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.