Strategic Sustainability of Offshore Arctic Oil and Gas Projects: Definition, Principles, and Conceptual Framework

Abstract

Exploitation of oil and gas resources in the Arctic offshore is one of Russia’s key priorities in such areas as science, economy, and technology. Global trends, harsh climate conditions, fragile ecosystems, conditions of the pandemic and post-pandemic periods, price volatility, and the growing importance of the environmental factor require that the process of developing the Arctic’s hydrocarbon resources should become strategically sustainable. The paper provides a deep literature review on sustainability issues, sustainable development, strategic sustainability, and project efficiency in the Arctic offshore oil and gas sector. The paper analyzes the trends and conditions that substantiate the need to transform the traditional sustainability concept to meet new challenges and comply with new policies. Based on the analysis, the authors propose a definition of and a conceptual framework for strategic sustainability of oil and gas offshore projects in the Arctic.

A Conceptual Model for the Sustainable Development of the Arctic’s Mineral Resources Considering Current Global Trends: Future Scenarios, Key Actors, and Recommendations

“…Scientists [5,[25][26][27] have discussed the problems associated with transforming the economy of the Russian Arctic, identifying priority tasks for the development of the Arctic regions against the background of global challenges.…”

“…Additionally, the importance of transparency in corporate governance systems and the integration of digital technologies are highlighted, all of which align with the modern concept of ESG ranking. Dmitrieva et al also discuss importance of ESG issue during hydrocarbon reserves exploitation in the Russian Arctic, emphasizing the importance of innovation in achieving SD [5].…”

“…In addition to national priorities, global concerns regarding Arctic issues are becoming increasingly important. Resource extraction in the Arctic is associated with significant energy costs [4], which is especially important given the sensitivity of Arctic ecosystems [5]. In addition to other environmental problems, the issue of greenhouse gas emissions, caused by both the development of deposits and the melting of ice, is particularly pressing [6].…”

“…The demand for various types of minerals is changing, and the level of environmental and social requirements is increasing. Moreover, new approaches to project financing are emerging due to the current ESG (environmental, social, and governance) agenda [5,[7][8][9][10][11].…”

INTEGRATING SUSTAINABLE DEVELOPMENT GOALS INTO OIL & GAS OPERATIONS: A COMPREHENSIVE REVIEW

“…Doing so not only mitigates negative environmental and social impacts but also opens up new opportunities for innovation, competitiveness, and long-term viability in a rapidly changing energy landscape (Borges, et. al., 2022, Dmitrieva, et. al., 2021, Rashed & Shah, 2021.…”