2C - Resource Security - Case Studies

Question 1

Athabasca Tar Sands Case Study:

Location
3

Answer 1

The Canadian tar sounds rival the conventional oil in Saudi Arabia and unconventional heavy oils in Venezuela as the largest proven reserves of oil in the world.

The portion of land which is currently mined is around 5000km2

They underlie 140,000 km2 of boreal forest, an area that is approximately the size of the state of Florida.

Question 2

Athabasca Tar Sands Case Study:

Background figures
1

Answer 2

More than a million barrels of crude oil flow out of Alberta’s oil sand plants every day

Question 3

Athabasca Tar Sands Case Study:

Environmental Impacts
The process itself
2

Answer 3

Extracting the bitumen from the sand is an extremely dirty process

The technology used is a hot-water-based separation process that requires large quantities of water + energy

Question 4

Athabasca Tar Sands Case Study:

Environmental Impacts
Location of the process
2

Answer 4

Around 4 tonnes of material has to be removed to produce each barrel of bitumen

Before strip-mining begins, the boreal forest is clear felled, rivers and streams have to be diverted, and wetlands drained.

Question 5

Athabasca Tar Sands Case Study:

Environmental Impacts
Climate Change - global scale
3

Answer 5

The mining and upgrading procedure releases at least three times the carbon dioxide emissions of conventional oil production

The single largest industrial contributor in North America to climate change

Ironically, the effects of increased temperatures caused by CO2 emissions can be seen visibly within the melting of the Athabasca Glacier upstream in Jasper National Park

Question 6

Athabasca Tar Sands Case Study:

Environmental Impacts
Water abstraction and pollution
5

Answer 6

Current operations are permitted to withdraw 350 million m3/year - equivalent to the amount used by a city of 2 million people

Water over extraction poses a threat to the sustainability of fish populations in the Athabasca River and also to the Peace-Athabasca Delta, the largest boreal delta on earth - and a world heritage site

6 barrels of tailings to each barrel of bitumen

Liquid tailings contain toxic metals - poisonous to aquatic organisms and mammals.

For each barrel of oil produced, 5 barrels of water are used in extraction

Question 7

Athabasca Tar Sands Case Study:

Environmental Impacts
Loss of forests and wildlife habitats
3

Answer 7

Planned tar sand development projects are expected to see at least 5000km2 of forest cleared

Canada’s boreal forest is globally significant - representing 25% of the worlds intact forests

Considered to be the cause of the second-fastest rate of deforestation after the Amazon

Question 8

Athabasca Tar Sands Case Study:

Environmental Impacts
Air Quality
2

Answer 8

Criteria Air Contaminants are the most common pollutants released by heavy industry .

These are all emitted in large volumes by tar sand operations and they affect human health and contribute to acid rain

Question 9

Athabasca Tar Sands Case Study:

Impacts on humans
3

Answer 9

Human health in many communities has taken significant turn for the worse - risk of cancer is 10x higher

Production has led to many serious social issues throughout Alberta, from housing problems to the vast expansion of temporary foreign worker programmes that exploit so-called “non-citizens”

Water abstraction and pollution of the Athabasca River also jeopardises subsistence and commercial fishing by local aborigines.

Question 10

Athabasca Tar Sands Case Study:

Cumulative impacts and reclamation
3

Answer 10

Pipeline infrastructure to refineries and to supertanker ports crosses the continent to all 3 major oceans

Very little of the area directly affected by mining operations has been reclaimed and tailings ponds are expected to grow.

UNEP identified the tar sands as one of the 100 global hotspots for environmental degradation.

Question 11

3 Gorges Dam:

Background
3

Answer 11

Building of the dam started after a number of floods in the Yangtze drainage basin over the preceding years

Construction work was completed in 2006, but it was not until 2011 that the final turbines were fully functional.

One of the most fiercely debated reservoir creation schemes in the world

Question 12

Intentions of the 3 Gorges Dam

Answer 12

Reduce the risk of flooding for a growing population downstream.

Generate hydroelectric power and diversify China’s energy mix from a dependence on coal.

Make China more energy secure.

Fuel economic growth between Shanghai and the rapidly expanding city of Chongqing – estimated population of 35 million

Question 13

3 Gorges Dam:

Benefits - general

Answer 13

Has been and will continue to be a beacon of China’s economic and technological prowess, as well as a popular domestic and international tourist attraction

Question 14

3 Gorges Dam:

Benefits
Economic
3

Answer 14

During the 7-day spring holiday in January 2012, more than 565,000 tourists visited Yichang city, bringing in 192 million yuan in tourism-related revenues.

Opened up a niche market in Yangtze river cruises

Enables large container ships, to travel between Shanghai and Chongqing, fuelling Chongqing’s development

Question 15

3 Gorges Dam:

Benefits
Environment
3

Answer 15

The shift from burning more than 30 million tons of coal every year to generating hydroelectric power is an example of China faith in HEP and its commitment to reducing its carbon footprint

So far it has achieved its main objective in reducing flood risk for the 100 million vulnerable downstream communities.

The turbines generated 100 billion kWh of electricity in 2011 alone.

