Onshore planning implications of the offshore development of mineral resources

Onshore planning implications of the offshore development mineral resources

of

Peter W. Roberts and Timothy Shaw

The

authors

examine

consequences of

offshore

and

oil

been

made

integrated

oil

This

to

energy.

gas

major

Through

of

sources

the

of

of the offshore

environmental,

the and

is set

an analysis of

industry,

an

for strategic

of the growth

as

requirements economic

that

introduce

examination

the context

and

resources

attempts

framework

planning. within

gas

the

onshore

development

and

evaluate

have

the

of the

social

implications

for the onshore

zone are discussed.

A

issues

number

of

relating

resource

offshore

to

development

adjacent to heavily urbanized areas illustrated by reference to are north-west

England

and

Morecambe

Bay

field.

An

alternative

approach

to

the

planning

and

onshore

management

consequences

development the

use

is Principal

Planning,

Lanchester

Polytechnic, UK.

Timothy

Lecturer

in Planning,

Town

and of

University Newcastle

128

through

Lecturer

Department

Regional

and 5FB.

of the

scenarios.

Peter W. Roberts Urban

the

of resource

is presented

of

in Regional

CVl

gas

of

Planning, Coventry Shaw

Department

is of

Planning, Country Newcastle-upon-Tyne,

NE1 7RU,

UK.

Since the late 18th century the economic development of the industrial nations of Europe and North America has been largely dependent on the availability of mineral resources. This pattern of economic linkage has been expressed in the spatial clustering of industrial activity either at resource production sites, or at convenient break-of-bulk locations. One of the most significant forms of mineral resource which has determined the present pattern of economic activity is energy. The geographic association between coalfields and early forms of industrial development has in recent years given way to a maritime orientation reflecting the growing significance of petroleum as a primary source of energy, as well as the longestablished utilization of imported industrial raw materials. Energy consumption patterns clearly show a move away from a traditional coal base to an increased use of oil and natural gas (even though this may be of limited long-term significance). This change of emphasis can be clearly seen in the evolution of the UK’s energy budget, where a shift has occurred between 1967 and 1977, from a coal to a petroleum energy base. In 1967 coal was the dominant energy source, the contribution of oil (from imported raw materials) and natural gas (from the southern North Sea) representing only 41.2% of the total requirement. By 197 1 the balance had shifted. In that year oil and natural gas contributed 54.3% of the total supply, and by 1977 these energy sources provided 58.8% of total requirements. Oil and natural gas are now clearly the two major sources of energy, and will remain so at least in the immediate future. Of greater significance are the increasing amounts of these products provided from the UK’s own resources. This changing pattern of energy supply is by no means unique to the UK; the increased significance of oil and natural gas in meeting the energy needs of Western Europe is also clear. Of the total increase in energy consumption between 1950 and 1975, natural gas has increased its net contribution from 0.2% to 14.8%, liquid fuel (mainly oil) from 11.5% to 50.79/o, while the contribution of solid fuel (mainly coal) has fallen from a position of dominance in 1950 at 81.8% to 23.3% in 1975. The implications of this change in the pattern of

0308-597>(/80/020128-14

$02.00

0 1980

IPC Business

Press

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limit of national sectors

h

Foeroes trough

r---7 4

\ \

West Norwy basin , /’

Northern North Sea

\

/’

bOWI ‘\/

0

Figure I, Offshore sectors and basins.

’ D.I. MacKay and G.A. Mackay, Political Economy of North Sea Martin Robertson, London, 1975.

MARINE

7he Oil,

POLICY April 1980

DANISH

25 50

Luuri

75

100 miles

1 1 I

energy supply are of necessity complex and are well documented elsewhere.’ It is the intention of this article to examine but one aspect of the transformation that has occurred in the energy base of Western Europe, and to consider the ramifications of that transformation. Given the changing patterns of energy supply, consumption and costs that have emerged in the post-oil crisis era (since 1973), the existence of an indigenous supply of natural gas and oil has become of increased significance for a number of Western European nations. The discovery and subsequent exploitation of natural gas in the Netherlands in the late 1950s stimulated other governments to consider the ~ssibility that gas and oil reserves may exist in areas within their territorial jurisdiction. Attention was at first focused on the southern North Sea basin (Figure l), and since the mid-1960s natural gas has been supplied from fields located in both the Dutch and UK sectors. A formal legal framework for offshore licensing, exploration and production was established by the littoral nation states, based on the international guidelines agreed in the 1958 UN Convention on the Continental Shelf. In the UK this was reflected in

729

Onshore planning implications of the offshore development of mineral resources

z P.R. Odell, ‘The oil industry and regional presented at development’, Paper Regional Studies Association Conference. Dublin, Eire. 1979. 3 White Paper on Fuel Policy, HMSO, London, 1967. 4Zetland County Council Act, HMSO. London, 1974.

