Breaking the Ice: Mapping a Changing Arctic
The Arctic is changing. As retreating ice cover makes this region more accessible, nations with Arctic real estate are thinking of developing these subzero landscapes and the resources below.
As the Arctic evolves, a vast amount of resources will become more accessible and longer shipping seasons will improve Arctic logistics. But with a changing climate and increased public pressure to limit resource development in environmentally sensitive regions, the future of northern economic activity is far from certain.
This week’s Chart of the Week shows the location of major oil and gas fields in the Arctic and the possible new trade routes through this frontier.
A Final Frontier for Undiscovered Resources?
Underneath the Arctic Circle lies massive oil and natural gas formations. The United States Geological Survey estimates that the Arctic contains approximately 13% of the world’s undiscovered oil resources and about 30% of its undiscovered natural gas resources.
So far, most exploration in the Arctic has occurred on land. This work produced the Prudhoe Bay Oil Field in Alaska, the Tazovskoye Field in Russia, and hundreds of smaller fields, many of which are on Alaska’s North Slope, an area now under environmental protection.
Land accounts for about 1/3 of the Arctic’s area and is thought to hold about 16% of the Arctic’s remaining undiscovered oil and gas resources. A further 1/3 of the Arctic area is comprised of offshore continental shelves, which are thought to contain enormous amounts of resources but remain largely unexplored by geologists.
The remaining 1/3 of the Arctic is deep ocean waters measuring thousands of feet in depth.
The Arctic circle is about the same geographic size as the African continent─about 6% of Earth’s surface area─yet it holds an estimated 22% of Earth’s oil and natural gas resources. This paints a target on the Arctic for exploration and development, especially with shorter seasons of ice coverage improving ocean access.
Thawing Ice Cover: Improved Ocean Access, New Trading Routes
As Arctic ice melts, sea routes will stay navigable for longer periods, which could drastically change international trade and shipping. September ice coverage has decreased by more than 25% since 1979, although the area within the Arctic Circle is still almost entirely covered with ice from November to July.
|Northern Sea Route||4,740 Nautical Miles||6 weeks of open waters|
|Transpolar Sea Route||4,179 Nautical Miles||2 weeks of open waters|
|Northwest Passage||5,225 Nautical Miles||Periodically ice-free|
|Arctic Bridge||3,600 Nautical Miles||Ice-free|
Typically shipping to Japan from Rotterdam would use the Suez Canal and take about 30 days, whereas a route from New York would use the Panama Canal and take about 25 days.
But if the Europe-Asia trip used the Northern Sea Route along the northern coast of Russia, the trip would last 18 days and the distance would shrink from ~11,500 nautical miles to ~6,900 nautical miles. For the U.S.-Asia trip through the Northwest Passage, it would take 21 days, rather than 25.
Control of these routes could bring significant advantages to countries and corporations looking for a competitive edge.
Competing Interests: Arctic Neighbors
Eight countries lay claim to land that lies within the Arctic Circle: Canada, Denmark (through its administration of Greenland), Finland, Iceland, Norway, Russia, Sweden, and the United States.
There is no consistent agreement among these nations regarding the claims to oil and gas beneath the Arctic Ocean seafloor. However, the United Nations Convention on the Law of the Sea provides each country an exclusive economic zone extending 200 miles out from its shoreline and up to 350 miles, under certain geological conditions.
Uncertain geology and politics has led to overlapping territorial disputes over how each nation defines and maps its claims based on the edge of continental margins. For example, Russia claims that their continental margin follows the Lomonosov Ridge all the way to the North Pole. In another, both the U.S. and Canada claim a portion of the Beaufort Sea, which is thought to contain significant oil and natural gas resources.
To Develop or Not to Develop
Just because the resources are there does not mean humans have to exploit them, especially given oil’s environmental impacts. Canada’s federal government has already returned security deposits that oil majors had paid to drill in Canadian Arctic waters, which are currently off limits until at least 2021.
In total, the Government of Canada returned US$327 million worth of security deposits, or 25% of the money oil companies pledged to spend on exploration in the Beaufort Sea. In addition, Goldman Sachs announced that it would not finance any projects in the U.S.’s Arctic National Wildlife Refuge.
The retreat of Western economic interests in the Arctic may leave the region to Russia and China, countries with less strict environmental regulations.
Russia has launched an ambitious plan to remilitarize the Arctic. Specifically, Russia is searching for evidence to prove its territorial claims to additional portions of the Arctic, so that it can move its Arctic borderline — which currently measures over 14,000 miles in length — further north.
In a changing Arctic, this potentially resource-rich region could become another venue for geopolitical tensions, again testing whether humans can be proper stewards of the natural world.
Mapped: The World’s Nuclear Reactor Landscape
Which countries are turning to nuclear energy, and which are turning away? Mapping and breaking down the world’s nuclear reactor landscape.
The World’s Changing Nuclear Reactor Landscape
View a more detailed version of the above map by clicking here
Following the 2011 Fukushima nuclear disaster in Japan, the most severe nuclear accident since Chernobyl, many nations reiterated their intent to wean off the energy source.
However, this sentiment is anything but universal—in many other regions of the world, nuclear power is still ramping up, and it’s expected to be a key energy source for decades to come.
Using data from the Power Reactor Information System, maintained by the International Atomic Energy Agency, the map above gives a comprehensive look at where nuclear reactors are subsiding, and where future capacity will reside.
Increasing Global Nuclear Use
Despite a dip in total capacity and active reactors last year, nuclear power still generated around 10% of the world’s electricity in 2019.
