From whale to crude oil: Lessons from the North American Arctic

The Arctic is considered as potential region for energy extraction as it holds vast reserves of hydrocarbons and the region is being targeted for resource development. However, the current trend toward development is not the first time that oil has been extracted from the Arctic. This empirical and theoretical investigation is based on the experiences of the whaling industry that operated in the Arctic over a century ago and extrapolates these experiences to the obstacles faced in contemporary development, identifying lessons that can be learned through historical comparisons of economic and resource development. This article considers the theory of peak production, cost-benefit analysis, the role of technological development and finally the regulatory environment in the development of the oil industry in the environmentally challenging, but possibly profitable, Arctic region.