130

the 1964 Continental Shelf Act, which provided a competence over the adjacent continental shelf and established a broad policy for the development of offshore petroleum reserves. Attention shifted in the late 1960s from the gas reserves of the southern North Sea to the oil and gas fields located in the northern North Sea. The exploration and exploitation of these hitherto undeveloped areas was further stimulated in the early 1970s by growing uncertainties regarding both the scale of supply and cost of oil from Middle East sources. In the event the relatively high cost of the North Sea oil and gas development programme has been justified, in that it has yielded a significant source of energy and raw materials which are under the control of established and generally stable political regimes. Since the initial exploration programmes were inaugurated, over 200 separate discoveries of oil or gas deposits have been made in the North Sea.’ Although the largest single concentration of discoveries has been within the UK sector, economically viable fields have been established in the majority of adjacent areas, the most significant being within the Norwegian (oil and gas) and the Dutch (mainly gas) sectors. The increased significance of indigenous oil and natural gas in the Western European energy economy over the past ten years has been seen by the majority of consumers as both desirable and necessary. Greater controversy has been generated in the UK by the need to provide suitable sites for the onshore facilities required by the offshore industry. Depending on the stage which has been reached in the process of offshore exploration and exploitation, the level of onshore facility demanded by offshore operators can range from the need for a small-scale, often temporary, service base, to the construction of major and semi-permanent heavy industrial plant. Although the UK government provided a legislative framework and a series of administrative procedures for the direction of offshore operations in advance of any major developments, the onshore consequences of such developments were not subject to any specific or new forms of planning control. This has resulted in an often haphazard and incremental process of onshore provision. The difficulties generated by the absence of clear policies for the planning of onshore facilities have been exacerbated by the rapidity of the offshore development process and the lack of previous experience among many planning authorities in dealing with the oil and gas industry. To achieve the objectives of a ‘rapid depletion’ policy for the extraction of North Sea oil and gas,3 many onshore planning decisions have had to be made quickly, frequently on the basis of partial information. It is therefore hardly surprising that certain decisions have proved to be incorrect or controversial; alternatively other decisions have been subsequently justified. A further complication exists in the UK reflecting fundamental disagreements both between and within the various political groups at the central and local levels of government, regarding the extent to which market forces should be allowed to determine land-use. Given the financial power of the offshore industry, and the desire of central government for ‘rapid depletion’, it is hardly surprising that certain decisions have been made at local level which represent a marked divergence from previous land-use policy. In other cases a stronger, interventionist or participatory stance has been adopted, for example, by Shetland County Council through the Zetland County Council Act of 1974.4 Many problems experienced by coastal planning authorities

MARINE

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1980

Onshorep~anning i~~~icatjons of the oflshore development of mineral resources

presented a challenge to established planning procedures,5 yet indirectly the difficulties of rapidly accommodating the requirements of offshore operators stimulated a series of innovations in planning practice. It has been, and is, argued that the forms of major development which have been associated with the exploitation of North Sea oil and gas are not unique in terms of their characteristics of land-use requirements. Thus, rather than introducing specific planning legislation and procedures to cope with the demands of the offshore industry, a more wide-ranging review of the planning process should be unde~aken. This review has taken various forms; for example, the Scottish Development Department commissioned Aberdeen University to investigate project appraisal for development control - this investigation has been concerned with the generation of planning procedures for use by local authorities when considering applications for planning permission for major new industrial activities.6 A wider programme of research had been concerned with the generation of suitable methods for environmental impact assessment.’ In more recent years this work has increasingly adopted a multinational approach, reflecting the increased significance of the European Economic Community (EEC) in such matters.* Therefore, even though the problems encountered in managing the onshore consequences of offshore mineral extraction may have created certain short- and medium-term dif%culties, new and novel solutions have emerged which have wider applicability. Onshore planning in the UK is moving towards the type of approach that has been adopted in North America, where the planning of coastal zone activity is seen as a coordinative process9

Context for development

5 J. Uden, Public Inquiries And the Planning Decision-Making Process, University of Glasgow, Glasgow, 1976. @B.D. Clark et al, Assessment of Major Industrial Applications: A Manual, H MSO, London, 1976. C.G. Thirwall, ‘J. Catlow and environmental Impact Analysis, l-i M SO, London, 7 976. @N. Lee and C. Wood, ‘The assessment of in impacts project environmental appraisal in the European Communities’, Journal of Common Market Studies, No 16, 1978,~~ 189-210. @L. Koppleman, Integration of Coastal Zone Science and Regional Planning, Praeger, New York, 1974. ‘OJ.B. Mcloughlin, ‘What is strategic Social Science Research planning?, Council Discussion Paper, Liverpool Polytechnic, Liverpool, UK, 1978.

