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Arctic Offshore Oil and Gas Drilling :Understanding and Evaluating

Environmental and Social Impacts

Elizabeth Tedsen

Researcher, Ecologic Institute, Berlin

Visionary Arctic

10 February 2012, Kirkenes

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Offshore Exploratory Drilling and Production in the Arctic

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Most Arctic oil and gas development to date has been on land. Limited offshore.

Pew Environment Group, 2010

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„ 90 billion barrels of oil, 1,669 trillion cubic feet of natural gas, and 44 billion barrels ofnatural gas liquids may remain to be found in the Arctic, of which approximately 84percent is expected to occur in offshore areas.” - USGS 2008

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Environmental ConsiderationsOil Spills and Releases

Enhanced risks

Seasonal darkness, dynamic ice cover and moving floes, severe

storms, extreme cold, high winds and swells, low visibility/heavy

fog, lack of infrastructure, distance to population centers, slower

oil weathering and bacterial degradation

Limited circumstances under which Arctic conditions might aid oil

spill response

Extended daylight during summer months, ice dampens wave

action, solid ice pack can serve as platform to support heavy

equipment and vehicles, cold temperatures may slow spreading

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Anchorage Daily News

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Environmental ConsiderationsWaste and Water Discharges – Drilling Fluids, Produced Water, Chemicals

Air Emissions – CO2, NOx, SO2, VOCs, Methane, Black Carbon

Biodiversity – Disruption of migration patterns, noise sensitivity to drilling and seismic

exploration, exposure to toxins and bioaccumulation, habitat fragmentation, sensitivity of

birds and mammals relying on feathers and fur for insulation

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www.washingtonpost.com www.mnh.si.edu

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Social Considerations

Benefits: Job creation, resource and tax revenues, stimulate local businesses,

improved public services, health care, and schools, energy security

Costs: Upheaval of traditional customs and ways of life such as hunting and fishing

activities, food supplies, changes to community composition, human health risks,

occupational hazards to workers, decommissioning, cessation of benefits

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www.guardian.co.uk

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Arctic Council Offshore Oil and Gas Guidelines

The Arctic Council’s Arctic Offshore Oil and Gas Guidelines (AOOGG) recommend

regulatory and industry best practices and policies.

The AOOGG cover all stages of offshore oil and gas activity - planning, exploration,

development, production and decommissioning - except for transportation.

The Arctic Council endorsed its latest version of the AOOGG in April 2009.

“Intended to define a set of recommended practices and outline strategic actions

for consideration by those responsible for regulation of offshore oil and gas

activities.”

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AOOGG Goals for Environmental Protection DuringOil and Gas Activities in the Arctic Area

Offshore oil and gas activities in the Arctic should be planned and conducted so as to avoid:

• adverse effects on air and water quality that exceed national or applicable international standards or regulations

• changes in the atmospheric, terrestrial (including aquatic), glacial or marine environments that exceed national or

applicable international standards or regulations

• detrimental changes in the distribution, abundance or productivity of species or populations of species

• further jeopardy to endangered or threatened species or populations of such species

• degradation of, or substantial risk to, areas of biological, cultural, scientific, historic, aesthetic or wilderness

significance

• adverse effects on livelihoods, societies, cultures and traditional lifestyles for northern and indigenous peoples

• adverse effects to subsistence hunting, fishing and gathering.

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AOOGG General Principles

Arctic offshore oil and gas activities should be based on the

following principles:

Precautionary Principle

Polluter Pays Principle

Continuous Improvement

Sustainable Development

www.nasa.gov

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Arctic Communities, Indigenous Peoples, Sustainability, and

Conservation of Flora and Fauna

Environmental Impact Assessment

Environmental Monitoring

Safety and Environmental Management

Operating Practices

Emergencies

Decommissioning and Site Clearance

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Florian Schultz, visionsofthewild.com

Arctic Offshore Oil and Gas Guidelines

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United States - Alaska

Need map of current

Pew Environment Group, 2010

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BOEMRE

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Greenland

www.guardian.co.uk

Financial Times Limited 2012

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Conclusions•Stakeholder participation

•Precautionary approach - further scientific research and

development of technology needed

•Full assessment of impacts, risks, and baseline conditions

•Demonstration of operational capacity and financial responsibility

•Adaptive regulatory mechanisms

•Effective governance

•Ensure continuing benefits

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Thank you!Florian Schultz, visionsofthewild.com