Arctic governance regime: the last frontier for hydrocarbons exploitation

Abstract

Purpose

This paper aims to deepen our understanding on circumpolar current dynamics relating to oil and gas exploitation and the role of nations in the polar development process. Additionally, it is fundamental to raise the debate about the energy development in the Arctic and the fact that the exploration of oil and gas resources in the Arctic cannot be performed with the current governance regime, policies and legal framework. Arctic-specific natural ecosystems, the presence of indigenous communities and the commercial interest in the region will require an innovative model of development based on the highest level of responsible exploitation, diplomacy, regulation and policy-making.

Design/methodology/approach

This is an unexplored subject but the paper uses a review of past and recent literature, outcomes of recent “petit comités” with some of the involved parties, as a vehicle to discuss possible new approaches and paths for the future development of an innovative model of environmental governance relating to energy development in the Arctic region.

Findings

This paper demonstrates the necessity of improving the current governance patterns, as the author believes that energy development will have both positive and negative impacts on micro and macro levels. The first relevant contribution of these operations in the Arctic, undoubtedly, is the benefit for energy security levels at a global platform; however, the framework built up in terms of new legal cooperation agreements, policy-making and technological innovation in different areas will define the new Arctic citizenship as well as the Arctic’s geopolitics, and, consequently, the region’s destiny.

Research limitations/implications

This is an unexplored subject, as it is an unexplored region. New literature about the region dynamics is being developed, as new licensing process is ongoing, and there are more questions than answers about open space for reflection and decision-making. Important data have not been published or shared in “petit comités” due to strategic interests and confidentiality reasons.

Practical implications

The major drivers of change could be described as energy security, climate change and transportation that will have a huge direct impact in the region under social, economic and environmental perspectives. The core practical implication of this reflection is the energy development model for the Arctic region.

Social implications

How the Arctic’s energy resources will contribute to the global energy mix in the decades to come and the impacts of the governance regime to Arctic and non-Arctic societies is the first relevant question. Another fundamental aspect with huge social implications is how the climate changes will impact the Arctic environment and societies. These are themes that deserve more study and deeper analysis.

Originality/value

The paper provides a deep reflection of the challenges and future trends involving the new frontiers of the world energy exploration. Multidisciplinary dialogue and research on all aspects of offshore oil and gas development will require a shift in the current conceptual view of the Arctic as well as in the multilateral efforts to negotiate and design an efficient Arctic governance regime that goes beyond the setting of new standards of spill prevention, preparedness and safety, but a regime that congregates the Arctic and Non-Arctic nations’ experience, workforce and leadership.

Citation

Arruda, G.M. (2015), "Arctic governance regime: the last frontier for hydrocarbons exploitation", International Journal of Law and Management, Vol. 57 No. 5, pp. 498-521. https://doi.org/10.1108/IJLMA-09-2014-0054