “pulse” scientists are waiting for.

NRGLab would prefer if we didn’t have to trek all the way up to the artic for a fuel that could wind up costing us TRILLIONS in oversight. That’s why we’ve developed a number of alternative energy programs that are not only cost-effective, but renewable and reliable as well. For more information on NRGLab, visit nrglab.asia.