Geoecological and Geopolitical Risks for the Oil and Gas Industry in the Arctic

Challenges and threats

verfasst von: Vladimir N. Bashkin, Olga Р. Trubitsina

Verlag: Springer International Publishing

Buchreihe : Environmental Pollution

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

This book discusses issues of geoecological (GER) and geopolitical (GPR) risks due to hydrocarbon development of the Arctic. The authors explain the ethical and philosophical foundations of understanding environmental equity and justice in relation to the development of Arctic natural resources and consider various approaches to the moral aspects of making global management decisions in the field of environmental protection and environmental safety. Special attention is paid to analysis of modern geopolitical and geostrategic challenges to the development of the Arctic region. The monograph identifies the key geopolitical factors affecting the sustainable development of the Arctic and analyzes the similarities and differences in the geostrategic positions of the five Arctic states.

The authors reveal the need to consider geopolitical challenges in the process of GER analysis for oil and gas development in the Arctic region. The book explores the intersection of the strategic interests for a number of states and describes Russia's inability to ensure environmental safety in the development of Arctic deposits. The book analyzes in detail each type of GER with an emphasis on their potential to lead to additional opportunities and threats, and assesses environmental rating as an indicator of the GER management process of Russian oil and gas companies operating in the Arctic. Although the main focus is on the Russian part of this region, many arguments and conclusions are quite applicable to the entire Arctic region. The consideration of geoecological and geopolitical aspects of the development of Arctic resources with the example of Russian oil and gas companies sheds light on the entire Arctic region, taking into account the interests of all other national and international companies involved in GER and GPR there.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Environmental Equity and Justice in Relation to the Development of Natural Resources in the Arctic

Abstract

In this chapter, the authors attempt to clarify the concepts of fairness and environmental justice, which are often mixed into one concept in the environmental literature. For this purpose, the philosophical roots and historical views on these concepts are considered. The concept of environmental justice is proposed as a broad general concept that includes all issues of justice in the process of making management decisions in the field of environmental safety in the Arctic, including the fairness of the procedure and fairness in distribution. It is also shown that fairness, similar to environmental justice, has ethical and causative justification. Furthermore, both environmental justice and fairness use ethical and causative arguments. The authors stated that it is possible to find the philosophical and theoretical bases for the concepts of environmental justice and fairness, and enables practical application of the resulting conclusions in the discussions on climate change and environmental issues.

Vladimir N. Bashkin, Olga P. Trubitsina

Chapter 2. Geopolitical Risks for Oil and Gas Industry in the Arctic Zone of the Russian Federation

Abstract

This charter discusses the key geopolitical factors that affect the sustainable development of the Arctic. Among them are geographic, economic, and military factors. The most important risk factors for oil and gas development in the Arctic are related to gas exploration projects. Analysis of their transformation into opportunities and threats is one of the priority tasks of oil and gas facilities. At the same time, the authors draw attention to the following key geopolitical risks (GPRs): (1) ensuring access to sufficient reserves of hydrocarbon raw materials in the Arctic from various states and obtaining control rights over its natural resources; (2) uncertainty of the legal status of the Arctic region; and (3) geoecological risks (GER) as one of the priorities of attention to Russia’s actions in the Arctic. Analysis of GPR in terms of their transformation into opportunities is a priority task of oil and gas facilities in the implementation of Arctic field development projects, especially in the context of raw materials supercycle of energy prices falling in the world.

