Presentations at Norway House on Ocean Science and the Arctic

Dr. Isaksen started his presentation with an overview of the environmental programs and mitigation measures that ExxonMobil has in place to safeguard marine life during seismic operations, pipe installations, and vessel traffic. Particular emphasis was paid to the effect of sound on marine mammals. Offshore operations are conducted following environmental impact assessments, spatial and temporal restrictions, safety zones around the vessels, and with mitigation measures such as soft-starts (gradual ramp up of sound), continuous marine mammal observations, and passive acoustic monitoring of vocalizing whales and dolphins. Such a stringent program helps ensure that no marine mammals are injured and that behavioral reactions are minimized. 

With future exploration for oil and gas off the U.S. Atlantic coast, a key issue is to ensure proper protection of the endangered North Atlantic right whale. The right whales have been studied extensively and the timing of their migration from Newfoundland to Florida is well known. By limiting seismic activity to times when the whales have migrated away from the area, exploration companies will be able to minimize any impact to these whales. Examples were shown from many regions of the world where ExxonMobil is using their environmental safety standards to ensure that marine mammals are not being hurt during exploration, development and production of oil and gas.

 Following his overview of select ocean science programs, Dr. Isaksen outlined ExxonMobil’s 90 year history of operating in the Arctic, ranging from the Norman Wells (Canada) field development in the 1920s, to the first oil tanker transit through the northwest passage in 1969 (some 64 years after Norwegian polar explorer Roald Amundsen, who was the first to traverse this sea route in 1905), the Trans Alaska Pipeline system in the 1970s, the first use of a concrete island drilling system in the Beaufort Sea in 1984, the first development in an iceberg environment at Hibernia (Canada) in 1997, and the development of near-shore oil and gas fields offshore near Sakhalin Island in Russia. It was made clear that the Arctic holds much promise, with the U.S. Geological Survey estimating that 25 percent of the world’s remaining undiscovered oil and gas resources are located above the 66th parallel. This is important to note, as ExxonMobil projects that energy demand will be about 30 percent higher in 2040 than it was in 2010. The Arctic can play a critical role in helping to balance the world’s supply-and-demand needs.

 

Dr. Isaksen also touched on some major challenges for Arctic operations. In order to be successful in these extreme environments, safety must always be top of mind, embedded in every aspect of exploration, development and production. Not only does industry need to operate safely, but there must also be a strong focus on effectively mitigating any potential impacts to the environment, communities and indigenous people.  ExxonMobil has a significant interest in the safe and sustainable development of Arctic resources. Success in the Arctic hinges upon the ability of governments, local communities, academia, and industries to work together to realize the potential of these important resources.

During the past year ExxonMobil has solidified its position as a capable operator in the Arctic or Arctic-like conditions. ExxonMobil has entered into agreements with Rosneft, the largest publicly traded Russian oil company, which include areas that are seven times the size of the Gulf of Mexico. In the Kara Sea alone there are agreements to invest $3.2 billion.  Drilling might commence in the Kara Sea as soon as in 2014. 

Following Dr. Isaksen’s keynote presentation, General Consul Jostein Mykletun presented the Artic / High North from a Norwegian government perspective. The High North has become increasingly interesting for more and more countries as the Arctic ice has continued to melt, and has resulted in many countries developing strategies for the region. The Norwegian strategy for the High North consists of three pillars:  to be present in all areas of the High North, to take a leading role in activities that set the parameters for value creation and life in the north, and to increase the knowledge of the area and become the leading knowledge nation of the High North.

In his presentation, Dr. Mykletun elaborated on the three driving forces of Norway’s High North Policy:  climate change, resources, and Russia.

 From a Norwegian perspective, this area is very interesting on many levels. Despite Norway only being the 68^th largest geographical area in the world, it is among the 15 largest nations in the world when the continental shelf is included. Thus, Norway has developed a vision for how to approach the High North and the potential resources that can be extracted, which can be summed up in four overarching goals: to safeguard stability and predictability, to ensure sustainable management and use of resources, to strengthen international cooperation and the international legal framework, and to strengthen the basis for value creation and employment. This is further illustrated by Norway’s active role in the Arctic Council and the collaborative work with Russia, including the establishment of the demarcation line between the two countries, signed in June 2011.

 

The Lunch’n Learn event was very successful, with a 40-person attendance, including the Consul Generals of India, S. Korea, Italy and Germany, and strong representation from companies related to the energy / offshore sector. Both presentations were well received and resulted in the attendants posing several questions concerning past agreements that have been made with regards to the Arctic, and a discussion was held related to the further development of the region.

We look forward to another Lunch’n Learn event and will announce more information about date, time and the featured speaker.