Cairn Energy’s director of corporate affairs, David Nisbet, sets out the firm’s position on controversial Arctic exploration
There has been much debate in the past week regarding oil and gas in the Arctic.
This follows the publication of a report from the UK Parliament’s environment audit committee, which concluded a moratorium on exploration in the area was needed.
In the subject of climate change and environmental governance it is easy to lose sight of some basic facts, which need to be clearly understood.
The discussion needs to be set in the context of global trends in which the demand for energy continues to grow.
This is crucial to support the economic development required to lift millions of people out of poverty.
Our global daily demand for energy will increase further as countries such as China and India continue to support the wealth creation of their populations. While renewable-energy sources will have a place in meeting this demand, it will take considerable time to fill the gap between demand and supply.
According to the International Energy Agency, by 2030 80% of global energy consumption will still be derived from fossil fuels.
There is, therefore, a need to continue to find new sources of oil and gas.
The question then is not whether exploration for hydrocarbons should continue but rather that the industry continues to develop these resources responsibly, safely and to the highest environmental standards.
We welcome the opportunity to openly discuss these issues and to do so in an objective public forum where all the evidence and views can be presented, however, the select committee openly admits it has no direct jurisdiction in the Arctic region.
That jurisdiction is held by the people of the Arctic themselves and their representative governments.
We believe it is possible to explore for energy resources both sustainably and safely in Greenland.
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