Hardening the Law as the Arctic Ice Softens: A Critical Analysis of Regional Governance for Offshore Hydrocarbon Exploitation in the Arctic
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My name is Pjotr Bonde, I am 22 and have recently graduated from Durham University with a First Class Bachelor of Laws.
Writing on the niche, yet timely topic of environmental governance for offshore hydrocarbon exploitation in the Arctic is a choice I made in the hope of helping to preserve one of the last pristine environments left on Earth. The acceleration of climate change has made the melting of the Arctic Ocean inevitable, enabling the exploitation of its bountiful hydrocarbon resources and in turn, exposing its marine environment to the perils of oil and gas development. A robust governance framework for such activities is therefore paramount in safeguarding its ecosystem. This paper evaluates the current multilateral governance structure for hydrocarbon exploitation via a deeper study of Russia’s and Norway’s national legislation, uncovering a disparity in the governance of oil and gas extraction between the Arctic states as a result of the international regime’s inadequacy. However, under the current political rhetoric, manifested in the Ilulissat Declaration, the Arctic governance framework is portrayed as strong and dynamic, with no future plans of reform. Painting a grim picture for the future of the Arctic’s environment and the world at large. Consequently, this essay moves on to evaluate the applicability and effectiveness of proposals for reform, identifying the optimal approach for an Arctic hydrocarbon governance regime. As change is a requisite if humankind is to live in equilibrium with nature.
- Pjotr Bonde, Author
Introduction
The Arctic’s fragile environment is undergoing imminent and likely irreversible change as global temperatures continue to rise, transforming a region historically characterised by ice and inaccessibility into the next frontier for commercial exploitation. As the marine and terrestrial ice shields melt, with predictions of the first ice-free summer by 2035,1 their dissipation begins to uncover 22% of the world’s undiscovered hydrocarbons located beneath the Arctic surface.2 This event presents Arctic coastal states with a lucrative opportunity of extracting the region’s wealth of natural resources, which is estimated to be worth $17.2 trillion.3 Though exceedingly economically beneficial, the resulting ‘race for natural resources’4 may be equally environmentally damaging.
With 84% of the Arctic’s hydrocarbon resources occurring offshore,5 their extraction exposes the marine environment to the risks of accidental oil spills from extraction, production, and transportation.6 The Arctic’s extreme temperatures and fragile environment make the region especially vulnerable due to the persistence of hydrocarbons at low temperatures and prolonged ecosystem recovery.7 As depicted by the Exxon Valdez disaster which spilt 11 million barrels of crude oil into Alaskan waters out of which only 14% has been recovered,8 affecting at least 27 species, 17 of which are yet to recover.9 Additionally, the consequence of increasing the availability of consumable oil and gas is a rise in greenhouse pollutants, resulting in a ‘positive feedback loop’10 accelerating the demise of the Arctic’s ecosystem. Therefore, it is paramount that regulations governing offshore hydrocarbon exploitation in the region are adequate in protecting its environment if an Arctic ecological meltdown is to be prevented.
This analysis will evaluate the adequacy of the Arctic’s governance framework for offshore hydrocarbon exploitation in protecting its marine environment. The first chapter will lay out the law granting and governing the Arctic states’ abilities to undertake oil and gas development in the Arctic, as well as regulating sectoral activities with a view of preventing environmental harm. The second chapter will examine the adequacy of this environmental governance regime through studies of Norway’s and Russia’s national legislation. Based on the findings of the second chapter, the third chapter evaluates proposals for reform and recommends the optimal approach, prompting a conclusion that a regionally binding agreement regulating Arctic hydrocarbon exploration and exploitation is vital in avoiding an environmental crisis.
