A polar bear photographed from the deck of the Arctic Sunrise. Source : Greenpeace
description
The
United States Geological Surveyestimates that 30% of the world's
undiscovered gas and 13% of the world's undiscovered oil is to be
found north of the Arctic Circle.
Of this oil, 84% -
approximately 90 billion barrels - is expected to be found
offshore, some of it in deepwater. Harsh conditions, low temperatures, operational windows cut
short by the winter freeze-over, icebergs that threaten to collide
with rigs and a delicate ecology that requires meticulous protection
all conspire to make oil production here difficult, risky and
expensive, possibly more so than any other region in the world.
Greenland is currently the sight of growing concern regarding arctic drilling. The company forfronting the drilling is Carin Energy. Cairn
Energy's engineering and operations director Phil Tracy, told an
industry conference in Oslo recently that ‘[Greenland]
is unforgiving in terms of cost and consequence'.
brief history
Recent
political posturing about the Arctic is fed by expectations of
significant undiscovered oil & gas reserves. Greenland is
considered to have major reserves, with the US Geological Survey
estimating over 16 billion barrels equivalent of oil and gas off its
western coast. Yet until now exploration has been limited, with only
six offshore wells drilled - five of them in the 1970s. This compares
to 500,000 wells drilled in Canada.
However,
Cairn intends to change this. With the Exploration Director
describing Greenland as "a true frontier country where oil and gas
exploration is at an embryonic stage", the company has built up
licences covering 72,000 square kilometres of acreage off the
country's west coast, covering an area half the size of England.
Cairn has described its Arctic exploration plans as high-risk but
potentially "transformational" - stating that "costs will
be large so the size of the prize needs to be big" and "There's
going to need to be a lot of wells drilled before you're successful."
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Cairn
intends to push back the boundaries of current oil & gas
exploration, in a relentless drive for new fossil fuel deposits. A
slide used in one of Cairn's presentations appears to show receding
ice in the Arctic, and implies that the current licences are only the
company's "entry position" to the region. Reduced heavy sea ice
makes exploration work easier around Cairn's two most "promising"
licences, off Disko Island.
However,
icebergs in the region have shrunk so significantly that Disko Island
is a frequent destination for political and cultural figures
inspecting the impact of climate change. Meanwhile, Greenland's
Inuit population has been warning of the threats to their physical
and cultural survival that climate change creates, and has been
building solidarity links with campaigns against fossil fuels
elsewhere in the world. Local leader Aqqaluk Lynge acted as a witness
in the court trial of ‘The Kingsnorth Six' who had been
charged with disrupting a coal fired power station in Kent.
what must happen
In the view of Greenpeace:Given the issues of global significance affecting the Arctic and the many significant gaps in the existing legislation, there is a clear need for an overarching Arctic multi-lateral agreement or treaty, in which the Arctic Council could play a leading role, which ensures the highest levels of protection for the Arctic and in particular for the areas of the Arctic Ocean that have traditionally been protected under the ice. While such a transparent, participatory and equitable agreement is being negotiated, nations and stakeholders must ‘freeze the footprint' of growing industrial activities in the Arctic by establishing a moratorium on further industrial development in the areas made accessible by the retreating sea ice. Greenpeace calls upon the United Nations and governments around the world to commit to the following course of action to save the Arctic:
Establish an immediate moratorium on industrial development in the area of the Arctic Ocean that has historically been covered by sea ice year-round. This ‘line in the ice' is the average minimum sea ice extent between 1979 and 2000, the period before significant sea-ice loss due to climate change was recorded.
Create a long-term solution by agreeing a permanent, equitable and overarching treaty or multi-lateral agreement that protects the Arctic Ocean environment and ecosystems and the peoples who depend on them.
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last update: Apr 26, 2013
sectors
oil and gas
banktrack contact
Ben Ayliffe, Senior climate campaigner, Greenpeace Yann Louvel, Climate and energy campaign coordinator, BankTrack
Arctic drilling contributes to climate change which threatens the livelihood of local communities. Rising sea level and a reduction in sea ice are allowing higher waves and storm surges to reach the shore, and some coastal communities are already being forced to relocate.
