Arctic Drilling: The Threat of Fossil Fuels to Our Climate and Ecosystems

“Let’s leave the Arctic's mineral riches in the ground - where they belong,” declares Elena F. Tracy, leader in sustainable development at WWF. This blogpost explores the impact of fossil fuels with a focus on Arctic drilling and what impact it has on our planet.

The Arctic: More Than a Snowy Landscape?

The Arctic is famous for its beautiful landscape and wild furry polar bears. But it has much more to offer: The Arctic plays a critical role in regulating the Earth's climate and supporting unique ecosystems. It does not only serve as critical habitat for diverse species such as seals, migratory birds, and polar bears, but is also home for around 4 million inhabitants, 10% of whom are indigenous communities with cultures and livelihoods deeply rooted in the Arctic for decades.

However, the Arctic is under severe threat from climate change and industrial activities. Over the past four decades, Arctic Sea ice has declined at an alarming rate of 12.6% per decade, with the region warming four times faster than the global average. Research indicates that at least half of this decline is attributed to anthropogenic greenhouse gas emissions - i.e. emissions caused by human activity - and the resulting increase in global mean air temperature. If we fail to limit global warming to preferably 1.5°C as in the 2015‘s aligned Paris Agreement, we risk facing catastrophic and irreversible consequences for the planet, including devastating sea-level rise and extreme weather events.

How Does Arctic Drilling Impact Our Planetary Boundaries?

Arctic drilling involves extracting oil and natural gas from vast reserves in the Arctic, which contain about 160 billion barrels of oil and 30% of the planet's undiscovered natural gas. While some major companies like Shell and OMV have scaled back their Arctic operations, others such as Gazprom, TotalEnergies, and Eni are expanding their production, particularly in Russia and Norway. In 2022, approximately 3.18 billion barrels of fossil fuels were produced in the Arctic, accounting for about 5.5% of global production. While this method of extraction strengthens energy security, the environmental risks are immense.

The planetary boundaries framework defines nine safe boundaries to human impact on critical processes that maintain a stable and resilient Earth. Once these boundaries are crossed, the risk of significant and irreversible environmental changes increases. Together, they mark a critical threshold, increasing risks for both humanity and the ecosystems we rely on. Based on 2023 scientific data, six of the nine boundaries have been exceeded and - given their interconnection - this could affect others, potentially pushing them beyond their safe limits as well.

The consequences of Arctic drilling threaten planetary boundaries, mostly the followings:

• Climate Change: The extraction and combustion of fossil fuels account for 64% of global anthropogenic emissions, exacerbating global warming. Notably, fifty-seven oil, gas, coal, and cement producers are responsible for 80% of the world’s fossil fuels CO2 emissions.

• Biosphere Integrity: Arctic drilling disrupts habitats and heightens the risk of catastrophic oil spills, which are challenging to manage due to the harsh conditions where it takes place. A notable example is the Exxon Valdez disaster in 1989, which released 10.8 million gallons of oil off the coast of Alaska, causing long-lasting damage to wildlife and local communities.

• Ocean acidification: The burning of fossil fuels has rapidly increased atmospheric CO2 which accelerates ocean acidification. Indeed, since the Industrial Revolution, the ocean has absorbed about 30% of CO2, causing a 26% rise in acidity, which in turn poses a significant threat to marine life essential to the Arctic food web, such as corals and phytoplankton. This endangers crucial species within the marine ecosystem.

Reinforcing Feedback Loops: How Arctic Drilling accelerates Global Warming

As if this was not enough, Arctic drilling not only negatively impacts planetary boundaries but also triggers feedback loops that accelerate climate change. As Arctic ice melts, it exposes darker ocean surfaces that absorb more heat, leading to even more warming and further ice loss. This phenomenon, known as the albedo effect, occurs when the loss of reflective ice allows more sunlight to be absorbed rather than reflected into the atmosphere. Consequently, the planet warms at an accelerated rate. Additionally, the release of black carbon from drilling activities darkens the ice, compounding the problem and pushing the region - and the planet - closer to irreversible tipping points.