MARINE

POLICY April 1980

Many problems encountered in the development of onshore facilities stem from the inability of the UK’s planning system to respond quickly enough, or in sufficient detail, to the needs of offshore operators and developers. Even in those instances where responses were rapid and detailed, the criteria used in the evaluation and assessment of proposals were frequently pragmatic in origin and lacked consistency in their application. In theory, although infrequently in practice, the UK planning system is based on a partition of responsibility and function between those agencies concerned with strategic planning and those responsible for tactical or service-delivery issues. The delimitation of these two levels of planning activity is often indistinct, while the articulation of the two tiers is difficult. Strategic planning can be defined as having concern for a relatively large number of policy fields, as being integrative and comprehensive, and taking a medium- to long-term perspective,iO Although the most common application of the strategic mode of planning is at the national, regional or subregional scales, there are instances of attempts at the strategic planning of small areas. Tactical planning is mainly concerned with the consideration of small-scale, often specific, issues, and the provision of services. It is normally associated spatially with individual sites or small areas, but can relate to the deliberation of any provision for a specific function at higher spatial levels. The distinction between the major modes of planning is important in the consideration of the onshore needs of the offshore minerals

131

Onshoreptanning

impiicatio~s

of the oflshore development of mineral resources

/

Preferred development zone -----

Preferred conservation zone

Figure 2. Scotland

coastal

planning

guidelines.

“The development of offshore oil and gas reserves can be broadly divided into three stages, viz exploration, development and production. During the exploration phase temporan/ or existing facilities are frequently utilized, while during both the development and production phases there is a requirement for more extensive and permanent facilities. ‘2 Zetiand County Council Act, op cit. Ref 4. I3 P.W. Roberts, T. Shaw and M.G. Llovd,

The Effects of the Development of Irish Sea Gas Upon Mersevside, Celtic and Irish Sea UK, 1978. r4 Scottish

Gil

Research

Development

Unit,

Liverpool,

Department,

Guidelines National Planning Developments, Petrochemical Edinburgh,

132

1977.

for SDD,

industry. In the case of the provision of onshore facilities for the North Sea oil and gas industry, strategic planning responsibility rests with national government (in London and via the Scottish Office) and the regional authorities in Scotland (before 1975, the County Councils). Because of the rapid exploitation of the North Sea resource, little or no time was available to develop a strategic framework for the provision of onshore facilities and thus, for example, platform fabrication sites were established in rural areas. It was not until 1974 that a set of guidelines was produced by the Scottish Development Department (Figure 2). These coastal planning guidelines indicated preferred conservation and development zones, but the demarcation of these zones accepted existing development as a fait acompli. At least the guidelines were available during the later development and production phases” of the North Sea resource, and thus the risk of a pragmatic response was reduced. Shetland County Council adopted a far more detailed and comprehensive approach to the accommodation of oil-associated activities. To minimize the undesirable effects of onshore provision, and to maximize the financial returns to the local community, the County Council promoted private legislation to increase their power of control over prospective developers. The Zetland County Council Act of 197412 enabled the local authority to produce an oil-related strategy, which ensured that any development which occurred would be phased and controlled to satisfy the needs of both offshore operators and the local community. Given the effectiveness of this special legislation, it is desirable that any future provision for oilassociated development should be controlled through a similar approach. A framework of control and direction is more necessary in heavily urbanized areas which are subject to development pressures; the coastline of north-west England, adjacent to the Irish Sea Basin, is such an area (Figure 3). The recent discovery of a commercially viable gas reserve in the Morecambe Bay field, has created the need for sites to be allocated for use by offshore operators and for the location of a reception terminal. To satisfy the demand for new and improved facilities, a development strategy for Morecambe Bay gas has been produced by the present authors. r3 The strategy provides a robust framework for planning and other development activities through a phased and controlled gas extraction programme. The main elements of any development programme for offshore resource extraction are dependent on the nature of the resource, and the commercial constraints which determine the scale and type of extraction, transportation and primary processing which is necessary. Planning authorities, at national, regional and local levels, should be aware of the requirements of offshore operators at an early stage in the development programme, and should, through a cooperative approach, attempt to make available the facilities required. One example of a carefully considered development process is provided by the Scottish Development Department National Planning Guidelines for Petrochemical Developments. l4 These guidelines provide local planning authorities with the ability to respond to the needs of offshore operators. The most significant consequence is that all authorities can act in unison and thereby provide a coherent and comprehensive capacity for the offshore industry. Although the Scottish Development Department’s approach to

