It's Not Just Spills- the Climate Risks of Arctic Drilling. Royal Dutch Shell is set to begin drilling in the Arctic waters off Alaska beginning next month, assuming the Obama Administrations doesn't hold off on needed permits at the last-minute. (With President Obama fighting for re-election-and fighting the charge that he's anti-energy-don't bet on it.) That has environmentalists extremely unhappy. As global warming-ironically-opens up once-iced over parts of the Arctic waters to drilling rigs, greens worry that a spill in the hostile environment of the far North is as inevitable as it would be devastating. Shell and other oil companies interested in the Arctic argue that they'll be taking extra precautions in the Arctic, and note that they'll be drilling shallow, low-pressure wells that are less likely to blow out than the deepwater well that caused BP's 2010 Gulf oil spill. But a new report by the NGO Clean Air Task Force (CATF) shows that an oil spill isn't the only risk that Arctic drilling poses to the environment. Methane and black carbon, two potent greenhouses gases, will likely be emitted in significant amounts if drilling in the Arctic proves as lucrative as many oil companies are hoping for. Exactly how much additional greenhouse gas will be released by the production of Arctic oil isn't clear-and depends on whether drillers and regulators take steps to reduce the warming side effects of drilling. "It's ironic that climate change has led to the opening of the Arctic for drilling, but we aren't paying much attention to the climate change that drilling will help cause," says Jonathan Banks, senior climate policy advisor for CATF and the author of the report. TIME 

Arctic Council to Convene Business Dialogue. The Arctic Council will convene its first-ever "Business Dialogue" (Reykjavik, 17 September, 2012) to engage responsible industry interaction via its Sustainable Development Working Group. The day before, the World Ocean Council will hold an "Arctic Business Community" meeting (Reykjavik, 16 September, 2012) to develop coordinated, multi-sectoral input to the Business Dialogue from shipping, oil and gas, fisheries, aquaculture, tourism and other industries. Gustaf Lind, Sweden's Ambassador for the Arctic, and Chair of the Senior Arctic Officials of the Arctic Council, emphasized that, "The changing Arctic is creating new opportunities for transport, mining, tourism and many other activities. Sustainable development requires socially and environmentally responsible companies who recognize the challenges and responsibilities of operating in this unique and sensitive region." He added that, "Until now, there has been no structure or process for dialogue between the business community and the eight Arctic governments - nor has there been a forum for multi-sectoral collaboration among responsible companies with interests in the Arctic." Maritime Executive 

Canadian Arctic: "A Litany of Missed Opportunities." The Arctic presents 'unprecedented' opportunity for companies, especially in petroleum and mineral resources, but also comes with signficant risks as the area goes through rapid climate change, says Charles Emmerson, Senior Research Fellow, Energy, Environment and Resources at Chatham House and author of the book The Future History of The Arctic. Mr. Emmerson spoke to Financial Post, about where Canada is placed in the great race for Arctic resources. Mineral and hydrocarbon resources in the Arctic has been well-documented for decades. So what's driving the new surge in interest - is it climate change? Climate change and the change in ice coverage in Arctic is really an enabling factor for Arctic exploration for oil and gas. But it is not the key driver. If you look at early periods of exploration and exploitation of Arctic oil and gas, for example, in the 1970s and 1980s, it wasn't because of tremendous change in environmental conditions, it was because the price was right for oil and gas. Financial Post  

Canada Orders 7 Patrol Ships, But Are They The Best For Arctic Waters? Canada's Arctic/Offshore Patrol Ships (AOPS) have been in the pipeline for five years. Now, Prime Minister Stephen Harper's government has signed a CAN $9.3 million contract with the Nova Scotia-based Irving Shipbuilding to begin work on the vessels. It's an important first step, as for a while the number of AOPS that Canada would acquire was in flux. However, the amount of money represented by the contract is quite small, as the ships are estimated to cost $3.1 billion to acquire and a another $4.3 billion to maintain. With the funding from the initial contract, Irving Shipbuilding will review the existing blueprints for the AOPS and begin working on an execution strategy. Alaska Dispatch 

Arctic Drilling is Expensive. Ask the Coast Guard. Royal Dutch Shell is one of six energy companies hoping to begin drilling for oil and gas in the Arctic next month, and the U.S. Coast Guard is billions of dollars short of what it needs to monitor and protect those operations, according to a report. According to a joint report by the Congressional Research Team and the Coast Guard, it lacks the necessary communication and navigation systems for the Arctic, and will need at least $3 billion invested in new vessels and equipment, if it hopes to function effectively within the cold, rough seas of the area. CNBC News