MAGAZINE An “interesting year” 10 No. 3 Minimising risks 20 2010 The Circle One Inuit voice 28

Pushing the boundaries – ARCTIC OIL AND GAS

PUBLISHED BY THE WWF Global ARCTIC PROGRAMME The Circle 3.2010

Contents EDITORIAL: On the horizon of arctic oil PATRICK LEWIS 3 In brief 4 Arctic oil – the next frontier JAMES LEATON 6 The Arctic in the global energy picture ARILD SKEDSMO 9 An “interesting” year for arctic oil ROB HUEBERT 10 Risks to arctic ecosystems RICK STEINER 13 Inuit resistance to a booming industry OKALIK EEGEESIAK 17 Law of Sea implications for Gulf spill CAITLYN ANTRIM 18 Drilling offshore Greenland: minimising risks SIMON THOMSON 20 Shipping oil through the ice VALERY SHESTOPALOV 23 Spill technology lagging behind DAVID PRIOR 25 An Alaskan’s impression from the Gulf VERNER WILSON 26 Industrial development: a blessing or an evil? RODION SULYANDZIGA 27 Inuit to speak with one voice on arctic waters’ rush AQQALUK LYNGE 28 Towards permanent protection of Lofoten? GAUTE WAHL 29 Oil and gas drilling in Canada’s Arctic PAULETTE ROBERGE 31 Drilling discussions with political repercussions in Norway FRITZ JAKOB FREDRIKSEN 32 Russian challenges for offshore exploration IGOR CHESTIN 33 Oil and gas development in the outer continental shelf of US arctic waters BILL EICHBAUM 35

Oil & Gas: From Mexico to the Arctic

The Circle is published quarterly by the WWF Global Arctic Publisher: Editor in Chief: Clive Tesar, [email protected] Programme. Reproduction and quotation with appropriate WWF Global Arctic Programme, Editor: Lena Eskeland, [email protected] credit are encouraged. Articles by non-affiliated sources do PO Box 6784 St Olavs plass not necessarily reflect the views or policies of WWF. Send N-0130 Oslo, Norway Design and production: change of address and subscription queries to the address Ph: +47 22 03 65 00 Film & Form/Ketill Berger, [email protected] on the right. We reserve the right to edit letters for publica- Fax: +47 22 20 06 66 Printed at Merkur-Trykk AS tion, and assume no responsibility for unsolicited material. Internet: www.panda.org/arctic Please include name, title and address with all correspond- Date of publication: September, 2010. ence. ISSN 2074-076X = The Circle (Oslo)

2 The Circle 3.2010 The Circle 3.2010 Editorial On the horizon of arctic oil

The Gulf of Mexico and the Arctic don’t seem to have much in common. One is located in the midst of human civilization and is surrounded by mil- lions of people living in a warm tropical climate; the other is characterized by vast expanses of wilderness, an extreme climate of ice, wind and freez- ing temperatures and shades from sparsely populated to totally uninhab- ited space. Yet despite their differences, the Gulf and the Arctic do have some things in common - one very important thing in the presence of oil, and oil drilling operations that are pushing the very edge of technological capacity. Easy oil is over and the petroleum industry is being forced to plumb the unknown ocean depths for its oil, or to set its rigs amidst the uncertainties of arctic sea ice. The Arctic is considered one of the largest untapped DR PATRICK LEWIS hydrocarbon reserves on the planet, and it is clear that this Responsible Industry area will play a role in the global energy market. It is also Officer clear that as the carbon in the atmosphere steadily erodes WWF Global the annual extent of arctic sea ice, accessing this oil and gas Arctic Programme is becoming less and less theoretical. Unfortunately, what [email protected] remains theoretical is the technology required to effectively manage the environmental risks that come hand in hand with arctic oil. Up to this point, governments and industry have turned a blind eye to the technological limitations of response capability. The Gulf of Mexico calamity has forced the entire planet to reconsider what is responsible, and where regulators need to step in for the protection of the environment and the people that depend upon it. But while questions are being asked and commissions formed, drilling is already proceeding in the Arctic. WWF poses the question of “What if the Gulf happens in the Arctic today?” The Indigenous peoples of the Arctic have called this area home for mil- lennia – they need the jobs and prosperity that could be provided by devel- opment, but they are increasingly wary of the trade-offs that may accom- A boat wades through the oily waters of the pany industrial development. Viewpoints across the Arctic differ regarding Gulf of Mexico. The water has an iridescent if and when oil should be accessed, but concern is rapidly outweighing a rainbow sheen from the dangerous dispersant drive for short-term profits. WWF feels that the only logical approach is used to break up the crude oil spill. to call a halt on new drilling until governments, industry, NGOs and the people of the Arctic have time to answer the questions posed in this edition Photo: Creative Commons / Kris Krüg about the safety and sustainability of offshore arctic oil drilling, including COVER: its impact on global energy. We believe those who support drilling must Smoke plumes from spill-response crews be able to demonstrate that such activities are safe and sustainable before gathering and burning oil in the Gulf of drilling plans are approved. Following the report from the US commission Mexico near the site of the leaking Macondo into the Gulf spill, a critical decision will lie before arctic governments. well. WWF is looking forward to working with governments and industry to Photo : Dr. Oscar Garcia / Florida State University / Creative commons make sure that the decision taken is the right one.

Polar bear, Svalbard, Norway. Photo: WWF-Canon / Sindre Kinnerød

The Circle 3.2010 3 In brief Gap analysis of international regulation of offshore oil & gas

A new report, Gap analysis of international regulation of hydrocarbon exploration, Photo: Ken Madsen / WWF-Canada production and transport with respect to environ- natural or within historical “Our conservation goal mental protection, by Dr New reindeer fluctuations, but he says a should be to help ensure the Sian Prior, was presented conservation plan is critical. natural conditions under by WWF International in conservation “Wild arctic caribou and which caribou and reindeer August 2010. This report was domesticated reindeer populations can fluctuate commissioned following the plan are important species for over the long term, but not two recent oil well blowouts northerners worldwide, go below natural thresh- in the Timor Sea (August, WWF has enlisted lead- especially for the spiritual, olds. When the herds get 2009) and the Gulf of Mexico ing scientists to develop a cultural and nutritional too low, they have great (April, 2010) which have re- Caribou-Reindeer Con- needs of Indigenous peo- difficulty rebounding,” York sulted in extensive pollution servation Plan that will ples,” he says. says. of the marine environment identify ways of stemming Causes for declining The plan will identify with significant impacts on declining herd populations herds are attributed to the conservation actions re- wildlife, habitats, and local across the Arctic. indirect impacts of climate quired by a broad spec- livelihoods. It also follows “According to the latest change on winter habitat, trum of parties including a G20 commitment in June assessments, some herds calving areas, food quality governments, Indigenous 2010 to share best prac- are seeing precipitous and access, insect harass- peoples, scientists, business tices in order to protect the declines,” says WWF Global ment and parasites, over- and NGOs. WWF expects to marine environment, prevent Arctic Programme biologist harvesting and increasing finalize the Arctic Caribou- accidents related to offshore Geoff York. It’s not clear industrial development in Reindeer Conservation Plan exploration, development whether these declines are the Arctic. in approximately one year. and transportation, and deal with the consequences. The report summarises the primary amongst which is the Arctic has brought a need current regulation of the the need for an international Canada for new binding international offshore oil & gas sector body which will take a proac- rules on such topics as ship- through international and tive approach and facilitate announces new ping and oil and gas. We are regional legal instruments. A the development of a system hopeful that Canada’s efforts selection of eight regions are of global and regional rules; foreign policy for to make the Arctic Council a covered, including the Arctic, and harmonisation of stand- more powerful tool for set- Antarctic, north-east Atlan- ards, practices and regulatory the Arctic ting binding arctic policies tic, north-west Pacific, west- regimes for the management are successful. ern Africa, eastern Africa, of offshore oil and explora- WWF is encouraged by the WWF arctic governance ROPME sea area (or the Ku- tion and exploitation. The Canadian government’s new expert Tatiana Saksina says, wait Action Plan Region) and final recommendations will statement of its arctic foreign “Perhaps the most positive the Caribbean. The analysis be considered further, dis- policy. The policy reflects the part of the new policy is the leads to a series of conclu- cussed and updated in light position WWF has advo- commitment to not only use sions and recommendations, of feedback. cated, that climate change in ecosystem-based manage-

4 The Circle 3.2010 In brief

ment in Canada’s Arctic, but management at the state also to promote that manage- level. Jim Marcotte with the ment system to other arctic Alaska Department of Fish & countries. With the US also Game will present its system recently committing to this of fisheries governance to approach, there is a gather- Russian counterparts in the ing of momentum.” Krai (province) administra- More information on tion. The Alaska Board of WWF’s recommendations Fisheries has 82 public advi- regarding arctic governance sory councils across Alaska, is available in International which gather proposals from

Governance and Regula- industry, Indigenous groups, Photo: GrmnM / Creative Commons tion of the Marine Arctic, and the public. The Moscow region has been covered in smog from massive launched in April 2010. All Alaska salmon species forest fires this summer. WWF is also taking part in and commercial gear-types the Arctic Council’s Arctic are certified by the Marine fect are uncertain and vary Ocean Review, a process es- Stewardship Council (MSC). Forest fires from 10 to 30 per cent of the tablished by the eight-nation That is in stark contrast to anthropogenic greenhouse Council to examine regional the Russian Far East which in Russia gas emission. Regardless, it is governance options. has a single MSC certified Fires that raged through significant, especially for the salmon fishery (Iturup on forest and peat lands for Arctic. Black carbon on snow, Sakhalin Island). Jim Hum- most of the summer in for example, causes melting.” US-Russian phreys, Director of Fisheries central European Russia in the Americas for MSC, have been extinguished, but will discuss the process and it will be months before the Arctic sea ice fisheries benefits of MSC certification full extent of the devasta- with the Kamchatka Penin- tion and on-going damage is exchange sula salmon industry. fully calculated, according to extent third The WWF-US Arctic field Alaskans went from WWF-Russia climate expert programme is bringing two federally-controlled salmon Alexey Kokorin. lowest on record

Alaskan fisheries specialists management in the 1940s “The fires are out, but CO2 The National Snow and Ice to Petropavlovsk-Kamchat- and 50s to state/local man- emissions continue because Data Center (NSIDC) report- sky on the Kamchatka Penin- agement after statehood was the biomass continues to de- ed in early September that sula, Russia, in September to granted in 1959. In 2000, compose and deteriorate,” he with an estimated 1-2 weeks share their experiences with Alaska took another proac- says. “In fact a larger amount left in the melt season (i.e.

fishery officials, researchers, tive leap in fisheries manage- of CO2 is emitted in the years until the sea ice minimum), and Indigenous groups. ment when all Alaska salmon after the fires.” arctic sea ice extent now is Alaska has a strong public was MSC certified. Kokorin says official the third lowest on record. input process for salmon reporting indicates the fires Only 2007 and 2008 saw damaged one million hec- lower sea ice extents for the tares of forest, although other date. Arctic sea ice generally estimates put the damage at reaches its annual minimum 10 times that amount. The im- extent in mid-September. pact “is certainly significant.” This August, ice extent was “We shouldn’t think only the second lowest in the about the amount of green- satellite record, after 2007. house gases generated by the The Northwest Passage and fires,” he says. “Any forest the Northern Sea Route are fire is also a huge source of largely free of ice, allowing

Photo: Dmitry Utkin black carbon. Estimates of the potential for a circumnav- Sockeye (red) salmon photo. the global black carbon ef- igation of the Arctic Ocean.