MARINE

POLICY

April 1980

n

Morecombe gas field

Motor 011 refinery

Boy

:.:’ 0

Figure 3.

The

Morecambe

Bay

t

gas

IO

i

20

I

30

1

40

50 km

1 1

field.

strategic planning for the onshore consequences of offshore development represents a major step forward, it was, nevertheless, too late to significantly influence the location of the facilities associated with North Sea oil production. An alternative approach has been developed by the present authors which attempts to take the Scottish Development Department’s integrative and comprehensive method one stage further. This alternative was generated using the case example of the developments which are currently taking place in the Morecambe Bay gas field, located in the Irish Sea Basin. The following sections of this article examine the major characteristics, problems and issues which arise from offshore resource development; examples are used from the authors’ experience of Irish Sea gas.

Environmental issues Ever since the Torrey Canyon episode there has been growing concern about the potential hazards of the movement of highly combustible substances and liquids carried in such bulk that any accident is likely to result in pollution on a massive scale. Recent tanker accidents such as the Amoco Cadiz and the Heleni V have done little to dispel such fears. Concern is expressed not only by conservationists appalled by the damage to wildlife but also by the tourist trade concerned by the loss of earnings stemming directly from the pollution of holiday beaches. Despite the extensive use of pipelines to bring oil and gas ashore, continued exploitation of offshore hydrocarbon resources (until the

MARINE

POLICY April 1980

133

Onshore planning implications of the offshore development of mineral resources

I5Health and Safety Executive, Area Investigation of Potential From Operations in the IslandlThurrock Area, HMSO. 1978.

134

Canvey Hazards Canvey London,

end of the century?) is bound to result in an increase in tanker traffic in coastal waters. Substantial volumes of oil are taken direct from the platforms using offshore loading to coastal pipeline terminals such as Anglesey, or to extensive storage aras such as Sullom Voe. In addition to the potential hazards of major tanker accidents there are the more frequent problems associated with spillage at loading and discharge. It is important to remember that the concern must not be simply for the seaward side of the operation, but also for the landward side where there are considerable installations ranging from coastal reception terminals to vast petrochemical complexes, in addition to which there are many kilometres of pipeline. All these landward installations are potentially more hazardous than their seaward equivalent and pose a much greater threat in densely populated areas. Growing conern by the public at the potential hazards of onshore petrochemical installations has been a feature of public inquiries since the Flixborough disaster. The findings of the Health and Safety Executive on Canvey Island15 and the disquiet expressed at the development plan for Moss Moran in Fife add further weight to the need for very detailed planning before the installation of reception terminals, processing plants and pipelines. Although no severe problems appear to have arisen from platform emplacements and submarine pipeline construction in the North Sea, some concern must be expressed at the potential impact such construction might have on a shallow and very gently shelving seabed, with respect to the accumulation of sand through interference with currents and the consequent additional problems to shipping channels, such as in Liverpool Bay. Pipelines laid in shallow seas are faced with a possible hazard from shipping. Ships dragging anchor chains and damaging submarine pipelines could cause extensive environmental damage. Despite careful planning it is inevitable that there will be some disruption of natural habitat during the construction phases of coastal reception terminals. Whereas oil may be brought ashore and pumped to points many miles distant without the need for associated installations, with gas it is imperative that gas reception terminals are built as close to the coastline as possible. Depending on the nature and sensitivity of the coastal location where gas is brought ashore, the type of environmental disruption through construction work will vary. Apart from problems posed by the construction of such terminals, additional environmental issues are raised during the operational phase of bringing the gas ashore. First, there is the potential hazard from handling and separating highly volatile substances (gases); second, there is an air pollution problem posed by the possible burning-off of carbon gases; and third, there is a noise problem produced by the very powerful compressors required to bring the gas ashore and despatch it to other inland locations. Pipeline construction is a source largely of temporary disruption and pipe-laying technology has advanced considerably since the decision to produce a UK national gas grid. However, there are potential environmental problems with pipelines. New pipes are infinitely better than those utilized in the 19th century and earlier parts of this century. They are less prone to fracture. It appears however that the problem of gas leakage has not been totally overcome, and such gas leaks can have a devastating impact on nearby vegetation.