Indigenous peoples will also be increasingly subjected to negative effects as reduced sea ice causes the animals on which they depend for food to become less accessible and to decline in numbers. Some species are already facing extinction.
As indigenous communities see dwindling species populations their way of life is being threatened as well as their livelihoods.
Arctic drilling also has various health impacts from contaminated water, species, and influence on air quality, amongst others.
In addition, many other stresses brought about by human activities are simultaneously affecting life in the Arctic, including air and water contamination, overfishing, increased levels of ultraviolet radiation due to ozone depletion, habitat alteration, and pollution due to resource extraction. The sum of these factors threatens to overwhelm the adaptive capacity of some Arctic populations and ecosystems altogether.
environment
Arctic
drilling brings with it various environmental impacts which have both
local and global international ramifications, for example:
Contribution
to climate change: Some parts of the Arctic are among the fastest warming areas on theplanet
and consequently the Arctic is experiencing some of the most severe
climate impacts - most notably, the rapid decline in the thickness
and extent of sea ice. Permafrost is thawing, glaciers are melting,
and the massive Greenland Ice Sheet is losing ice at record rates.
As the ice melts, more ocean opens up for drilling, leading to more
rush from oil companies to drill. As more drilling occurs more
melting occurs and the cycle continues. At the same time, the Arctic
plays a key role in stalling climate change. The Arctic has been
called ‘the world's refrigerator', and one reason for this is
the role of sea ice in regulating global climate. Sea ice reflects
heat from the sun back into space, whereas the dark open waters of
the Arctic Ocean absorb it. As sea ice melts, more of the Arctic
Ocean is exposed, meaning that more heat energy is absorbed. This
causes more warming, which in turn causes more sea ice to melt and
causes yet more warming to occur, continuing the process; an example
of a highly dangerous positive feedback loop.
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Oil spills:The
Arctic ecosystem is perhaps the most vulnerable to oil spills on
earth.
Cold
weather,thick
ice cover, and slow turnover of plants and animals mean that toxic
oil lingers, exposing multiple generations of organisms to
contamination.
Lack
of sunlight will also inhibit the breakdown of spilled oil.
Seabirds
are especially vulnerable to oil spill as the oil can destroy the
insulating capacity of the plumage. Furthermore, spilled oil will
keep its sticky and damaging properties for a longer period in cold
water.
Arctic
oil spills may set off irreversible chain-reactions of contamination
because inland species, such as polar bears and foxes, rely heavily
on coastal resources.
As
a result, the
'footprint'of an oil spill will extend far inland because coastal
species will bio-accumulate toxins as they consume oil-exposed marine
preys.
Inland Pipeline construction and inland impacts: The
construction of platforms and pipelines directly threatens the
survival of ancient cold-water corals, some of which are 2,000 years
old among the oldest living animals on earth. Constructing inland
pipelines furthers the impacts of Arctic drilling as it can lead to
more inland oil spills, affects on communities, and threats towards
livelihood, amongst others.
Threats towards wildlife: The area is also important to many unique species of marine mammal.
Bowhead
whales, narwhals, white whales and walruses are winter visitors to
Davis Strait and Baffin Bay. Bearded seals also congregate in the
area during winter. Between May and June, minke, humpback, fin and
blue whales arrive to the area from the south. Ringed seals are seen
throughout the year. Harp and hooded seals start their migration
along the West Greenland coasts in May-June and stay until
November-December. Polar bears can also be present from February to
May.
Seal
pups are more vulnerable to oiling because they are dependent on
their natal fur for insulation.
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last update: Apr 26, 2013
sectors
oil and gas
banktrack contact
Ben Ayliffe, Senior climate campaigner, Greenpeace Yann Louvel, Climate and energy campaign coordinator, BankTrack
share this dodgy deal
Aug 18, 2011
Finally,
onAugust 16th,
Greenland published British explorer Cairn Energy's oil spill
response plan. This move was made after pressure from Greenpeace and
with the hope to calm hesitations to the project.