The Circle 3.2010 5 Overview Arctic oil – the next frontier The Arctic is considered by many as the next frontier of hydrocarbon exploration. But the environmental risks are currently unacceptable and more significant than the potential financial risks for opera- tors in the Arctic, says JAMES LEATON. Photo: Gazprom

‘Easy oil’ is over – leading to a focus lish the actual level of resources. This contributing to the melting of the ice, on deepwater, extreme environments process has started in some areas, with which will facilitate access to regions and unconventional reserves (such as activity proposed or initiated in Alaska, currently bound by ice. The increased tar sands in Canada). Geologists have the Beaufort Sea, the Barents Sea, and access to previously ice-covered pe- identified basins likely to hold oil and offshore West Greenland. troleum resources, and to important gas reserves, but only more detailed The vicious circle of climate change transport routes such as the Northwest exploration and surveys can estab- impacts means that the oil industry is Passage, are opening up new possibili-

6 The Circle 3.2010 Population and main oil and gas production areas in the Arctic

The Arctic represents one of the least populated areas in the world, The extraction of natu- ral resources has emerged as a main interest and priority in the Arctic region, and this may cause increases and shifts in population.

E L C IR C IC 600 T C 3600 Map: Hugo Ahlenius, UNEP/GRID-R Arendal, http://maps.grida.no/go/graphic/population-and-main-oil-and-gas-production-areas-in-the-arctic A

Probability of finding oil or gas in the Arctic3600

Assessed probability of the presence of at least one undiscovered oil and/or gas field with recoverable resources greater than 50 million barrels of oil equivalent.

600

E L C IR 600 C IC 600 T C 3600 R A

3600

Probability (percent)

100 600

50-100 ties as well as raising the temperature of 30–50 regional politics. The Arctic poses engineering chal- 10–30 600 lenges beyond even deepwater, however <10 it is clear from the Gulf of Mexico that an army of engineers is not sufficient to Area of low petrolium potential prevent and stop a blow-out without an Map: Ketill Berger, adapted from U.S. Geological Survey Probability (percent)

100 The Circle 3.2010 7 50-100

30–50

10–30

<10

Area of low petrolium potential environmental disaster occurring. The environment. Energy context failure of BP to accurately assess the The threat of oil production in the risks and impacts raises questions about Arctic is a regional problem, with the credibility of the information provid- neighbouring countries taking different ed by industry, which investors, insurers approaches to licensing and operating and regulators use to make decisions. requirements. The different cultures can be seen where operators combine, for The Arctic in the global energy picture New risks example in the Barents Sea. The poten- The oil industry is creating new risks tial for a transboundary impact makes it as it overlaps with the Arctic, but the a regional problem which governments The more fossil fuel we environmental risks for the Arctic are need to work together on, within either burn, the faster the arc- at times much more significant than the existing or new governance structures. tic sea ice is disappearing potential financial risks for operators. Governments and communities need Need for planning and the easier it becomes to consider who is going to be exposed Governments determine where the to extract more oil and gas to these risks if the worst case scenario oil industry can go, and need to bal- to warm the climate even occurs. BP is one ance considerations such as protecting of the few multina- biodiversity, energy security, safeguard- further, says ARILD SKEDSMO. tionals big enough ing fisheries, tackling climate change, This is one of the terri- to cover the costs of and revenue generation. Marine spatial ble paradoxes of climate the recent Gulf of planning can help identify which areas JAMES LEATON has Mexico spill with its are too important for a sustainable change. engaged with oil and revenues and assets. future to risk for short-term gain from gas developments The oil industry oil extraction. around the world from is also impinging Where exploration and produc- But the increasing interest in arctic Sakhalin Island in far on the territory of tion goes ahead, governments have a fossil fuel resources is not only a conse- east Russia, to the some of the most clear role to play in raising the bar for quence of increased access. It is one of tar sands of Alberta, isolated communi- standards of operation and monitor- many manifestations of the desperate Canada. He is now an ties and endangered ing implementation in order to prevent quest of petroleum companies of the independent consult- species. The impact spills. The conflicting roles of the US ’liberated’ worlds to secure new reserves ant focusing on energy of the resource Minerals Management Service dem- and maintain the value of their shares and finance, who has curse on Indigenous onstrate the need to separate licens- as the age of ’easy oil’ is coming to an previously worked for communities is well ing approval, revenue collection and end. Other symptoms are exploration WWF and Pricewater- documented around monitoring functions. At present the for heavier oil such as tar sand, drill- houseCoopers advising the world. The value of natural resources for tourism, ing in deeper waters such as the Gulf on environmental policy impacts of seismic recreation, ecosystems and fisheries is of Mexico, and the growing interest in development. operations and oil exposed to unacceptable levels of risk. shale gas and shale oil. The common spills on marine The Arctic is typical of most marine denominator is higher energy consump- mammals are environments, with minimal represen- tion, more greenhouse gas emissions, poorly understood tation of protected areas to preserve more environmental damage and more and put species at risk. the earth’s natural capital for future dollars spent for every litre of end prod- Oil spill response in perfect condi- generations. Despite commitments un- uct or every kilometre driven. tions with optimum resources may only der the Convention on Biodiversity, the With an increasing share of the recover 20 per cent of the oil volume. It unique coldwater environments of the world’s conventional oil and gas is impossible to model an oil spill in ice Arctic remain exposed to inappropri- reserves within the borders of states conditions, let alone effectively respond ate activities, whilst the opposite pole is that prefer national control over their to it. Areas which experience seasonal protected by the Antarctic Treaty. resources, the ’free world’ part of the ice cover and arctic conditions would The range of interests reliant on a sector is pushed further and further leave major response gaps in terms functioning arctic ecosystem make it into lower quality resources and more of both the winter shut down and the imperative that more work is done to demanding and vulnerable environmen- physical limitations to response opera- improve planning in the marine envi- tal conditions. tions due to weather conditions and ronment, before it is licensed to the oil To illustrate the global challenges that safety requirements. Oil would also be industry. Let’s hope this occurs while we will determine the role of the Arctic in slower to break down in the cold arctic still have time. the global energy picture, let’s look at

8 The Circle 3.2010 Energy context The Arctic in the global energy picture

two issues with major implications for per cent to avoid the worst consequenc- are heading. Investment in renewable the fate of this planet: es of climate change. To save the Arctic energy is increasing, but is still far from from irreversible changes, we probably the required scale. 1) Energy realities: Over the next 40 need to aim even lower. Energy use To summarize, the role of the Arctic years the global energy demand is likely contributes more than 60 per cent of the in the global energy picture will to a very to double. This is mainly a consequence problem and probably needs to contrib- large degree follow from how we man- of economic development, popula- ute a comparatively larger share of the age to address the combined challenges tion growth and related increase in solution. For all practical purposes, our of increasing en- the standard of living in developing energy use needs to be carbon neutral ergy demand and countries and transition economies. by the middle of this century. climate change Lowering this ’parameter’ means deny- In this perspective, the global impera- globally. ing the rest of the world the same access tive to avoid dangerous climate change ■■ Efficient use to energy services as the western world, is good news for the arctic environment of energy is a and would be ethically unacceptable. at the local level; in order to save the prerequisite for ARILD SKEDSMO To be more precise, the primary global equitable is heading WWF- energy demand does not have to double, access to clean Norway’s Climate and it is the demand for energy services that energy and is a Energy Programme, will double. This means that as long key part of a cli- where he oversees a as everyone gets their fridge, a stable The primary energy mate solution. broad range of activi- room temperature, a fast laptop and demand does not have ■■ To avoid the ties related to climate their transport needs covered, everyone worst conse- change. His profes- is happy. No one is less happy if these to double, it is the quences of cli- sional experience services are delivered at half the pri- mate change, we includes research work mary energy demand of what the same demand for energy must phase out on sustainable energy services typically require today. Improv- virtually all use and transport solu- ing energy efficiency at this scale is both services that will of fossil fuel by tions, and humanitar- technically feasible and will in many double. 2050. This leaves ian work. cases give a net saving to society. very little room Now, even if we use energy much for any large scale more efficiently than today, if all our exploration and extraction of oil and gas energy needs are going to come from oil in the Arctic. and gas, then the Arctic may very well planet, we simply don’t need the oil and ■■ However, this can only be achieved become a hot place for the petroleum gas of the Arctic – at least not as we by a massive effort to scale up energy sector. According to a study by the approach 2050. With the investment production from renewable energy USGS (2008), it is estimated that 22 per horizon of these enterprises, that is not sources. cent of the undiscovered, technically so far away. The Arctic has already become the recoverable resources in the world are The implication of taking both the showcase for the effects of climate north of the Arctic Circle. An industrial energy and the climate realities outlined change. It can also be the showcase for endeavour to extract these resources above seriously points to one of the how we meet the challenges. Large-scale would forever change one of the very main global challenge over the next 40 investments by the petroleum indus- last large pristine areas of this planet. years: by 2050, virtually all energy has try are a bet on a failed climate policy. to come from sustainable renewable Keeping this industry out of the Arctic, 2) Climate realities: Over the next 40 energy sources. This conclusion may by diverting the investments to the years, global emissions of greenhouse seem trivial, but all the more frighten- renewable sector is the best indicator of gasses need to be reduced by at least 80 ing to see that this is not yet where we a shift to a climate safe future.

The Circle 3.2010 9 Extent millions of Dollars square kilometres km2 Geopolitics per barrel 8 120 September sea ice extent An “interesting” year for arctic oil The year 2010 has proven to be an “interesting” year in regards to the geopolitics of oil and gas in the Arctic region. There have been important diplomatic 100 breakthroughs while at the same time it is possible to begin to see the development of new lines of tensions in the region, writes ROB HUEBERT. 7

80 ICE OIL

SE6 CURITY 60

40

5 Oil price* April: The U.S. Office of Naval Research holds a symposium on Naval Operations in an ice-free Arctic.

June: Leadmark, Canada’s naval strategy to 2020, is released with 20 a new emphasis on the June: The E.U.’s North- Arctic. ern Dimension Action Plan is released. October: Gazprom and Rosneft sign the agree- June: Canada releases ment for the joint develop- the Northern Dimension of ment of the Prirazlomnoye March: International Canada’s Foreign Policy. and Shtokman Fields in January: Gazprom’s Northern Sea Route Pro- the Barents Sea. Management Commit- gram completed after six July: The U.S. Arctic tee identifies the Yamal April: Canada years of research work. Research Commission December: Russia sub- Peninsula as a region of releases: Canada and hosts a meeting on the mits claims to the U.N. for strategic interest. the Circumpolar North: April: The provisions of Arctic Ocean and climate an extended continental September: The Arctic Meeting the Challenges the Nunavut Act establish- change, examining sce- shelf; the claim is rejected April: Dasan Station is Council is established by of Co-operation into the ing the Territory of Nunavut narios for future U.S. Naval and more evidence de- established at Ny-Ålesund 10 Thethe Circle Ottawa 3.2010 Declaration. Twenty-First Century. come into force. activity in the region. manded. by Korea. 4 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

*U.S. crude oil imported aquisition cost by refiners. Sources: NASA Goddard Space Flight Center. EIA, Official energy statistics from the U.S. Government Extent millions of Dollars square kilometres km2 Geopolitics per barrel 8 120 September sea ice extent Overshadowing all events – includ- ing those in the Arctic – pertaining to oil and gas development in the world An “interesting” year for arctic oil has been the disaster in the Gulf of Mexico. Even if the full extent of the The region remains one in substantial environmental damage and the impact flux, albeit one that is not yet receiving on the international energy system are much attention. But this will soon change. still to be determined, it is already ap- At the heart of the change is the growing parent that it is one of the largest spills 100 complexity that is emerging regarding the that have ever occurred. international political environment, the Mexican shockwaves multinational resource companies and February: Shell and challenges of balancing environmental While occurring in the Gulf of Mexico, ConocoPhillips bid nearly 7 $2.7 billion in a competi- protection and energy development. its shockwaves are already being felt tion for drilling rights in the Chukchi Sea.

