Abstract
Arctic sea ice is rapidly reducing due to climatic changes occurring in the region, allowing for easier access to vast amounts of undiscovered oil and gas resources. In recent years, growing interest in exploitation of Arctic hydrocarbon resources has led to an increase in exploration activity. Nevertheless, because of the Arctic’s harsh conditions, activities remain costly and are linked to serious environmental risks for vulnerable and unique Arctic ecosystems. Clean-up of potential oil spills would be highly complicated, if not impossible, and routine operational activities connected to hydrocarbon development, such as drilling or increased shipping traffic, have adverse consequences on marine flora and fauna. This chapter examines past, current, and potential future hydrocarbon activities in the Arctic, associated environmental impacts from accidents as well as normal operations, and possible cooperation between the European Union (EU) and United States (US) in mitigating the adverse environmental consequences of oil and gas development. Possibilities for transatlantic cooperation regarding hydrocarbon development in the Arctic are considered, including the use of legal and institutional frameworks to which both the EU and US have commitments.
Based on Koivurova T, Hossain K (2008).
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
A recent study by the Arctic Monitoring and Assessment Program (AMAP) suggests that the Arctic Ocean will be seasonally ice-free during the summer within the next thirty to forty years (AMAP 2011).
- 2.
The National Snow and Ice Data Center announced a new record low in Arctic sea ice extent in Sept 2012, following the previous minimum in summer 2007 (NSIDC 2012).
- 3.
The International Energy Agency (IEA) projects in a current policies scenario, as well as in a new policies scenario (with more oil use efficiency and switching to other fuels), an absolute global primary oil use increase (e.g., reaching 107 MMb/d in 2035 in the current policies scenario, compared to 84 MMb/d in 2009), even if the share of oil in total primary energy demand is expected to decrease (IEA 2010b).
- 4.
For natural gas, the IEA expects an absolute increase in demand as well as an increase in the share of total primary energy demand in all scenarios (e.g., in the current policies scenario, the share grows 1.6Â % per year, attaining 4.9Â tcm in 2035, compared to 3.2Â tcm in 2008) (IEA 2010b).
- 5.
This fear stems from the October 1973 world oil crisis, when Arab members of petroleum producing countries announced a ban on oil shipment to countries supporting Israel in the 1973 Arab–Israeli war (EIA n.d.).
- 6.
Average daily production rate for Sept 2012.
- 7.
Other offshore fields are extracted from land, using directional drilling technology (ADNR 2009).
- 8.
Average of monthly production rates in 2011. CNSOPB. <http://www.cnsopb.ns.ca/pdfs/production_report.pdf.> Accessed 5 July 2012.
- 9.
Following the determination of the Arctic Human Development Report (AHDR), parts of the North Atlantic Ocean, including the Labrador Sea, belong to the Arctic marine area (Young and Einarsson 2004).
- 10.
Climate change may allow for increased transport and greater access to Arctic resources (particularly fossil fuels) which would not only create potential environmental consequences, but the burning of extracted fuels to meet global energy demand would further accelerate climate change. See Koivurova T, Hossain K (2008).
- 11.
Smaller, diffused spills might occur from increased transportation by ships in the Arctic (AMAP 2007).
- 12.
See OSPAR Recommendation 2001/1 for the Management of Produced Water from Offshore Installations. Under this recommendation, each contracting party was to ensure that the total quantity of oil in produced water discharged into the sea in the year 2006 was reduced by a minimum of 15Â % compared to the equivalent discharge in the year 2000. The means used by most of the contracting parties to achieve the goal of a 15Â % reduction is the re-injection of produced water (OSPAR Commission 2007).
- 13.
See, e.g., Pedersen (2012), which states that the machinery Shell planned to use for oil spill response has not yet successfully been used in Arctic waters. Wolf (2007) quotes Michael Macrander, a biologist with Shell Oil, as saying that, to date, there are no methods to clean up oil in ice-laden conditions.
