Thursday, July 12, 2012

Arctic oil rush will ruin ecosystem, warns Lloyd's of London


Lloyd’s of London has become the first major business to speak out about the severe potential risks of environmental damage that can arise from drilling oil in the Arctic. As the temperatures are warming, the ice in the region is melting, drawing much commercial attention from oil companies. These areas that were once covered by ice could possibly hold a quarter of the world’s remaining hydrocarbon reserves.  One hundred billion dollars in investments has been estimated to go into Arctic oil drilling projects over the next decade. Among the companies planning these projects are Cairn Energy and Shell, who hope to establish wells off the Greenland and Canadian coasts.  
The Arctic is made up of several ecosystems which are “highly sensitive to damage,” and any mistake could lead to long-term negative impacts.  Authors write in a new report from Lloyd’s that a potential oil spill is “the greatest risk in terms of environmental damage, potential cost, and insurance.” In addition to the stresses already caused by changes in climate, future economic activity in the Arctic will only further disturb the fragile ecosystems. Aside from the pollutants that would be released into the environment, other negative factors include road and pipeline construction, noise pollution from drilling, seismic survey activity, and the breaking up of sea ice, which could cause the natural migration patterns of whales and caribou to be altered.
Furthermore, an oil spill cleanup would pose a “unique and hard-to-manage risk.” Lloyd’s chief executive, Richard Ward, hopes companies will take a step back and consider the consequences before going through with the drilling. The Lloyd’s report states the “inadequacies” of both the company and government were displayed in the Macondo blowout in 2010, calling for much needed research to “close knowledge gaps, reduce uncertainties, and manage risks.” Lloyd’s also finds it essential that companies participate in exercises based on worst-case scenarios. However, enabling “safe economic activity” comes at a sizeable expense. With the delicacy and unpredictability of the Arctic environment, some even say that no compensation is worth the risks of drilling.
With the changing climate already impacting the Arctic wildlife, why should man purposely disturb it further? I do not think that companies have taken the time to fully consider and prepare for the potential risks of drilling, but have instead kept their focus on what can be gained. Oil spills can have major consequences for the environment, endangering animals’ lives and possibly tipping the balance of the food web. Without thorough preparation for what could go wrong, companies are risking damaging the environment permanently for monetary profit. Although participating in worst-case scenario exercises and conducting more research will reduce the chance for mistakes, the risk of harming the Arctic is always there.

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2 comments:

  1. I agree whole-heartedly. We can be pretty selfish when it comes to what we want, but sometimes we don't think about the consequences it may have on others. Just like you point out in the article that by drilling oil we are intruding into the animals habitats and practically destroying it. Now if a force greater than us came in and started destroying our habitat we would have something strong to say about that!

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  2. I think that oil companies should take Lloyd’s warning very seriously and if they should decide to drill anyway, make preserving the ecosystem their first priority. Making financial gains through drilling is not worth the loss of an entire ecosystem.

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