The USA and Canada have struck a joint agreement to restrict oil and gas development in Arctic waters, by designating arctic waters as indefinitely off-limits for future oil and gas licenses. In addition, the agreement regulates shipping routes through the newly-navigable waters of the melting Arctic.
The American side of the deal is by presidential decree, and is technically enforceable indefinitely, although it will no doubt be one of the first things that Donald Trump will look at reversing once he holds the reins of power. The Canadian ban on new licenses is reviewable every five years.
Existing licenses, such as those owned by Royal Dutch Shell and others in American waters, and Imperial Oil and BP on the Canadian side, will remain in force, although most are due to expire in the next 5 years or so. As things stand, the economics of oil and the technical difficulties of drilling in the Arctic mean that current licenses are unlikely to be exercised, although that could conceivably change.
Environmentalists are hailing the deal as an important step forward for the environmental integrity of the Arctic, as do I. Although forgive my cynicism if I fail to see this as the final word on the subject.
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