5.1. Institutional Aspects of the Development of Directions for Improving the Economic Efficiency of the Extraction of Marine Hydrocarbon Resources in the Arctic
Over a fifty-year period, the average ambient temperature in the Arctic region has increased by more than 2 °C (3 °F); the corresponding loss of summer sea ice was unprecedented in human history. The warming climate has kept the northern passages and parts of the Arctic Ocean ice-free for longer periods of the year, and increased economic prospects, including shipping and hydrocarbon production, have made the Arctic an issue of profound geopolitical interest [
51].
One can agree that climatic change may lead to an increased need for both international cooperation and common solutions, and a renewed and intensified contest for influence [
52]. On the one hand, Russia will, in particular, be willing to secure access to appropriate technologies in order to best cope with the impacts of climatic change. On the other hand, the country will turn its mind to maximization of its economic returns when the ice retreat breaks new ground. The “conditions for the transport of goods in the Arctic seas” specified in the Plan for adaptation to climatic change primarily refer to the Northeast Passage. The Northern Sea Route has been an important topic of Russian politics for many years, with high hopes put on. Changes in the ice sheet in recent years now make some suggestions true. Thanks to the route, Russia can become a hub for international shipping and reinforce its status as an Arctic superpower, and also help local communities around ports along the route. It is necessary to look for ways to ensure the sustainability of the development of territories [
52,
53].
The Arctic is a unique and extremely fragile environment, with the indigenous communities highly dependent on their natural environment. The chain of offshore oil exploration (seismic surveys producing strong sound waves harmful to marine mammals, increased maritime traffic and the construction of platforms and pipelines that could potentially cause leaks and tides) are likely to have an environmental impact [
50,
51,
52,
53].
In view of the above and a number of considerations, to establish the institutional framework for managing the development of the NSR seems to be important in order to enhance the efficiency of hydrocarbon extraction in the Arctic Regions. In addition, we believe that it is necessary to create a single body to govern industry-specific and transport flows in the Arctic (
Figure 6) [
54,
55].
First of all, special emphasis should be put on international laws and regulations governing the relations in maritime transport infrastructure, since the legislation of a country does not necessarily cover these relations in terms of administrative and legal regulation. This is due to the fact that maritime transportation is primarily external to the state, and therefore is subject to general regulation with other stakeholders, that is, in compliance with established international norms, conditions and standards, which, in turn, are defined in the previous structures adopted by international laws and regulations.
Regulation of relations in the maritime transport infrastructure of the NSR should be purposeful and effective, which is one of the priorities of state administration in the development of international relations in the maritime transport infrastructure. In Russia, there is a priority of international law, that is, if the provisions of international treaties do not comply with the norms enshrined in the laws of Russia, then the provisions of international treaties will prevail. So, it is the state that plays the leading role in the functioning of the maritime transport infrastructure, which adopts the majority of applicable laws and regulations.
Macro-level. For the most part, the legislative documents regulating the field of transport infrastructure and the NSR determine general provisions, in particular, the regulation of the maritime transport infrastructure of Russia. A fairly large number of Russian laws and regulations regulate and influence the management of the maritime transport infrastructure of the NSR. For the NSR to function efficiently, it is necessary that all the applicable laws and regulations be consistent and complement each other in the respective areas, which will contribute to improving the quality of transport services, effective implementation of administrative reform, transparency in decision making, clear delineation of functions and distribution of powers between executive authorities and business entities, as well as ensuring the creation of a level playing field for the provision of transport services.
Meso-level. The meso- (sectorial) level is the next level of management of the maritime transport infrastructure; therefore, we will consider the main laws and regulations on the management of the maritime transport infrastructure of the NSR. The main legislative documents governing the activities of the NSR are the Federal Law “On Seaports in the Russian Federation and on Making Amendments to Certain Legislative Acts of the Russian Federation” dd. 08 November 2007 N 261-FZ and the Federal Law “On Making Amendments to Certain Legislative Acts of the Russian Federation as regards State Regulation of Merchant Shipping in the Water Area of the Northern Sea Route” dd. 28 July 2012 N 132-FZ, which govern relations in port activities and, in particular, establish the basic principles of state regulation of activities in seaports, the procedure for the construction, opening, expansion and closure of seaports, as well as the implementation of economic activities on their territory, including the provision of services, and determines the legal regime of port infrastructure facilities.
Among the key principles of the implementation of the state maritime policy in respect of the NSR, the following considerations should be highlighted: the priority of political-diplomatic, economic, informational and non-military forms of countering sea threats; reactivation of the country’s naval potential; creating conditions for efficient port activities; safety of navigation; protection of human life at sea; sufficient naval potential; protection of the property rights of the Russian people to the natural resources of the continental shelf and the exclusive (maritime) economic zone of Russia.