MARINE

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April 1980

U~shorepIo~~l~~~~~pI~~oi~o~sof the oJ%hore ~e~eIop~e~ltof~~~erol

resources

U~duubted~y the most hazardous areas are processing plants, whether at a coast& reception terminal such as St Fergus in northeast Scotland or at a downstream petrochemical complex such as Stanlow in North Cheshire. Problems associated with ‘normal’ operations can be found in the proceedings of the Examination in Public of the Cheshire Structure Plan16 and other environmental problems are detailed in the report of the Flixborough Public Inquiry and in the Canvey Island Study.” Prior to oil and gas-associated developments entering the production phase it would be advantageous if an environmental monitoring system were devised to predict accurately the likely environmental probfems to be rendered, as well as scrutinize the actual operation of oil and gas exploitation to identify and cope with environments pollution. The findings of a monitoring system may well have more wide-ranging vafue in terms of improving and making safe the technology of this part of the oil industry. At all times it must be realized that pollution at sea or on land can have far-reaching consequences and that once pollution has occurred it cannot always be rectified simply. In all gas-associated developments high priority must be given to the proection of the environment, particularly with regard to resident populations, wildlife and habitat, and existing land-uses.

Economic and sac&d issues

l8 Cheshire County Council, County Structure Plan, Examination in Public, Dewfa~rnent of iaqe S&e industry ~jt~ Regard to E~~j~~~~e~~~~ FWicies, Dept of the Environment, London, 7977. )’ Health and Safety Executive, op cit.Ref 7 5. ‘*Approved supplier status is necessary before industrial firms can tender for required by the offshore contracts industry. Every major oil or gas company or offshore operator maintains a list of ‘approved suppliers’.

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POLICY April 5980

In the present local and national economic env~onment, it is of great importance that gas-associated development should be guided to benefit the local and national economies. Merseyside, for example, faces a series of economic problems, not least of which are the need for a stimulus to be given to existing engineering and other industrial activities, and the essential requirement of increasing the range of available employment opportunities. The Irish Sea gas provides a range of opportunities for Merseyside industry to estabhsh a capability to meet the needs both of offshore activity, and the onshore-associated developments. In broad terms the impact of offshore gas exploitation can be examined through a subdivision of associated activities into thuse categories, viz the demands of offshore production, and the demands of onshore processing. The demands of offshore production are wide-ranging, varying from the construction of platforms to the provision of ‘housekeeping’ items. The offshore industry offers potential for the construction of drilling rigs, production platforms and modules (the upper parts of platforms). Pipe and tube manufacture, together with associated coating operations, represents another significant component of the heavy manufacturing requirement of the offshore industry. The manufacture of high-value added components for the offshore oil and gas industry represents another potent&I growth area. LocaI authorities and private industrial consortia, such as the Contractors and Offshore Traders Association of Merseyside (CQTAM) on Merseyside can assist in ensuring local industry is aware of new manufacturing opportunities and in helping these same firms gain ‘approved supplier status’i6 to the offshore industry. The routine servicing of offshore activities is in itself a growth area for local firms which can generate substantia1 income at all stage of

535

Onshore planning implications of the offshore development of mineral resources

offshore operations, as well as giving a boost to local traders and port operations. The broader aspects of servicing such as increased airport use, office development and banking operations can all bring new growth to host areas. Local responses to the needs of the offshore industry can thus bring new prosperity to ailing areas like Merseyside and provide the means for new investment in plant and equipment, and in addition can allow for diversification of activities, thereby giving a greater chance of economic survival. There are obvious benefits in allowing potential prosperity to come to depressed industrial areas which invariably have the skills, surplus labour and genera1 infrastructure waiting to be utilized, and allowing such areas to benefit through the multiplier effects of growth.19 In the same way that offshore operations present substantial growth opportunities, responding to related onshore activities offers new growth to the industrial and commercial sectors. However, these opportunities are conditioned more by the nature of the resource and the level of existing processing capacity; in the case of Irish Sea gas much of the benefit from processing would go to North Cheshire, where refining and petrochemical plants are located. Experience from Scotland during the past decade has demonstrated that there are many social issues associated with both offshore and associated onshore activities which the planning process cannot afford to ignore. Although there are dangers in drawing too close a parallel between the impact of development in rural communities in, for example, north-east Scotland and heavily urbanized areas such as Merseyside, there are certain features which are common to all offshore and associated onshore activities, which should provide planners with a starting point from which to formulate longer-term strategies. Essentially, two categories of problems can be identified: 0 0

‘¶T.M. Lewis and I.K. McNicoll, North Sea Oil and Scotland’s Economic Prospects, Croom Helm, London, 1978.