Question 16

3 Gorges Dam:

Benefits
Social
1

Answer 16

Many of the settlements created to rehouse people displaced are better built, have greater access to infrastructure, and improved provision of key services

Question 17

3 Gorges Dam:

Costs
Social
4

Answer 17

1.3 million people have been relocated under the government ‘near and distant’ resettlement policy

In total, 13 cities, 140 towns, and 1350 villages have been submerged, along with many sacred cultural landmarks, lots of good quality farmland, and small businesses.

However, most of the favorable farmland was already occupied, so displaced people were given the most marginal land with steeper slopes and poorer soils.

Jobs that were promised have not materialised.

Question 18

3 Gorges Dam:

Costs
Environmental
4

Answer 18

Interrupted fish migration and altered the river’s chemical balance, temperature, and flow velocity.

Environmentalists believe the dam has driven the Chinese river dolphin to extinction.

Sewage treatment works have not yet been built and raw sewage from the rapidly developing upstream cities is allowed to float downstream and out to sea.

Much of the sewage becomes trapped behind the dam where it damages the local biodiversity and causes water pollution.

Question 19

3 Gorges Dam:

Costs
Hazards
2

Answer 19

In the first 5 months after the reservoir was filled, 150 landslides were recorded

Serious seismic risks – the reservoir straddles 2 major fault lines

Question 20

3 Gorges Dam:

Costs
Economic
1

Answer 20

The dam cost $25 billion to build, a number of outside sources estimate total costs of up to $88 billion

Question 21

The South–North Water Transfer Project (China)

Background
5

Answer 21

Scientists estimate that within the next 30 years, aquifers beneath the North China plain will dry up.

This is a region inhabited by over 200 million people approximately 60% of their water use comes from groundwater supplies.

The region is dominated by the megacities of Beijing and Tianjin

Since 1949, water use across China has quintupled

Involves the transfer of 12 trillion gallons of water per year via three canals, from the Yangtze River in the south to the Yellow River in the north

Question 22

The South–North Water Transfer Project (China)

Aim
1

Answer 22

The aim of the project is to link China’s four main rivers – the Yangtze, Yellow River, Huai River and Hai River – requiring the construction of three diversion routes, stretching south-to-north across the eastern, central and western parts of the country.

Question 23

The South–North Water Transfer Project (China)

Completion and cost

Answer 23

The planned completion date for all routes is 2050 and it is expected to cost $62 billion, twice as much as the Three Gorges Dam

Question 24

The South–North Water Transfer Project (China)

Benefits
4

Answer 24

In 2018 there was one of the longest droughts on record in Beijing. Even with this drought, Beijing had no problems with its water supply, unlike other areas in China, such as Shanxi, where the government had to ration water.

A reduction in over-exploitation of groundwater – currently the source of Beijing’s water supply

If successful, the South–North transfer could boost China’s GDP by 0.1–0.3%, as economic activities won’t be constrained by water shortages.

Ecosystems reviving, such as Lake Juyanhai in Inner Mongolia, which dried up in 1992.

Question 25

The South–North Water Transfer Project (China)

Drawbacks
5

Answer 25

Beijing water usage:
Beijing uses so much water that 1 billion m3 of water is still coming from the abstraction of underground water.

Population growth:
China’s population and economy are still continuing to grow, and it is estimated that Beijing could soon require over 4 billion m3.
The two completed routes only cover 1/8 of the water forecast to be required in China’s Northern provinces

Beijing taking water:
Beijing takes most of the water; the surrounding areas are not benefiting as promised, which is expanding the gap between the rich and the poor.

Displacement of people:
The project has displaced over 380,000 people.

River pollution
Pollution levels have increased in some rivers – water diverted from the Yangtze has made it slower and less able to wash away pollutants or sustain wetlands

Question 26

Solutions to China’s water insecurity

4

Answer 26

Remote sensing techniques:
Used on the North China Plain
Remote sensing technology measures and controls the amount of water consumed by growing crops, by measuring the level of evaporation and transpiration. Water that is needed is then removed from groundwater supplies, rather than just withdrawing water from aquifers.
This technology will reduce water usage

Increasing water prices:
Helps to discourage waste. However, tariffs are still low, and are not necessarily having an impact on water conservation.

Building ‘sponge cities’:
China is experimenting with urban designs such as replacing concrete surfaces with wetlands, green rooftops, and rain gardens, to allow for more water to be absorbed into the land.

Rainwater harvesting:
Currently over 21 million Chinese people harvest rainwater for domestic use. This could save huge amounts of money and water if it was done on a larger scale.

Question 27

BP
Background
5

Answer 27

5th largest company in the world

Vertically integrated company - not only explores for, produces, refines and distributes its products, but is also involved with petrochemicals and power generation.

Also involved with biofuels and wind power.

Operates in over 80 countries

Produces 3.3 million barrels of oil equivalent per day

Question 28

BP in the UK

3

Answer 28

Employs over 10,000 people

Operates 40 offshore oil and gas fields

Constructed a pipeline capable of transporting 50% of the oil and gas produced in the country

Question 29

BP in the North Sea

2

Answer 29

200,000 barrels of oil are extracted daily

New technology is allowing the company to invest £10bn in the region’s oilfields.

