Arctic ice has shrunk to the lowest level on record, new satellite images show, raising the possibility that the Northwest Passage that eluded famous explorers will become an open shipping lane.

The European Space Agency said nearly 200 satellite photos taken together this month showed an ice-free passage along northern Canada, Alaska and Greenland, and ice retreating to its lowest level since such images were first taken in 1978.

The waters are exposing unexplored resources, and vessels could trim thousands of miles from Europe to Asia by bypassing the Panama Canal. The seasonal ebb and flow of ice levels has already opened up a slim summer window for ships. Meanwhile, environmentalists fear increased maritime traffic and efforts to tap natural resources in the area could one day lead to oil spills and harm regional wildlife. A U.N. panel on climate change has predicted that polar regions could be virtually free of ice by the summer of 2070 because of rising temperatures and sea ice decline, ESA noted.

Russia, Norway, Denmark, Canada and the United States are among the countries involved in a race to secure rights to the Arctic that heated up last month when Russia sent two small submarines to plant its national flag under the North Pole. A U.S. study has suggested as much as 25 percent of the world's undiscovered oil and gas could be hidden in the area.

The U.S. sees competition and potential conflict in Arctic, as the stakes are high because of the area’s importance for the global maritime industry. The US Navy, Marine Corps and the Coast Guard recently formed a stategy, the new US Cooperative Strategy for 21 Century Seapower, highlighting the need for enforces US presence on the world’s seas.

The Cooperative Strategy for 21 Century Seapower describes upcoming challenges in the Arctic.''Climate change is gradually opening up the waters of the Arctic, not only to new resource development, but also to new shipping routes that may reshape the global transport system. While these development offer opportunities for growth, they are potential sources of competition and conflict for access and natural resources'', the document reads.

The strategy, which was signed by the leaders of the US Navy, Marine Corps and the Coast Guard this October, concludes that the Sea Services need to''evolve an expanded range of integrated capabilities to achieve enduring national strategic objectives''.

The strategy''does not presume conflict but instead acknowledges the historical fact that peace does not preserve itself'', the document reads.

Norway won't plant flag at Arctic

On the other hand, Norway will not follow in the footsteps of the Russians by planting a flag at the bottom of the Arctic Ocean, Norwegian Foreign Minister Johan Gahr Støre said recently. Despite Norway having planted a flag at the South Pole in 1911, Støre said, ''We now live in a century when that method can't be employed. This issue must be determined with the aid of geological facts in the Commission on the Limits of the Continental Shelf (CLCS) and we have strongly urged the countries around the Arctic to think responsibly. We'll be playing an active role in encouraging greater dialogue.

''The impression which could be left by the flag-planting is that the rule of law doesn't apply in this area, and first-comers can take what they please. That's completely wrong. A rich body of law of the sea applies to the Arctic Ocean, and this is the channel which must be followed.''

Asked about the Canadian statement of intent on building two military bases in the Arctic, he said it was the kind of gesture that invites people to talk about a race for resources, adding, ''It's quite unnecessary to think in military terms here.''

The minister denied that Norway has given up trying to agree a boundary line in the Barents Sea, although the talk today is mostly about cooperation with Russia rather than negotiation.

''This is a big issue, which covers defining a border at sea and will be significant for a number of economic sectors. These talks have a high priority.

Maritime analysts believe that even if the passage is opening up and polar ice continues to melt, it will take years for such routes to be regular. It won't be ice-free all year around and it won't be a stable route all year. The greatest wish for sea transportation is streamlined and stable routes.