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NORTH ALEUTIAN BASIN ENERGY FISHERIES WORKSHOP March 19, 2007 Anchorage, Alaska

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NORTH ALEUTIAN BASIN ENERGY FISHERIES WORKSHOP March 19, 2007 Anchorage, Alaska NORTH ALEUTIAN BASIN ENERGY FISHERIES WORKSHOP March 19, 2007 Anchorage, Alaska 1 P R O C E E D I N G S 2 MR. ALLEE: Well, good morning, if you could 3 take your seats we'll get started with this morning's session. 4 It's going to be an exciting one all the way over to Norway and 5 we've got an interesting panel. 6 Just in terms of brief discussions this morning I'd 7 like to thank you for coming again and I thought yesterday's 8 session was really quite good. We got into some great issues 9 at the end of the day kind of talking about some of the things 10 that were concerning people, that's the sort of thing we want 11 to promote, so we're trying to promote dialogue and discussion 12 and that sort of thing. We're going to continue in that vein 13 today so, again, thanks so much for showing up this morning and 14 we'll get started here. 15 I'd like to introduce the moderator of the panel and 16 that is Jessica Shadian. She just recently got her Ph.D. in 17 Political Science and International Relations from the 18 University of Delaware and she's an associate professor at the 19 High North Center for Business at Bodo University in the 20 graduate school there for Business in Norway. So I would like 21 to introduce Jessica at this time. Jessica. 22 MS. SHADIAN: Thank you. I'm just briefly 23 going to say for one second a little bit about what my research 24 is going to be about because it's basically taking this 25 dialogue today and trying to bring it a step backwards and look 2 R & R COURT REPORTERS, 811 G STREET, ANCHORAGE, ALASKA 1 at it as part of, you know, a theoretical and from an academic 2 prospective because this dialogue is actually part of this 3 larger trend that's taking place in international development 4 and it's, you know, usually regarding natural resource 5 development. 6 And it's this move from government to government that's 7 taking place. And often times you heard the title -- it's 8 discussed in terms of eco system management, stakeholder 9 management, stakeholder governance and basically it's this -- 10 the evolution of power that's going on toward a shared 11 bureaucratic decision making order where assessments emanate 12 from local citizens, local government, private industry, NGOs, 13 as well as state and international political bodies. 14 And these alternative institutional arrangements are 15 based on decentralization, collaboration and citizen 16 participation. And they're especially pronounced when you're 17 looking at regional environmental policies and development. 18 And I think the discussion from the last panel we had 19 yesterday and some of the questions that Judge Stevens (ph) 20 brought up are kind of the heart of what my research is going 21 to be looking at and because he's talking about how this is a 22 new process and so we don't yet understands who regulations and 23 who decides and who facilitates these order processes and so 24 that's really all I just want to, kind of, say about that. 25 And for now, I'm now going to introduce our first 3 R & R COURT REPORTERS, 811 G STREET, ANCHORAGE, ALASKA 1 panel. And our first panel is from Norway. And it's entitled 2 Perspectives on Energy Fisheries Coexistence in Norway. And 3 I'm going to introduce all the speakers and then as they'll 4 come up they'll just quickly say their own name. 5 We have Jan Oddvar Sornes who is actually the person we 6 see on the screen right now and he is the associate dean and 7 head of the MA Program and Energy Management at the Bodo 8 Graduate School for Business. 9 Next we're also going to hear from Jan Terje Henriksen 10 and he's a research fellow and managing director at the High 11 North Center for Business, also at the Bodo Graduate School for 12 Business. 13 We then will hear from Hans Nordgard and he's another 14 researcher from the High North Center. And this is going to be 15 followed by Pier Eidsvik and he's an advisor at the Northern 16 Country Government and I believe that's it. And so, Jan, 17 you're up. Can you hear me. 18 (Off record comments regarding slides) 19 MR. SORNES: Good morning everybody. And I 20 won't -- given the short time we have available I will 21 basically just introduce this session this morning by saying 22 thank you for inviting us and letting us be part of this. It's 23 so nice to see what we started last spring in 2007 has 24 developed into this great seminar which will continue in May in 25 Northern Norway -- continue this type of dialogue. 