risks and rewards Fran Ulmer Chair US Arctic Research Commission UNH Oil Spill Forum October 2014 Rapidly changing Arctic Less sea ice Warmer temperatures Thawing permafrost Vulnerable species ID: 784937
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Slide1
Drilling for oil in the Arctic: risks and rewards
Fran UlmerChair, US Arctic Research CommissionUNH Oil Spill ForumOctober 2014
Slide2Rapidly changing Arctic
Less sea ice
Warmer temperatures
Thawing permafrost
Vulnerable species
Increased human activity
International interest
Slide3Slide4Economics…major driver for Arctic change
Region is increasingly accessible due to technological advances and climate changeIncreasing global demand for resourcesArctic is resource rich
4
Slide5Thule AB
= Chokepoint
Potential Arctic Shipping Routes
Bering Strait
Slide613% oil30% natural gas20% natural gas liquids
2009 USGS CARA reportArctic has much of world’s remaining “undiscovered”
oil and gas
Slide7Energy companies active
in the Arctic
Rosneft
Novatek
Gazprom
Statoil
Nunaoil
Exxon
Shell
Conoco-Phillips
BP
ENI
And many others
Slide8Oil and Gas Development
8
Slide9Challenges
of working
in
extreme environments:cold, dark, remote, little infrastructure
Severe
&
cold weather requires specially designed equipment & vessels & training
Inadequate aids to navigation and marine charts
Changing soil conditions (permafrost)
Some deposits are hazardous (gas hydrates)
Limited airports, marine ports & exportation options; long supply lines & extensive transport
High costs to develop reserves
Distant and limited USCG assets
Slide10What does this mean to Arctic residents?
Impacts to subsistence foods and cultural practices Impacts to coastal villages and basic infrastructure Possible regional/village economic opportunities
Slide11Many different expectationsLocal people want no negative environmental impact, respect for local subsistence activities, local jobs and business opportunities, shared revenues and servicesPeople more remote from the region may be more interested in general economic activity/state revenues and domestically produced oil and gas
Shareholders, small businesses, unions, scientists, environmentalists, regulators, others… all have expectationsConcern about oil spills
Slide12UNCLASSIFIED
…oil spills in ice-covered waters…
Slide13Deepwater Horizon Oil Spill Commission: Recommendations for the Arctic
Drill with utmost care: sensitive Arctic environmentDevelop comprehensive research program: scientific information
Lead in developing int’l drilling standards: best practicesRaise liability capA
ddress gaps:Oil-spill responseContainmentSearch and
rescue
Slide14What’s happened since DWH?BSEE/BOEM/ONNRSEMS Regs adoptedDOI’s Energy CoordinationIncreased research $ in ArcticICCOPR revitalized
NOAA’s Arctic ERMAArctic Specific Regs developedBSEE finished “Oil Spill Response Gap in Arctic”National Arctic Strategy adopted
Slide15ICCOPR, IARPC, NRC, Industry research efforts have increasedReports have been produced
Conferences are being heldInternational efforts, like Arctic Council, IMO and Barents 2020
Slide16Forum to provide cooperation, coordination and interaction
among the 8 Arctic States, Permanent Participants, Observers
Projects on sustainable development and environmental protection in the Arctic
Six working groups that focus collaborative research
Negotiated agreements on SAR and oil spill response
The Arctic Council
Ottawa Declaration 1996
Slide17Arctic Offshore Oil and Gas Guidelines (PAME)Guidelines for Transfer of Refined Oil in Arctic (PAME) Systems Safety Management and Safety Culture (PAME)Guide on Oil Spill Response in Snow and Ice (EPPR)Recommended Practices for Arctic Oil Spill Prevention (EPPR)Arctic Marine Shipping Assessment (PAME 2009) and Implementation Report (2013) and IMO Polar Code
Slide18Bilateral cooperation: Norway and Russia
Slide19Barents 2020 ProjectDevelop standards to be used internationally to ensure safe oil, gas and maritime operations in the Barents Sea for people, environment & asset valuesCreate predictable HSE framework for companies and contractors regardless of nationality
7 teams of international experts worked together with DNV (plus Norwegian Foreign Affairs Ministry, Rosneft, Statoil, and many more)
Slide20Prevention: reduce riskArctic standards appropriate to the circumstances and level of risk ( probability + consequence)Industry led safety culture enhancement and data sharing (build on COS and examples like Barents 2020)Identification of important ecological areas and protection strategies (avoid, minimize, mitigate hierarchy)
Increased investment in technology, training, protocols, communication, infrastructure, capacity and regulatory competency/effectivenessIncorporate performance based regulatory approachCooperation in all aspects of prevention, preparation and response at all levels of gov’t and industry
Slide214 million people live in the Arctic
Slide22US Arctic Research Commission
Environmental Change
Arctic Human Health
Civil Infrastructure
Natural Resource Assessment & Earth Science
Indigenous Languages, Identities, Cultures
Slide23USARC’s
daily “Arctic Update”newsletter
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at:www.arctic.gov