Energy Case Studies

• Gazprom have control of 92% of Russia's gas production + is state owned
• Dmitry Medvedev (current president) aims for Russia to become a world leader in the energy sector
• Energy is considered to be Russia's economic/political weapon; Russia refers to it as an "instrument of foreign policy"
• Energy Secure Nation
• Declining in usage, however increasing in exports

• If a country were to fall out with the Russian Gvnt. this could result in their gas being cut off
• This would be the same if those supplied fell out with Gazprom
  --> Europe is supplied this way; everyone could potentially be cut off if one country came into conflict w/ Russia; Europe would then have no supply
  --> Slovakia is dependant upon this supply, however have an unstable gvnt meaning they are vulnerable at losing it
  --> Ukranian supplies were cut off in 2008; Ukraine changed to a pro-West gvnt as opposed to pro-Russian = higher costs ($230/1000 cubic metre)
  --> Belarus are on good terms with Russia/Gazprom = cheaper prices ($46/1000)
  --> There can be indirect and direct affects all over Europe 

• East Siberia-Pacific Pipeline
  --> Japan + China are keen to have access to this supply; their resources are limited, but demand is growing
       --> good geographical location + have funds to afford
  --> originally, this pipeline instalment would have disrupted the home of the home of remaining Amur Leopards but was changed due to logistical, safety + environmental objections
  --> Russian will have a new pipeline (may possibly supply N.America as well) 
  --> Russian however do see China as an economic threat due to their rapid economy growth (10% per annum)
   

Alaska - protected area w/ oil reserves (Prudhoe Bay oilfield nearly exhausted)
-Chevron Texaco - lobbies all energy issues inc. ANWR development

• For (exploit) - 71% Alaskans + 58% Americans
• Bush - would keep US economy growing,
  -would make US less dependant on imports
  Republican - from Texas; owed money to oil companies for presidential campaigns/promotion
• Palin - only 2000 acres out of 20,000 square miles of land
  Republican
• Alaskans - provide jobs for locals + Americans
                 --> allows Alaska to develop energy security
                 - doesn't affect Caribou
• $50billion to US economy
• 730,000 jobs --> multiplier effect
• Pipelines built high to avoid Caribou 

• Against (preserve)
• Obama - would irreversibly damage protected area without creating sufficient oil supplies
  --> negligible economic impact
  Democrat
• Greatly affects biodiversity - US Fish + Wildlife Service (biased)
• Polar Bear threat --> invasion on their land
• Locals affected - Inupiat of Kaktovik + Gurch'in
• 500 oil spills
• Decrease of 2cents per petrol gallon
• "Oil Lobby"

Timeline

• 1957 - petrol discovered in Ogoniland
• 1960 - Nigeria becomes independent
           - Shell + Chevron extract oil
• 1980                                          --> oil generates 25% of GDP
                                                    (does not filter to locals)
• 2008 - Oil = 60% of GDP
           - Becomes Middle Income Country

From 1960 until present: 10m barrels of oil spilt; this does not make news in                                                   comparison to the Gulf Coast spill 
                                        --> oil seeped out due to no recognition/cleaning ever
                                              during 50 years
                                               --> no fish; oil covers river bed 

What?

- profit led extraction of oil from Delta for 50+ years --> leaking

Impacts?

Social - locals lost main source of food + income through loss of fish due to crude                oil in rivers
           - not benefiting from any money made + have seen no improvements

Political - nothing done due to poor connections; companies, (Shell), supply EU                      with oil
               --> do not want to lose out, hence also do nothing

Environmental - all surroundings have been polluted
                          --> loss of habitat + wildlife - most areas covered in crude oil 

• Shell (TNC)
• Nigerian Gvnt (member of OPEC)
• Researchers (Marine Biologists)
• Organisations (EU, UN etc)
• Local people, (Farmers, Fishermen etc)
• Environmental Pressure Groups, (FOE)

What?

• (In 2000-5, $86b+ spent on frontier hydrocarbons - difficult)
• Oil reserves in tar sand forms could be 180b. barrels of oil
• Commercial production began in 1967; only recently due to rising oil proces that Exxon Mobil, Shell + BP are interested
• Alberta's tar sands produced 1million barrels/day in 2003
  --> expected 3.5m by 2011
        --> by 2030 plan to produce 5m --> more than Nigeria                                                                                                              + Venezuela (OPEC)
• Mined through opencast mining/pumped out

Players?

• Mine workers
• Oil companies (Exxon Mobil, Shell, BP)
• Canadian Association of Petrol Producers - CAPP
• Government
• Alberta Energy Research Institute - AERI
• Environmentalists

Benefits

• Provide alternative source of oil --> by 2030 could produce 16% of N.American demand
• Mining companies have to reclaim any disturbed land (lowers environmental damage)
• Oil = 20% of Canadian exports - 2007 = crucial for economy

Costs

• Expensive - $15/barrel compared to $2 for conventional oil
• Energy Intensive, large source of ghgs (AERI), up to 5 barrels of water needed per barrel of oil
• Huge quantities of waste sand + environmental destruction
• Removal of trees, shrubs + soil - 470km² of forest removed
• Lakes of toxic waste cover 130km²
• Excessive Sulphur Dioxide (SO2) levels --> acid rain --> erosion
• Moose - 33 times same level of arsenic in habitat