2.2 O&G Activities and Their Impact on Host Environments …
15
impact the lives of people who depend on that natural environment to survive; and
the socio-economic impacts, which direct and indirectly influence the host society
and host communities’ economy and social dynamics. This section addresses these
three types of impacts.
2.2.1 The Direct Impacts of O&G Activities
This research focusses on the impacts of Upstream and Midstream activities on host
communities because they often occur in very remote and ‘sensitive areas’
4 and are
highly likely to directly impact nearby communities (Goodland, 2006). The impacts
of Downstream activities are also undeniable; however, they were not the focus of
this study.
When an O&G company establishes its field activities, bordering populations
have to rearrange their ways of living to accommodate a new ideological and socioeconomic reality. In this process, detrimental relationships between the community
and the companies might develop, and members of the local communities might feel
jeopardised by the company’s modus operandi (Goodland, 2006; Selverston-Scher,
2000). For example, different views on how the land should be used and treated may
result in disagreements and potentially violent conflict.
One example of acute distress generated by O&G activities in an indigenous territory relates to the Occidental Petroleum Corporation (Oxy) Caño Limon Oil Pipeline
in Colombia. The Caño pipeline is an 800-kilometre pipeline that transports 20% of
Colombia’s total production of Oil crude. The pipeline route was completed in 1986
and it overlaps the territory of the U’wa Indigenous people in the Sierra Nevada de
Cucuy. Although Colombia’s Constitutional Court ruled to reverse the environmental
pipeline license, the Colombian Council of Sate overruled this decision (Goodland,
2006; Selverston-Scher, 2000).
In 1995, the U’wa people, in response to the Colombian Court decision to renew
the pipeline licence to operate, threatened to jump off a 1400 feet precipice. The
suicide threat impacted on the company (Royal Dutch Shell) which withdrew its
participation from the project (Selverston-Scher, 2000). The pipeline was sabotaged
more than 500 times by guerrillas and by 1996, the Colombian government was held
responsible for 31 tortures, 56 murders, 44 kidnappings and 151 illegal detentions
related to the pipeline (Goodland, 2006). In spite of such extensive social impacts,
the operational license of the Caño Limon Oil Pipeline was extended until 2018
(Goodland, 2006).
Additionally, Upstream and Midstream activities negatively impact the host
communities due to heavy inflows of foreign workers on a temporary basis (AckahBaidoo, 2012). Numerous newcomers increase the demand for products and services
4 A ‘sensitive area’ is defined as somewhere that shelters autochthonous peoples and/or low-income
communities and has rich biodiversity within an old growth forest and/or a conservation unit
(Goodland, 2006).
15
impact the lives of people who depend on that natural environment to survive; and
the socio-economic impacts, which direct and indirectly influence the host society
and host communities’ economy and social dynamics. This section addresses these
three types of impacts.
2.2.1 The Direct Impacts of O&G Activities
This research focusses on the impacts of Upstream and Midstream activities on host
communities because they often occur in very remote and ‘sensitive areas’
4 and are
highly likely to directly impact nearby communities (Goodland, 2006). The impacts
of Downstream activities are also undeniable; however, they were not the focus of
this study.
When an O&G company establishes its field activities, bordering populations
have to rearrange their ways of living to accommodate a new ideological and socioeconomic reality. In this process, detrimental relationships between the community
and the companies might develop, and members of the local communities might feel
jeopardised by the company’s modus operandi (Goodland, 2006; Selverston-Scher,
2000). For example, different views on how the land should be used and treated may
result in disagreements and potentially violent conflict.
One example of acute distress generated by O&G activities in an indigenous territory relates to the Occidental Petroleum Corporation (Oxy) Caño Limon Oil Pipeline
in Colombia. The Caño pipeline is an 800-kilometre pipeline that transports 20% of
Colombia’s total production of Oil crude. The pipeline route was completed in 1986
and it overlaps the territory of the U’wa Indigenous people in the Sierra Nevada de
Cucuy. Although Colombia’s Constitutional Court ruled to reverse the environmental
pipeline license, the Colombian Council of Sate overruled this decision (Goodland,
2006; Selverston-Scher, 2000).
In 1995, the U’wa people, in response to the Colombian Court decision to renew
the pipeline licence to operate, threatened to jump off a 1400 feet precipice. The
suicide threat impacted on the company (Royal Dutch Shell) which withdrew its
participation from the project (Selverston-Scher, 2000). The pipeline was sabotaged
more than 500 times by guerrillas and by 1996, the Colombian government was held
responsible for 31 tortures, 56 murders, 44 kidnappings and 151 illegal detentions
related to the pipeline (Goodland, 2006). In spite of such extensive social impacts,
the operational license of the Caño Limon Oil Pipeline was extended until 2018
(Goodland, 2006).
Additionally, Upstream and Midstream activities negatively impact the host
communities due to heavy inflows of foreign workers on a temporary basis (AckahBaidoo, 2012). Numerous newcomers increase the demand for products and services
4 A ‘sensitive area’ is defined as somewhere that shelters autochthonous peoples and/or low-income
communities and has rich biodiversity within an old growth forest and/or a conservation unit
(Goodland, 2006).