Arctic Oil and Gas: Sustainability at Risk?

405 Pages·2008·3.2 MB·English

by  Aslaug Mikkelsen

Arctic Oil and Gas
The Arctic is predicted to hold a large part of the world’s undiscovered oil and gas
fields. With the rise in global energy demand and the focus upon energy security,
the Arctic environment is likely to experience increasing pressure from the push
to uncover these reserves.
This book analyzes the expanding oil and gas activities in the Arctic from the
perspective of sustainable development and corporate social responsibility. The
focus is on the territories of the Arctic rim where the current and future oil and
gas activities in the Arctic are and will be located. The book raises a number of
questions including how sustainable development has been framed in the Arctic
and the interaction between indigenous peoples, governments and oil and gas
companies.
The book is divided into three parts. In the first part of the book, oil and gas
are approached through the concepts of sustainable development and corporate
social responsibility together with the challenge of climate change. The second
part consists of case studies from Alaska, Canada, Norway and Russia, where the
discourses on oil and gas in the Arctic are explored, and the final part of the book
draws together the material from the country studies in a comparative manner.
The book is primarily aimed at academics, universities, public authorities and
the oil and gas industry. It is useful, more specifically, for postgraduate students
who are undertaking research in energy and gas industries, environmental
economics and ecological economics.
Aslaug Mikkelsenis Rector of the University of Stavanger in Norway.
Oluf Langhelleis Professor at the Faculty of Social Sciences at the University of
Stavanger in Norway.
Routledge Explorations in Environmental Economics
Edited by Nick Hanley
University of Stirling, UK
Greenhouse Economics
Value and ethics
Clive L. Spash
Oil Wealth and the Fate of Tropical Rainforests
Sven Wunder
The Economics of Climate Change
Edited byAnthony D. Owen and Nick Hanley
Alternatives for Environmental Valuation
Edited byMichael Getzner, Clive Spash and Sigrid Stagl
Environmental Sustainability
A consumption approach
Raghbendra Jha and K.V. Bhanu Murthy
Cost-Effective Control of Urban Smog
The significance of the chicago cap-and-trade approach
Richard F. Kosobud, Houston H. Stokes, Carol D. Tallarico and Brian L. Scott
Ecological Economics and Industrial Ecology
Jakub Kronenberg
Environmental Economics,Experimental Methods
Edited byTodd L. Cherry, Stephan Kroll and Jason F. Shogren
Game Theory and Policy Making in Natural Resources and the
Environment
Edited byAriel Dinar, José Albiac and Joaquín Sánchez-Soriano
Arctic Oil and Gas
Sustainability at risk?
Edited byAslaug Mikkelsen and Oluf Langhelle
Arctic Oil and Gas
Sustainability at risk?
Edited by Aslaug Mikkelsen
and Oluf Langhelle
First published 2008 by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Simultaneously published in the USA and Canada
by Routledge
270 Madison Ave, New York, NY 10016
Routledge is an imprint of the Taylor & Francis Group,
an informa business
This edition published in the Taylor & Francis e-Library, 2008.
“To purchase your own copy of this or any of Taylor & Francis or Routledge’s
collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.”
© 2008 Editorial matter and selection, Aslaug Mikkelsen and Oluf
Langhelle; individual chapters, the contributors
All rights reserved. No part of this book may be reprinted or reproduced
or utilised in any form or by any electronic, mechanical, or other means,
now known or hereafter invented, including photocopying and recording,
or in any information storage or retrieval system, without permission in
writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging in Publication Data
A catalog record for this book has been requested
ISBN 0-203-89374-3 Master e-book ISBN
ISBN 10: 0-415-44330-X (hbk)
ISBN 10: 0-203-89374-3 (ebk)
ISBN 13: 978-0-415-44330-2 (hbk)
ISBN 13: 978-0-203-89374-6 (ebk)
Contents
List of figures vii
List of tables viii
List of contributors ix
Preface xii
Acknowledgements xiii
1 Introduction 1
ASLAUG MIKKELSEN AND OLUF LANGHELLE
Part I
The Arctic:context,framework and methodology 13
2 Framing oil and gas in the Arctic from a sustainable
development perspective 15
OLUF LANGHELLE, BJØRN-TORE BLINDHEIM AND OLAUG ØYGARDEN
3 Climate change and consequences for the Arctic 45
TORLEIV BILSTAD
4 Corporate social responsibility:the economic
and institutional responsibility of business in society 57
BJØRN-TORE BLINDHEIM
5 Framework and methodology:regulation and discourse
analysis as a research strategy 87
OVE HEITMANN HANSEN, OLUF LANGHELLE AND ROBERT ANDERSON
Part II
Legal and institutional framework:case studies 109
vi Contents
6 Legal and institutional framework:a comparative analysis 111
NIGEL BANKES
7 Expanding oil and gas activities on the North Slope of Alaska 139
ASLAUG MIKKELSEN, SHARMAN HALEY AND OLAUG ØYGARDEN
8 Oil and gas activities at the Mackenzie Delta,in
Canada’s Northwest Territories 173
ALDENE MEIS MASON, ROBERT ANDERSON AND LEO-PAUL DANA
9 Going North:the new petroleum province of Norway 200
OVE HEITMANN HANSEN AND METTE RAVN MIDTGARD
10 The Russian model:merging profit and sustainability 240
