You are here: Home Knowledge Base Environment Exploring Energy Resources in the Arctic Ocean Solutions Redo the "math" of offshore oil extraction in the Arctic (taking account of all costs, risks and benefits) through a comprehensive dialogue between all stakeholders.
Symposium 2012

Solution for Exploring Energy Resources in the Arctic Ocean

The Challenge

As temperatures rise with a changing climate, Arctic sea ice melts. As a consequence, the once ice-covered Arctic Ocean becomes increasingly accessible, with implications for various economic sectors. ...

As temperatures rise with a changing climate, Arctic sea ice melts. As a consequence, the once ice-covered Arctic Ocean becomes increasingly accessible, with implications for various economic sectors. In particular, the oil and gas resources below the seafloor have whetted the appetite of the littoral states—Canada, Denmark, Norway, Russia and the United States—as well as outsiders, such as China and the European Union, which are developing or rethinking their Arctic strategies.

Redo the "math" of offshore oil extraction in the Arctic (taking account of all costs, risks and benefits) through a comprehensive dialogue between all stakeholders.

To date, the business case for Arctic oil and gas has been made with assumptions about world demand for energy from fossil fuels, as well as cost and risk assessments that could be disputed. Under the scrutiny of the general public, companies, states that issue licenses and regional governments or administrations involved, should transparently reestimate the costs, risks and potential benefits of Arctic drilling. This has to include external costs and risks for which firms are not yet commonly liable, such as risks to the Arctic ecosystem.

The past teaches that if drilling goes ahead, an accident will happen sooner or later. It would make sense for producing firms to be liable for all costs that occur after a spill. There is a possibility that under such a perspective, drilling in the Arctic might not be economic in many cases. Such a holistic approach will require a structured dialogue between actors that might have conflicting interests or different time frames: companies, policy-makers, scientists and civil society.

    Related Solutions

    Solution
    Symposium 2012

    Rather than imposing particular technical solutions and standards, Arctic countries need to stipulate performance-based regulation and standards for drilling activities and ensure that operating companies bear the full costs of ...

    Rather than imposing particular technical solutions and standards, Arctic countries need to stipulate performance-based regulation and standards for drilling activities and ensure that operating compa ...

    Rather than imposing particular technical solutions and standards, Arctic countries need to stipulate performance-based regulation and standards for drilling activities and ensure that operating companies bear the full costs of any incident.

    Polity, Business
    Solution
    Symposium 2012

    Limit drilling to the least risky regions, where there is no ice or little enough ice to make effective ice management possible.

    Limit drilling to the least risky regions, where there is no ice or little enough ice to make effective ice management possible.

    Limit drilling to the least risky regions, where there is no ice or little enough ice to make effective ice management possible.

    Polity
    Solution
    Symposium 2012

    Invest in research on secure extraction of conventional resources, on renewable energy technologies and on how to capture leaking methane.

    Invest in research on secure extraction of conventional resources, on renewable energy technologies and on how to capture leaking methane.

    Invest in research on secure extraction of conventional resources, on renewable energy technologies and on how to capture leaking methane.

    Polity, Academia, Business
    Solution
    Symposium 2012

    The members of the Arctic Council should continue their efforts towards reaching binding agreements and recognize the necessary balance between national and common interests by accepting new observers.

    The members of the Arctic Council should continue their efforts towards reaching binding agreements and recognize the necessary balance between national and common interests by accepting new observers.

    The members of the Arctic Council should continue their efforts towards reaching binding agreements and recognize the necessary balance between national and common interests by accepting new observers.

    Polity, Civil Society