broader Arctic risk picture Brre Johan Paaske 23. January 2014 DNV GL OIL AND GAS 23 January 2014 1 Linking risk perceptions and risk assessments DNV GL 2013 Arctic rich with resources and dilemmas Harm to the environment Climate change Safety for those working in the arctic Interference with other activities
Disturbance of natives Conflicts between countries Lacking regulations High investment costs Local job creation Economic growth Increased knowledge about the arctic Energy security
Development of infrastructure Technological advancements Increased regional cooperation
2 DNV GL 2013 Arctic conditions are not uniform Low temperatures Sea ice and icebergs Marine icing Atmospheric icing Visibility Remoteness and lack of infrastructure Darkness Polar lows Reduced satellite coverage Remoteness and lack of infrastructure Vulnerable environment and marine resources Uncertain metocean data (e.g. polar lows) Joint probabilities of loads
DNV GL 2013 Probability Modell for risk
4 4 Consequence People Assets Business Environment Risk DNV GL 2013 The Arctic environment new risk drivers 5 Temperature
Visibility
Marine icing Atmospheric icing
Precipitation
Polar lows
Sea ice and icebergs
Combination of loads
Darkness
Uncertainty in data
Sensitive environment
Subsistence lifestyle
Pristine area
Remoteness
High public attention
Darkness
Cold climate
DNV GL 2013 Arctic Risk Map System Design 6 DNV GL 2013 Oil spills are considered to be the most important environmental threat associated with shipping and the oil&gas industry (AMAP, 2007) To understand how the environmental vulnerability towards oils spill varies with regions and time a pan Arctic oil vulnerability assessment has been performed Approach:
7 Pan Arctic environmental vulnerability assessment Areas of Heightened Ecological Significance in the 17 Arctic LMEs (AMAP/CAFF/SDWG, 2013) DNV GL 2013 8 Case : Environmental vulnerability and HFO-shipping January October April July Vulnerability HFO - shipping Figure 3 Map of vulnerable seabird areas, HFO-traffic and ice in four seasons
DNV GL 2013 The drivers affecting safety risk and operational challenges vary greatly with time and location in the arcrtic To understand how the these risk drivers varies with regions and time a pan Arctic safety and operability index has been developed The index is aggregated from selected parameters impacting on safety and operability, and for each location it is benchmarked against the Norwegian Sea
Approach:
9 Pan Arctic safety and operability index Collect and process data on risk drivers Score each location according to defined criteria and against benchmark Safety and operability index DNV GL 2013
23 January 2014 Private and confidential 10 DNV GL 2013
23 January 2014 Private and confidential 11 DNV GL 2013
23 January 2014 12 DNV GL 2013
23 January 2014 13 DNV GL 2013 Vulnerabilitiy towards oil spill Pan Arctic index
23 January 2014 14 DNV GL 2013 Arctic Safety and Operabilty index
23 January 2014 15 DNV GL 2013 Barents 2020: Collaboration for safety in the Barents Sea
16 Supported by DNV GL 2013 Agree on an acceptable risk level in the Arctic 17 The risk level in the Arctic must be equivalent to or better than the best performance in the industry today DNV GL 2013 Areas of Improvement of Risk Communication The objective of good risk communication is to establish trust and credibility 18 MESSAGE: Timely disclosure of relevant information Regular updating with accurate information Clear and concise Unbiased Sensitive to values, fears and concerns of public ,
Admits uncertainty From a legitimate reputable source Organized message Use of metaphors Explicit conclusions Positive information recorded in early part of message Forceful and intense PERSON: Admits uncertainty Responds to emotions of public Appears competent Similarity with receiver Has some personal stake in the issue Clear and concise Perceived as "expert Perceived as "attractive" Charismatic Trustworthy-honest, altruistic, and objective Social License to Operate Build Trust Public Outreach Benefits Outweigh the Risks/Concerns Regulatory Processes (Permitting) Open and Transparent Communication Inclusion of All Stakeholders in the Process Early Involvement of Stakeholders Listen and Address Concerns of Public DNV GL 2013 If you have to choose only one activity, which one of the following activities worries you the most when it comes to the Arctic? 0,072361813 0,079186205 0,081730013 0,576283527 0,071108789 0,028498155 0,090831498 0,067410764 0,303956238 0,113916823 0,305724389 0,048550484 0,016852691 0,14358861 0 0,25 0,5 0,75 1 Tourism Mining Fishing Oil and gas Shipping (maritime transport) Research None of these Alaska Norway 19 DNV GL 2013 When you consider the following activities, to what degree do you see them as accepted among people today? 0,520811064 0,204369324 0,648237121 0,17254475 0,386326459 0,753729468 0,727690154 0,270404661 0,780987797 0,560663755 0,556516854 0,630986021 0 0,25 0,5 0,75 1 Tourism Mining Fishing Oil and gas Shipping (maritime transport) Research Alaska Norway 20 Percentage seeing as acceptable to a large or very large degree DNV GL 2013 In your opinion, will the benefits of increased activity in the Arctic outweigh your concerns? 0,284867652 0,532776043 0,49888761 0,250835936 0,216244738 0,216388021 0 % 25 % 50 % 75 % 100 % Norway Alaska Yes No Don't know 21 In your opinion, will the benefits of increased petroleum activity in the Arctic outweigh your concerns? DNV GL 2013 Safe operations in the Arctic need to reflect location and seasonality In areas with no ice the main focus should be on adequate winterization of assets, search and rescue capacity and transparency toward the public is needed.
When moving into areas with seasonal ice or close to the ice edge oil spill response capability in ice should be ensured. Protected areas and seasonal limitations on activities need to be considered and should be expected. Before operating in wintertime in areas with heavy ice conditions there should be public awareness of the risks and benefits. In addition an industry standard for ice management and adequate icebreaker fleet is required, and possibility to evacuate personnel in ice DNV GL 2013 SAFER, SMARTER, GREENER www.dnvgl.com Thank you for your attention 23 January 2014 23 DNV GL Oil and Gas Borre.johan.paaske@dnvgl.com +47 99 10 20 72