May: Canada releases the Canada First Defence Strategy.

May: The circumpolar 80 nations sign the Illulissat Declaration.

January: The Norwe- May: A U.S. Geological gian Snøhvit platform Survey is released estimat- begins production. ing that the Arctic pos- sesses 90 billion barrels March: Breaking the Ice of oil, 1,669 trillion cubic conference on trans-arctic feet of natural gas and 44 shipping is held in Iceland. billion barrels of natural gas liquids; 22% of global May: Canada and the recoverable reserves. United States renew the NORAD agreement and June: Gen. Vladimir add a maritime surveil- Shamanov announces lance clause. Russian plans to extend the range of Russia’s 60 6 July: Imperial Oil and Northern Fleet and states Exxon bid nearly $600 mil- that select Russian ground January: The U.S. Arc- lion for exploration leases forces are training for an tic Policy is released. in the Beaufort Sea. arctic conflict. January: The NATO July: Canada announces June: Varandey Oil seminar on ‘Security Pros- the construction of arctic terminal begins operations pects in the High North’ is patrol ships, a deep water in the Barents Sea. held in Iceland. port at Nanisivik and an army training facility at June: Norwegian De- February: National Resolute. fence Policy is released. Security Strategy of the Russian Federation until August: Russia resumes August: Canada an- the year 2020 expected regular arctic strategic nounces construction of to be approved by the bomber patrols. the John G. Diefenbaker, Security Council. a $720 million dollar ice- August: Russia plants a breaker. May 2009: Russia flag at the bottom of North releases State Security 40 Pole during its survey of August: Canada makes Policy with an emphasis the Lomonosov Ridge, NORDREG mandatory and on the Arctic sparking international extends the Arctic Waters anger. Pollution Prevention Act to June 2009: Joint military 200 nautical miles. exercise between Sweden/ September: The North- Finland/NATO in northern west Passage is navigable September: Dmitry Sweden. 5 Oil price* for first time in recorded Medvedev proclaims the history. use of Arctic resources July 2009: Russia to be central to Russia’s launches missiles from two February: Canadian October: Canadian energy security. nuclear powered subma- Conservatives take office Speech from the Throne rines in the Arctic region. after a campaign empha- addresses issues relating October: The European sising arctic sovereignty. to the Arctic, including Parliament releases its July 2009: Denmark April: Canada tables commitments to complete Resolution on Arctic announces it is setting its International Policy March to May: An a comprehensive mapping Governance. up Arctic Command Statement. on-ice survey is conducted of Canada’s arctic seabed, and Task Force. 20 in Canada’s high western the creation of a world- October: President July: The Canadian Arctic (the Lomonosov class arctic research sta- Dmitry Medvedev ap- July 2009: Canada Defence Minister visits Ridge) by Canadian and tion and the improvement proves the Principles of releases its Northern Hans Island Danish scientists. of living conditions for State Policy in the Arctic Strategy residents of the North. until 2020. September: Canada November: 2007-2015 November 2009: and Denmark issue a joint Russian State Armament November: Iceland’s November: The E.U.’s Sweden abolishes draft statement announcing that Program approved. foreign policy speech giv- ‘Communication’ on the to build smaller more the two countries will work en to Parliament, placing Arctic region is released. professional armed forces together to resolve the November: The E.U.’s the Arctic at the forefront to allow for greater inter- issue of Hans Island. Northern Dimension Policy of its foreign policy. November: NORDSUP national reach including is published. is established. the Arctic region. October: China’s first November: The Arctic November: Soria December: Samsung arctic scientific research Climate Impact Assess- Moria Declaration on December: The Norwe- delivers Russia’s first December: Gazprom November 2009: Unit- station is established at ment is released by the Foreign Policy is issued by gian Government’s High icebreaking oil tanker, the launches the Yamal mega ed States Navy releases Ny-Ålesund. Arctic Council. Norway. North Strategy is issued. ‘Vasily Dinkov’. project. Navy Arctic The R oadmap.Circle 3.2010 11 4 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

*U.S. crude oil imported aquisition cost by refiners. Sources: NASA Goddard Space Flight Center. EIA, Official energy statistics from the U.S. Government Graphic: Huebert, Exner-Pirot, Lajeunesse. Design Ketill Berger in the Arctic. On the one hand, the The question that remains unknown long term ramification of this particular difficulty that BP had in responding to is the ultimate response of both the decision will be, it is probably the first the disaster in the Gulf has convinced Canadian and US governments when the of what should soon become a series many that it may be impossible to do companies move from searching for oil of conflicts over how the Arctic is to be anything to remedy a similar spill in the to developing it (assuming that they find developed and who gets to make those North. The struggle to contain the oil in it). It can be expected that there will be decisions. the relatively benign climate of the Gulf tremendous pressures brought on both showed the limited nature of the existing states not to allow drilling until the time Period of cooperation technology to clean up after a large spill. arises that a better response could be On a more positive note, the govern- To marshal a similar clean-up effort in mounted in the event of a similar disas- ments of Norway and Russia shocked the High North and in ice conditions ter. But there will be equally powerful most observers by resolving their 40 year seems to be beyond the current state of pressure for them to allow oil develop- old northern maritime boundary dispute. existing technology. Thus it would seem ment. It is unlikely that the United States They divided the disputed zone down the that any consideration of developing in particular would be willing to allow middle. The impact of the resolution has oil resources in the BP to collapse as a company. No one been substantial. It has demonstrated High North would is suggesting that if it is not allowed to that if the political will is strong enough, be postponed indefi- develop its arctic holdings, it will fail, long term difficult disputes can be re- nitely at this point but what would be the impact if it did solved in the Arctic. At the same time, it in time because of come to that? While BP is a multina- has also nudged Canada and the United Dr Rob Huebert is the risks. tional corporation, it remains strongly States to begin to try to resolve their long an Associate Profes- However, one of connected to the UK. Its collapse would standing boundary dispute in the Beau- sor of the Department the ironies is that undoubtedly cause tremendous damage fort Sea. This summer Canadian and US of Political Science at as the US govern- to the British economy. It is unlikely that officials met to commence discussions on the University of Cal- ment has moved North America would then be immune resolving the issue. Should an agreement gary. He is also the As- to limit offshore to the resulting economic shock waves. be reached, one of the most contentious sociate Director of the drilling, it has still Thus it is possible that in the near future, arctic issues between the US and Canada Centre for Military and been allowing some North American governments may be would be eliminated. Strategic Studies. He development off facing great pressure to allow develop- Such determination on the part of the was recently a Senior the northern coast ment. Ultimately, what is happening in arctic states to resolve their boundary Research Fellow of of Alaska. Likewise the Gulf will continue to influence events disagreements is a very positive step. Yet the Canadian Inter- there have also in the North. these successful resolutions will create national Council, and been some signs At the same time that these pres- challenges of their own. As long as these has written extensively that the Canadian sures build, new lines are being drawn regions remained politically unsettled, about issues related to government will let in Canada over how development is to resource companies were not willing to arctic geopolitics and companies continue be allowed. A joint Canadian-German risk involvement in them. With the po- security. their search for oil research project that was to be engaged litical uncertainty of the disputed zones in the Beaufort Sea in seismic research in Lancaster Sound removed, many of these companies will area. The major oil was stopped at the last minute by a court undoubtedly re-examine their previous companies will be decision. While this is a complicated avoidance of these areas. Given the ad- unlikely to drill in the Gulf of Mexico for issue pertaining to the implementa- ditional pressures that they are feeling some time. But they are going to search tion of Canada’s northern land claims from the aftermath of the Deepwater for alternative regions where the po- agreements, one of the concerns of those Horizon disaster, it is likely that they will litical pressures to not drill will be less. opposed to the research was the harm want to move sooner rather than later. This will be driven by both demand and that marine mammals could suffer. In short 2010 is proving to be a very the companies’ need to maintain their However, a more subtle concern may “interesting” year. There are many new profitability. At this point it is not clear have been that this research may have pressures in the North that are now if the Arctic will be one such region. But the unintended consequence of provid- emerging and growing in the Arctic. given the dire economic situation that ing indications of oil and gas resources in While there is renewed optimism that in- BP in particular now finds itself in, there the region. Seismic research is one of the ternationally the Arctic region is heading can be little doubt that it will attempt to main means of determining if a region is into a period of cooperation, this coop- develop its resources in the North if it likely to contain oil and gas deposits. It eration will now force the arctic nations can. is much easier to resist calls for develop- to make hard decisions on how they truly ment if no resources are known to exist. see the North developing. Pressure to develop While it is too soon to know what the

12 The Circle 3.2010 Species Photo: Norbert Rosing/National Geographic Stock / WWF-Canada An Atlantic walrus swimming in the clear water of the Foxe Basin, near Igloolik, Nunavut, Canada. Risks to arctic ecosystems As we enter the end of the age of oil, it is clear that most of the world’s easily accessi- ble oil has already been produced. Oil companies are now moving offshore into deeper, more extreme, and more risky environments. RICK STEINER outlines what this means for arctic species and ecosystems.

The dangers of deepwater drilling nificant oil and gas frontier left. As deci- phase of oil development in the Arctic came into sharp focus with the BP sions are made on oil and gas drilling in Ocean – seismic exploration, explora- Deepwater Horizon disaster in the Gulf the Arctic Ocean, we need to understand tion drilling, production platforms, of Mexico, where over 650 million litres and acknowledge the risks. pipelines, terminals, and tankers. of oil flowed into the ecosystem over Offshore oil development will include a 3-month period. Another high-risk Acoustic disturbance airplanes, helicopters, support ships, environment is the Arctic Ocean, which Even if nothing goes wrong, there would drill ships and platforms, artificial geologists suggest may be the last sig- be unavoidable impacts from each islands, icebreakers, waste streams from

The Circle 3.2010 13 the drill ships and rigs, lights and noise, The acoustic disturbance to marine area. As well, noise can affect bird and turbidity from seabed excavation, exten- mammals from offshore oil develop- fish migration, feeding and reproduc- sive coastal infrastructure construction ment is of particular concern, as under- tion, and can displace populations from (ports, roads, causeways, staging areas), water noise can affect communication, essential habitat areas. subsea pipelines, geotechnical coring, migration, feeding, mating, and other Some impacts can be reduced or and noise from underwater seismic sur- important functions in whales, seals, mitigated – using lease specifications veys. These industrial activities would and walrus. Research has clearly shown – but most cannot. And offshore oil create significant disturbance in an that bowhead whales off Alaska deflect development would add to the overall otherwise relatively pristine coastal and from preferred habitat areas when there cumulative degradation of the region, marine ecosystem. is noise from seismic exploration in the along with climate change, increased

A large spill would undoubtedly cause extensive acute mortality in plankton, fish, birds, and marine mammals.