References
ACIA (2004) Impacts of a Warming Arctic: Arctic Climate Impact Assessment. Cambridge University Press, Cambridge
ADNR (2009) Beaufort Sea area wide oil and gas lease sale: Final finding of the Director. Alaska Department of Natural Resources. 9 Nov 2009
Arctic SAR Agreement (2011) Agreement on Cooperation on Aeronautical and Maritime Search and Rescue in the Arctic, 12 May 2011, 50 I.L.M. 1119 (2011). Entered into force on 19 Jan 2013
Airoldi A (2010) The European Union and the Arctic. Main developments July 2008–2010. Nordic Council of Ministers, Copenhagen
AMAP (1997) Arctic Pollution Issues: a State of the Arctic Environment Report. Arctic Monitoring and Assessment Programme, Oslo
AMAP (2002) Arctic Pollution Issues: a State of the Arctic Environment Report. Arctic Monitoring and Assessment Programme, Oslo
AMAP (2007) Arctic Oil and Gas 2007. Arctic Monitoring and Assessment Programme, Oslo
AMAP (2010) Assessment 2007: Oil and Gas Activities in the Arctic: Effects and Potential Effects, vol 1. Arctic Monitoring and Assessment Programme, Oslo
AMAP (2011) Snow, Water, Ice and Permafrost in the Arctic (SWIPA). Executive Summary. Oslo: Arctic Monitoring and Assessment Programme. <http://amap.no/swipa/SWIPA2011ExecutiveSummaryV2.pdf>. Accessed 6 Aug 2011
AOGCC (2012) Alaska Average Daily Oil and NGL Production Rates. Alaska Oil and Gas Conservation Commission, Alaska Department of Administration. <http://doa.alaska.gov/ogc/ActivityCharts/Production/2012_09-ProdChart.pdf>. Accessed 8 Nov 2012
Arctic MOPPR Agreement (2013) Agreement on Cooperation on Marine Oil Pollution Preparedness and Response in the Arctic, scheduled to be signed at the Arctic Council’s Ministerial Meeting in Kiruna, May 2013
Belanger M, Tan L, Askin N, Wittnich C (2010) Chronological effects of the Deepwater Horizon Gulf of Mexico oil spill on regional seabird casualties. J Marine Animals Ecology 3(2):10–14
Bird KJ, Charpentier RR, Gautier DL, Houseknecht DW, Klett TR, Pitman JK, Moore TE, Schenk CJ, Tennyson ME, Wandrey CJ (2008) Circum-Arctic Resource Appraisal: Estimates of Undiscovered Oil and Gas North of the Arctic Circle. U.S. Geological Survey, Fact Sheet 2008–3049
BMP (2011) Report to Inatsisartut on mineral resource activities in Greenland. Bureau of Minerals and Petroleum. <http://www.bmp.gl/images/stories/about_bmp/publications/Report_to_inatsisartut_on_mineral_reousrce_activities_in_2011.pdf>. Accessed 13 June 2012
BMP (2012) Report to Inatsisartut, the Parliament of Greenland, concerning mineral resources activities in Greenland. Bureau of Minerals and Petroleum
Boertmann D, Aastrup P (2002) Impacts on Mammals. In A. Mosbech (Ed.), Potential environmental impacts of oil spills in Greenland. An assessment of information status and research needs.(pp 113–117). NERI (National Environmental Research Institute), Technical Report 415
BP (2012) Statistical Review of World Energy, June 2012. <http://www.bp.com/statisticalreview>. Accessed 27 July 2012
JPC Canada-US (2003) Canada-United States joint marine pollution contingency plan, Revised 2003. <http://www.nrt.org/production/NRT/NRTWeb.nsf/AllAttachmentsByTitle/A-403CANUSJCPEnglish/$File/CANUS%20JCP%20English.pdf?OpenElement>
JPC US-Russia (1989) Agreement between the government of the United States of America and the government of the union of soviet socialist republics concerning cooperation in combating pollution in the Bering and Chukchi Seas in emergency situations, with joint contingency plan against pollution in the Bering and Chukchi. Agreement, Moscow, 11 May 1989. Plan, London, 17 Oct 1989. TIAS 11446
Carpenter B (2009) Warm is the new cold: global warming, oil, UNCLOS Article76, and how an Arctic treaty might stop a new Cold War. Environ Law Rev 39(1):215–252
Casper KN (2009) Oil and Gas Development in the Arctic: Softening of Ice Demands Hardening of International Law. Nat Res J 49(3/4):825–882
Chazan G (2012) 31 Aug Gazprom puts Shtokman project on ice. Financial Times. <http://www.ft.com/intl/cms/s/0/604b9b38-f359-11e1-9ca6-00144feabdc0.html>. Accessed 3 Oct 2012
CNLOPB (2011) Annual Report 2010/2011. Canada-Newfoundland and Labrador Offshore Petroleum Board