This strategy outlines the main advantages and weak points of the functioning and development of seaports, forecasts of cargo flows, objectives, main focus areas (priorities) and ways of development of seaports and the port industry as a whole. The main objectives of the modernization of the NSR are: increasing the competitiveness of the port industry; upgrading the NSR facilities and port infrastructure; ensuring effective government regulation of specialized services provided in a merchant seaport; creation of competitive conditions for the implementation of economic activities and the receiving of services in seaports; ensuring the technological development of the port-related industry and training highly skilled professionals; raising funds for the development of maritime transport infrastructure; active involvement in international associations in order to create conditions for cross-border transportation; bringing the performances of the Russian seaports in line with European ones, etc.
Micro-level. Having reviewed the institutional framework for the management of Russia’s maritime transport infrastructure at the mega-, macro- and meso-levels, let’s move on to the micro-level, that is, the seaport as it is. The micro-level organization is regulated by the following documents: port regulations, a port anti-corruption program, a port development strategy, etc. Additionally, organizational regulation documents at this level can include specific contracts for the carriage of goods by sea, to be accepted by carriers or their associations. On the basis of the studies of laws and the regulatory framework of maritime transport infrastructure, it can be noted that the adaptation of the Russian laws to the legislation of the NSR-partner countries is a priority area of cooperation in the maritime transport infrastructure and is a prerequisite for integration.
We believe that the development of a strategy (either a national, regional, or local one) should be preceded by a sound and reasonable forecast of economic and social development (of a state, industry, or city). The development of programs for the economic and social development of the NSR defining the goals and priorities, and the means and ways of achievement, the formation of a mutually agreed and comprehensive system of measures of the legislative and executive authorities should be aimed at effectively solving economic and social problems and achieving stable economic growth. The unity and systemic nature of forecast, program, and strategic documents for the development of the economy of the state, region and industry is needed, as well as the consistency of the regulatory and legal framework.
The development of the NSR to enhance the economic value of the offshore hydrocarbon production provides for the achievement of the following goals:
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emerging role of transport, and supporting mobility while reducing emissions;
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an efficient platform for multimodal carriage and transport;
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a worldwide level playing field for long-distance transport and intercontinental freight traffic.
This, in turn, entails a revision of the specific goals of the extractive industry and further development of the transport system of the NSR, which, in our opinion, should be as follows.
Shaping and support of a single transport space of the country based on the balanced development of transport infrastructure for the needs of the industry and the population.
Integration into the world and Eurasian transport system and the implementation of transit potential.
Provision of affordable, high-quality, national transport services competitive in foreign markets.
Ensuring investment attractiveness and the inflow of direct investments into the Arctic transport system.
Prior to the study, we have assumed that enhancing the economic efficiency of Arctic marine hydrocarbon resources might contribute to the Russia’s economic growth, but the lag in the technologies reduces efficiency and increases costs.
5.2. The Main Directions of Development of the Directions of Increasing the Economic Efficiency of the Extraction of Marine Hydrocarbon Resources in the Arctic
The results showed that to increase the efficiency of resource extraction, the integrated development of the Arctic Regions is crucial, with the transport factor being of primary importance. Currently, the socio-industrial infrastructure of this territory is poorly developed [
34]. Below are the main approaches to enhance the economic efficiency of the production of offshore hydrocarbons in the Arctic Regions, taking into account the spatial organization of the Arctic sea communications in the historical, economic and geopolitical retrospective.
Within the framework of the strategy for the production of offshore hydrocarbons, the economic value of these processes should be understood as the way in which the main energy facilities of the spatial structure of the Arctic are located, and the relations between them. The main units of the spatial structure of the Arctic Regions to be the subject of analysis and the impact of state policy include elements of the economic and social system, technical infrastructure, transport infrastructure networks, as well as functional connections. The concept defines the way to achieve this perspective of the desired state of spatial development of the Arctic Regions, which allows the implementation of the strategic goals of offshore hydrocarbon production to the fullest extent possible.
The policy of spatial development of the Arctic Regions. The country’s spatial development policy indicates the way in which the perspective of spatial development and development goals in relation to the territory is implemented, influencing the main energy localities and ensuring the coordination of industry-specific tools. As an integral part of the development policy, spatial strategy reconciles and coordinates national efforts with actions taken at other levels, including regional and local government. A spatial development policy is a tool for the implementation of a long-term national development strategy and is implemented on the basis of a national spatial development strategy, horizontal development strategies, and planning documents related to: regional level (the strategy for the development of the Arctic Regions and the associated spatial development plan), functional level (the strategy and related development plans for functional areas, e.g., transport, energy, etc.), investment activities arising from development programs and operational programs, legal regulations, competent institutional solutions, including an integrated system for monitoring information on the intentions of national and regional authorities in relation to the production of offshore hydrocarbons in the Arctic Regions.
The implementation of the policy of spatial development of the Arctic Regions provides:
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coordination of the spatial activities of state entities, which consists of combining various plans to achieve the set goals in a timely manner,
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creation of a platform of mutual understanding between various actors in the field of achieving goals and activities in individual sectors and areas, using the potential of the country, its individual regions and functional areas.