ELENA N. ANDREYEVA AND VALERY A. KRYUKOV
Part III
Comparisons and managerial implications 289
11 Human rights and indigenous peoples in the Arctic:
what are the implications for the oil and gas industry? 291
KETIL FRED HANSEN AND NIGEL BANKES
12 Perceptions of Arctic challenges:Alaska,Canada,
Norway and Russia compared 317
OLUF LANGHELLE AND KETIL FRED HANSEN
13 Managerial implications 350
ASLAUG MIKKELSEN, RONALD D. CAMP II AND ROBERT E. ANDERSON
Index 381
Figures
1.1 The Arctic’s undiscovered oil and gas resources 3
3.1 Maximum oil exploration travel activities on the tundra
(ACIA, 2004) 49
3.2 Methane concentration doubling over the last 150 years
(Petit, Jouzel, Raynaud et al., 1999) 50
3.3 Arctic ice cover (Norsk Romsenter/National Snow and
Ice Center, 2007) 52
3.4 Concentrations of CO and temperature from 400,000 years
2
Vostok Ice Core data set (Corell, 2006) 53
4.1 The degrees of responsibility assigned to business
in different approaches to CSR 60
5.1 Major actors associated with the oil and gas industry
in the Arctic (Anderson, MacAulay, Kayseas et al., 2007) 88
7.1 Allocation of gross Alaskan North Slope (ANS) production
value 2004 (US$13.3 billion total) 148
10.1 Dynamics of oil and gas output in the Northern regions
of Russia compared to the total output for the country 244
10.2 Dynamics of receipts of the budget of the Yamal-Nenets
Autonomous Okrug (YaNAO) v. gas production dynamics 267
12.1 Arctic share of global petroleum production, 2002 319
13.1 Major actors associated with the oil and gas industry
in the Arctic 351
13.2 Corporate social responsibility and long-run survival 354
13.3 Corporate approaches to social responsibility 355
13.4 Corporate approaches to social responsibility 363
Tables
4.1 The social responsibility of business 76
5.1 Interview matrix 102
6.1 Canadian land claim agreements 124
10.2 Distribution of oil and gas reserves and resources
in oil- and gas-bearing provinces, as a percentage
of Russia’s total 243
10.1 Russian oil and gas revenue flows (federal/regional as of 2006):
primary distribution of revenues 247
10.3 Development indicators for the key oil and gas regions
of the Russian North 259
10.4 Development indicators for the key oil and gas regions
of the Russian North 260
10.5 Complex ecological assessment in the Arctic regions of RF,
2003 278
11.1 Ratifications of selected human rights instruments 292
12.1 Kyoto Protocol targets for US, Canada, Norway and Russia 327
12.2 Increase in CO emissions from 1990 (baseline year
2
in the Kyoto Protocol) to 2005 in percentage (without land use,
land-use change and forestry), and from 2000 to 2005 329
12.3 Energy industries’sector share of total greenhouse gas
emissions (without LULUCF) in 1990 and 2005 in Canada,
Norway, Russia and US 329
12.4 Protected areas in Arctic Canada, Norway, Russia and Alaska,
classified in International Union for Conservation
of Nature categories I-V, plus Ramsar international wetland
sites as of 2000. Areas smaller than 10 km2are not included 334
Contributors
Robert Andersonis a Professor in the Faculty of Business Administration at the
University of Regina, in Saskatchewan, Canada. He is the Editor of the Journal
of Small Business and Entrepreneurship and Co-editor, with Leo Paul Dana, of
the Journal of Enterprising Communities. He is former President of the Canadian
Council for Small Business and Entrepreneurship and is a Director of the
Canadian Council for Small Business as well as a member of the Small Business
Research Advisory Committee of the Department of Industry and Commerce
Canada.
Elena N.Andreyeva is Chief of the Laboratory of Arctic Studies, Institute for
System Analysis, Moscow, Russian Academy of Sciences; leader of the Russian
and International research projects on social and economic issues of Arctic devel-
opment; and an expert on governmental and regional structures. Most of her proj-
ects are connected with the use of non-renewable natural resources and the
interactions of stakeholders, including indigenous people and industrial compa-
nies. She works directly with regional administrations on questions of social
policy, programs of economic development and legal issues of resource use
conflicts. Her main focus is on oil and gas areas, particularly the coastal zone and
the Arctic shelf.
Nigel Bankesis a Professor of Law at the University of Calgary, Alberta, Canada,
where he has taught since 1984. He was seconded to Canada’s Department of
Foreign Affairs and International Trade as Professor in Residence for the 1999–2000
academic year. His principal research interests are in the areas of indigenous
peoples’law, water law, oil and gas law and international environmental law. He was
the lead author of the ‘Legal Systems’chapter of the Arctic Human Development
Report of the Arctic Council and is a former chair of the Canadian Arctic Resources
Committee, a Canadian non-governmental organization.
Torleiv Bilstad is Professor of Environmental Engineering at the University of
Stavanger, Norway. He received his academic degrees from the University of
Wisconsin: Ph.D. (1977) and M.Sc. (1973) in Civil and Environmental
Engineering, and B.Sc. in Civil Engineering (1972). His main research activities
are concerned with water quality and climate change. Treatments for potable