OIL AND GAS IN THE MEDITERRANEAN SEA: ARE THE RISKS WORTH THE BENEFITS?

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1 2015 OIL AND GAS IN THE MEDITERRANEAN SEA: ARE THE RISKS WORTH THE BENEFITS?

2 THE OIL AND GAS SECTOR IN THE MEDITERRANEAN SEA In recent years, the Mediterranean Sea has seen an increase in oil and gas related activities. Exploration, drilling, transportation and stocking of oil and gas have increased especially among non-traditional oil producing countries such as Croatia, Cyprus, Malta and Italy. The rapid growth of the sector has caused considerable concern both among local populations, that are worried about the potential environmental and health risks and also among other economic sectors, that could be affected by the oil and gas industry. TOTAL NATURAL GAS PRODUCTION1 166,796,000 t OFFSHORE NATURAL GAS PRODUCTION2 48,599,000 t OFFSHORE OIL PRODUCTION2 20,083,000 t GAS OIL Total oil and gas production in the Mediterranean Region DATA: 1 EUROSTAT AND BP STATISTICAL REVIEW OF WORLD ENERGY (JUNE 2014), FOR THE YEAR PLAN BLEU (2014) FOR THE YEAR 2011 Several governments, however, are looking at the oil and gas as a source of jobs and opportunities for economic growth. TOTAL OIL PRODUCTION1 144,647,000 t Oil and gas production in Mediterranean countries DATA: EUROSTAT AND BP STATISTICAL REVIEW OF WORLD ENERGY , ,507 2, , ,800 4,000 5,603 6,335 46,500 10,800 34,500 50,500 68,900 70,700 NATURAL GAS PRODUCTION 20 OIL PRODUCTION 2013 SLOVENIA GREECE SPAIN FRANCE ALBANIA CROATIA TURKEY TUNISIA SYRIA ITALY LIBYA EGYPT ALGERIA

3 OFFSHORE OIL AND GAS EXPLORATION AND PRODUCTION OIL AND GAS EXPLORATION AND PRODUCTION CURRENT PRODUCTION AND DEVELOPMENT AREAS CURRENT EXPLORATION AREAS POTENTIAL FUTURE EXPLORATION AREAS* OIL AND GAS PIPELINES EXISTING PIPELINE PROPOSED PIPELINE * DESIGNED BY EACH COUNTRY SOURCES: DRILLINGINFO (APRIL 2015) OFFICIAL NATIONAL SOURCES (2015) SOURCES: WORLDMAP (2014) OFFICIAL NATIONAL SOURCES (2015) DESIGN AND PRODUCTION: WWF FRANCE - TERRA MARIS COORDINATE SYSTEM - PROJECTON: ETRS 1989 LAEA

4 THE MAIN ECONOMIC SECTORS OF THE MEDITERRANEAN SEA REGION Considering the high sensitivity of the main economic sectors of the Mediterranean Sea Region, it is reasonable to expect that many conflicts could arise from the expansion of the oil and gas industry in the future. Here we provide a comparative analysis between the number of jobs and the Gross Value Added (GVA) of key sectors in the Mediterranean Sea. TOURISM 1 THE MEDITERRANEAN REGION IS THE WORLD S LEADING TOURIST DESTINATION, REPRESENTING OVER 31% of WORLD TOURISM (275M ANNUAL VISITORS) FISHERIES 2 + AQUACULTURE 3 MARITIME TRANSPORT IN THE MEDITERRANEAN SEA ACCOUNTS FOR 19% of GLOBAL SHIPPING TRAFFIC MARITIME TRANSPORT 4 OIL & GAS 5 A LARGE-SCALE OIL SPILL (SUCH AS THE DEEPWATER HORIZON IN THE GULF OF MEXICO) COULD COVER 20% OF THE MEDITERRANEAN SURFACE (500,000km 2 ) DATA: EUROSTAT AND BP STATISTICAL REVIEW OF WORLD ENERGY 1 TOURISM, FISHERIES, 2008; 3 AQUACULTURE, 2013 (GVA), 2008 (EMPLOYMENT) 4 MARITIME TRANSPORT, (5% DAMAGE) 5 OIL & GAS, ,642 1, TOTAL CONTRIBUTION TO EMPLOYMENT (THOUSAND OF JOBS) While for the fisheries and tourism sectors the full GVAs were compared, for the transport sector, which is generally much less directly affected by a potential spill, an estimate of 5% impact on the overall sector was considered and therefore only the 5% impact of the GVA and total employment are represented in the graphs. 348,109 4, ,139 TOTAL CONTRIBUTION TO GVA (MILLION OF EURO)

5 CASE STUDIES CONCLUSIONS MT Haven, 1991, Genova (Italy) The environmental damage of the 1991 MT Haven oil spill (30-50,000 t of oil) off the coast of Genova (Italy) had been estimated in the range of 620-1,033 million euro (excluding economic losses). Direct impacts included an estimated 43% reduction in fish populations in some fishing areas and 40 km of Italian coastline impacted by 1,400 barrels of oil. Prestige, 2002, Galizia (Spain) As a result of the Prestige oil spill there has been an estimated production decrease in the fisheries and aquaculture sector of about 34,000 t and a reduction on revenues of 65 million euro. Don Pedro, 2007, Ibiza (Spain) The sinking of the Don Pedro merchant ship in 2007, near the island of Ibiza, showed that even a small oil spill (about 20 t), with a series of circumstances that significantly lessened its impact, was sufficient to compromise an entire season in this sun and sand tourist destination. Accidents resulting from oil and gas operations in the Mediterranean Sea from 1970 to GREECE DATA: WORLD OFFSHORE ACCIDENTS DATABASE 4 SPAIN 16 ITALY O&G ACCIDENTS ( ) 3 FRANCE 3 MALTA 1 ALGERIA 1 CYPRUS 1 ISRAEL 1 LIBYA 1 MOROCCO 1 TUNIS 1 TURKEY Large scale oil spills (such as the ones of the Exxon Valdez, DeepWater Horizon, Prestige and MTHaven) are likely to occur in the Mediterranean, especially if the oil and gas industry will be further developed. If we assess the potential impacts deriving from extractive activities, including the likely loss of ecosystem services, against the income produced by key economic sectors (i.e. tourism, fisheries, aquaculture), the balance is clearly negative. Therefore, from an economic point of view, oil and gas activities in the Mediterranean Sea present more risks than benefits. WWF POSITION ON OIL AND GAS IN THE MEDITERRANEAN SEA WWF DOES NOT SUPPORT ANY NEW OIL AND GAS DEVELOPMENT ANYWHERE IN THE MEDITERRANEAN SEA REGION. NEW HYDROCARBON DEVELOPMENT IS NOT AN ENVIRONMENTALLY OR ECONOMICALLY SUSTAINABLE POLICY. THEREFORE, WWF OPPOSES ANY EXPLORATION AND EXPLOITATION OF NEW HYDROCARBON DEVELOPMENT ON BOTH THE CONTINENTAL SHELF AND THE DEEP-SEA FLOOR IN THE MEDITERRANEAN.

6 100% RECYCLED Why we are here To stop the degration of the planet s natural environment and to build a future in which humans live in harmony with nature. wwf.panda.org WWF Mediterranean Marine Initiative, Via Po, 25/c Rome (Italy) Developed in collaboration with: Source International Design and layout: Tangerine Lab, Editing: Rottermaier - Servizi Letterari Oil and gas map: DrillingInfo (2015) ALES database