4 R & R COURT REPORTERS, 811 G STREET, ANCHORAGE, ALASKA 1 We'll see if the slides work now and try to refer to 2 these a little bit. I just want to let you know in Norway and 3 letting you the scenic nature of our environment..... 4 (This portion not requested) 5 MS. SHADIAN: Okay. And I'm going to introduce 6 now our next speaker and the next speaker is Jim Parker and 7 he's from Glasgow, Scotland and he has a Bachelors degree in 8 Biology, a MMC in Public Health Engineering and a PhD in Marine 9 Biology. As a marine biologist he has worked for 10 years in 10 the government fisheries laboratory in Northern Ireland. He 11 then joined Shell in 1986 as an environmental advisor for North 12 Sea operations and he now advises Shell International, a new 13 business development in the Hague (ph), so happy to introduce 14 you Jim. 15 MR. PARKER: Thanks, Jessica. And good morning 16 to everyone. I'm really delighted to be able to be here to 17 speak to you today about some of our experiences in the North 18 Sea particularly in developing the relationships between the 19 oil industry and fisheries. 20 I'm not going to give a lot of facts and figures about 21 the North Sea today. It's a very important fishery and to put 22 it in context I just looked up a figure last night. Scottish 23 based vessels landing to Scottish ports 380,000 tons of fish to 24 a value of three-quarters of a billion dollars, so that's the, 25 sort of, scale that we're talking about. 5 R & R COURT REPORTERS, 811 G STREET, ANCHORAGE, ALASKA 1 I just to repeat something that Gregg Nady said 2 yesterday and it's about hydrocarbon development phases. I'm a 3 bit unsighted from where I stand here at the moment, but 4 basically on this slide you see the entry phase, the phase that 5 we -- where we try to get entry to new acreage, exploration and 6 appraisal phases, development phases and then hopefully a long 7 production phrase. 8 And if you follow the money here the red line shows us 9 spending money and then as production kicks in, production is 10 the green line, we start to make money and then decommissioning 11 we spend again. So there's a long period of investment before 12 we actually make money and also as Greg said there's a period 13 here quite often it's difficult to get entry to new areas and 14 even once you explore as in, for instance, the Saint George's 15 Basin you can drill a lot of dry wells and actually not 16 progress the prospect. 17 So my point here is at the front end of the business 18 you can raise expectations about a new industry and these 19 expectations may not actually be realized so we have to be 20 careful at this point in time about the message that we give, 21 but nevertheless for the North Aleutian Basis I think this is 22 exactly the right forum to be talking in at these early phases 23 even before the acreage has been licensed. 24 And a few facts about the North Sea area, 222,000 (ph) 25 square miles. Total landing (ph) of averaging about 2.5 6 R & R COURT REPORTERS, 811 G STREET, ANCHORAGE, ALASKA 1 million tons. It has been higher. It has been up around three 2 million tons. These fisheries are under quite a lot of 3 pressure, particularly at the moment the cod fishery. The 4 herring fishery has in the past collapsed. 5 Three broad scale fisheries here. There's the -- the 6 dark blue one is the (indiscernible) ground (ph) fishery. The 7 middle one the pelagic fishery which is primarily herring and 8 mackerel and then this large scale industrial fishery for 9 Norway (indiscernible) and (indiscernible). These are fish 10 that go straight to processing plants to process the fish meal. 11 You can see here on the right hand side the scope of 12 the North Sea offshore industry. These are just Shell 13 installations spread from the southern gas fields here off the 14 coast of England through the central (indiscernible) oil fields 15 and some gas and condensate and then up to the east of the 16 Shetland Islands which are here and the major oil and gas 17 fields of the northern North Sea.
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