OPRC Convention (1990) International Convention on Oil Pollution Preparedness, Response, and Cooperation, 30 Nov 1990. 30 I.L.M. 733 (1991). Entered into force 13 May 1995
EIA (2012) Annual Energy Outlook 2012. US Energy Information Administration. DOE/EIA-0383(2012)
EIA (n.d.) 25th Anniversary of the 1973 oil Embargo. US Energy Information A dministration. <http://www.eia.doe.gov/emeu/25opec/anniversary.html>. Accessed 5 Feb 2013
Emmerson C, Lahn G (2012) Arctic Opening: Opportunity and Risk in the High North. Chatham House, Lloyd’s. <http://www.lloyds.com/news-and-insight/risk-insight/reports/arctic-report-2012>. Accessed 6 Feb 2013
Eni Norge (n.d.) Field development facts. <http://www.eninorge.com/en/Field-development/Goliat/Facts>. Accessed 26 Aug 2012
EPPR (1998) Field Guide for Oil Spill Response in Arctic Water. <http://eppr.arctic-council.org/content/fldguide/index.html>. Accessed 09 Aug 2011
Espoo Convention (1991) Convention on Environmental Impact Assessment in a Transboundary Context, 25 Feb 1989, 1989 U.N.T.S. 309. Entered into force 10 Sept 1997
Gautier DL, Bird KJ, Charpentier RR, Grantz A, Houseknecht DW, Klett TR, Moore TE, Pitman JK, Schenk CJ, Schuenemeyer JH, Sørensen K, Tennyson ME, Valin ZC, Wandreym CJ (2009) Assessment of Undiscovered Oil and Gas in the Arctic. Science 324(59321):1175–1179. doi:10.1126/science.1169467
Greenpeace (2010) The risks and potential impacts of oil exploration in the Arctic. Media Briefing, Apr 23. <http://www.greenpeace.org.uk/files/pdfs/climate/arctic_briefing_gp.pdf>. Accessed 09 Aug 2011
Hong N (2012) The energy factor in the Arctic dispute: A pathway to conflict or cooperation? J World Energy Law Bus 5(1):13–26. doi:10.1039/jwelb/jwr023
Hossain K (2010) International Governance in the Arctic: The Law of the Sea Convention with a Special Focus on Offshore Oil and Gas. In G. Aflredsson, T. Koivurova (Ed.), Yearbook of Polar Law, 2, 139–169
IEA (2010a) Oil and Gas Security. Emergency Response of IEA countries: Canada. <http://www.iea.org/papers/security/canada_2010.pdf>. Accessed 13 June 2012
IEA (2010b) World Energy Outlook 2010. International Energy Agency, Paris OECD/IEA
IEA (2011a) World Energy Outlook 2011. Executive Summary. Paris: OECD/IEA. <http://www.iea.org/Textbase/npsum/weo2011sum.pdf>. Accessed 13 June 2012
IEA (2011b) Oil and Gas Security. Emergency Response of IEA Countries: Norway. <http://www.iea.org/papers/security/Norway_2011.pdf>. Accessed 13 June 2012
Ilulissat Declaration (2008) Arctic Ocean Conference. Ilulissat, Greenland. 27 May 2008, 48 I.L.M. 382 (2009)
Jerome D, Hossain K, Koivurova T (2009) Canadian Arctic Offshore Oil and Natural Gas and European Union Energy Diversification: Towards a New Perspective? In T. Koivurova, A. Chircop, E. Franckx, E.J. Molenaar and D.L. VanderZwaag (Eds.), Understanding and strengthening European union-Canada relations in law of the sea and ocean governance. Juridica Lapponica, 35 (227–251), University of Lapland Printing Centre, Rovaniemi
Kaczynski V, Brosnan M (2008) Management of Arctic Resources: Economic, Environmental, Legal and Policy Considerations. In: Proceedings of 4th international conference on globalization, energy and environment, Warsaw School of Economics, May 29–30, 2008
Koivurova T, Hossain K (2008) Background Paper: Offshore Hydrocarbon––Current Policy Context in the Marine Arctic. Arctic transform
Krauss C (2012) Shell Delays Arctic Oil Drilling Until 2013. New York Times, 17 Sept. <http://www.nytimes.com/2012/09/18/business/global/shell-delays-arctic-oil-drilling-until-next-year.html>. Accessed 31 Oct 2012
Lesikhina N, Rudaya I, Kireeva A, Krivonos O, Kobets E (2007) Offshore Oil and Gas Development in Northwest Russia: Consequences and Implications. Bellona. <http://www.bellona.org/reports/report/russian_arctic_shelf>. Accessed 15 Nov 2012
Maltrud M, Peacock S, Visbeck M (2010) On the possible long-term fate of oil released in the Deepwater Horizon incident, estimated using ensembles of dye release simulations. Environ Res Lett 5(3):035301. doi:10.1088/1748-9326/5/3/035301
McCracken AD, Poulton TP, Macey E, Monro Gray JM, Nowlan GS (2007) Arctic Oil and Gas. Geological Association of Canada. <http://www.gac.ca/PopularGeoscience/factsheets/ArcticOilandGas_e.pdf>. Accessed 4 July 2012
