The recent oil spills from the decaying pipeline in the Komi region of the Russian Arctic serve to highlight, what can only be described as a `cowboy' attitude similar to that experienced in the early days of oil extraction. The remoteness of the region and abundant oil and gas reserves, together with cheap labour and lax or no environmental standards have clearly made Russia attractive for investment by the western oil industry. Added to these are tax exemptions, credit system and contracts negotiated specifically to exclude responsibility for oil spills on the oil companies. It is hard not to conclude that the oil companies in the area only have regard to extracting oil as fast as possible regardless of the cost to both the environment and the people.
The lending institutions, oil companies as well as the Russian authorities share the blame for this appalling state of affairs. They bear responsibility for the pollution of the Arctic tundra and the effects on the local communities living in the area.
The pollution of the Arctic serves also to emphasise that oil pollutes from its extraction through to its end use. The financial institutions and oil companies, encouraged by political aggreements such as the Energy Charter, pay little, if any, regard to the local, regional and global environmental damage wrought by increasing use of oil and gas.
The direct environmental damage caused by oil spills is already too high a price to pay for reliance on oil. However, the price is even higher when considering that oil, when it is used, produces 44% of the carbon dioxide (CO2) being pumped into the atmosphere from the use of fossil fuels. CO2 has been recognised both scientifically and politically as the major greenhouse gas which is causing global warming and subsequent climate change. The world's governments have recognised the threat and having signed the Framework Convention on Climate Change (FCCC) committed themselves to cutting CO2 emissions to the level which does not threaten ecosystems, food supplies or economies. It is impossible to square the circle of increased oil consumption and cutting CO2 emissions.
The lending institutions, oil companies and politicians involved in the Russian oil free-for-all have completely disregarded the direct environmental and human health damage of their activities, and any economic opportunities and the environmental need for energy demand management, including energy conservation, and renewable energy supplies. If these criteria were made priority for investment it would ensure much longer term environmental and economic security.