Iceland is one of the youngest countries on Earth in geologic terms. That means they have no fossil fuel resources. But like other developed countries, they are heavily dependent on petroleum which must be imported at high prices (gasoline is about $8 a gallon). Today they are working hard to eliminate that dependency by developing alternative energy.
The geological processes that are still forming the country also create a vast resource of geothermal power - it is being widely used for heating and generating electricity.
The electricity can be used for producing hydrogen fuel for vehicles and machinery. Hydropower is also important, but the recent construction of large dams has been very controversial because of the wildlife habitat that is destroyed by the impounded lakes.
Hydrogen powered bus in Reykjavik.
Power lines cross a fjord in northwest Iceland
Major oil companies are prominent - Esso and Shell, and others
Much of Iceland is a subarctic desert. The desolate central portion of the country is essentially uninhabited and the life of the country is limited to the periphery. Because of the stormy climate much of the potential farmland is waterlogged. It can be made productive for agriculture by digging trenches such as this one, 3 or 4 meters wide and 2 or 3 meters deep. They drain the land to create pastures where forage and food crops can be produced.
Drainage trench in a farm field.
Looking over a golf course north of Reykjavik. The eroded lava creates a fertile soil if you can find the right spot,
Although Iceland is a rich, developed country, the population is small in comparison to the area of the island. So they do not have a national budget adequate for for extensive road construction. Many rural roads, even some fairly important ones, are still narrow bulldozer scratched paths across the mountains or along the steep sides of fjords. They are being improved but in many areas there are still no such luxuries as guard rails or pavement!
Gravel road cut along the side of a fjord. This is essentially a view back at where you were driving 40 km ago!
Fairly typical of many roads in the rural areas! One roadsign announced a 16% grade. The penalty for speeding or careless driving is much more severe than a fine -- it could mean a quick 200 meter flight into the fjord!
Other than water and
geothermal power (geysir, above), resources are scarce on this remote island. Fishing has been important for centuries (including whaling which is still carried out, though controversial). There is some argument about how much of the island was forested in prehistoric times, but it was certainly not more than 50%. Today there is very little forest, and reforestation efforts have not been universally supported. Along the coasts there is a tradition to collect large driftwood tree trunks which form a useful source of timber.
As in Hawaii, the native fauna is impoverished. There are no native predators, snakes, large herbivores, etc. The principal land animals are the sheep and the famous Iceland horses. There are some caribou (reindeer) imported from Europe in the 1700s which are established in the wild interior.
Salvaged driftwood on the shore at Hrutafjordur
Grundafjordur Harbor
Island sheep - they wander loose on the roads, but are mostly wary of strangers and vehicles.
Reconstruction of a medieval Icelandic farm, based on an adjoining archeological site believed to be the farm of Eric the Red, first European to explore the American coast.
Earth covered house in Northwest Iceland.