136

those associated with the physical impact of plant and new construction; those which are connected with the industry’s demand for a specialist and, consequently, highly paid workforce.

Inevitably there will be local opposition to any new development which poses a threat to local environmental conditions during both the development and operational phases, through the disruption of countryside and other open space, increases in noise and dirt and the threat of pollution, particularly when new plant comes into operation. The extent to whcih such problems are perceived by local people is based on a number of factors, and is likely to vary from place to place, but opposition to any new onshore developments may be categorized under ‘loss of quality of life’. Communities faced with an influx of migrant workers are generally hostile to the idea of accommodating such a workforce. More isolated communities appear to experience greater difficulties in absorbing large numbers of people. Clearly, there are benefits to existing tradespeople, but there is increased vandalism and alcoholism. The advent of a new workforce tends to place a greater burden on existing services and infrastructure, with a resultant increase in the social and economic costs paid by permanent residents. If new offshore operations are to be launched there are perhaps merits in doing so from an existing urban base, such as Merseyside,

MARINE

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April

1980

ensnare planning implicationsof the offshore deveiopmen~of mineral resources

which has a greater capacity to accommodate new developments without substantial increases in service and infrastructure provision. Equally, industrial areas can probably cope with some of the new pressures for sites and communications without the same massive environmental disruption that would occur in rural areas.

Planning problems resulting from offshore development

2oP.W.

Roberts, T. Shaw and M.G. Lloyd.

op tit, Ref 13. 2’ Zetland County Ref 4.

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Act,

op

POLICY April 1980

tit,

There is a general acceptance that planning agencies failed to fully anticipate the size of the impacts of the offshore industry in areas such as north-east Scotland.zo The ad hoc approach adopted initially as a result of the speed of the developments placed a substantial burden on the infastructure of those parts of Scotland selected by the oil industry as suitable in terms of their physical characteristics and location in relation to the oilfields. Sufficient experience now exists in the UK to allow local authorities to embark on effective forward-planning exercises. The UK is not without examples demonstrating the benefits of forward economic, social and environmental planning in this context. The Zetland County Council Act21 demonstrated that it is possible to anticipate the impacts of offshore oil and gas exploration on the land base. Widespread economic and social benefit has been experienced by the entire Shetland population and physical disruption has been carefully controlled. At the same time this legislation has not interfered with the planning of the oil companies’ operations nor with the flow of revenue to the Exchequer. The development of Morecambe Bay gas is likely to produce a series of land-use repercussions. Although these effects are expected to be on a much smaller scale than in similar areas in north-east Scotland, they are nevertheless of significance. The land-use issues that need to be considered range from the possible provision of a site for a coastal reception terminal, to the extension of the existing Serviced Industrial Land programme. Although of a lesser magnitude than infrastructural developments in north-east Scotland, the associated land demand of Morecambe Bay gas is potentialIy more problematica because of the heavily urbanized nature of the area. There are few areas available for ‘green field’ development, thus infrastructural needs will either have to be satisfied through the extension of existing facilities or the rehabilitation of previously used sites. Most activities associated with the offshore industry make demands on local infrastructure within the region in which they are located. In Scotland it has normally been the case that such demands have necessitated the provision of new infrastructure, frequently on virgin sites. The facilities demanded were frequently highly consumptive of Iand, and in a preemptive manner developers forced local authorities and government dep~tments to amend and alter existing pIanning policies and proposals. The range of infrastructure requirements demanded by the offshore industry are summarized in Table 1. Onshore activity creates a similar set of land-use needs to those described above. There could also be an additional land requirement for the expansion of industrial premises from firms that have become involved with the supply of equipment for both onshore and offshore activities. 137

~~shorep~u~zning implications of the @shore development of mineral resources Table I. lnfrastructural

Offshore

requirements

activity.

