The white wilderness' black plague
The Arctic is changing at a breathtaking pace, which has oil and gas companies flocking to the region. Thawing sea ice and improved technology is opening up the race for natural resource exploration in the Arctic Circle, home to nearly a quarter of the world's untapped oil reserves. Natural resources that will become much more accessible when the Arctic ice melts are of critical importance. International oil companies are racing to develop new oilfields in the Arctic.
China is hungry for natural resources, and the Arctic is home to a wealth of them. Beijing insists that its interest in the region is first and foremost for research purposes, that the Arctic can help shed light on climate change, that it offers useful shipping routes, and so on and so forth. Beijing would also welcome a chance to be granted observer status on the Arctic Council. At a conference in Tromsø, the Chinese ambassador to Norway resorted to a linguistic slight of hand to justify his country's focus on the Artic region: Northeastern China, Zhao explained, stretches almost to 50 degrees north latitude, making his country what he called "a near-Arctic state." According to that logic, the German island of Sylt, which lies at 54 degrees north latitude, could also be described as "near-Arctic" -- but no one would.
Chinese companies have understood that although oil and gas from the Arctic could make a long-term contribution to the country's energy supply, it won't come cheap. China will have to "play by the rules of capitalism." China National Offshore Oil Corporation (CNOOC) wants to acquire its Canadian competitor Nexen, but the deal first has to be approved by US authorities. Beijing's raw-materials managers are also eyeing Greenland. Just outside the capital, Nuuk, a British company has teamed up with Chinese financiers to develop a giant iron ore mine. Over 2,300 Chinese workers will be employed here, boosting the island's population by 4 percent. The total investment will be around €1.7 billion. Chinese investment in Greenland's mining sector would be as welcome as investment from any other country. "China is all over the world. It is no surprise that they are also interested in Greenland's resources," said Sara Olsvig is a member of the Danish parliament who represents a separatist party in Greenland.
Norway's new Foreign Minister Espen Barth Eide declared that "the Arctic is not special in legal terms; it is just an ocean." The Antarctic is protected by a special treaty. "Some people have the misconception that the Arctic is similar to the Antarctic, a common heritage of mankind. But whilst the Antarctic is a continent, the Arctic is an ocean. And it is governed by the law of the sea. It is an area of opportunity." The fate of the Arctic affects the whole planet. Yet Norways minister insists "We need no specific rules like the ones that apply to Antarctica. The Arctic is not something completely unique compared to other waters."
For the Danes, European Union solidarity ends at the Arctic Circle. Countries like Germany are only welcome as "guests," say Danish polar strategists. Diplomats from Finland, Iceland and Sweden are upset; indigenous groups are furious. Five countries bordering the Arctic Ocean are meet behind closed doors to discuss the region's future. Many of those who have interests in the Arctic are not invited. "This is our homeland, why shouldn't we have a say?" asked Gunn-Britt Retter, a Norwegian who defends the interests of the Sami people in the Arctic Council. Members of the Inuit Circumpolar Council are also displeased.
The Arctic Council produced a carefully crafted diplomatic text. the existing legal framework "provides a solid foundation for responsible management by the five coastal States." The statement also emphasized that "We ... see no need to develop a new comprehensive international legal regime to govern the Arctic Ocean." The Arctic Council use scientific data and the somewhat vague rules of international law to increase and extend their influence. Outside investors need legal security, and to know that the agreements they enter into won't suddenly lose their validity.
"We are witnessing a unique historical situation," says Rüdiger Gerdes, a physicist studying sea ice at the Alfred Wegener Institute for Polar and Marine Research, in Bremerhaven, Germany. "As new ocean territory opens, it awakens new greed."
