Across the globe, reserves of oil and gas that were previously regarded as uneconomical are being actively explored and developed. From the Arctic to East Asia to the South Atlantic, untapped billions of barrels of oil are attracting the interests of energy companies and speculative finance capital, seeking to take advantage of the high price of crude oil.

One of the greatest potential oil and gas bonanzas is to be found beneath the Arctic Ocean. A report issued by the United States Geological Survey (USGS), 24 July estimated that the Arctic region holds around 90 billion barrels of oil—equal to the total proven reserves of Russia, the world’s second biggest oil producer.

Up to 30 percent of the world’s unproven natural gas deposits could also lie beneath the ice, as well as a possible one-fifth of untapped reserves of natural gas liquids. To date, most of the Arctic Ocean is international water, covered all year by a thick ice sheet.

Russia, like all countries around the North Pole, claims sovereignty over the seas up to 200-nautical miles (370 km) from its coast. To reinforce its claim over a further swathe of the Arctic, in 2007 a scientific submarine dropped the Russian flag under the North Pole as part of a geological survey of the seabed.

Russia recently confirmed that it regularly sends a fleet of around eight nuclear-powered ice-breakers to patrol in the Arctic Ocean. The vessels are capable of ploughing through eight-foot thick ice and can stay at sea for months on end.

Russia’s increased activity in the Arctic has raised concerns in Washington that it is losing out in the race for control over the region. Coast Guard Commandant Admiral Thad Allen commented on Russia’s ice-breaker activity in the Arctic.

Just another confrontation with Russia in the making.  Between oil and missiles, there whole chest thumping thingy is just the beginning of yet another “Cold War”, only there will be a new name for the same types of stand-offs.