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Global warming is opening new doors of business for oil and shipping companies in far north. Melting Arctic is making the previously impenetrable sea routes available to commute.

Global warming has always been considered bad and harmful for the environment and those living on the planet earth. And everybody is quite aware of this fact. But one industry group, comprising of oil and shipping industries, sees an opportunity, and not a danger, in increasing temperature of the world.

The US Arctic Research Commission released a report at a summit of Arctic scientists in Germany’s Hanover in the March second week. On March 19, 2007, nzherald.co.nz published a précis of the report. The Commission’s report, that is prepared for the President George W. Bush and Congress, blamed global warming for melting Arctic, the icy habitat of polar bears. Because of melting, the Arctic could prove extremely beneficial to the oil and shipping industries in far north. The prominent drop of sea ice above the Arctic Circle implies the sea routes that were impassable before are now or very soon could be open for commutation for most part of the year.

“Diminishing sea ice conditions in the Arctic Ocean are changing ecosystems, most conspicuously for polar bears. This also creates unprecedented access for ships that will bring people to the north, and will significantly shorten global marine transportation routes”, says the report as reported by kuwaittimes.net on March 19, 2007.

The Commission’s report is being taken as a plan course for the years 2007 and 2008. The biennial report concurs with the International Polar Year, a global scientific undertaking.

The report highlights that apart from benefits to shipping industry, there are gains for the oil industry also. Drilling in the Arctic region would provide the opportunity for oil exploration and it’s estimated that around 25% of the remaining oil and gas reserves of the world are deposited here. It also points that approx 50% of the fish consumed in US is supplied by the Bering Sea off the Alaskan coast.

The Commission has allegation of recommend an integrated US policy for research in the Arctic region. The budget for the research on Arctic is around $400 Million, equivalent to the spending on Antarctic research by US.

Press release: “K” Line announces shift to Low Sulfur Fuel in the Pacific Northwest
   
Kawasaki Kisen Kaisha, Ltd. (”K” Line), one of the world’s largest ocean transportation companies and an industry leader in environmental stewardship, announced that all container vessels in “K” Line’s Pacific Northwest service, calling at Tacoma, WA and Vancouver, B.C. will use low sulfur fuel in auxiliary machinery while the vessels are docked at Pacific Northwest ports. 
   
All containerships in “K” Line’s NOWCO-A service will be shifting to distillate fuel with a target level of 0.5% sulfur or less. This distillate fuel will be used in the ships’ generators, which supply power to the ship while the ship is docked. The switch to distillate fuel will generate significant emission reduction of sulfur oxide (SOx) and particulate matter (PM). Sulfur oxide emission is expected to be reduced by 80% and PM emission is expected to be reduced by 70%. 
   
“The Puget Sound region is in compliance with federal air quality standards today,” said Port of Tacoma Executive Director Timothy J. Farrell. “As we continue to benefit from the growth of international trade, voluntary actions like “K” Line’s will ensure that our region continues to be a great place to work and a great place to live.”
   
Dennis McLerran, the Executive Director of the Puget Sound Clean Air Agency, expressed his support for the announcement when he stated, “We greatly appreciate “K” Line’s shift to low sulfur fuels  while its vessels are in port in Tacoma and Vancouver.   This will result in very large emission reductions and provide  significant public health and environmental benefits. “K” Line’s decision to  switch to much cleaner fuels  on a voluntary basis demonstrates the company’s continuing  leadership in environmental stewardship.” 
   
The voluntary move to distillate fuels is just one step in “K” Line’s global environmental strategy. Other Pacific Northwest initiatives included last year’s switch to biodiesel use in all yard equipment at Husky Terminal in Tacoma, WA (jointly owned by Cooper/T. Smith, Inc. and International Transportation Service Inc., a wholly owned subsidiary of “K” Line). “K” Line has already implemented the use of low sulfur fuels for auxiliary machinery aboard Pacific Southwest vessels and “K” Line is a proud recipient of the Port of Long Beach’s Green Flag Award in each year since its inception. 
Ships operated by the “K” LINE Group made 345 callings at Port of Long Beach with a 99.13% compliance rate during 2006 which is the highest among the carriers with more than 200 calls during 2006.
   
“K” Line’s decision to use low sulfur fuels at Pacific Northwest ports is further evidence that the “K” LINE Group is firmly committed to exert ceaseless efforts towards environmental preservation. Further details on “K” Line’s environmental strategy may be found in “K” Line’s Annual Corporate Social and Environmental Report.
 
    
“K” Line is an ocean transportation company operating over 400 vessels in world wide service. “K” Line is listed on the FTSE4 Good Environmental Index and is a member of the Clean Cargo Working Group.
 
   
   
For further information, please contact: 
   
Chris von Kannewurff
Group Vice President, Marine Technical Division
TEL: 804-560-3686 FAX: 804-560-2567
“K” Line America Inc.
   
Hiroshi Nishiyama
General Manager, Container Transport Management Group
TEL: 81-3-3595-5300 FAX: 81-3-3595-5289 
   
Takashi Watanabe
Manager, Environment Team, Marine Safety Administration Group
TEL: 81-3-3595-5667 FAX: 81-3-3595-5153
   
Kawasaki Kisen Kaisha, Ltd.