Community Wellness
| Infrastructure (from CFSL, 2003)
The demand placed by the offshore industry on infrastructure in local communities (e.g. Port Hardy, Prince Rupert) may necessitate upgrades to existing systems, especially due to increased traffic by land (roads), sea (port enlargement or transshipment facilities) and air (airports or helibases). This is in addition to the construction of facilities specifically designed to service offshore operations such as supply bases, warehouses, pipelines, construction sites and offices and housing for workers. In Newfoundland and Labrador, $1.2 billion dollars of industrial onshore infrastructure was created, most notably the Bull Arm construction site, shipyard expansions and other modular, sub-sea fabrication centers designed to build offshore platforms. It is unlikely that BC could expect similar levels of investment as the choice of production methods (e.g. Floating Production, Storage and Off-Loading systems instead of Gravity-Based Structures) largely dictate the amount of construction required. Nonetheless, new infrastructure does contribute to some urban renewal and the municipal tax base where facilities are located. Municipal Services and Infrastructure The population increase of local communities due to incoming workers for offshore development and subsequent support services would place new demands on existing municipal services and infrastructure including:
Commercial (from Shrimpton, 2002) Local businesses in a variety of sectors could expect several changes associated with offshore development in their communities. These effects would also be seen in major centers such as Vancouver and Victoria and include:
Residential Residential districts could see significant changes during the course of offshore development. Both temporary and permanent new housing would be required within coastal communities. Depending on how remote the location of offshore operations, work camps could be constructed away from towns to house temporary workers, thus reducing demand but also reducing potential economic benefits such as increased valuation of existing residential properties and office space. This valuation would be temporary depending on the stage of operations and number of incoming workers. In Newfoundland, a net population increase was estimated at 8000 people resulting from incoming workers and reduced out-migration. Legacy Funds Oil and gas development can have both social costs and social benefits. The balance between costs and benefits is dependant on the magnitude of development, the characteristics of the development region and the quality of planning by all parties involved. Studies based on communities in the North Sea and Eastern Canada present several positive views on the social impacts of offshore development. Local people initially expressed concerns about the impacts that the industry might have on the culture, lifestyle, and social problems in the region, however many of these fears have proved unfounded (House 2000). Among the main benefits from development has been the creation of reserve or "legacy" funds derived wholly from oil and gas revenues and used to fund social and economic development. In the Shetland Islands and other parts of Scotland, offshore revenue helped improve local infrastructure and facilities such as airports, ferry services, schools, houses, roads and waterworks. Local council also put oil revenues into enhancement of traditional arts and crafts. Increasing numbers of professional people found that they could live and work in Shetland due to improved telecommunications and better services (Wills 1991). In western Louisiana, the offshore industry has been welcomed. There it has been crediting for holding together local culture, rather than pulling it apart (Freudenburg and Grambling 1994). In areas such as Stavanger in Norway and St. John's, oil revenues have been used for renovation of historical inner city regions, making these areas more attractive as tourist destinations. The Alberta Heritage Fund is derived specifically from revenues generated in the province's petroleum industry, and is used to help pay for numerous types of priority governmental programs. In several other petroleum producing regions (Alaska, Norway, Kuwait, Alberta) a portion of oil and gas revenues goes directly towards a stabilization fund that acts to stabilize the regional/national economy during cyclical downturns in commodity prices, or to support government revenue shortfalls. Many offshore affected regions have also created contingency funds to aid governments during unforeseen circumstances (e.g. disaster relief). Potential Hazards Some studies have found that communities involved in offshore development can suffer problems such as higher crime rates, higher suicide rates, lower community satisfaction, inadequate municipal services and/or poorer employment and educational prospects for local residents (Seydlitz et al. 1993) (see Social Issues). Shrimpton (2004) counters that often these social problems are blamed unduly on the offshore industry without inclusion of other mitigating social factors. As noted on several occasions, the cyclical nature of the offshore development can have negative consequences for local communities. During boom periods, the population grows rapidly in local regions, driven by an influx of migrants seeking work in the oil and gas sector. This rapid growth can create inflation and social disruption. Expectations of future growth can also be unrealistic during the boom phase resulting in excess investment not only in the oil and gas sector, but other areas such as housing. The surplus ends during the downturn in the cycle resulting in potential bankruptcies and layoffs in the local economy. Many northern BC communities have also expressed concern that marine protected areas be respected and adequate emergency response plans be prepared in the event of an environmental disaster. Several communities along the north coast have also long relied on traditional resource based industries (fisheries, forestry, mining). Disruption to these sectors is of prime concern. Overall benefits and losses are difficult to quantify at present. The 5-year Coasts under Stress project was designed to help further understanding of the various economic and social impacts. Some credit from above text to Benefiting Communities: Lessons from Around the Atlantic by Mark Shrimpton, 2002 and Socio-Economic Benefits from Petroleum Industry Activity in Newfoundland and Labrador, prepared by Community Resources Services Ltd., 2003. |
| References | Offshore Oil & Gas Moratorium | Links | About EnergyBC | © MJ Whiticar, Biogeochemistry |  |