14 The Circle 3.2010 shipping, contaminants, and coastal environments such as the Arctic Ocean, But regardless of how safe we make development. we should assume that a large marine offshore drilling in the Arctic, there oil spill will occur. If offshore drilling will still be a significant risk of a major Risk of spills proceeds, then everything possible to oil spill, and policy makers need to be And of course there is the very real reduce spill risk should be required, honest about this. People will make risk of a large oil spill from explora- including better blowout prevention and mistakes, and equipment will fail. If we tion drilling, production rigs, pipelines, response plans; better pipeline design allow oil development to proceed in the terminals, and tankers. While govern- and monitoring; tanker traffic monitor- Arctic Ocean, it’s not a question of “if” ment and industry habitually under- ing; and more rigorous government a major spill will occur, but “when and state the risk of oil spills, for high-risk permitting, inspection, and oversight. where.”

The Circle 3.2010 15 Inefficient spill response A major spill would travel with currents, in and under sea ice during ice season, and it would be virtually impossible to contain or recover. Even with robust oil spill response capability for a worst- case discharge, in most scenarios this will be entirely ineffective, and a major spill could easily become a transnational event. A large spill would undoubtedly cause extensive acute mortality in plank- ton, fish, birds, and marine mammals. As well, there would be significant chronic, sub-lethal injury to organisms – physi- ological damage, altered feeding behav- iour and reproduction, genetic injury, etc. – that would reduce the overall viability of populations. There could be a permanent reduc- tion in certain Professor RICHARD populations, and (RICK) STEINER is for threatened or an Alaska-based endangered species, consultant who works a spill could tip internationally on them into extinc- conservation and tion. With low tem- sustainability issues. peratures and slow As the University degradation rates, of Alaska’s marine oil would persist in advisor for the Prince the arctic environ- William Sound region ment for decades. of Alaska from 1983 – A major oil spill in 1997, he advised the the Arctic Ocean emergency response could severely affect and the follow-up to subsistence harvest the Exxon Valdez opportunities, and oil spill in 1989. forever change peo- Subsequently, he has ple’s lives. worked globally on oil/ The Exxon Valdez environment issues oil spill in Alaska – including oil spill of Europe / O rsolya Haarberg WWF Photo: Wild Wonders caused the death Adult Arctic tern (Sterna paradisea), feeding the young, Iceland. prevention, response, of over 250,000 damage assessment, seabirds the year and restoration – ad- it occurred (and spill have yet to fully recover – 21 years we continue our industrial expansion vising the United Na- thousands of ma- later. into one of the last pristine wild areas in tions, governments, rine mammals), and Put simply, oil drilling in the Arctic the world, extract and use the billions NGOs, and industry. subsequently there Ocean cannot be done safely – there will of tons of fossil carbon energy there, was a nesting failure be chronic degradation, there will be further degrading the environment of leading to loss of spills. So the policy question is whether the region and world? Or, do we choose thousands of additional birds. And most we wish to expose the Arctic Ocean and another, kinder and sustainable future importantly today, 2/3 of the fish and its people to such risk. Society faces a for this magnificent place? wildlife populations injured by the oil fundamental choice with the Arctic. Do Let’s hope we choose wisely.

16 The Circle 3.2010 Seismic noise Inuit resistance to a booming industry The loud noise caused by seismic testing in oceans to detect oil and gas sediments is key to petroleum exploration. A Nunavut judge recently granted a temporary injunction to prevent the start of a federally-backed seismic testing project off north Baffin Island. OKALIK EEGEESIAK explains why she is relieved.

“We are not anti-development,” says pact? We don’t know what that means applied for permission to conduct Okalik Eegeesiak, president of the and we don’t think they know either. the seismic tests over the summer in Qikiqtani Inuit Association (QIA). “But Just imagine, 80 decibels hurts human Lancaster Sound, even though Environ- we have to live with the consequences. ears – this testing is 250 decibels under ment Minister Jim Prentice announced They don’t.” water.” in July that the federal government was Justice Sue Cooper ruled that the The Geological Survey of Canada “working with the Qikiqtani Inuit As- Inuit of North Baffin “would suffer greater harm if injunctive relief were not granted”. The seismic testing was to have been conducted for Natural Re- sources Canada by scientists aboard the German research vessel, Polarstern. In blocking the project, lawyers rep- resenting the Qikiqtani Inuit Associa- tion argued that loud, persistent noise created by airguns in the seismic testing could cause “irreparable” damage to marine mammals which could impact on the ability of North Baffin Inuit to harvest food and maintain their culture. “The project was approved before the Inuit were involved in any meaningful way. That surprised us,” says Eegeesiak. “We weren’t assured that the impact would be minimal. What is minimal im-

There is ample evidence that noise from seismic testing results in temporary and permanent damage to fish and Photo: Staffan Widstrand / WWF Photo: Staffan wildlife. Man on skidoo racing across the ice, Baffin Island, Nunavut, Canada.

The Circle 3.2010 17 sociation and Government of Nunavut Governance toward creating a National Marine Conservation Area in Lancaster Sound – the eastern entrance of the storied Northwest Passage and one of the rich- est marine mammal areas in the world,” Law of Sea implications he said in a press release. Eegeesiak argues there was “a lack of consultation” on the testing. “We need to know how our marine for Gulf spill wildlife will be affected,” she says. “In previous testing, there was some nega- The expanding environmental and economic toll of the tive impact. Animals like seals seemed Gulf of Mexico oil spill could focus attention on the need to to be deaf. Whales left some areas for years or didn’t come back at all.” clarify the rules for dealing with pollution that exceeds ter- She says the ritorial boundaries, says CAITLYN ANTRIM in an interview with association is now TONI JOHNSON.* hoping that all parties involved in the proposed test- At the recent G8/G20 meeting national Maritime Organization, a set OKALIK EEGEESIAK ing “will sit down in Canada, Russian President of guidelines regarding the design of is President of the and discuss any Dmitry Medvedev called for new shipping to pass through the Arctic, we Qikiqtani Inuit Associa- activity that hap- international rules for offshore have no guidelines that can be used for tion (QIA). She is from pens up here that drilling that would address this all countries [that say] these are the Iqaluit, with an exten- could affect people type of accident. What is deficient minimum standards by which offshore sive political, manage- living in the North. in current international treaties oil and gas will be conducted. And with- ment, and adminis- And we hope that that would make these new rules out those standards, the Law of the Sea trative background. the government of necessary? Convention has very little actual impact She has chaired, sat Nunavut, as well as What is deficient is a binding set, or on reducing the chance of environ- on, and worked for the Nunavut Mem- even a satisfactory set of guidelines mental pollution from activities on the national, regional, and ber of Parliament, for behavior and operation of offshore continental shelf. community boards and Leona Aglukark, is activities. It could be particularly im- With Russia’s focus on the Arctic, it committees and has advising the federal portant in the Arctic, where Russia and provides excellent opportunity for the also represented both government to sit Norway have been engaging in offshore United States, Russia, Canada, Norway, federal and territorial down with us and oil and gas development and where the and Greenland to set up those rules and governments in vari- discuss a process of U.S. has been engaging in near-shore possibly to involve, through the Arctic ous capacities. consultation that [development] and looking at deeper- Council, the native people organiza- is mutually benefi- water exploration. tions of the Arctic in a comprehensive cial.” While we have, through the Inter- regional look at how to set standards for WWF-Alaska’s David Aplin agrees governing the development of offshore there needs to be greater understand- oil and gas. ing of seismic testing and its impact on sea creatures, the ecosystem and the What is deficient Can you talk a little more about cumulative effects of human activities in is a binding set, or the environmental and legal impli- the area. cations for exploring in the Arctic? “There is ample evidence that noise even a satisfactory There just seems to be a number from seismic testing results in temporary of unanticipated consequences and permanent damage to fish and wild- set of guidelines from the melting of the ice cap. life,” he says. “The cacophonous noise The melting of the ice cap provides from airgun arrays also disrupts normal for behavior and access for development and, in par- and necessary behaviours like feeding, operation of offshore mating, migration and the care of young. It’s common sense that we should do no activities. *Excerpt from CFR.org. Reprinted with harm before proceeding.” permission.

18 The Circle 3.2010 national norms with regard to marine environmental pollution and we have rules regarding the enforcement by flag states, port states and coastal states. On oil and gas development, it’s less so. In the cold waters of the Arctic, it’s very hard to predict what a spill would do. Working in waters that are near the freezing point, a great depth, and having possible surface temperatures far below freezing makes a challenge for cleanup that would be much more difficult than in the warm waters of the Gulf, and would be one that we are currently ill prepared to deal with. So avoiding a spill becomes more important in the Arctic. It really does need that set of standards and constant monitoring and enforcement of standards by the national governments to be sure that we can avoid a spill. Or if one does take CAITLYN ANTRIM is place that response Executive Director at comes very quickly. the Rule of Law Com- For Russia’s mittee for the Oceans. offshore reservoirs, many of them extend under land or under shallower water and they have a broad shelf, so they may be drilling in many cases at six hundred meters. For the U.S. and Canada, you may be hitting much deeper water. So, the techniques and the problems that are faced will vary from country to country. But it’s a good time to come together and region- ally define the regime for activities of exploitation of continental shelf, so that all countries know ahead of time what’s expected of them. So that investors image acquired June 19, 2010 know what’s expected of them and they know what the rules are and that they’ll Photo: N A S be carefully enforced. Oil slick in the Gulf of Mexico June 19, 2010. The oil appears as a maze of silvery- A problem with the Gulf is that we gray ribbons in this photo-like image from the Moderate Resolution Imaging Spec- had rules that weren’t always enforced, troradiometer (MODIS) on NASA’s Terra satellite. The location of the leaking well is weren’t always monitored, and it leaves marked with a red circle. companies with a sense of, ‘where do we put our priority?’ The convention provides a framework ticular, the development of oil and gas standpoint, oil and gas is, at least in the for dealing with environmental pollu- offshore and the passage of shipping near term, probably the major environ- tion, but it doesn’t set the rules and it along the coast of Russia and the United mental consideration [in the Arctic]. calls for those to be negotiated bilater- States and through the Northeast and We have guidelines on ship design and ally, regionally, or globally. And that’s Northwest Passages. From the pollution other regulations that establish inter- where it stands now.