Figure 2 Reinforcing Feedback Loop

Protecting the Arctic: A Shift towards Sustainable Solutions

The Arctic region remains an area of interest due to its potential fossil fuel reserves. However, the risks associated with Arctic drilling are too great to ignore. To limit global warming to 1.5°C, we need a 60% reduction in emissions by 2030. Consequently, the oil and gas sector should adopt innovative, low carbon solutions. Yet, Oil and gas companies currently account for just 1% of clean energy investment globally and thus rely heavily on fossil fuels. By investing in renewable energy, carbon capture technologies, and sustainable practices, these companies can significantly reduce risks and mitigate climate impacts. Diversifying portfolios and shifting their focus from fossil fuels to clean alternatives such as hydropower or renewable energy can help mitigate their carbon footprint. Moreover, initiatives that leverage natural carbon sinks - such as forests and oceans - could help offset emissions and significantly reduce anthropogenic CO2 accumulation in the atmosphere.

Instead of expanding their operations in the Arctic, the oil and gas sector must radically transform to avoid catastrophic and irreversible climate breakdown. By doing so, they can contribute to a healthier planet and secure a prosperous future in an increasingly environmentally conscious world - for current and future generations.

References

Greenpeace. (2018, March 28). You did it: Shell abandons Arctic drilling. https://www.greenpeace.org/international/story/7022/you-did-it-shell-abandons-arctic-drilling/

Harris, L. (2023, January 24). Supreme Court verdict keeps Norway’s Arctic waters open to oil drilling. Arctic Today. https://www.arctictoday.com/supreme-court-verdict-keeps-norways-arctic-waters-open-to-oil-drilling/

International Energy Agency (IEA). (2023). Oil and gas industry faces moment of truth—and opportunity to adapt—as clean energy transitions advance. https://www.iea.org/news/oil-and-gas-industry-faces-moment-of-truth-and-opportunity-to-adapt-as-clean-energy-transitions-advance

Marcianesi, F., Aulicino, G., & Wadhams, P. (2021). Arctic sea ice and snow cover albedo variability and trends during the last three decades. Polar Science, 28, 100617. https://doi.org/10.1016/j.polar.2020.100617

Marine Biodiversity Science Center. (2024, October 21). Ocean acidification: The silent threat destroying marine life. https://www.marinebiodiversity.ca/2024/10/ocean-acidification-the-silent-threat-destroying-marine-life/

Massachusetts Institute of Technology. (2023). How much has Arctic ice declined and how does it compare to past periods in Earth’s history? https://climate.mit.edu/ask-mit/how-much-has-arctic-ice-declined-and-how-does-compare-past-periods-earths-history

MCCIP. (2020). Impacts of climate change on Arctic sea ice. https://www.mccip.org.uk/sites/default/files/2021-07/10_sea_ice_2020.pdf

McKinsey & Company. (2020). The future is now: How oil and gas companies can decarbonize. https://www.mckinsey.com/industries/oil-and-gas/our-insights/the-future-is-now-how-oil-and-gas-companies-can-decarbonize

NASA. (2023). World of change: Arctic sea ice. https://climate.nasa.gov/vital-signs/arctic-sea-ice/

Reuters. (2024, January 16). TotalEnergies initiates force majeure for Russia’s Arctic LNG 2. https://www.reuters.com/business/energy/totalenergies-initiates-force-majeure-russias-arctic-lng-2-2024-01-16/

Stockholm Resilience Centre. (2023). Planetary boundaries. https://www.stockholmresilience.org/research/planetary-boundaries.html

The Guardian. (2024, April 4). Just 57 companies linked to 80% of greenhouse gas emissions since 2016. The Guardian. https://www.theguardian.com/environment/2024/apr/04/just-57-companies-linked-to-80-of-greenhouse-gas-emissions-since-2016

WWF. (2023). Research brief: Missing the target: Fossil fuel production in the Arctic is out of step with the 1.5°C aligned emission reduction goal. https://www.arcticwwf.org/newsroom/reports/research-brief-missing-the-target-fossil-fuel-production-in-the-arctic-is-out-of-step-with-the-1-5c-aligned-emission-reduction-goal/

WWF. (2023). For the good of the whole planet, stop fossil fuel production in the Arctic. https://www.arcticwwf.org/

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Author: Celine Cramer, Student of MBA Sustainability Management Class 2 (2024-2026)