"Around the Arctic there is neither the technology nor the capacity to respond to oil accidents," says Alexander Shestakov, the head of the WWF Arctic Program. "That isn't just the opinion of an environmental organization, it's an acknowledged fact." Environmental protection has never been a high priority for Russian strategists, who see the energy sector as the instrument Moscow can use to cement its position as a world power. For decades, Moscow ignored environmental degradation above the Arctic Circle. Putin has promised to adhere to "strict environmental guidelines," but just how little these assurances mean can be seen in the pioneering project at the Prirazlomnoye oilfield. If an accident occurred here, the platform's crew would be left completely to its own devices, with the closest rescue team stationed 1,000 kilometers away in the Barents Sea port city of Murmansk. Gazprom Neft Shelf is the Gazprom subsidiary that holds the license for the Prirazlomnoye oilfield, and its emergency plan for handling potential environmental damages currently consists of three axes, 25 buckets, 15 shovels, 15 rakes and two all-terrain vehicles. The drilling platform's insurance against environmental damage amounts to a laughable €180,000. In December 2011, a mobile drilling platform called Kolskaya sank in the Sea of Okhotsk, 200 kilometers off the coast of Sakhalin island, while being towed by an icebreaker. Gazflot, another Gazprom subsidiary, had been using the platform outside of the approved season. With 53 of the 67 crew members on the rig declared dead or missing in the icy sea, it was the largest number of causalities that an accident in the Russian oil sector has seen. According to state-run regulatory authorities, pipelines here in the world's largest country burst at over 25,000 locations each year. Greenpeace estimates this leads to leaks of 5 million tons of oil -- seven times the amount that flowed into the Gulf of Mexico in 2010 after the explosion on the Deepwater Horizon oil platform. Snowmelt here in spring and rain in summer wash around 500,000 metric tons of oil into the region's major rivers and then into the Arctic Ocean.
"The companies would rather pay the laughably low fines," Greenpeace activist Roman Dolgov says. When Greenpeace reported 14 oil spills in Komi last year, Russia's environmental authorities fined Lukoil, a company with annual sales of €80 billion, a total penalty equivalent to €27,500.
Yekaterina Dyakova, a biology teacher at the village of Ust-Usa said "Everywhere else, oil is seen as black gold," she adds. "For us, it's the black plague."
Once the villagers drank the water from the river, but to do so now could be fatal. In between the rainbow-colored streaks of oil, pale foam floats toward the Arctic. A doctor has kept records of patients' medical histories in Ust-Usa and the surrounding villages. The incidence of cancer is 50 percent higher than it was in 2000, and children and teenagers suffer from respiratory illnesses twice as often. Few men in these villages ever reach retirement age. Average life expectancy here is 58, compared to a national average of 70.
The Arctic is changing at a breathtaking pace, which has oil and gas companies flocking to the region. Thawing sea ice and improved technology is opening up the race for natural resource exploration in the Arctic Circle, home to nearly a quarter of the world's untapped oil reserves. Natural resources that will become much more accessible when the Arctic ice melts are of critical importance. International oil companies are racing to develop new oilfields in the Arctic.
China is hungry for natural resources, and the Arctic is home to a wealth of them. Beijing insists that its interest in the region is first and foremost for research purposes, that the Arctic can help shed light on climate change, that it offers useful shipping routes, and so on and so forth. Beijing would also welcome a chance to be granted observer status on the Arctic Council. At a conference in Tromsø, the Chinese ambassador to Norway resorted to a linguistic slight of hand to justify his country's focus on the Artic region: Northeastern China, Zhao explained, stretches almost to 50 degrees north latitude, making his country what he called "a near-Arctic state." According to that logic, the German island of Sylt, which lies at 54 degrees north latitude, could also be described as "near-Arctic" -- but no one would.
Chinese companies have understood that although oil and gas from the Arctic could make a long-term contribution to the country's energy supply, it won't come cheap. China will have to "play by the rules of capitalism." China National Offshore Oil Corporation (CNOOC) wants to acquire its Canadian competitor Nexen, but the deal first has to be approved by US authorities. Beijing's raw-materials managers are also eyeing Greenland. Just outside the capital, Nuuk, a British company has teamed up with Chinese financiers to develop a giant iron ore mine. Over 2,300 Chinese workers will be employed here, boosting the island's population by 4 percent. The total investment will be around €1.7 billion. Chinese investment in Greenland's mining sector would be as welcome as investment from any other country. "China is all over the world. It is no surprise that they are also interested in Greenland's resources," said Sara Olsvig is a member of the Danish parliament who represents a separatist party in Greenland.