The Circle 3.2010 19 Industry perspective: exploration Drilling offshore Greenland: minimising risks

the most stringent regulations globally. Cairn Energy announced in August that it has discovered These policies are modelled on those gas in thin sands offshore Greenland, the first indications applied in the Norwegian North Sea, of hydrocarbons in the Baffin Bay basin. As the only com- which are recognised as being some of the strictest regulations in the world. pany drilling offshore Greenland this year, what is Cairn However, keen to ensure that any les- doing to ensure it mimimises its impact on the Greenlan- sons learnt were captured, the govern- dic environment? SIMON THOMSON from Cairn Energy out- ment and Cairn reviewed the planned programme. The programme put in lines the company’s plans. place includes: ■■ Contracting two state of the art Three years ago, in 2007 the Greenlan- with a proven track record of success- ‘dynamically positioned’ fifth and sixth dic government invited international oil fully exploring for hydrocarbons in chal- generation vessels to explore together, and gas companies to once again explore lenging environments around the world, thereby allowing the quick drilling of a for hydrocarbons offshore Greenland Cairn was one of many companies to relief well (there were five register an interest. At the time of writ- ■■ Designing the drilling schedule so wells drilled offshore ing, Cairn has an interest in eight areas that only one rig will enter a hydrocar- Greenland in the 70s (blocks) offshore Greenland. Since 2007, bon-bearing section at any given time and one in 2000). Cairn has conducted extensive seismic ■■ A well design with primary and Its rationale was surveys across its acreage offshore secondary barriers to minimise the SIMON THOMSON was clear. With increas- west and south Greenland, all without possibility of an uncontrolled release of appointed Legal & ingly limited global incident. The region where Cairn is hydrocarbons, which has been reviewed Commercial Director energy resources, a conducting its 2010 summer exploration by an independent external expert (the of Cairn Energy PLC potential new source drilling programme is the Sigguk block, ‘well examiner’) in accordance with in 2006. He holds a of hydrocarbons located 150–200 km from Greenland’s North Sea practice LLB Hons from Aber- offshore Greenland west coast. ■■ Fully testing the blowout prevention deen University and could benefit the Throughout its operations around the equipment, including a mechanical test a Diploma in Legal country’s govern- world, Cairn is very aware of its respon- by independent authorities, prior to op- Practice from Glasgow ment, its people and sibilities and obligations towards peo- erations commencing and subsequently University. He joined communities with ple, communities and the environment. testing the equipment fortnightly Cairn in 1995 as a valuable revenues. Consequently, between first expressing lawyer before becom- Studies by the US its interest in Greenland and receiving ing Group Commercial Geological Survey approval to drill in the Sigguk block, Manager. Prior to suggested that the Cairn has spent the past three years What is crucial is his appointment as area offshore Green- working closely with the government Legal & Commercial land was one of the to ensure Cairn’s procedures place the that these resources Director, he served on top ten “yet to find” highest possible priority on safety and the Group Manage- hydrocarbon loca- environmental protection. are developed ment Board for six tions globally. Such years. He is also a a find could provide Planning responsibly, safely director of Winning opportunities for The Greenland government and Cairn and to the highest Scotland Foundation economic develop- believe they put a thorough and robust and Graham’s Family ment as well as strategy in place, even before the tragic environmental Dairy Ltd. providing increased incident in the Gulf of Mexico. The energy security. Greenlandic Bureau of Minerals and standards. As a company Petroleum has established some of

20 The Circle 3.2010 Industry perspective: exploration Drilling offshore Greenland: minimising risks

■■ The blow-out preventer being used has two shear rams; can be remotely activated; and should the blow-out pre- venter fail, each vessel has a remotely operated vehicle to use to close the well ■■ Hiring a team of experts to manage the programme for Cairn with a com- bined total of more than 1,000 years of successful oil exploration campaigns in challenging environments includ- ing extreme arctic conditions (average experience per person is approximately 30 years) The capabilities of these fifth and sixth generation vessels far exceed the

drilling and water depth requirements Photo: Cairn Energy of Cairn’s 2010 offshore Greenland Stena Forth Drillship on location offshore Greenland. conventional exploration drilling pro- gramme. of spill scenarios and different response Cairn employees, contractors and repre- Operating in such an environment techniques to be used. Substantial levels sentatives from the Greenlandic fire and has meant that Cairn, with some of the of equipment to manage an oil spill are police services. world’s leading ice management compa- available onboard support and standby Throughout its operating history, nies, has developed a comprehensive ice vessels and onshore Greenland. In addi- Cairn has demonstrated the ability to management strategy. The strategy cap- tion, international response personnel develop and manage complex explora- italises on skills and techniques learnt and equipment is available via Oil Spill tion and drilling projects successfully, from working in similar climates, in the Response Ltd, and if necessary under often in challenging environments. It area offshore eastern Canada, where international governmental agreements. is only by working in such a way that oil and gas exploration and production The oil spill response equipment Cairn is granted a licence to operate. have thrived for 30 years. Based on the stored onboard the standby and support Many companies around the world data gathered from ten years of satellite vessels (tier one) includes contain- are investing heavily to develop renew- data, which has been further enhanced ment and protection booms, skimmers, able and low-carbon sources of energy. with specific data of iceberg flow paths vacuum recovery systems, boat spray However, faced with a potential energy and size of 344 iceberg in 2008 and 112 systems and dispersant. Additional gap, hydrocarbons will remain an im- in 2009, six iceberg and ice manage- dispersant and heli-buckets are placed portant source of energy for many years, ment vessels have been hired to provide onshore (known as tier two) in case if global social and economic develop- ice management support. This number of aerial dispersant operations and to ment is to continue. By 2030, according of vessels is three more than what is enable rapid mobilisation. Equipment to the International Energy Agency, 80 required for the management of the pre- which could be provided from the UK per cent of global energy consumption dicted amount of expected icebergs. (tier three) via Oil Spill Response Ltd will still be derived from fossil fuels. includes additional specialists, signifi- The imperative to find new sources of Tiered response system cant quantities of boom and dispersant oil and gas therefore remains urgent. Working closely with the Greenland in addition to Hercules aircraft with What is crucial is that these resources authorities, Cairn has developed an dispersant spraying capability. are developed responsibly, safely and to extensive oil spill response plan and Oil spill response training has been the highest environmental standards. tiered response capability. The plan in- carried out in conjunction with relevant This is the approach that Cairn Energy cludes predictive modelling on a range vessel, helicopter and onshore teams for is pursuing.

The Circle 3.2010 21 Strong opposition to Greenland drilling plans A lot of local and international concern has been voiced since Cairn’s drilling plans were announced. Here are some extracts:

n No drilling, says Greenland environmental group Greenland’s Nature and Environment Association, Avataq, is calling for an end to this summer’s planned oil drilling, KNR reports. Avataq says the oil test wells shouldn’t go ahead. And, the association believes that – as things are now – there is not an adequate emergen- cy plan in place if a disaster occurs in Greenland waters. Avataq says it wants more information about the safety of Cairn’s wells west of Disko Island from MP Photo: Greenpeace Karl Ove Berthelsen, who Activists occupying the Stena Don oil rig in the Arctic. maintains the drilling in Greenland will be safe. www.sikunews.com in June. ICC said all other Greenpeace Nordic on new deepwater drilling. 8 June 2010 arctic states should also climate change campaigner Greenpeace is backing the end the current oil and gas Jon Burgwald said: “We call, amid concerns that the n ICC wants a stop exploration at sea. shut down drilling by taking Deepwater Horizon disaster on arctic drilling “We believe that the arctic action on the high seas, but could be repeated at new Jimmy Stotts, the president states have the political will if dangerous deepwater oil deepwater sites across the of the Inuit Circumpolar to work together and benefit drilling is to be stopped for world. In a letter to Green- Council, has added his the region,” said Stotts. good then action also needs peace Cairn Energy says it is voice to the organizations www.sikunews.com to be taken in the world’s basing its actic investment and politicians who want a 11 June 2010 capitals. Our leaders need to on an International Energy stop on drilling in the arctic take us beyond oil, to invest Agency report which sug- waters, reports KNR. n Greenpeace in clean energy solutions for gests that, by 2030, fossil “To sacrifice the pristine vows to take the sake of the climate and fuels will still supply about arctic environment for the oil fight to new the preservation of pris- 80% of the world’s energy. sake of resource extraction waters tine environments like the According to scientists, this is unacceptable to the Inuit In August, Greenpeace Arctic.” scenario – the most pessi- and should be unacceptable campaigners climbed up Later this month, envi- mistic of several the IEA has to all. We need a respite, Cairn’s Stena Don drilling ronment ministers from produced – could lead to six and we need it now,” Stotts rig and delayed the opera- countries bordering the degrees of warming by the said in connection with the tion for 40 hours until the North Sea will meet in end of the century. arctic environment min- arctic weather forced the Norway, where Germany www.greenpeace.org isters’ meeting in Ilulissat activists down. is proposing a moratorium 4 September 2010

22 The Circle 3.2010 Industry perspective: shipping The main problem in transporting oil using the NSR is the extreme arctic conditions. This area is extremely dif- ficult for oil products carriage. Oil spill response is a very complicated task on Shipping oil through the ice the ice; several years ago it was impossi- ble to approach some areas. Under such One of the challenges related to petroleum development in conditions, the skills of the crew are of key importance. Our company carefully the Arctic is to minimize the risk of spills from ships trans- keeps the traditions of seafaring safety porting the offshore oil. In the harsh arctic conditions, and responsibility that were started by the skills of the crew are essential, says VALERY SHESTOPALOV our renowned captains and masters during the Soviet times. In addition, the from Murmansk Shipping Company (MSCO). operability of the vessel itself, availabil- ity of all necessary The Northern Sea Route (NSR) is to the ocean and as such form a single equipment, and Russia’s main shipping line in the Arctic, transport system. compliance with and Murmansk Shipping Company The key ports situated along the the international has been delivering various cargoes to Northern Sea Route are Igarka, safety require- Russia’s sector of the Arctic under the Dudinka, Dickson, Tiksi, Pevek, and ments are essen- Programme of Goods Deliveries to the Providence Bay. In general, navigation tial factors that VALERY IVANOVICH Northern Territories for many years. is possible just two to four months, can minimize the SHESTOPALOV is a Being an internal waterway of Russia, in some sections a little longer due to risk of spills. marine engineer by the Northern Sea Route is of paramount icebreaker assistance. However, the use Murmansk training who graduated importance in the economic life of many of the Northern Sea Route by vessels is Shipping Com- from the Leningrad regions of our country. These regions economically profitable, as it reduces pany has vast Higher Marine are connected with the Arctic Ocean by the cargo delivery time up to 40 per cent experience in oil Engineering School a number of rivers which bring water compared to the traditional routes. products carriage: and has worked for from 2000 till Murmansk Shipping 2008 the com- Company since 1963. pany’s vessels In 2000 he became transported oil Deputy Director of Increasing risk of arctic shipping incidents from the Var- Navigation in charge andey terminal of the company’s A fuel tanker ran aground in western This lack of capacity will be com- in the Pechora cargo operations of Nunavut in the beginning of Septem- plicated in the future by uncertain ice Sea. Unloading tankers. He is currently ber, adding to the list of incidents in conditions, particularly in the High continued all year Captain-Instructor of arctic waters. Apparently no oil leaked Arctic and Northwest Passage, where round, including the Navigation Safety out this time, but with more ships “choke points” in narrow straits will under winter ice Service of Murmansk travelling in northern waters, it may continue to make navigation difficult, conditions. For Shipping Company’s just be a matter of time until a serious said ice expert John Falkingham ac- all these years Department of Naviga- accident causing either loss of life or cording to Nunatsiaq Online. there has not been tion Safety. damage to the environment occurs. A WWF report published in 2009 a single oil spill Two of the main problems are showed that two decades after the incident. Thus lack of appropriate charting and a Exxon Valdez oil tanker struck Bligh MSCO has proven lack of safe anchorages – places with Reef in Alaska’s Prince William’s that despite the challenges, oil can be anchored tie-ups where ships can go Sound and spilt millions of litres of oil transported under ice conditions, too. when they get into trouble. And if an into the delicate arctic environment, In recent years, MSCO’s ice reinforce- incident such as a major oil spill hap- governments and industry in the re- ment class tankers Indiga and Varzuga, pened, ship operators have warned gion remain unprepared to deal with and the Kotlas tanker have been carrying that there’s a lack of equipment and another such disaster. oil products using the NSR. In 2009, know-how. What equipment there is Sources: www.montrealgazette.com and over 102,000 tons of cargo was delivered relies on aging technology. www.nunatsiaqonline.ca under the Programme of Goods Deliver- ies to the Northern Territories.

