The Battle for the North Sea Oil (1)

The "North Sea oil" is a commercial term referring to a particular type of petroleum extracted from ocean floor of the North Sea. This type of petroleum is a hydrocarbon mixture that mainly consists of liquid oil and volatile natural gas, both valuable resources of interest for many nations neighboring the North Sea. While there has always been a considerable degree of international conflict regarding the ownership of this oil-rich zone, the competition among the European corporations has recently escalated dramatically to the point at which the serious governmental intervention became a dire necessity.

Currently, at least five major European oiling corporations are operational in the North Sea, dividing up the region into roughly five distinct, exclusive commercial zones. Apparently, these corporations all work in a very close relationship with their own respective governments, and it is therefore inevitable that national strength becomes a key factor in supporting a corporation to actively claim maximal area of interest. In the 1990s, the series of fluctuation in international oil price as a result of various political conflicts and wars in the Middle East alarmed major European powers such as UK and Germany, which then suddenly turned to a smaller yet still sufficiently profitable market of the North Sea oiling. This advent of such enterprise by larger, wealthier nations largely explains the source of conflict that continues even at this moment, as the traditional oilers of the North Sea, including Norway, Netherlands, and Denmark cannot directly confront those superpowers in economic competition.

Consequently, today the mighty British oiling companies have secured the largest assigned area at the North Sea, their dominion larger than those of Norway and Denmark combined. The British government claims that granting an enormous amount of subsidies to assist its own oiling companies in their venture is simply a natural component of its capitalistic economy, yet it is clear that a degree of discontent has been reaching a dangerous point among the competitors whose dominion has been reduced. As a drastic instance, in June 1999 the Norwegian Petroleum Directorate (NPD) extended the boundaries of its northern dominion toward British coast line without prior notice made to the British government. Although NPD soon explained that such transgression was a mere result of error in re-calculating and adjusting the original boundaries, an apology was never given to the British government; hence the feelings of distrust and frustration seem to be remaining, and no one knows whether a similar case of conflict in near future would end up involving military actions or not. In many ways, this gloomy veil of conflict over the North Sea represents the shadowy side of a capitalistic economy backed up by intensive governmental support and intervention, deeds that prioritize national benefit far more than a need for diplomatic peace and equilibrium of power.