Why Greenpeace's Arctic Oil Activism is Just Getting Started

(MoneyWatch)  Cairn Energy (CNE) was forced to shut down oil exploration operations in the Arctic after Greenpeace activists managed to breach a security perimeter, scale one of its rigs and then fasten themselves to it. Greenpeace doesn't go around boarding every offshore oil rig it stumbles upon; Cairn's activity in the Arctic made it a special target. But that doesn't mean oil companies won't see more of these hands-on activist campaigns in the future.

Consider Greenpeace's rig scaling a shot across the bow of offshore oil and gas companies. The BP Gulf oil spill and an increased interest in Arctic oil has inspired activists to do more than wave 'boycott oil' signs. Greenpeace, for instance, launched a three-month expedition to investigate the impact of the Gulf oil spill. And then there's the increasing protests from activist investors. Exxon (XOM) investors, for instance, filed during the 2010 proxy season six different resolutions -- which all failed -- that covered the risk of oil sands, adoption of climate-change principles and goals for reducing greenhouse gas emissions from operations and the risk of lower fossil fuel demands.

Cairn, which has two offshore rigs operating in the previously undrilled Baffin Bay Basin, announced last week that it struck gas, a discovery that will fuel development in the Arctic. As I've noted before, there's always been a keen interest in the Arctic, specifically offshore Alaska, where ConocoPhillips (COP) and Shell (RDS) have tried to expand for several years. But until Cairn's promising strike, the prospect of producing oil and gas offshore Greenland was more hopeful than fruitful.


Now that warming temperatures have opened up more of the Arctic expect more oil exploration -- and as a result, activist activity -- in the region. For anyone wondering whether four Greenpeacers hanging in port-a-ledge style tents underneath a rig can make a difference, consider this goal outlined in a release from the organization.

The rig has been forced to stop drilling because any breach of the 500m security zone around it results in a routine shutdown. It is currently drilling in volcanic rock, having failed to strike oil, and is due to move soon to a new drill site 100 km away. The campaigners hope today's occupation will delay the move or even cause it to be canceled.

And this matters because winter is approaching. Drilling west of Greenland is limited to only a short summer season, which lasts from July to early October. If Greenpeace can keep the pressure on, Cairn Energy may be forced to abandon its oil exploration efforts offshore Greenland until next year.

Photo and Youtube video from Greenpeace
For complete coverage, see All Things BNET on BP's Gulf of Mexico Spill
Related:

• Arctic Oil: BP May Be Out of Greenland, but It's Not Giving Up Yet
• Lessons from the Gulf Oil Spill: One Smoking Gun Revealed
• Gulf Oil Spill: Meddling Scientists Keep Ruining it For BP