The Circle 3.2010 23 Industry perspective: spill response

Surface oil burns in the Gulf of Mexico as part of the oil spill clean-up.

24 The Circle 3.2010 Photo: Creative commons / Kris Krüg Industry perspective: spill response

Spill technology lagging behind There have been no significantly innovative ideas in oil spill cleanup for over 20 years. Few industries can make that claim today, says DAVID PRIOR.

An estimated 4.1 million barrels or 650 million litres of oil were recently released into the Gulf of Mexico. Approximately 14 million litres have been recovered by mechanical skimmers and perhaps another 70 million litres have been in-situ burned. Approximately 7 million litres of very toxic dispersant chemicals have been applied to help break up the oil. All these methods have been recently described as “primitive” by Robert Bea, a Univer- sity of California-Berkeley professor who directs the university’s Center for Catastrophic Risk Management. He worked for decades as a risk assessor to oil companies, including BP in the 1990s. By mid-July, the visible oil slick was approximately 5000 sq km

The Circle 3.2010 25 In the entire history policy adviser for marine programs with A personal account Defenders of Wildlife, says that the food of ocean oil spills the chain is hurt when heavy particulate average success rate matter, ash and tar that can be con- sumed by marine life are released into An Alaskan’s impression from the Gulf is 0–5 per cent of the the air and settle onto the ocean surface. The scientific community has never Coming from a family who oil removed from the seriously looked at these primitive gets most of our income from methods of making the oil “go away”. environment. The Gulf spill will likely change that and commercial fishing, the po- lead to the banning of some of these tential impacts from offshore but patches of oil were spread over a conventional techniques. drilling in Alaska’s pristine vastly greater area. Assuming only 5000 ExxonMobil, Chevron Corp., Conoco waters is very concerning. I sq km needed to be cleaned, existing Phillips and Shell Oil have just agreed to skimmer vessels would take 500,000 fund a new company with $1000 million along with new friends from boat-days. Assum- USD that would respond to offshore oil the Arctic Slope toured the ing BP used 500 oil spills up to 10,000 feet (3,000 meters) Gulf Coast in May after the skimmer vessels underwater. Apparently the system Deepwater offshore drilling and assuming the would deploy equipment that could ocean was almost arrive at a spill within days and be fully disaster. We were shocked flat calm for the en- operational within weeks. It incorpo- and dismayed on how it ru- DAVID PRIOR is CEO tire cleaning period, rates systems to divert the oil into ships and head of R&D ined so many people’s lives it would take 1,000 which is a good idea. However, a key in- and product develop- and fouled a beautiful ocean, days to recover the gredient is a dispersant injection device ment at Extreme Spill existing oil. BP has on the sea floor which will likely create says VERNER WILSON. Technology. He has 40 been employing 700 an environmental catastrophe if used. years of experience skimmer vessels BP spent $6,100 million USD trying Alaska and Louisiana, directly impact- in the Atlantic Canada and only managed to control and clean up the millions ed by the broken promises of rich oil marine industry and to gather 20 million of liters of oil that spilled from their companies, have a lot in common. Our has filed patents on litres of oil (out Moncado well. They managed, with all largest industries are oil and fishing. It several new products. of the 650 million the resources in the world placed at was heartbreaking to meet fishermen He receives advice litres spilled). The their disposal, to remove only 3 per cent who were shut out of their livelihoods and funding from the most “advanced” 10 of the oil. because of fouling pollution, wary sea- National Research meter vessels, de- Clearly, more money won’t prevent food consumers, tainted fisheries and Council of Canada, signed over twenty future fiascoes. The reason is that the fishing area closures. They were fighting and receives advice years ago, can only oil spill equipment and techniques don’t to get food on their tables and another from the Canadian clean at the rate work on the ocean. In the entire history source of income, unable to eat from Coast Guard and of approximately of ocean oil spills the average success the waters they fished their entire lives. experts in the oil spill 9 m² per minute, rate is 0–5 per cent of the oil removed We sympathized with them, because industry worldwide. and then only if the from the environment. Even then it’s many Alaskan families have deep-rooted ocean is very calm. often an environmental nightmare with The floating waste equipment ending up in landfills. boom has proven useless even on calm “Protecting the beaches and holiday days. A mere 0.4 mps current simply resorts” is not protecting the ocean. flows the oil under the boom (entrain- On land, we never use dispersants Rare marine mammals and ment). Normal sea breezes push the to spread the oil far and wide across wild sustainable fisheries oil over it. It even threatens sensitive farmland so organisms can feast on it marshes by physically damaging the and yet we treat the ocean like a toxic only Alaska has to offer make plants as it gets shoved across them by waste processing facility. As we do on it an unreasonable gamble to wind and tide. land, we must pick the oil up out of the In-situ burning of oil kills many en- sea and salvage it where possible or at mess around with renewable dangered sea turtles and harms micro- least safely dispose of it. So far industry resources for short term oil organisms that form essential parts of has made no attempt to accomplish this the food chain. Richard Charter, senior on an ocean scale. drilling.

26 The Circle 3.2010 A personal account Indigenous perspective An Alaskan’s impression from the Gulf Industrial development: fishing traditions which go thousands of years back. And now there is proposed drilling in the areas where our food and livelihoods a blessing or an evil? come from. Alaskan waters, especially where I Russian Indigenous peoples are currently going through a am from in Bristol Bay, provide billions of dollars in seafood each year. The complex and critical period with respect to the integration Inupiat of the North Slope go whale into the market economy, says RODION SULYANDZIGA. Energy hunting every companies are key actors in this process. year to feed their communi- ties. These are On the one hand, large-scale industrial companies. There reasons why we projects are developed and implement- are a number of should never risk ed across the whole area, related pri- reasons for this: Alaska’s clean VERNER WILSON marily to the discovery of new natural ■■ Increasing DR RODION SULYANDZI- waters from risky is a Yupik from resources and the need for strengthen- pressure on the GA is Udege (“Forest offshore drilling. Dillingham in ing the country’s economic power and traditional terri- People”), one of the If we ever had a Alaska, who visit- its energy potential. tories by the com- smallest Indigenous disaster like in ed the Gulf Coast On the other hand, an unprecedented panies, resulting people in the Far East the Gulf, it would with WWF follow- reduction of the territories of Indig- in a growing, (Siberia) of the Russian likely be much ing the offshore enous peoples of the North, Siberia and often spontane- Federation, and has a more devastat- drilling disaster the Far East is taking place in terms ous and increas- PhD in sociology. Since ing to us and our there. He has of traditional livelihoods, sacred sites, ingly organized 2001 he has been the environment worked for WWF grazing, hunting and fishing areas. This movement of director of the Center for because it is dif- and for Nunamta will no doubt have a negative impact on Indigenous support of Indigenous ferent here. Cold Aulukestai where the economic, cultural and spiritual life peoples to protect peoples of the North/ icy waters make he worked to stop of nations. For some, this trend will cre- their rights, which Russian Indigenous it much more offshore oil and ate a real threat to ethnic survival. could potentially Training Center (CSIPN/ time consum- gas development The well-being and future of these stop the project RITC) – which provides ing to dissipate in Bristol Bay and nations will be directly dependent on through mass educational, consulting spilled oil. Lack the Pebble Mine. sound government policies and real ac- protests and court and expert services to of infrastructure tions in relation to Indigenous peoples, cases. over 40 Indigenous peo- and extremely the degree of integration and support ■■ Investment by ples throughout Russia remote conditions, coupled with stormy to traditional management within the foreign financial – while also working for rough weather, would make it hard for market economy, the state of the envi- institutions such the Russian Association any response. And rare marine mam- ronment and the legal settlement with as the Interna- of Indigenous Peoples mals and wild sustainable fisheries only the companies. tional Finance of the North, Siberia Alaska has to offer make it an unreason- Corporation (IFC) and Far East (RAIPON). able gamble to mess around with renew- Increasing momentum and others which Since 2003 he has been able resources for short term oil drilling. The key question is: to what extent are require compli- Board member of the Alaska is not the same as anywhere agreements with industrial companies ance with interna- Copenhagen-based else, it is unique in many ways. And in the interests of Indigenous peoples tional standards Indigenous Peoples’ promises can be broken. We live in an of the North, Siberia and the Far East? on Indigenous Secretariat. important pristine area. Disasters like Trends in recent years show an increas- rights. in the Gulf show the risks, and some of ing momentum in terms of negotiating ■■ The role and the horrible consequences of not taking and concluding agreements between influence of the Russian Association of these risks seriously. Indigenous peoples and industrial Indigenous Peoples of the North, Siberia

The Circle 3.2010 27 and Far East (RAIPON) on the national Indigenous perspective and international arenas, which has focused on monitoring of large-scale industrial projects in the territories of Indigenous peoples and regular infor- mation exchange with regional organi- Inuit to speak with one voice zations, allowing rapid response to new challenges. on arctic waters’ rush Fair division The higher the level of talks between the Inuit are a coastal people who have relied on the marine Indigenous peoples and the company environment for thousands of years. For each of us, con- are, and the better the coordination between Indigenous peoples’ organiza- serving this environment for the use of today’s and future tions, the greater are the chances of en- generations of Inuit is paramount, says AQQALUK LYNGE. suring a fair agreement and the neces- sary legal, organizational and financial There are four ways in which Inuit can done for over thirty years through the Inuit support. help conserve this resource-rich environ- Circumpolar Council (ICC), positive impacts Yet, paradoxically, the most difficult ment. One way is for Inuit to exert strong on conservation of the arctic environment and tense situations have been seen influence on those making laws affect- have resulted. with respect to public monopoly com- ing our coastal One of the urgent challenges facing Inuit panies. Most of the current “hot spots” lands and coastal today is how to respond to the rapidly-es- are projects of the energy companies waters. Another calating interest in arctic resource develop- Gazprom in the Altai, RusHydro in way is for Inuit to ment. This arctic waters’ rush challenge the Krasnoyarsk Territory and Sakha speak out loudly is an especially difficult one because the Republic, Transneft in Yakutia and the to make sure laws 160,000 Inuit living in Russia, Alaska, Can- Amur region, Rosneft on Sakhalin and AQQALUK LYNGE and environmen- ada, and Greenland all live under different Kamchatka. The list of problematic situ- is a Greenlander, tal impact assess- flags, each having its own environmental ations is expanding. and Chair of the ment processes impact assessment regime. To complicate The Russian Federation has yet to Inuit Circumpolar – where they are matters, within each jurisdiction there are develop a functioning legal system that Council. Mr. Lynge adequate – are even further ways of dealing with the re- could resolve the complex issues related has been a long- adhered to. A source industry. In Canada alone there are to rights to land and natural resources. standing advocate third, and perhaps four different land claims regions (Nunavut, Parallel to this, international experience for further Green- most important Nunatsiavut, Nunavik, and the Inuvialuit shows that the most important thing land autonomy, way is for Inuit Settlement Region) and each have different for northern Indigenous peoples are while at the same themselves to act ways of addressing environmental assess- not ‘corporate social responsibility’ and time promoting responsibly. How ments. In some Inuit areas, like Greenland, other programs, not the invention of and celebrating the well do we follow citizens – or their government – have a extra structures to deal with individual unity of Inuit across our grandparents’ direct say on how oil should be drilled. In problems (alcoholism, health, educa- the circumpolar (and their grand- other areas, like Chukotka, Russia, citizens tion, etc.), and not just the acquisition north. He has parents’) advice have little say. In Alaska, there are USA fed- of land rights and individual power. been a member passed on through eral laws, Alaska state laws, and Indigenous The vision of a better future should not of Greenland’s the generations to processes that all need to be respected. In be motivated by promises of paternal- parliament, served use only what we Canada, there are provinces and territories, ism, but through the state’s recognition as a minister, and need, and to do so as well as federal interests all competing of the injustice in the past, and a fair spent the earlier with caution and with Inuit interests. It is a jungle out there division of economic and political power part of his career with respect for in arctic waters. between Indigenous peoples and the as a social worker. the land and seas How should Inuit respond now that the dominant society. Aqqaluk Lynge is that sustain us? oil and gas reality is upon us? Well, Inuit also the author Finally, Inuit have should continue to press all those that have of several books, demonstrated that influence over our lands and seas, to do bet- including poetry. by speaking with ter than they have done so far. Inuit should one voice, some- call upon them to make better laws and thing we have create better impact assessment procedures