Norway's new Foreign Minister Espen Barth Eide declared that "the Arctic is not special in legal terms; it is just an ocean." The Antarctic is protected by a special treaty. "Some people have the misconception that the Arctic is similar to the Antarctic, a common heritage of mankind. But whilst the Antarctic is a continent, the Arctic is an ocean. And it is governed by the law of the sea. It is an area of opportunity." The fate of the Arctic affects the whole planet. Yet Norways minister insists "We need no specific rules like the ones that apply to Antarctica. The Arctic is not something completely unique compared to other waters."
For the Danes, European Union solidarity ends at the Arctic Circle. Countries like Germany are only welcome as "guests," say Danish polar strategists. Diplomats from Finland, Iceland and Sweden are upset; indigenous groups are furious. Five countries bordering the Arctic Ocean are meet behind closed doors to discuss the region's future. Many of those who have interests in the Arctic are not invited. "This is our homeland, why shouldn't we have a say?" asked Gunn-Britt Retter, a Norwegian who defends the interests of the Sami people in the Arctic Council. Members of the Inuit Circumpolar Council are also displeased.
The Arctic Council produced a carefully crafted diplomatic text. the existing legal framework "provides a solid foundation for responsible management by the five coastal States." The statement also emphasized that "We ... see no need to develop a new comprehensive international legal regime to govern the Arctic Ocean." The Arctic Council use scientific data and the somewhat vague rules of international law to increase and extend their influence. Outside investors need legal security, and to know that the agreements they enter into won't suddenly lose their validity.
"We are witnessing a unique historical situation," says Rüdiger Gerdes, a physicist studying sea ice at the Alfred Wegener Institute for Polar and Marine Research, in Bremerhaven, Germany. "As new ocean territory opens, it awakens new greed."
"Around the Arctic there is neither the technology nor the capacity to respond to oil accidents," says Alexander Shestakov, the head of the WWF Arctic Program. "That isn't just the opinion of an environmental organization, it's an acknowledged fact." Environmental protection has never been a high priority for Russian strategists, who see the energy sector as the instrument Moscow can use to cement its position as a world power. For decades, Moscow ignored environmental degradation above the Arctic Circle. Putin has promised to adhere to "strict environmental guidelines," but just how little these assurances mean can be seen in the pioneering project at the Prirazlomnoye oilfield. If an accident occurred here, the platform's crew would be left completely to its own devices, with the closest rescue team stationed 1,000 kilometers away in the Barents Sea port city of Murmansk. Gazprom Neft Shelf is the Gazprom subsidiary that holds the license for the Prirazlomnoye oilfield, and its emergency plan for handling potential environmental damages currently consists of three axes, 25 buckets, 15 shovels, 15 rakes and two all-terrain vehicles. The drilling platform's insurance against environmental damage amounts to a laughable €180,000. In December 2011, a mobile drilling platform called Kolskaya sank in the Sea of Okhotsk, 200 kilometers off the coast of Sakhalin island, while being towed by an icebreaker. Gazflot, another Gazprom subsidiary, had been using the platform outside of the approved season. With 53 of the 67 crew members on the rig declared dead or missing in the icy sea, it was the largest number of causalities that an accident in the Russian oil sector has seen. According to state-run regulatory authorities, pipelines here in the world's largest country burst at over 25,000 locations each year. Greenpeace estimates this leads to leaks of 5 million tons of oil -- seven times the amount that flowed into the Gulf of Mexico in 2010 after the explosion on the Deepwater Horizon oil platform. Snowmelt here in spring and rain in summer wash around 500,000 metric tons of oil into the region's major rivers and then into the Arctic Ocean.
"The companies would rather pay the laughably low fines," Greenpeace activist Roman Dolgov says. When Greenpeace reported 14 oil spills in Komi last year, Russia's environmental authorities fined Lukoil, a company with annual sales of €80 billion, a total penalty equivalent to €27,500.
Yekaterina Dyakova, a biology teacher at the village of Ust-Usa said "Everywhere else, oil is seen as black gold," she adds. "For us, it's the black plague."
Once the villagers drank the water from the river, but to do so now could be fatal. In between the rainbow-colored streaks of oil, pale foam floats toward the Arctic. A doctor has kept records of patients' medical histories in Ust-Usa and the surrounding villages. The incidence of cancer is 50 percent higher than it was in 2000, and children and teenagers suffer from respiratory illnesses twice as often. Few men in these villages ever reach retirement age. Average life expectancy here is 58, compared to a national average of 70.
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