Part of the increased capacity came as Japan restarted some plants and European countries looked to replace aging reactors. But most of the growth is driven by new reactors coming online in Asia and the Middle East.
China is soon to have more than 50 nuclear reactors, while India is set to become a top-ten producer once construction on new reactors is complete.
Decreasing Use in Western Europe and North America
The slight downtrend from 450 operating reactors in 2018 to 443 in 2019 was the result of continued shutdowns in Europe and North America. Home to the majority of the world’s reactors, the two continents also have the oldest reactors, with many being retired.
At the same time, European countries are leading the charge in reducing dependency on the energy source. Germany has pledged to close all nuclear plants by 2022, and Italy has already become the first country to completely shut down their plants.
Despite leading in shutdowns, Europe still emerges as the most nuclear-reliant region for a majority of electricity production and consumption.
In addition, some countries are starting to reassess nuclear energy as a means of fighting climate change. Reactors don’t produce greenhouse gases during operation, and are more efficient (and safer) than wind and solar per unit of electricity.
Facing steep emission reduction requirements, a variety of countries are looking to expand nuclear capacity or to begin planning for their first reactors.
A New Generation of Nuclear Reactors?
For those parties interested in the benefits of nuclear power, past accidents have also led towards a push for innovation in the field. That includes studies of miniature nuclear reactors that are easier to manage, as well as full-size reactors with robust redundancy measures that won’t physically melt down.
Additionally, some reactors are being designed with the intention of utilizing accumulated nuclear waste—a byproduct of nuclear energy and weapon production that often had to be stored indefinitely—as a fuel source.
With some regions aiming to reduce reliance on nuclear power, and others starting to embrace it, the landscape is certain to change.
Connected Workers: How Digital Transformation is Shaping Industry’s Future
This graphic explores the role connected workers play in achieving successful digital transformation and identifying new growth opportnities.
Connected Workers: Shaping the Future of Industry
Digital transformation has upended businesses on a global scale, and no industry is immune from its powerful effects.
New technologies and enhancing customer experience are key drivers for companies investing in digital transformation, but the most important reason for prioritizing this shift is that it will allow them to leverage entirely new opportunities for growth.
However, with the speed of digital transformation accelerating at a furious pace, companies need to quickly adapt their working environment to keep up. This graphic from mCloud unearths the origins of the connected worker, and explores the potential applications of connected devices across industries.
The Rise of the Connected Worker
The mass adoption of smart devices has sparked a new wave of remote work. This type of working arrangement is estimated to inject $441 billion into the global economy every year, and save 2.5 million metric tonnes of CO2 by 2029—the equivalent of 1,280 flights between New York and London.
However, flexible or remote working looks different depending on the industry. For example, in the context of business services such as engineering or manufacturing, employees who carry out different tasks remotely using digital technologies are known as connected workers.
The term is not a one-size-fits-all, as there are many different types of connected workers with different roles, such as operators, field workers, engineers, and even executives. But regardless of an individual’s title, every connected worker plays a crucial role in achieving digital transformation.
Real Time Data, Real Time Benefits
When workers are connected to assets in real time, they can make better, more informed decisions—ultimately becoming a more efficient workforce overall. As a result, industries could unlock a wealth of benefits, such as:
- Reducing human error
- Increasing productivity
- Reducing dangerous incidents
- Saving time and money
- Monitoring assets 24/7
While connected workers can enhance the potential of industries, the tools they use to achieve these benefits are crucial to their success.
Connected Worker Technologies
A connected device has the ability to connect with other devices and systems through the internet. The connected worker device market is set for rapid growth over the next two decades, reaching $4.3 billion by 2039. Industries such as oil and gas, chemical production, and construction lead the way in the adoption of connected worker technologies, which include:
- Platforms: Hardware or software that uses artificial intelligence and data to allow engineers to create bespoke applications and control manufacturing processes remotely.
- Interfaces: Technologies such as 3D digital twins enable peer-to-peer information sharing. They also create an immersive reflection of surroundings that would have otherwise been inaccessible by workers, such as wind turbine blades.
- Smart sensors and IoT devices: Sensors that monitor assets provide a more holistic overview of industrial processes in real time and prevent dangerous incidents.
- Cloud and edge computing: Using the cloud allows workers to communicate with each other and manage shared data more efficiently.
Over time, connected devices are getting smarter and expanding their capabilities. Moreover, devices such as wearables are becoming more discreet than ever, and can even be embedded into personal protective equipment to gather data while remaining unobtrusive.
Real World Applications
With seemingly endless potential, these devices have the ability to provide game changing solutions to ongoing challenges across dozens of industries.
- Building Maintenance and Management
Facility managers can access real time information and connect with maintenance workers on site to resolve issues quickly. Building personnel can also access documentation and remote help through connected technologies.
- Task Management
Operators in industrial settings such as mining can control activities in remote locations. They can also enable field personnel to connect with experts in other locations.
- Communications Platform
Cloud-based communication platforms can provide healthcare practitioners with a tool to connect with the patient, the patient’s family and emergency care personnel.
By harnessing the power of artificial intelligence, the Internet of Things, and analytics, connected workers can continue to revolutionize businesses and industries across the globe.
Towards a More Connected Future
As companies navigate the challenges of COVID-19, implementing connected worker technologies and creating a data-driven work environment may quickly become an increasingly important priority.
Not only is digital transformation important for leveraging new growth opportunities to scale, it may be crucial for determining the future of certain businesses and industries.
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