28 The Circle 3.2010 that meaningfully and directly impact Vulnerable areas those that use the arctic coast. Second, Inuit need to be vigilant about oil and gas companies adhering to what laws do exists. Thirdly, Inuit must take the lead – as they have for millennia – in acting responsibly Towards permanent themselves. This applies equally to how we hunt and fish as it does to how we extract oil from our seas. In those cases in which Inuit self-government processes have protection of Lofoten? moved us one step closer to autonomy from our former colonial masters, we should be The Norwegian government will soon decide if it will al- especially careful and aim to be global lead- low oil exploration outside of Lofoten islands in northern ers in state of the art impact assessment. Local concerns should be heard clearly Norway. Some areas are just too vulnerable and valuable and fully. Caution should be the guiding to open up for short term gains and should be granted per- principle at all time. Impact assessment manent protection, argues GAUTE WAHL. processes should be holistic and include, of course, the economic dimension. But on the environmental side, we should include the social environment, the cultural environ- The sea outside Lofoten, Vesterålen There are several reasons behind ment, and the physical environment. and Senja in the northern part of this resistance, Finally, in order for the Arctic’s coastal Norway is especially rich in natural one key aspect waters to be conserved for our future use resources and especially vulnerable to being the area’s in a sustainable manner, Inuit need to pollution. This is the area where the great natural speak out with one voice on this issue. The world’s last large stock of cod spawns and renewable numerous Inuit delegates from Russia, every winter. The same area may con- resources. The Alaska, Canada, and Greenland stressed tain large amounts of oil and gas, and renewable re- GAUTE WAHL has the importance of addressing the resource the oil industry has been campaigning sources of the sea been the leader of development issue from a pan-Inuit per- heavily to gain access for oil exploration. have always been the foundation The spective at the recent quadrennial General At present day, the area is protected the foundation people´s action for an Assembly of the Inuit Circumpolar Council. against oil activities due to its natural for settlement oil-free Lofoten, Vest- It was in the Nuuk Declaration that they resources and vulnerability, but this and employment erålen and Senja since called upon ICC, “as a matter of urgency, to protection will be politically revised in in the region, it was established in plan and facilitate an Inuit leaders’ summit 2011 and the outcome is still open. and the fisher- 2009. He is originally on resource development with the aim of men’s national from Bodø but now developing a common circumpolar Inuit Unique nature organisations lives in Lofoten where position on environmental, economic, so- The national campaign “Folkeaksjonen heavily oppose he has been based cial and cultural assessment processes and, oljefritt Lofoten, Vesterålen and Senja” the plans for oil since 2002. as a first order of business, raise funds for (The people´s action for an oil-free activities here. such a summit”. Lofoten, Vesterålen and Senja) seeks to The last three Inuit delegates at the ICC General As- protect the unique nature of this region summers have seen extensive seismic sembly realized that Inuit have had a long by putting an end to the drilling plans, exploration, and a subsequent rising and prosperous history due to the marine and by supporting development of the conflict between local fishermen and oil environment sustaining us for thousands established industries in the region. interests. The seismic noise from the of years. They also knew that by coming to- The campaign is based in Lofoten, and powerful sound canons that are used to gether and developing common ground on is a politically independent grassroots register the geology below the seabed the important and urgent issue of resource organisation that gives voice to a strong frighten fish and occupy areas which development, despite the resource jungle local and national public resistance would otherwise be used for fishing. out there in arctic waters, our future for towards oil exploration in the area. Lofoten is also one of Norway’s top several more millennia can be assured. By 4,000 people are currently members, tourist destinations, and the area is to speaking with one voice through the Inuit and 53,000 signatures against drilling be considered for the UNESCO World Circumpolar Council, Inuit will meet the were collected and handed over to the Heritage List because of its exceptional challenge. government after the elections last year. natural and cultural qualities. The risk

The Circle 3.2010 29 WWF staff and volunteers practicing WWF perspectives the use of a boom to catch oil spills on wa- ter at the NordNorsk WF is engaging Beredskapssenter in Fiskebol, Lofoten governments and Islands, a training industry in dialogue centre where people W learn how to clean up across the Arctic to ensure a oil and gas spills in water and along the responsible industrial devel- coast.

Photo: Ronny Frimann/Zine.No / WWF opment. We asked WWF in of an oil spill is a major threat to both increase in emissions. The world needs Canada, Norway, Russia and fisheries and tourism, which are the two a shift away from fossil fuels, and one major industries in the region. important step in the right direction the US to outline the situ- would be to protect areas that are rich in Greedy, short term renewable resources and vulnerable to ation in terms of ongoing solution pollution. These are important local considera- The campaign therefore demands that and planned drilling, the key tions. But in our time a new threat is the areas outside Lofoten, Vesterålen moving closer every year, and this threat and Senja are made “petroleum free” ar- environmental challenges gives rise to the need for a more long- eas. Today the political decision to allow related to this, and WWF’s term protection against the oil industry. or put an end to oil exploration in these In times where global warming threat- areas is only postponed. To designate an involvement and proposals ens the livelihood of people all around area as petroleum free would mean to the world, limiting pollution from one give it a permanent protection against for solutions. Here is what of the greatest sources of greenhouse exploration, without hindering the har- gas pollution, the oil industry, becomes vesting of the rich renewable resources they said. increasingly important. In Norway, of these seas. this industry is now alone responsible The struggle of Lofoten is far from for a third of Norway´s greenhouse gas unique. International oil companies emissions. Increased petroleum activity are campaigning to gain access to a lot in new areas will mean an even greater of similarly vulnerable and resource- ful areas around the world. In light of The world needs Ecuador´s recent decision to leave oil Aerial view of underground in the undisturbed tropi- taiga forest, a shift away from cal forest of Yasuni National Park, the Mackenzie pressure to open up vulnerable areas in River delta, fossil fuels, and one one of the world’s richest countries is Northwest exposed for what it really is: A greedy, Territories, important step in short term solution that fails to address Canada. the real problems. This really is a choice the right direction of values: a long term investment in would be to protect a clean sea and renewable resources against a short term profit based on pol- areas that are rich in luting fossil fuels. Norway´s privileged economical position should make us renewable resources lead the way. A decision to designate the waters around Lofoten, Vesterålen and and vulnerable to Senja as a petroleum free area would be pollution. an important step in the right direc- tion.

30 The Circle 3.2010 WWF perspectives Oil and gas drilling in Canada’s Arctic The Canadian government is refocusing on northern oil and gas exploration and develop- ment as key components of the future economic well-being of northern Canada. Final land claim settlements have clarified questions of land ownership in many regions, and new part- nerships between Indigenous peoples and the government are developing a more inclusive and regionally focused regulatory environment, says PAULETTE ROBERGE from WWF-Canada.

According to Indian and Northern million Canadian dollars to explore a Affairs Canada (INAC), the federal WWF-Canada is asking 205,000-hectare parcel in the Beaufort government department that sells oil that existing and Sea. The following year six companies leases in the Arctic, 1700 million bar- won bids to explore for oil and gas in the rels of oil and 31 Tcf (880,000 million planned offshore Beaufort Sea and Mackenzie Delta. BP cubic meters) of gas have already been Exploration alone discovered in Canada’s North. The total development committed 1180 potential resources (discovered plus million Cana- undiscovered) are estimated to be some be halted until dian dollars for 8,400 million barrels of oil and 153 Tcf regulatory oversight rights to explore of natural gas, representing about 25 a 202,380-hec- per cent and 33 per cent respectively of can be improved. tare parcel in PAULETTE ROBERGE Canada’s remaining resources of con- the Beaufort. is the Ottawa-based ventional crude oil and natural gas. More recently, Communications The development of multiple major in August 2010, Specialist for WWF- fields in the North is possible, according Chevron Canada Canada. A native of to INAC, specifically in the Mackenzie worth of total Canadian gas production. Ltd. paid 103.3 Canada, she lived Delta-Beaufort Sea Basin and in the Recent record oil prices have spurred million Canadian in numerous remote Arctic Archipelago and intervening government and industry interest in dollars for a deep northern communi- channels. The Sverdrup Basin alone is these resources. In 2007, Imperial sea parcel in the ties before moving to thought to contain nearly three years’ Oil and ExxonMobil Canada paid 585 Beaufort while Europe. She worked MGM Energy as a financial journalist Corp. acquired in England for several four parcels in years, covering the shallower waters. petroleum industry Unlike the US, among other beats. Greenland and She also spent 12 Norway, Canada years in Greece head- does not regu- ing communications late the leasing for a shipping concern. process and permits drilling directly within marine protected areas and environmentally sensitive areas. Furthermore, the three technologies de- ployed in the Gulf of Mexico to contain the spill (booms/skimmers/burning and chemical dispersants) all failed there and have been proven inadequate in the

The Circle 3.2010 31 Photo: Staffan Widstrand / WWF Photo: Staffan WWF perspectives

Unlike the US, Greenland and Drilling discussions with Norway, Canada does not regulate political repercussions the leasing process and permits drilling in Norway directly within marine Also in Norway, arctic oil has recently gotten a new flavour protected areas and following the Gulf of Mexico disaster. Recent statements environmentally indicate that the Norwegian ruling coalition government sensitive areas. is split over future drilling questions in the North, which ultimately may be the beginning of the end for the govern- ment, says FRITZ JAKOB FREDRIKSEN from WWF-Norway.