On June 4th 2011,Eighteen Greenpeace activists from the Esperanza boarded the Cairn oil
rig in the Arctic to ask for their oil spill
recovery plan. The activists were then arrested and were unable to find
an oil spill response plan while onboard.
Cairn then reacted by filing a law suit to fine Greenpeace €2m a day for
disrupting drilling. Cairn won the lawsuit, and Greenpeace was forced to stop
the actions for the time being. Then on June 17th 2011Kumi
Naidoo, the Executive Director of Greenpeace International, boarded Arctic oil rig demanding Cairn's oil spill
response plan.
At the moment, most
of the International Oil Companies (IOCs) have some exploration ongoing or planned in the offshore
Arctic and Greenpeace recently took direct action to stop Cairn
Energy's exploration activities off the west coast of Greenland.
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last update: Apr 26, 2013
sectors
oil and gas
banktrack contact
Ben Ayliffe, Senior climate campaigner, Greenpeace Yann Louvel, Climate and energy campaign coordinator, BankTrack
member of the consortium that helped to provide a revolving debt facility for arctic drilling in Greenland: A total of US $900 million was provided by entire consortium (4 January 2011) source: Newsdetail.aspx?id=1423
Cairn
has entered into a stand-by secured revolving debt facility of US
$900 million that will also provide funding for general corporate
purposes. The facility is provided by Standard Chartered Bank,
Bank of Scotland Plc, Crédit Agricole Corporate and Investment Bank,
HSBC Bank PLC and Société Générale.
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last update: Apr 26, 2013
sectors
oil and gas
banktrack contact
Ben Ayliffe, Senior climate campaigner, Greenpeace Yann Louvel, Climate and energy campaign coordinator, BankTrack
share this dodgy deal
companies
Cairn "Cairn Energy is one of Europe's largest independent oil and gas exploration and production companies. Based in Edinburgh, Cairn is listed on the London Stock Exchange and is part of the FTSE100. Cairn's principal interests are in India and Greenland."
active file
last update: Apr 26, 2013
sectors
oil and gas
banktrack contact
Ben Ayliffe, Senior climate campaigner, Greenpeace Yann Louvel, Climate and energy campaign coordinator, BankTrack
Jun 21, 2011 - An amazing Greenpeace action to stop oil drilling in fragile Arctic waters has come to a close, but the activists are still in police custody after scaling an oil rig that “looked unclimbable” and spending over 40 hours “suspended above the churning Arctic waves through freezing winds.” Source: Planetsave (http://s.tt/12tp6)
Kumi Naidoo scales Cairn's Arctic oil rig
Jun 21, 2011 - In a small boat launched from the Greenpeace ship Esperanza Kumi Naidoo, the Executive Director of Greenpeace International crossed into an exclusion zone and scaled a controversial Arctic oil rig 120km off the coast of Greenland.
The boat driver evaded a Danish navy warship and delivered Kumi to the base of the rig where he climbed 30 metres up the outside of one of the platform's giant legs, braving freezing torrents from the rigs water cannons to deliver a petition signed by 50,000 poeple asking to see Cairn's secret oil spill response plan. He also delivered a personal demand that Cairn stop drilling for oil in the Arctic.
Activists Scale Oil Rigs to Halt Arctic Drilling
Jun 21, 2011 - The Greenpeace ship Esperanza is in the Arctic to protest Cairn Energy's drilling here. At dawn (August 31st) Greenpeace activists left the Esperanza aboard inflatables, succesfully evaded the Danish Navy, and scaled the Stena Don drilling rig. Four climbers are currently occupying the rig, halting the drilling operation.
active file
last update: Apr 26, 2013
sectors
oil and gas
banktrack contact
Ben Ayliffe, Senior climate campaigner, Greenpeace Yann Louvel, Climate and energy campaign coordinator, BankTrack