Accommodation

Transport

Education

(housing and camps)

Port

Rail

Heavy duty road

Airport

Schools

Skill training

0

x

0

0

X

0

0

x x

x x

x cl

x x

x

0

x

X

cl

0

operator

Exploration Rig operation (development) Pipe lay Platform operation Offshore management

Key: x = essential

o = preferred

138

of offshore

X

X

cl

X

x

cl

X

x

cl

0

0

X

0

0

North-west England already has available many of the transportation and public infrastructure facilities that were lacking or insufficient in north-east Scotland before 1970. The impact of Morecambe Bay gas on land-use will therefore be minimal, the only exception being the need for land for a reception terminal and pipeline. If development of associated onshore facilities takes place in an existing industrial area then the provision of certain facilities will not pose problems such as those experienced in the remoter rural areas of Scotland. A number of areas in north-west England possess essential infrastructure. These include good transportation facilities (motorway, rail, sea and air links), housing, public utilities, general educational and specific training centres. Support of this infrastructure will not place an excessive burden on rates or debtservicing as proved to be the case in part of north-east Scotland. The social problems with which local authorities have had to deal in the remoter areas where infrastructure provision was so limited should not arise where further offshore activities and their associated onshore developments are centred on existing industrial areas. In this situation there would be little chance of a new workforce dwelling uneasily alongside with indigenous population; it would be more easily accommodated and absorbed into existing social patterns. To ensure that appropriate planning agencies are in a position to cope with the demands of the offshore industry and to assist the local economy in maximizing the benefits offered by this new industry, it is of paramount importance that such agencies enter into an earlier dialogue with government, offshore operators and the onshore consumers. Only in this manner will local authorities be able to create a favourable climate in which the economy might expand and social and environmental problems reduced. The phasing of new offshore developments is critical and this is to a large extent conditioned by government policy. However, if the development of offshore resources is rapid then there is a danger that in industrial areas such as Merseyside or the Furness peninsular, which could benefit greatly from an involvement in the offshore industry, there would be insufficient time to invest in new plant or gain ‘approved supplier status’ to the offshore industry. The consequences of this could well be a failure to reap the full benefits of the development phase and miss the change of responding to future offshore developments in the UK and abroad, and of great importance, the opportunity to use any new wealth to diversify and broaden the economic base of the area. In a similar way, if the

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POLICY April 1980

O~s~ore~~anning implications of the ofSsshorede~e~o~rne~to~mineral resources

exploitation phase commences too quickly, port facilities might well miss the op~rtunity of a new period of prosperity. Should there be less urgency in the deveiopment of offshore resources, then local industry and port services have a greater opportunity to prepare themselves for future development. The economic gain to the areas selected for development could be considerable if government and offshore operators give notice of their intention to use local manufacturing and service facilities. Similarly, local authorities would have time to investigate the specific land and infrastructure requirements of the offshore industry and make the necessary provision. It would also allow them to overcome certain environmenta problems and allay local fears about the nature of new developments. Postponing the starting date of offshore activities, is, however, not without its problems, in that too long a delay bqtween the identification of commercially viable offshore resources and their subsequent exploitation could well result in local industry failing to prepare themselves for offshore-related production, and the overall economy of such areas could further decline to an extent where it was incapable of responding to a new industrial challenge. The same is applicable to the port as a service base. Should there be any significant delay in commencing offshore operations planning authorities will be faced with the additional problem of retaining prime sites and corridors free from other development. Failure to identify and zone suitable areas of land for the needs of the offshore industry could ultimately result in offshore operators seeking alternative landfall locations with the consequent loss of growth potential to the original area. This problem is not purely one of land zoning. For example, should new housing development be permitted on an adjacent site during any such period of delay, then it is inevitable that many types of oil- and gas-related development would never be developed because of safety-zoning restrictions. One highly disruptive feature of the oil- and gas-related activities in north-east Scotland was the pressure under which the existing manufacturing and service base was placed, through the loss of skilled manpower to new developments (with an obvious consequence on prices). There would be less chance of this happening in an existing industrial area which had a pool of unemployed skilled and semiskilled labour.

The way forward From the general background and the specific case study material provided above, it is clear that onshore provision for the demands generated through the development of offshore mineral resources should be guided by specific objectives expressed in terms of a strategic framework. Such a strategy should be designed by planning authorities in cooperation with offshore developers to ensure that while the operator’s demands are met, existing planning commitments and proposals are also accommodated. Furthermore, any strategy which is prepared should represent a series of agreements between the various scales of planning competence (at national, regional and local levels), and thus should reflect both short- and long-term goals for all areas affected by some offshore resource extraction. Although this article has concentrated on the problems of making provision for the

MARINE

POLICY April 1980

Onshore planning i~pl~c~tiDn~of the offshore development

of mineral resources

needs of the offshore oil and gas industry, similar di~~ulties face

22

gas

‘Wet’ gas as opposed to ‘dry’ proportion of higher contains a condensates which can be used as a petrochemical feedstock.