Arctic where conditions are more harsh. The Norwegian parliament has opened Currently only one block has been Offshore drilling in Canada therefore up for petroleum activities in the developed in the Barents Sea, the Snøvit proceeds without an effective safety net, Norwegian Sea, the North Sea and the gas field which started production in with possible dramatic repercussions Barents Sea. 2007. Development of a second block, for wildlife and natural resources. The Norwe- Goliat, was approved in 2009 and In light of the oil spill in the Gulf, the gian Petro- production is expected to start in 2013. National Energy Board (NEB), which leum Direc- Oil exploration outside the Lofoten regulates offshore petroleum activity in torate (NPD) islands in northern Norway has been up the Arctic and issues drilling permits to estimates for debate for quite some time, and in leaseholders, announced a public review FRITZ JAKOB that the total of arctic safety and environmental FREDRIKSEN is discovered and offshore drilling. WWF-Canada plans to WWF-Norway’s undiscovered The Norwegians saw actively participate in the review process Conservation Of- petroleum and has already made a formal submis- ficer for theA rctic, resources on for the first time sion. Shipping and the Norwegian As part of this process, WWF-Canada Petroleum. He has continental what it really means is asking for the NEB to not just address long experience in shelf amount how development will proceed, but shipping, both as to approxi- when a major player where and whether it should happen at a real sailor and mately 13 bil- in the petroleum all. WWF-Canada is asking that existing most lately with the lion standard and planned offshore development be shipping company cubic meters of industry talks about halted until regulatory oversight can be Høegh. oil equivalents improved. Almost 25,000 Canadians (scm o.e.). 40 “no risk”, “control signed WWF-Canada’s online peti- per cent of the tion calling for the federal government total resources have been produced. over the situation” to halt oil and gas drilling until, or un- The undiscovered resources are divided and “we will do the less, we can safeguard our environment, relatively equally between the three our marine species and our coastal regions, with around 26 per cent in the cleaning”. communities. Barents Sea.

32 The Circle 3.2010 WWF perspectives

2011 the Norwegian coalition govern- ment will decide whether to open up for exploration in this vulnerable area. Russian challenges for The main environmental concerns have been related to Lofoten, which is home to the world’s largest cod and herring stocks, shoals of sperm whales offshore exploration and killer whales, some of the largest sea bird colonies in Europe, including Russia holds the world’s largest natural gas reserves and puffin and cormorant, and the world’s the eighth largest oil reserves. There is significant interest biggest cold water coral reef. It is also an importan an important recreational in developing the arctic reserves, but such development area for locals and tourists. needs to happen in a responsible manner, say IGOR CHESTIN The Deepwater Horizon blow-out of WWF-Russia. has had a major influence on the public debate over the Lofoten issue. The Norwegians saw for the first time what it Russia is the second largest oil and projects in the Barents Sea could start really means when a major player in the gas producer globally, but this is still production in the upcoming decade: the petroleum industry talks about “no risk”, mostly based on land production. The Shtokman gas condensate field and the “control over the situation” and “we will biggest offshore oil and gas reservoirs Prirazlomnoe oil field. do the cleaning”. The disaster changed are located in the Barents and Kara seas As in other parts of the Arctic, there the way we talked about drilling in deep (about 75 per cent of the total offshore is however an important “response waters in Norway and has most certainly oil and gas volume), but currently Rus- gap” for oil spills in Russia. The harsh delayed the government’s decision about sia has offshore production only outside conditions and the lack of infrastructure Lofoten for several months to the extent the Arctic, in the sea of Okhotsk (Sakha- and efficient spill that the Norwegian Minister of Oil and lin), the Caspian Sea and the Baltic Sea. response mecha- Energy has raised his voice to state that Dozens of exploration projects (in- nisms means he does not want to see drilling in these cluding drilling) have been performed that significant waters. Although he expresses that this during the past 2–3 decades and are damage could be is his personal view, it may indicate that now being developed in the Barents done to the natu- the government is split on the issue. Sea and in the Kara Sea. For the most ral environment IGOR CHESTIN, who Two of the three ruling parties are now part, these offshore projects are being should a spill take has a PhD in biology against oil and gas activity in the area, developed by the Russian companies place. Currently from Moscow State whilst the third party still wants to go Gazprom and Gazpromneft. Two pilot the operator of University, has been ahead with an environmental impact the Shtokman Director of WWF- assessment. field – SDAG Russia since 1996. As early as 2003, Lofoten was (a Gazprom- He is Member of the designated as a temporary petroleum- Total-Statoil Russian Academy free zone by the Norwegian govern- Lack of scientific consortium) – is of Natural Sciences ment, after successful campaigning by developing an and he has published knowledge about more than 40 scientific WWF-Norway and others. The decision EIA (environ- was a huge setback for the oil industry the arctic flora mental impact as- publications in various which had claimed that it could exist in sessment) for the journals. harmony with valuable and vulnerable and fauna makes production stage. environments. As the government is However, effec- now once again considering to open up it impossible to tive response to gas condensate spills the area for exploration, WWF-Norway develop responsible in arctic conditions could be even more is consolidating its efforts to ensure complicated than for an oil spill. The the long-term protection of this unique offshore projects. reason for this is the significantly higher area. potential for blow-out of condensate

The Circle 3.2010 33 WWF perspectives than oil, which makes it necessary with stricter safety measures. Currently, lack of scientific knowledge Oil and gas development in the outer continental shelf of US arctic waters about the arctic flora and fauna makes it impossible to develop responsible offshore projects. For example, the Over the last couple of years, leases have been granted to red-listed species Atlantic walrus has the oil industry in biologically important waters in the US key habitats in the south-eastern part of the Barents Sea, exactly where offshore Arctic. BILL EICHBAUM from WWF-US points out that despite exploration projects are being devel- recent victories and positive signs, further action is nec- oped. In depth surveys and research are essary to ensure that leasing and drilling do not proceed needed to get figures about population, migration routes, etc. before further de- until adequate science has been done and the oil spill re- velopment could be allowed in this area. sponse gap has been closed. In order to improve the capacity to respond to oil spills, WWF-Russia has initiated the development of a law on Until the presidency of George W. lack of sufficient scientific information prevention of sea pollution by oil. The Bush, not all waters subject to federal to properly plan development; the risk draft of this law will be brought to the jurisdiction in the Arctic were open to of oil spills and the lack of capacity Russian Duma (Parliament) this fall. oil and gas development. Bristol Bay, to respond to spills; and the risks to WWF-Russia also conducts courses to for example, was closed to development significant biological resources, includ- train volunteers in rescue operations of by both presidential and congressional ing America’s most valuable commercial oiled wildlife. action. The closure was based on the fisheries. Parallel to this, WWF-Russia has in cooperation with the Marine Mammals An offshore drilling platform connected to land by a bridge, Council formed a multi-stakeholder Beaufort Sea, Alaska, United States. body on Atlantic walrus. This body is composed of scientists, authorities, oil companies and non-governmental organizations and aims to develop and implement programs for monitoring and mitigation measures for this rare animal.

In order to improve the capacity to respond to oil spills, WWF-Russia has initiated the development of a law on prevention of sea pollution by oil.

34 The Circle 3.2010 WWF perspectives Oil and gas development in the outer continental shelf of US arctic waters

However, when President Bush lifted to oil spills in rough and icy seas. This the presidential ban and the congres- WWF will continue to opposition was based on a 2007 WWF sional moratorium was removed, new advocate strongly report, The Oil leasing activity was initiated by the Spill Response Minerals Management Service (MMS). that leasing and Gap. The risk of a In 2007, leases were granted to the serious spill is as oil industry in the Beaufort and Chuk- drilling should significant with chi Seas, and additional leasing was an exploration planned in Bristol Bay. not proceed until well as it is with a WILLIAm M. EICH- Because of the importance of the bio- adequate science has production well. BAUM joined WWF in logical resources of these waters, WWF- It was not until 1989 and is currently US acted to roll back these ill-advised been done and the oil after the Deepwa- Acting Vice Presi- decisions. We mounted a campaign to ter Horizon dis- dent, US Government assure that no leasing would take place spill response gap has aster in the Gulf Relations and Vice in Bristol Bay. Our outreach efforts of Mexico that the President, Marine and integrated biological, economic and so- been closed. administration Arctic Policy. Before cial analysis with public education and finally suspended, joining WWF, he was political action. We worked to educate at least for 2010, Undersecretary at the fishing community Shell’s right to the Executive Office about the risk to fisher- proceed. But this of Environmental Af- ies, and native communi- organizations to advance arguments situation is tem- fairs, Commonwealth ties about the threat to about the need to protect the Arctic porary. of Massachusetts their way of life. from any oil and gas development and WWF will and served in senior In addition, in winter the need to start the leasing process continue to environmental man- 2008 WWF-US joined over based on better science. Finally, on advocate strongly agement positions in other plaintiffs in a March 31, 2010, President Obama an- that leasing and Pennsylvania and the lawsuit challenging the nounced major policy actions regarding drilling should U.S. Department of validity of the leases development of the continental shelf. not proceed until Interior. Eichbaum, issued in the Chukchi There were victories. The president adequate science who is a graduate of Sea. The underlying legal withdrew Bristol Bay from any consider- has been done Dartmouth College theory was that leas- ation for leasing action. He announced and the oil spill and Harvard Law ing decisions had been that no new leases would be awarded in response gap has School, has among made in spite of funda- the Chukchi or Beaufort seas through been closed. We other things contrib- mental gaps in scientific 2012. And he indicated that any deci- now hope that the uted actively through knowledge of the lease sion to include these waters in future National Com- the National Academy area, thereby constitut- leasing plans would be subject to review mission on the of Sciences, including ing a violation of several by the U.S. Geological Survey. BP Deepwater serving as a member federal statutory require- But these decisions left open an issue: Horizon Spill and of the Water Sciences ments. the ongoing development activities in Offshore Drilling and Technology Board Little progress on this the Beaufort and Chukchi seas. Explora- – co-chaired by and the Marine Board. was achieved during the tion permits had been granted to Shell former WWF-US Bush administration. As Oil, which was preparing to drill explor- President and President-elect Obama atory wells in the summer of 2010. A Board Chair William K. Reilly – will prepared to assume significant basis for WWF’s opposition make recommendations that support office, WWF-US joined to development in the north was the this perspective. with other environmental impossibility of adequately responding Photo: National Geographic Stock/ James P. Blair / WWF Photo: National Geographic Stock/ James P.

The Circle 3.2010 35 B-economique Retur WWF Global Arctic Programme PO Box 6784 St Olavs plass, N-0130 Oslo, Norway

The picture

Promoting glacier-melting energy

In 1962 Humble Oil ran this ad rate of 80 tons each second! industry with a great variety of in Life Magazine. The ad reads: To meet the nation’s growing versatile chemicals. Stop at a “EACH DAY HUMBLE SUP- needs for energy, Humble has Humble station for new Enco PLIES ENOUGH ENERGY TO supplied science to nature’s Extra gasoline, and see why the MELT 7 MILLION TONS OF resources to become America’s “Happy Motoring” Sign is the GLACIER!” Leading Energy Company. World’s First Choice!” “This giant glacier has Working wonders with oil In the early 1970’s Humble remained unmelted for centu- through research, Humble pro- Oil was rebranded as Exxon ries. Yet, the petroleum energy vides energy in many forms -- to Mobil. Humble supplies -- if converted help heat our homes, power our (Source: Life Magazine/ into heat -- could melt it at the transportation, and to furnish Huffington Post)

Why we are here To stop the degradation of the planet’s natural environment and to build a future in which humans live in harmony with nature.

www.panda.org/arctic