As Polar Ice Turns to Water, Dreams of Treasure Abound

NYTIMES ^ | 10/10/05 | CLIFFORD KRAUSS

[Pikamax]

As Polar Ice Turns to Water, Dreams of Treasure Abound By CLIFFORD KRAUSS, STEVEN LEE MYERS, ANDREW C. REVKIN and SIMON ROMERO

This article is by Clifford Krauss, Steven Lee Myers, Andrew C. Revkin and Simon Romero.

CHURCHILL, Manitoba - It seems harsh to say that bad news for polar bears is good for Pat Broe. Mr. Broe, a Denver entrepreneur, is no more to blame than anyone else for a meltdown at the top of the world that threatens Arctic mammals and ancient traditions and lends credibility to dark visions of global warming.

Still, the newest study of the Arctic ice cap - finding that it faded this summer to its smallest size ever recorded - is beginning to make Mr. Broe look like a visionary for buying this derelict Hudson Bay port from the Canadian government in 1997. Especially at the price he paid: about $7.

By Mr. Broe's calculations, Churchill could bring in as much as $100 million a year as a port on Arctic shipping lanes shorter by thousands of miles than routes to the south, and traffic would only increase as the retreat of ice in the region clears the way for a longer shipping season.

With major companies and nations large and small adopting similar logic, the Arctic is undergoing nothing less than a great rush for virgin territory and natural resources worth hundreds of billions of dollars. Even before the polar ice began shrinking more each summer, countries were pushing into the frigid Barents Sea, lured by undersea oil and gas fields and emboldened by advances in technology. But now, as thinning ice stands to simplify construction of drilling rigs, exploration is likely to move even farther north.

[Pikamax]

7 bucks for a port.. That is good business.

[Americanwolf]

For the Gentleman that bought it, it is great business... for the Government of Canada.... Well lets just say they did not learn the lesson of the Louisiana Purchase... They went the route of France... giving up a gold mine for a song!

[Americanwolf]

For the Gentleman that bought it, it is great business... for the Government of Canada.... Well lets just say they did not learn the lesson of the Louisiana Purchase... They went the route of France... giving up a gold mine for a song!

[Americanwolf]

sorry bout the double post.

[muawiyah]

It's a gamble on Global Warming ~ however, the cold, hard facts of Arctic life are that we haven't been up there measuring the ice long enough to know what its normal cycles might be.

[Alberta's Child]

His port is basically worthless no matter how much the earth warms. A port on a "shorter sea route" has no value unless it is located in a major consumer market or has good landside road or rail access.

Nobody is going to change their shipping plans just because Churchill is a bit warmer than it used to be.

[Enchante]

...Churchill could bring in as much as $100 million a year as a port on Arctic shipping lanes shorter by thousands of miles than routes to the south

Well that all depends upon whether it's connected to anything.... rail line?? Who is going to ship anything there and what is the end destination??

[penelopesire]

Perhaps it is time to 'speculate' on the next coastal region..Las Vegas...lol

[Hank Rearden]

A port on a "shorter sea route" has no value unless it is located in a major consumer market or has good landside road or rail access.

Or a really great bordello/bar.

[elmer fudd]

You're probably right, but for 7 bucks it seems like a pretty good gamble.

[taxesareforever]

7 bucks for a port.. That is good business.

I don't know. I pay less than that for a six pack of beer.

[Paleo Conservative]

It's a gamble on Global Warming ~ however, the cold, hard facts of Arctic life are that we haven't been up there measuring the ice long enough to know what its normal cycles might be.

But for $7 it's not a bad gamble.

[opinionator]

lured by undersea oil and gas fields

Now we know why Bush didn't sign Kyoto. He wanted to reward Big Oil.

[Alberta's Child]

LOL.

[Alberta's Child]

Good point.

Though I wonder what the guy actually owns right now. Does he have a legal title to a piece of land, or does he own some kind of exclusive operating rights to the "port?"

[conservative in nyc]

According to the article, he owns both the port and a rail line that connects to much of the Midwest and down Mexico way. He bought the port because he owned the rail line. I think he owns the port outright. He spent $50 million upgrading the formerly nationalized rail line.

He refused to be interviewed for the article.

[My Right Foot]

I don't know anything.

But my father was stationed at Thule, Greenland for 4 years (out of his 16 with the USAF) as a radar tech.

He's 72 and has so many stories. Things they uncovered, blips on the radar screen estimated at 16k mph... and stuff he still won't talk about.

[Enchante]

Thanks, I zoned out before I got to the end of the article.... so maybe the port at Churchill will be able to provide business for his rail line and vice-versa, but sounds like they still have a long way to go to see any boomtown years....

[okie01]

His port is basically worthless no matter how much the earth warms. A port on a "shorter sea route" has no value unless it is located in a major consumer market or has good landside road or rail access.

Churchill has direct rail access to the Midwest, with connections via Winnipeg. It would thus be competitive with any Great Lakes port.

Broe bought the port of Churchill, because he already owned the railroad that went there...

[ccmay]

blips on the radar screen estimated at 16k mph

What's more likely, a craft traveling 16,000 mph, or a malfunctioning radar?

-ccm