Question 30

BP explosion

Details

Answer 30

April 2010

Killed 11 people

Discharged 4.9 million barrels of oil into the Gulf of Mexico

Question 31

BP explosion

Response

Answer 31

BP attempted to contain the spill and used controlled burning to disperse the oil.

Question 32

BP explosion

Environmental impacts

Answer 32

Devastated hundreds of miles of coastline

Damaged marine and coastal ecosystems

Question 33

BP explosion

Responsibility

Answer 33

BP pleaded guilty to manslaughter in 2012

They funded a $20bn trust for claims against the company and to rectify ecological damage.

Question 34

BP

Beyond finite resources

Answer 34

BP Biofuels is a branch of the company which investigates and produces renewable energy

In December 2012 they invested $350 million in expanding their sugar cane mill

This enables 450 million litres of ethanol equivalent to be produced annually

Question 35

Gazprom

Background

Answer 35

Gazprom has very different origins to BP and is an MNC which emerged from the break-up of the former USSR or Soviet Union.

Formed in 1989

It is the largest extractor of natural gas in the world and the fourth largest oil producer in Russia.

Originally a state-run company in the former Soviet Union, it was semi-privatised following the Soviet Union’s break- up. This removed it from total government control.

However, the new Russian government remained a major decision-maker for the company, owning 38% of its shares since 1997 - now they own 50%

Multinational Company

Question 36

Gazprom
Facts
2

Answer 36

In 2011, Gazprom accounted for 17% of world natural gas production.

Around 160,000km of gas pipelines have been constructed from the various fields to the markets served by them

Question 37

Gazprom operation location

Answer 37

Gazprom’s natural gas fields are located in the harsh Arctic environment with permafrost
(Similar to BP’s oilfields in Alaska)

Question 38

Gazprom subsidiaries

3

Answer 38

Gazprom Neft, 96% owned by Gazprom, is the subsidiary which is responsible for 10% of oil and gas production and 14.6% of refining activity in Russia.

One of the top three petrol station brands in Russia.

Exports are via pipeline and tanker with pipelines running to the Black Sea ports

Question 39

Gazprom environmental aims

4

Answer 39

restore land damaged by earlier exploration.

increase grazing land for reindeer

protect the cultural and archaeological sites of the indigenous population

ensure that new technologies which create the least disturbance to the natural environment are used.

Question 40

Gazprom and Ukraine

5

Answer 40

Russia supplies 25% of the EU’s natural gas and, 80% passes through pipelines crossing Ukraine.

In 2005, Russia claimed that Ukraine was not exporting the gas delivered through the pipelines to Europe but retaining it for domestic use.

Russia, in response, cut off all supplies passing through Ukraine in January 2006 for four days.

Repeated once again in 2009 when disagreements over Ukraine’s debt with Russia

18 European nations experienced shortages of gas

Question 41

Gazprom and BP conclusion

Answer 41

BP and Gazprom are examples of multinational companies working in the field of exploration, production, and transportation of oil and gas.

They have different origins but both operate around the world and are active in very harsh and challenging environments.

They aim to safely produce and distribute their products, not the easiest of challenges, and are subject to scrutiny by both governments and environmental activists.

Their wealth and experience
and development of cutting edge technology enable them to operate successfully around the globe and to invest in areas where the government of a country may have the asset but not the experience or the necessary finance to develop it themselves.

Question 42

Nord Stream 2 Pipeline

Completion date

Answer 42

The Nord Stream 2 pipeline has been in planning since 2015 and is due for completion in late 2019

Question 43

Nord Stream 2 Pipeline
Arguments in support
4

Answer 43

The pipeline will connect the world’s biggest exporter of natural gas with the largest economy in Europe

Together, the two pipelines will eventually be able to carry 110bn cubic metres a year of natural gas, enough to meet almost a quarter of total demand across the EU

Will cut emissions by 61%.

Even at the high point of the cold war the Russians always delivered their gas.

Question 44

Nord Stream 2 Pipeline

Arguments against

Answer 44

Critics regard the pipeline — and Germany’s role in it — as an act of betrayal and a geopolitical folly

Countries such as Poland and Ukraine have denounced it as a blatant attempt to marginalise their own gas pipelines

Will leave them and the rest of Europe at the mercy of Moscow

The European Commission is another opponent of Nord Stream, arguing the project undermines its push for greater energy independence and more diversified supplies.

Mr. Trump launched a blistering attack on the new pipeline at the Nato summit in Brussels, warning that Germany had become “captive to Russia because it’s getting so much of its energy from Russia”.

Question 45

Nord Stream 1 Pipeline

Ukraine + Russia

Answer 45

Kiev earns as much as $3bn in transit fees a year, according to Naftogaz, Ukraine’s state gas company, money the embattled government badly needs

The gas link also acts as motivation for the two countries to keep their military and political conflict from spinning out of control

The new pipeline will allow Russia to cut out the middleman for much of its westbound gas shipments