140

planning authorities when faced with other types of offshore minerals, for example, the extraction of sand and gravel, or heavy metals. There are two major factors which affect the speed at which mineral resources are extracted - demand for the resource and government policy towards the rate and scale of extraction. In the past planning authorities have frequently been forced to respond in an incremental manner to market forces. However with the everincreasing concern for the continuance of supply of resources governments have been forced to adopt a more interventionist stance. To justify what is frequently seen as undue interference with the market mechanism, governments have attempted to integrate specific resource-related policy measures with other development programmes. There are various ways of achieving such integration, at one extreme through the operation of a Marxist command economy, and at the other through compliance by government with the needs of the free market. At these extremes strict adherence to a dominant political ideology often impedes rational judgment. An apolitical strategic approach has much to offer both governments and developers seeking an optimum solution to the problems inherent in the extraction of offshore minerals. Such an approach is through the use of scenarios. The adoption of a scenario approach is intended to provide a range of options for policy making, based on a series of assumptions regarding the future exploitation of a resource. The general advantages of a scenario approach are well documented elsewhere, but in this particular application the main benefits emanate from the scenario’s ability to interrelate decision making with the land-use, environmental, economic and social impacts of offshore development. A scenario approach has been utilized by the present authors in the generation of a strategy for the development of the Morecambe Bay gas field. Through the isolation of a number of constraining factors, viz gas quality and quantity, and the time period over which the gas resource is to be developed, a series of scenarios was generated. One of the alternative scenarios generated was for the extraction of a commercial viable reserve of ‘wet gas’,** over a short time horizon (within five to ten years). The consequences of such an extraction programme were matched to existing and proposed land-uses, employment and industrial prospects and social conditions. From this mismatches between the needs of the offshore industry and the onshore host area were identified, and conclusions were reached regarding the most suitable locations for the siting of facilities and the provision of infrastructure. A major advantage of the scenario approach to the generation of a strategic framework is that it provides at an initial stage a specific set of objectives towards which development can be oriented. In doing this, it avoids the pitfalls of techniques such as cost-benefit analysis, which, if used in isolation, inevitably fail to incorporate many significant items. It is important that the overall strategy is established and agreed before detailed techniques are then used in order to resolve lower-order issues. Scenarios are an alternative method of resolving what is now a well established dilemma, between the offshore operator and the planning authority. Inevitably the operator is concerned with a development sequence governed mainly by profit maximization over

MARINE

POLICY April 1980

UnswornFl~~~i~~ ~rnFl~e~tio~s qftheoflshare ~~~~~~~~~~~o~rn~~e~~~ resources shortest pssibfe time, Increasingly, government agencies concerned with so&I, economic and environmental issues are finding such an approach bss acceptable. These divergent views have become evident in arguments over depletion policies for North Sea oil and gas, and over public provision of infrastructure for offshore related operations, Cost considerations are, and will remain, crucial in the development of offshore resources. However, costs are not only assigned to the process of resource extraction, but also to the provision of onshore facilities. Increasingly, industrial society will look towards the maritime province as a source of raw materials. Experience suggests that there is not at present any agreed framework for the integration of the needs of the offshore operator with those of adjacent onshore areas. The scenario method provides a linked approach which can in future be used to resolve conflicts and maximize the benefits of marine resource development. the

Peter W. Roberts holds the degrees of BA fUniversit y of Leicesterf and MA filniversity of Newcastle-upon-Tynel and is currently Principal Lecturer in Regional Planning, Dept of Urban and Regional Planning, Lenchaster Polytechnic at Coventry, UK. Timothy Shaw holds the degree of MA (University of Edinburgh) and is currently lecturer, Dept of Town and Country Planning, University of Newcastle-upon-Tyne, UK. Both were previously Senior Lecturers in the Dept of Town and Country P~annj~g, Liverpool Po&technic and Directors of the Ceitic and k&h Sea 02 and Gas Research Unft. Among the p~b~~catjo~s that they have prev~oos~~ coilaborated on is ‘The planning consequences of North Sea 02: the impact upon Scotland: Urbanistica, No&‘, 1977.

MARINE

POLfCY April 1980