The actor that develops the policy for the spatial development of the Arctic regions is the government (with an appropriate structure for consultation and partnership in the programming process), while it is implemented jointly by all state structures within their competence.
The spatial development policy of the Arctic Regions is implemented using various tools. One of the most important ones is spatial planning, in which provisions are applied to spatial development at the national, regional and local levels, or to spatially separated specific territorial complexes (functional zones), based on the legal regulations. Other spatial development policy tools include legal instruments, institutions and organizational solutions other than spatial development plans that determine the effectiveness and efficiency of both the spatial planning system and related development institutions (planning and implementation). Investment activity also should be considered, especially for public purposes, planned as part of medium- and short-term strategies and programs, and this is the area of other government policies.
- 3.
Spatial planning. As a tool for managing the development of the Arctic Regions, spatial planning is designed to formulate the goals and objectives of the policy of spatial development of the Arctic Regions and determine the way of its implementation. The main task of spatial planning is to indicate the optimal ways of use of the spatially different features of the territory to achieve development goals, to determine the spatial distribution and timing of the development of marine hydrocarbons, taking into account the synergistic effect of these efforts and preserve those features of the territory that require protection and guarantee foundations of sustainable development.
In order to improve the efficiency of offshore hydrocarbon production, the following distinction should be made in the planning system:
- 3.1
national planning—the authority to prepare planning documents is vested in: the Ministry of Regional Development of the Russian Federation (the concept of the country’s spatial development), the Ministry of Construction and Housing and Utilities of the Russian Federation (the Ministry of Construction of Russia) (an amendment to the law on spatial planning and development is proposed, a national spatial plan development, i.e., the national plan)—other competent ministries responsible for actions in functionally defined elements of the development of the Arctic Regions and the competence in the preparation of relevant planning documents,
- 3.2
functional planning—as a separate cross-cutting category of planning due to the need to provide planning in areas with specific characteristics not related to administrative constraints, regardless of the existence of a national strategy, regional and local plans (plans of functional zones),
- 3.3
regional planning—the preparation of regional planning documents (such as plans for the spatial development of regions, municipalities) is entrusted to regional competent authorities, defining the course of changes in the spatial structure and the purpose of territories; the competence is with the respective local government authorities.
Legal tools are all tools other than local-level plans for spatial development, including legislative acts related to environmental management, most of which are important for spatial management, as well strategies, programs and plans that affect the state of spatial development of the Arctic Regions. They form the basis of the planning procedure, as they support the proper implementation of the objectives of spatial policy and are used to carry out sustainable activities in the field of spatial development. The prerequisite for the proper functioning of legal tools in the planning system is their coordination with the spatial development policy. Spatial planning is complemented by the system of environmental impact assessments, applicable to all planning documents.
In the context of the impact of offshore hydrocarbon production on resource preservation and environmental protection, as well as on quality of life, legal regulations are needed to designate ecological networks, protected areas, emission reduction, urban climate control, etc., as well as tools for assessing the environmental stress.
- 4.
Institutional instruments. The institutional system supports and in fact determines the proper implementation of plans to improve the efficiency of Arctic offshore hydrocarbon production. The main elements of this system are:
a system coordinating the implementation of the policy for the production of the Arctic offshore hydrocarbons, covering all government agencies involved in the planning and implementation of the policy; coordination within the national spatial development policy includes coordination at the national, regional, local levels, as in functional areas. The multi-level institutional system for the offshore hydrocarbon production in the Arctic Regions is currently scattered and is not in a position to fulfill adequately the main tasks in the field of effective implementation of the assumptions of the spatial development policy,
systems for monitoring the production of offshore hydrocarbons in the Arctic and the implementation of spatial policy by providing information critical for making managerial decisions at all levels of the spatial policy framework,
personnel able to plan and control development,
multilevel partnerships in the implementation of tasks,
spatial and environmental data policy,
tools to support the system in the form of ecophysiographic studies and an environmental impact assessment system, as well as systems to ensure quality management.
- 5.
Investment tools. The proper target orientation of investment activities can contribute to the achievement of the goals of the production of offshore hydrocarbons in the Arctic. Until now, the provisions of strategic documents in the field of spatial development have not been directly linked with the provisions of socio-economic medium-term strategies and operational documents that form the basis for spending public funds on the implementation of plans for the development of Arctic resources. Taking into account the postulated emphasis on coordinating spatially oriented (or having a clear spatial impact) activities within a single integrated development policy, and due to the size of the pool of funds allocated for the implementation of projects, a significant part of the expected expenditures within the framework of public policy, as well as funds spent by local governments through various “industry-specific” allocation mechanisms, should be considered as tools of implementation of the perspective for enhancing the efficiency of offshore hydrocarbon production.
Supervision of programs and individual investment tools is usually entrusted to various management entities. It is imperative that the system for the control and coordination of offshore hydrocarbon production ensures cooperation between the subjects of interaction and makes it possible to make use of the effects of territorial tools used in programs.