HSE and Quality. Sisimiut, 10th December FING: Arctic Region Oil & Gas Seminar in Training and Education

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1 HSE and Quality Sisimiut, 10th December 2013 FING: Arctic Region Oil & Gas Seminar in Training and Education 1

2 Arctic Issues Above ground challenges FING: Arctic Region Oil & Gas Seminar in Training and Education 2

3 Oil spill challenges in Arctic waters Lack of daylight/visibility during winter Temperature Ice conditions and icing Wave heights/conditions, rough seas Limited infrastructure Lack of available personnel resources with competence and endurance FING: Arctic Region Oil & Gas Seminar in Training and Education 3

4 Concerns Environmental concerns represent an obstacle for resource developments in the region. Oil spill recovery efforts would be challenged by: low temperatures, icy conditions, lack of daylight and visibility during the winter months, wave heights, rough sea conditions, limited infrastructure, the lack of available personnel resources. FING: Arctic Region Oil & Gas Seminar in Training and Education 4

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10 How do you make oil spill preparedness work here? FING: Arctic Region Oil & Gas Seminar in Training and Education 10

11 Preparing of oil spill preparedness emergency plans General oil spill emergency preparedness plans for exploration wells. Detailed oil spill preparedness action and logistics plans for environmentally sensitive. Coastal and shoreline oil spill preparedness action plans for areas of influence for most of these activities. FING: Arctic Region Oil & Gas Seminar in Training and Education 11

12 Shipping activities and regulations The global shipping regime is sensitive to the special needs that certain vulnerable marine regions may have. Inter-relationships between regional bodies and the IMO are crucial for obtaining global endorsement of risk-reducing standards that reflect Arctic needs, and for effective compliance measures. The Arctic Council has recently stepped up its activities in support of infrastructure development for reducing navigational risks in the Arctic and for dealing with emergencies and accidents. The Arctic states adopted in 2011 a legally binding Arctic Aeronautical and Maritime Search and Rescue Agreement. This is the first legally binding instrument to be negotiated under the Arctic Council.

13 Petroleum activities and regulations UNCLOS, the basic legal framework for offshore petroleum activities in the Arctic, grants the coastal states exclusive rights on their continental shelves, reflecting the sovereignty principle. In terms of hard law it is up to the coastal states to regulate activities, but they are obliged to protect and preserve the marine environment and take into account international standards established by competent international organizations, like the IMO. There are already numerous international rules and guidelines aimed at mitigating the risks of Arctic petroleum operations. The likelihood and effectiveness of detailed international regulations can be questioned. Company self-regulation and cooperative ventures between governments, industry, insurance and other stakeholders may become important supplements to formal governmental guidelines.

14 Managing Arctic Risk Exploring and utilizing Arctic resources would not be possible if the requirement is that they must represent no risk. The Arctic region is, however, not uniform with respect to hazards and risks. The discourse about Arctic risks illustrates the significance of perceptions and subjective judgment regarding risk, risk criteria and risk levels. Societal perceptions of risk may differ from those of industry. In general, communicating probabilities is more complicated than describing potential consequences. The goal must be to attain sufficient knowledge so that all relevant stakeholders are able to make their decisions, weighting the downside risk against the benefit of the activities in question. Thus, more and better knowledge and improved communication among stakeholders are important to bridge risk perception gaps. Enhanced harmonization and multilateral cooperation on risk-acceptance criteria is needed.

15 Managing Arctic Risk For the Arctic, a performance-based system seems to be the most promising model for a wellfunctioning safety regime. This calls for proper knowledge and understanding of the risk factors involved, the undertaking of risk assessments, and, where appropriate, identification of preventive and mitigating means. The operators will then have a relatively high degree of freedom to develop their own solutions, as long as proper risk management is ensured. Important remaining challenges require strong focus on technology development. Oil spills in ice and escape, evacuation and rescue of personnel are not managed sufficiently today, calling for a major effort to reduce the probability of incidents, to prevent accidents from happening, but also to develop systems that can handle emergencies.

16 Challenges in the Arctic Profitable development of Arctic oil and natural gas deposits could be challenging due to the following factors: Equipment needs to be specially designed to withstand the frigid temperatures. On Arctic lands, poor soil conditions can require additional site preparation to prevent equipment and structures from sinking. Long supply lines and limited transportation access from the world's manufacturing centers require equipment redundancy and a larger inventory of spare parts to ensure reliability, while increasing transportation costs. Employees expect higher wages and salaries to work in the isolated and inhospitable Arctic. Natural gas hydrates can pose operational problems for drilling wells in both onshore and offshore Arctic areas.

17 Challenges in the Arctic Along with economic and political challenges, environmental stewardship and regulatory permitting may also affect timelines for exploration and production of Arctic resources. Environmental issues include the preservation of animal and plant species unique to the Arctic, particularly tundra vegetation, caribou, polar bears, seals, whales, and other sea life. The adequacy of existing technology to manage offshore oil spills in an arctic environment is another unique challenge. Spills among ice floes can be much more difficult to contain and clean up than spills in open waters.