Vladimir N. Bashkin, Olga P. Trubitsina

Chapter 3. Geoecological Risks for Oil and Gas Industry in the Arctic Zone of the Russian Federation (Analyses and Modeling)

Abstract

The use of methods for calculating geoecological risks and for assessing the probability of their excess in the impact zones of oil and gas projects in the Arctic region has been proceeded. The analysis of data and methodological approaches to the assessment of geoecological risks in connection with the anthropogenic impact of projected liquefied natural gas (LNG) production and natural gas production in the shelf zone of the Arctic seas revealed the differentiated nature of the stability of various aquatic ecosystems in relation to atmospheric emissions of nitrogen oxides. Furthermore, the impact of existing gas production and transportation projects on the probability of geoecological risks was carried out in the coastal Arctic regions such as Taz Peninsula and Yamal Peninsula. These risks largely depend on the intensity of the work of the gas treatments plants and, accordingly, the probability of geoecological risks is higher in impact zones adjacent to point sources of NOx emissions. In some cases, due to the effects of vegetation change, there is a high probability of risks of soil thawing, which can lead to a violation of the stability of piles of gas pipelines and foundations of engineering structures and road facilities. This, in turn, requires the reclamation of such ecosystems.

Vladimir N. Bashkin, Olga P. Trubitsina

Chapter 4. Environmental Rating as an Indicator of Geoecological Risk Management of Russian Oil and Gas Companies in the Arctic

Abstract

This chapter focuses on the issues of environmental rating as an indicator of geoecological risk (GER) management of Russian oil and gas companies in the Arctic. The authors discuss the need of using environmental rating for oil and gas industry in Russia. Primarily, specialized attention is given to the issues of rating results of Environmental Responsibility of Oil and Gas companies in Russia that was first held in 2014 by the cooperative initiative of CREON Group and WWF Russia along with National Rating Agency. The authors have selected and analyzed from all Russian oil and gas companies only those who are operating in the Arctic region.

The rating’s results show the “top three” companies among Russian oil and gas companies operating in the Arctic – Zarubezhneft, Lukoil, and Sakhalin Energy. There are also other companies being rated. For instance, Zarubezhneft and LUKOIL share the best position in terms of environmental management (the 1st and the 2nd position). The best companies in “environmental impact” sector are Gazprom, Zarubezhneft, and LUKOIL, whereas the leaders in “disclosure/transparency” sectors are Sakhalin Energy (Sakhalin-2) and Zarubezhneft (the 1st and the 2nd position).

In whole, the environmental rating of the Russian oil and gas companies, operating in the Arctic, may create a new mechanism of identification of their CSR level. Particularly, analysis of a number of criteria such as environmental management, environmental impact, and information disclosure or transparency helps correlate the process and results of economic activity of oil and gas companies in the Arctic with the requirements and expectations of society. Furthermore, the desire to increase these indicators contributes to investment attractiveness of oil and gas companies and testify about their environmental responsibility. It helps to inform foreign investors, and resulting in the rise of FDI in Russia as well as decline the geoecological risk (GER) in conditions of Arctic’s exploitation.

Vladimir N. Bashkin, Olga P. Trubitsina

Chapter 5. Management of Geopolitical and Geoecological Risks in the Development of Natural Resources in the Arctic

Abstract

This chapter shows the examples of geopolitical and geoecological risk management, affecting the three basic directions in the work of oil and gas companies, in particular, gas producing and gas transportation companies – technological, geoecological, and environmental as well as reveal the need to revise a number of provisions on the assessment of various risks of Arctic and subarctic oil and gas projects. Geoecological risk management on complex main gas pipelines is also demonstrated. Management of geopolitical and geoecological risks as a basis in the development of natural resources in the Arctic is also shown. Environmental risk insurance as a risk management mechanism is considered for the given projects. Taking into account the existing realities of the Arctic region, geopolitical and geoecological risks shown are among the priorities, the management of which will make the greatest contribution to the development of oil and gas projects.

Vladimir N. Bashkin, Olga P. Trubitsina

Backmatter

Titel: Geoecological and Geopolitical Risks for the Oil and Gas Industry in the Arctic
verfasst von: Vladimir N. Bashkin
Olga Р. Trubitsina
Verlag: Springer International Publishing
Electronic ISBN: 978-3-030-95910-4
Print ISBN: 978-3-030-95909-8
DOI: https://doi.org/10.1007/978-3-030-95910-4