A new report by Lloyd’s of London, the world’s largest specialist insurance market, warns that rapid development of Arctic oil resources threatens to cause huge ecological damage without strict oversight and appropriate risk management. The report, Arctic Opening: Opportunity and Risk in the High North, projects that as much as $100 billion ((£63 billion) will be invested in the Arctic region over the next decade as the melting of sea ice opens up vast areas to oil and gas exploration and creates new shipping routes. And while this phenomenon will create significant business opportunities, the report says it is “highly likely” that it will also further disturb ecosystems already stressed by climate change and create risks associated with oil spills, particularly in ice-covered areas. “The resilience of the Arctic’s ecosystems in terms of withstanding risk events is weak, and political sensitivity to a disaster is high,” a summary of the report on the Lloyd’s Web site says. “As a result, companies operating in the Arctic face significant reputational risk.”
Drilling of Arctic Could Pose Ecological Risks, Lloyd’s Report Warns
More From E360
-
Oceans
With Sea Ice Melting, Killer Whales Are Moving Into the Arctic
-
WAR IN GAZA
As War Halts, the Environmental Devastation in Gaza Runs Deep
-
RIVERS
How Tearing Down Small Dams Is Helping Restore Northeast Rivers
-
Food & Agriculture
Turning Farmland Back to Peatland: Can It Slow CO2 Emissions?
-
Climate
In Vermont, a Push to Prevent Flooding or Get Out of the Way
-
WILDLIFE
Deadly Encounter: Mountain Lion Attacks Spark Controversy
-
Oceans
As Oceans Warm, Predators Are Falling Out of Sync with Their Prey
-
INTERVIEW
Whiplash: How Big Swings in Precipitation Fueled the L.A. Fires
-
CONSERVATION
How African Communities Are Taking Lead on Protecting Wildlife
-
Biodiversity
Despite Biotech Efforts to Revive Species, Extinction Is Still Forever
-
Energy
U.S. Support and New Investments Buoy Hopes for Marine Energy
-
ANALYSIS
In a Major Reversal, the World Bank Is Backing Mega Dams