18 Search and rescue operations and oil spills FING: Arctic Region Oil & Gas Seminar in Training and Education 18

19 Search-and-Rescue point-based assets and oil spill response equipment To strengthen the emergency readiness, as well as to compensate for the risks of possible oil spills is it planned to increase manpower and resources - the creation of four point-based rescue assets and oil spill response equipment? Diving and oil spill response equipment can be delivered to the advanced base points and placed on ice- breakers. In due time will be arranged search and rescue support. The use of icebreakers to meet the challenges of search and rescue support in the Arctic. Construction of modern rescue vessels. Organize a duty of helicopters. FING: Arctic Region Oil & Gas Seminar in Training and Education 19

20 Research, Education and Outreach Activity FING: Arctic Region Oil & Gas Seminar in Training and Education 20

21 Research, Education and Outreach Activity Focus existing and future oil spill related collaborations through a set of well-defined and accessible research, education, and outreach objectives. Identify knowledge gaps. Sponsor fundamental and applied research. Support new and existing external partnerships. Administer educational fellowships. Transfer knowledge gained via workshops, meetings, literature, training, and electronic media. FING: Arctic Region Oil & Gas Seminar in Training and Education 21

22 Research, Education and Outreach Activity How can oil be detected, the fate of oil be predicted, and the trajectory be tracked in an ice-covered ecosystem in Arctic conditions? What are viable prevention, mitigation and response technologies that may be effective in the Arctic? What is the impact of an oil spill on the biological, ecological, geochemical, and socio-economic components in an Arctic system? FING: Arctic Region Oil & Gas Seminar in Training and Education 22

23 The fate of oil FING: Arctic Region Oil & Gas Seminar in Training and Education 23

24 The fate of oil To get an overall estimate of an oil spill we need reliable and effective systems designed for, and tested in the arctic. Key points: More accuracy in models and predictions. Mobilizing and take part if incidents occur. Increased knowledge about the ice/oil properties. Requiring more effective response tools to extract the oil. Get more raw data available. Need for online remote sensors. Need for full scale field trails. FING: Arctic Region Oil & Gas Seminar in Training and Education 24

25 Socio-economics Should have higher focus i.e. costs of activities on human health, indigenous people, loss of confidence, value of ecosystem services, social impact assessments. e.g. as performed in Greenland. Combat strategies effective in the Arctic environment? Arctic tool box needed, decision support system, to apply relevant combat to help managers to make the right choice. methods also in relation to oil spill FING: Arctic Region Oil & Gas Seminar in Training and Education 25

26 Risk Assessment Integrated approach The adaptive management framework for arctic Marine ecosystems Politics, economy, climatic change, pressures, impacts (SYMBIOSIS) Different actors and different sectors early stage involvement Goals Reduce risk Support planning Support improvements Assimilate new research Support stakeholder communication FING: Arctic Region Oil & Gas Seminar in Training and Education 26

27 Risk Assessment Modeling of oil in ice Driving forces different in the Arctic winds, currents, ice, observation abilities. Coupling to met-ocean models is challenging resolution, oil interaction with ice. Real time data collection and assimilation into models. FING: Arctic Region Oil & Gas Seminar in Training and Education 27

28 Impacts to Habitat and Wildlife FING: Arctic Region Oil & Gas Seminar in Training and Education 28

29 Impacts to Wildlife in Ice FING: Arctic Region Oil & Gas Seminar in Training and Education 29

30 Government, Industry Roles & Responsibilities Responsibilities in case of an oil spill For the Government For the Industry FING: Arctic Region Oil & Gas Seminar in Training and Education 30

31 Current Methods of Response Dispersants In situ burning FING: Arctic Region Oil & Gas Seminar in Training and Education 31

32 Existing Response Techniques Mechanical recovery On-water dispersant In-situ Burning FING: Arctic Region Oil & Gas Seminar in Training and Education 32

33 Governance in the Arctic Nuuk Declaration of The Arctic Council Meeting (12 May, 2011): - Develop an International Instrument on Arctic Marine Oil Pollution Preparedness and Response. - Establish an expert group on Arctic ecosystem-based management (EBM) for the Arctic environment. FING: Arctic Region Oil & Gas Seminar in Training and Education 33

34 Governance in the Arctic G-20 Global Marine Environmental Protection Initiative - share best practices to protect the marine environment, to prevent accidents related to offshore exploration and development, as well as marine transportation, and to deal with their consequences. FING: Arctic Region Oil & Gas Seminar in Training and Education 34

35 Governance in the Arctic To preserve and protect the unique ecological and cultural characteristics of the Arctic. To embrace the precautionary approach by acknowledging the lack of information about the environment. Arctic To address prevention as most of best available technologies and best environmental practices imply this. To promote the cooperation principle. To embrace the principles of access to information and public participation in decision-making. FING: Arctic Region Oil & Gas Seminar in Training and Education 35

36 Planned oil & gas terminals along the Norwegian Russian Arctic coast FING: Arctic Region Oil & Gas Seminar in Training and Education 36

37 Examples on accidents FING: Arctic Region Oil & Gas Seminar in Training and Education 37

38 Additional challenges Today: Distance from shore based resources Low traffic density Lack of experience Low water and air temperatures Darkness and reduced visibility The future: Complexity will increase The information need will increase, as well as need for shared situational awareness Not possible in all areas today due to lack of communication systems FING: Arctic Region Oil & Gas Seminar in Training and Education 38

39 The Arctic is warming Surface waters have warmed up by 0.09 C per decade during the last century (ACIA 2005). The summer ice cover has decreased at an average rate of 10% per decade (Comiso et al. 2008). The rapid decrease of sea-ice cover strongly impacts this fragile environment (Barber et al. 2008). FING: Arctic Region Oil & Gas Seminar in Training and Education 39

40 Increase in Arctic development Harbour development and shipping Offshore oil & gas exploration Tourism Fishery FING: Arctic Region Oil & Gas Seminar in Training and Education 40

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