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COVER STORY

Brightly painted houses, icebergs and slanting roofs on the Arctic Island of Uummannaq in a fjord off the west coast of Greenland

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Nuuk, capital city of Greenland. With 17,834 residents, it is one of the smallest capital cities in the world by population.

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The largest island in the centre of the island into a basin 1,000 world, Greenland straddles the indistinct feet (approximately 300 metres) below line separating the North Atlantic Ocean sea level. Were the Greenland ice sheet from the Arctic Ocean, dwarfing most of to melt, sea levels would rise about seven its neighbours, including Newfoundland metres or 23 feet, wiping out just about to the southwest. On Google Earth, every major city on the planet. Greenland stands out as the largest But Greenland is more than just ice. white spot on the globe this side of With its new world geography (in recent Antarctica, like a pristine piece of ragged years there’s been a movement afoot to paper against the rough and rugged strip Cape Spear of its designation as the blues and greens that surround it. That’s easternmost point of North America because of the Greenland ice sheet, because many geologist consider which covers 80 per cent of the island. Greenland part of this continent), and The second largest in the world and old world history (it was settled by 110,000 years old, the ice sheet is 2,400 Vikings a millennium ago and is still a kilometres long and 1,100 kilometres protectorate of Denmark), you could say wide. At over two kilometres thick, it’s Greenland is the biggest piece of Europe so heavy that it has compressed the in North America. And changes are

The flag of Greenland was designed by Greenland native Thue Christiansen. The large white section in the upper half symbolizes Greenland’s ice cap; the red part in the circle represents the country’s fjords; the white part of the circle symbolizes ice bergs and pack ice; and, the large red section in the bottom half of the flag represents the ocean. The flag is an apt symbol for Greenland’s perceived economic future, which includes harvesting the country’s unproven offshore petroleum resources. Newfoundland companies hope their ice avoidance expertise will assist in that development.

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Greenland (shown here in the summer) is thought to hold substantial reserves of offshore oil deposits. Exxon, Husky and Chevron were among the 42 companies who qualified under the latest round of bidding to explore that potential.

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coming to the island’s politics and Right: Jakob Edvard Kuupik Kleist was elected Prime Minister of Greenland in economy as surely as they’re coming to 2009. His government hopes that oil and its climate. Greenlanders are preparing gas development will be their country’s to write their own ticket on that vast ticket to prosperity. (Photo: Inuit Ataqatigiit website) white expanse. In a 2008 referendum, Greenlanders voted for greater autonomy from Denmark. The new Self-Rule, a more independent version of the previous Home-Rule, came into effect in June 2009 and means that the island is now responsible for its own judicial affairs, policing and natural resources. That wasn’t the only change last year. Prime AdvancingA d v a n c i n g RReservoire s e r v o i r PerformanceP e r f o r m a n c e Minister Hans Enoksen, whose Social Democrat party had formed the government for the past 30 years, called an election to coincide with the new freedom and was promptly turfed out of office. Now, from the capital city of Nuuk, new Prime Minister Kuupik Kleist, along with the other members of his left-wing Inuit Ataqatigiit (Greenlandic for Community of the People) party, is prepared to lead Greenland’s 57,000 inhabitants into the future. Newfoundland and Labrador may be in a position to help them achieve that goal. Newfoundland and Greenland have much in common. They are islands with a centuries’ old fishing-based economy, whose cultures were tempered in the unforgiving latitudes of the North Atlantic. The Inuit people of northern Labrador share a common ancestry with those of Greenland and their language and culture are strik- ingly similar. Recent exploration has shown another point of similarity: like Newfoundland, Greenland appears to have vast reservoirs of underwater oil AdvancingAdvancing RReservoireservoir PPerformanceerformance deposits off its coastline. With their newly established control over natural BakerBaker HughesHughes offersoffers regionalregional resourcesresources andand worldwideworldwide expertiseexpertise resources, these oil fields are seen by fforor Canada’sCanada’s EastEast CoastCoast ﬁelds.ﬁelds. OurOur concernconcern forfor hhelpingelping youyou reducereduce many as Greenland’s ticket to pros- ccosts,osts, minimizeminimize risksrisks andand increaseincrease youryour pproductionroduction isis matchedmatched byby perity, a refrain familiar to every a commitmentcommitment toto health,health, safetysafety andand thethe environment.environment. . 8 9

