Strengthening the Regulation of Off Shore Oil Exploitation

The recent series of accidents on offshore oil platforms have served to raise public awareness on the extent to which offshore oil exploitation is moving into increasingly deep waters. Underwater oil drilling really took off in the 1970s, with the dual effect of a political factor – the desire of consumer countries to lessen their dependence on the Gulf States by developing their own activity – and technological developments making it possible to drill ever further from coastlines and at ever greater depths. Whereas just after the Second World War industries were only drilling in around 10 metres of water, it is now increasingly common for rigs to drill at a depth of over 2 km. Almost a third of the oil consumed in the world now comes from underwater areas. However, human domination of the world’s oceans does not look set to abate. The sea has so far revealed only a tiny fraction of its energy potential and new ultra-deepwater drilling technologies are currently being developed. Consequently, many experts believe that despite its environmental, economic and social impact, the recent accidents in Australia (Montara, 21st August 2009), United States (Deepwater Horizon, 20th April 2010) or in China (Penglai 19-3, 4th June 2011) are unlikely to halt the rush towards offshore drilling, especially given that the technical cost of deep water oil drilling has been significantly reduced in recent years. These events therefore invite the lawyers to question the suitability of the current international framework for the regulation of offshore oil drilling. Although the 1982 United Nations Convention on the law of the sea (UNCLOS) imposes a general obligation to protect the marine environment, no international convention specifically sets international standards determining the conditions under which States should issue drilling permits. As for regional initiatives and conventions, they are often chronically absent (Western Africa, Caribbean, etc.) or of very limited effectiveness or scope (Mediterranean, North West Atlantic, etc.). Recently however, two legal and political processes have been initiated to advance pollution prevention and control: the Indonesian (within the International Maritime Organisation framework) and Russian (within the G20) proposals are both based on the observation that international law falls well short of covering the cross-border dimensions of offshore oil exploitation when considering the increasing risks involved. Because of the multiplication of accidents, their dramatic consequences both for marine environment and coastal populations and the “four Ds, which, from now on, are destined to characterize the offshore oil industry in its search for black gold: Deep, Distant, Dangerous and Difficult[1]”, it is no more possible to plead for a legal status quo. This presentation will therefore focus on the possible options to strengthen the regulation offshore oil exploitation, (i) reminding the past (draft convention on offshore mobile craft elaborated by the Comité Maritime International in the 1970s) and current initiatives (Indonesian proposal within the International Maritime Organisation, discussions within the G20), (ii) identifying the current legal gaps and (iii) addressing crucial issues to address for such a potential initiative to be successful (e.g, scope of a legal agreement; framework and scale in which to develop it; expected reluctance, etc.). [1] Mr. Efthimios E. Mitropoulos, Secretary-General of the International Maritime Organization, 15 November 2010