Montevecchi W, Fifield D, Burke C, Garthe S, Hedd A, Rail JF, Robertson G (2012) Tracking long-distance migration to assess marine pollution impact. Biol Lett 8(2):218–221. doi:10.1098/rsbl.2011.0880
Mosbech A (2002) Impacts of oil spill on fish. In: A. Mosbech (ed.), Potential environmental impacts of oil spills in Greenland. An assessment of information status and research needs. (pp 79–92) NERI (National Environmental Research Institute), Technical Report 415
Muhling BA, Roffer MA, Lamkin JT, Ingram GW, Upton MA, Gawlikowksi G, Muller-Karger F, Habtes S, Richards WJ (2012) Overlap between Atlantic bluefin tuna spawning grounds and observed Deepwater Horizon surface oil in the Northern Gulf of Mexico. Mar Pollut Bull 64:679–687. doi:10.1016/j.marpolbul.2012.01.034
NEB (2012a) Estimated Production of Canadian Crude Oil and Equivalent. National Energy Board. <http://www.neb.gc.ca/clf-nsi/rnrgynfmtn/sttstc/crdlndptrlmprdct/stmtdprdctn-eng.html>. Accessed 14 Nov 2012
NEB (2012b) Marketable Natural Gas Production in Canada. National Energy Board. <http://www.neb.gc.ca/clf-nsi/rnrgynfmtn/sttstc/mrktblntrlgsprdctn/mrktblntrlgsprdctn-eng.html>. Accessed 14 Nov 2012
NRC (2003) Cumulative Environmental Effects of Oil and Gas activities on Alaska’s North slope. National Research Council: National Academies Press, Washington, DC
NSIDC (2012) Press Release: Arctic sea ice shatters previous low records; Antarctic sea ice edges to record high. National Snow and Ice Data Center. <http://nsidc.org/news/press/20121002_MinimumPR.html>. Accessed 30 Oct 2012
OGP (2002) Oil and gas exploration and production in arctic offshore regions. Guidelines for environmental protection. Report No. 2.84/329. International Association of Oil and Gas Producers
OSPAR Commission (2007) Annual Report of the OSPAR Commission 2006/07
PAME (2009) Arctic Offshore Oil and Gas Guidelines. Last updated 29 Apr 2009
Pedersen S (2012) Shell’s Arctic Drilling Mission Begins Without Oil Recovery Vessel. The international, 15 July. <http://www.theinternational.org/articles/221-shells-arctic-drilling-mission-begins-wi>. Accessed 13 Aug 2012
Pettersen T (2012) More delays at Prirazlomnoye. Barents Observer, 24 May. <http://barentsobserver.com/en/energy/more-delays-prirazlomnoye>. Accessed 16 June 2012
Pew Environment Group (n.d.) Oil Spills. Oceans North. <http://www.oceansnorth.org/oil-spills>. Accessed 6 Feb 2013
Piepul R (2001) Northstar field begins producing through first subsea Arctic pipeline. Oil Gas J. <http://www.ogj.com/articles/2001/11/northstar-field-begins-producing-through-first-subsea-arctic-pipeline.html>. Accessed 27 Oct 2012
Rottem SV, Moe A (2007) Climate Change in the North and the Oil Industry. Input to Strategic Impact Assessment. Barents region 2030. Fridtjof Nansens Institute Report 9/2007
SLR (2011) Spill Response Gap Study for the Canadian Beaufort Sea and the Canadian Davis Strait. SL Ross Environmental Research Limited, National Energy Board. <https://www.neb-one.gc.ca/ll-eng/livelink.exe?func=ll&objId=702903&objAction=Open>. Accessed 10 Nov 2012
Watkins E (2012) CGES: Russia’s 2011 output sets new post-Soviet production record. Oil Gas J 110(1b), 17–18
Weber B (2011) Arctic oil spill cleanup impossible one day in five: energy board report. The globe and mail. <http://www.theglobeandmail.com/news/national/arctic-oil-spill-cleanup-impossible-one-day-in-five-energy-board-report/article2116242/>. Accessed 9 Aug 2011
Wolf E (2007) Oil and water. The Arctic Seas Face Irreversible Damage. Earth I J, 22(2)
Young OR, Einarsson N (2004) Introduction. In: AHDR (Arctic Human Development Report. Steffanson Arctic Institute, Akureyri, pp 15–26
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Hossain, K., Koivurova, T., Zojer, G. (2014). Understanding Risks Associated with Offshore Hydrocarbon Development. In: Tedsen, E., Cavalieri, S., Kraemer, R. (eds) Arctic Marine Governance. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-38595-7_7
Download citation
DOI: https://doi.org/10.1007/978-3-642-38595-7_7
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-38594-0
Online ISBN: 978-3-642-38595-7
eBook Packages: Earth and Environmental ScienceEarth and Environmental Science (R0)