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unreliable system at best. To improve capacity, because of the double link, to education, fishing technology and data things, TELE Greenland (the country’s meet all of Greenland’s broadband intensive oil communication like seis- state-owned telecom provider) decided needs. And of course the benefits work motic data.” He reels the list off quickly. to install a submarine fibre optic cable, both ways. Through Greenland and It’s obviously something he’s put a lot of which would run east to Iceland, where it Iceland to Copenhagen, Newfoundland thought into. could link in with the hookup to Europe, now has the fastest connection to Europe He sees the new fibre optic link as and west to Newfoundland to connect to in North America, a connection that no merely the start when it comes to North America. longer has to be funnelled through New Greenland’s potential interest for In September 2009, TELE Greenland’s York, as was previously the case. Newfoundlanders and Labradorians; subsea cable station was opened in Milton Meanwhile, Memorial University of and the key to unlocking that potential is on Newfoundland’s Trinity Bay, not very Newfoundland is playing a significant natural resources. far from Heart’s Content where the first role in one of the most advanced data The Greenland government is actively transatlantic telegraph cable came ashore transfer networks in the world. The soliciting oil exploration and drilling in 1866. IceLink project is an ultra high-speed bids through Nunaoil, the government- Jeff Howard is a managing partner in research circuit linking Canada and the owned national oil company. In the last Boomer Broadband, the company that United States directly to the Nordic round of bidding 42 companies quali- was responsible for building the Milton countries of Europe through the fied, including Exxon, Husky, Chevron station and coordinating the connection Greenland connection. The network will and many of the other players in between Greenland and Newfoundland. allow greater communication and data Newfoundland’s oil industry. This He explains that it was Newfoundland’s sharing between Canadian researchers summer, a year earlier than originally somewhat controversial second fibre and scientists at universities, hospitals announced, Edinburgh-based Cairn optic link to Nova Scotia, laid in the fall and other research centres and the rest of Energy will begin drilling in the Disko of 2007, that attracted Greenland. the world. Basin, a field to the west of Greenland Newfoundland is physically close to That fits in with Howard’s vision of believed to contain 7-to-8-billion barrels Greenland, but without that fibre optic the importance of the cable link. “We of oil. link it might well have been bypassed. can leverage that fibre optic link beyond As Howard explains it, Newfoundland However, Newfoundland had enough our cultural connection into healthcare, has already developed great supply

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THE GREENLAND GOVERNMENT IS ACTIVELY SOLICITING OIL EXPLORATION AND DRILLING BIDS THROUGH NUNAOIL, THE GOVERNMENT-OWNED NATIONAL OIL COMPANY. IN THE LAST ROUND OF BIDDING 42 COMPANIES QUALIFIED.

infrastructure for North Atlantic oil scouring and the disruption of subsea resupply in St. John’s, saving a lot of extraction. In the same way that equipment as well as what are manage- money as well as time. And though it Norway and Aberdeen became players able risks.” may be only a minor advantage, in Newfoundland in the 1980s, by That experience, plus the fact that Newfoundland standard time is only half getting in on the ground floor, so too can many of the oil companies interested in an hour different from Greenland time. Newfoundland become a player in Greenland have already established rela- However, Cadigan warns against Greenland’s nascent oil industry. tions with Newfoundland companies, complacency. “Here we’re protected by Bob Cadigan, president and CEO of could be enough to put Newfoundland the Atlantic Accord, but we’d be NOIA (Newfoundland and Labrador Oil ahead of the pack. competing internationally in Greenland and Gas Industries Association) agrees. Newfoundland also has an advantage and the competition is very heavy.” “We have a very vibrant supply and in its proximity to Greenland. A supply Cairn’s drill ship is coming from the service sector and we’ve pioneered Arctic ship could do a return run from St. Gulf of Mexico and the semi-submersible work, especially in ice monitoring and John’s to Greenland in 11 days with one originates in Scotland. Cadigan contends ice management. We have experience in day for unloading. A similar trip from that point of origin influences where our own environment and in drilling on Aberdeen, for example, would take 17 backup and support are sought. the Labrador shelf in the 1980s and so days. That means companies can keep Nonetheless, he remains optimistic that we know about impediments like iceberg one less boat on the route if they Newfoundland can have a significant

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“HERE WE’RE PROTECTED BY THE ATLANTIC ACCORD, BUT WE’D BE COMPETING INTERNATIONALLY IN GREENLAND AND THE COM- PETITION IS VERY HEAVY.” Bob Cadigan, president and CEO NOIA

role to play in the development of embryonic stage, but there’s some inter- forward. And, of course, any expertise Greenland’s oil industry, believing that esting potential and we’re willing to Newfoundland develops through its work even if companies initially do not have support our industries and help with in Greenland can only help the province to plans to use the resources available in trade missions and exploration in position itself as a major player and Newfoundland, they will end up using Greenland.” provider as the rest of the Artic gradually them eventually. “We have two advan- Skinner sees opportunities that stretch opens up for exploration and exploitation. tages,” he says firmly. “Where we are, beyond servicing the oil industry. He Newfoundland and Labrador’s connec- and our harsh environment expertise.” talks about housing, mining, forestry and tion with Greenland hasn’t always been a Certainly the provincial government even boat-building as niches that happy one, however. In December 2004, seems willing to contribute towards Newfoundland companies can poten- vessels from Greenland and the Faroe developing closer ties between the two tially fill. “This is a long term proposi- Islands, a Danish province in the North North Atlantic islands. Trade Minister tion,” he concludes. “We’re planting the Sea, were banned from docking in Shawn Skinner sees Greenland as fitting seeds for 10 to 15 years from now.” Canadian ports because of their into a scheme whereby Newfoundland There have been a number of visits to refusal to follow shrimp quotas set by and Labrador is able to position itself as Newfoundland from Greenlanders who the Northwest Atlantic Fisheries a northern gateway as well as an eastern see Newfoundland as a model for their Organization (NAFO). The ban, which one. “This is an opportunity and we future development. There’s no doubt they caused some economic hardship in those have to make some investments,” he are interested in what Newfoundlanders Newfoundland ports where the vessels says. “We’re still very much in the have to teach them as they move routinely unloaded and processed their

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catches, remained in place for just over three years before being lifted in March 2008 and reinstated again in February 2010. Still, the current excitement in Newfoundland business circles about doing business with Greenland is palpable. Although companies are leery about putting facts into print it’s no secret that several companies with experience in supplying and servicing the domestic oil industry are in negotiations for contracts with Cairn Energy and other companies setting up shop in Greenland. At one time it seemed that the only thing Greenland had to offer Newfoundland and Labrador was the procession of icebergs that calved off its ice sheet every spring to parade past the province’s shores. At first glance that hardly seems like a blessing, but Newfoundlanders eventually saw the waterborne giants’ annual arrival as an opportunity. Cleverly touted, icebergs were transformed into tourist magnets and those that were not sufficiently picturesque were harvested for designer water and specialty spirits, wines and beers. What began as a liability became something else entirely. It wasn’t a complete solution to the problem, of course. As they trundled south many icebergs ended up threatening the offshore oil fields so crucial to Newfoundland’s current prosperity. But, ever resourceful, Newfoundlanders became expert at managing them and working under trying conditions made even more hazardous because of their menacing presence. The North Sea has pretty bad weather and the Bering Sea has some character- istics similar to those found here, but the biggest concern about drilling in Greenland is icebergs and they are unique to these waters; just as Newfoundlanders are unique in their ability to deal with them. It’s ironic that those very icebergs which were viewed as a menace for so many years may have become the province’s best friends, giving Newfoundland companies the edge they need to compete against an array of international players in a setting they’ve become experts at not just surviving, but thriving, in – the waters of the North Atlantic Ocean.

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