Oil and Gas Development in The Faroese Islands, Iceland and Greenland: How Local Competence Development Contributes to a Social License to Operate

2015 ◽  
Author(s):  
C.C.A. Smits ◽  
J.C.S. Justinussen ◽  
R.G. Bertelsen
2015 ◽  
Vol 8 (1) ◽  
Author(s):  
Chilenye Nwapi

AbstractThis paper examines how the term “local” has been understood in the definitions of “local content” in selected jurisdictions in developing countries. The paper critiques the centralist approach adopted by these countries that defines local content in terms of first consideration being given to their “nationals.” Little or no thought is given to the local populations who live in the area where the resource extraction takes place. The paper argues that if policymakers do not pay close attention to how “local” is defined, the benefits of local content requirements (LCRs) may be captured by “outsiders.” A bottom-up approach that recognizes the local populations where the extractive activities take place can help developing countries to prevent or douse resource conflicts. Community frustration resulting from seeing lucrative jobs given to “outsiders” can stir up conflicts. Given that revenues from extractive resources are managed by national governments in most jurisdictions, LCRs can provide a mechanism to meet the demands of subnational stakeholders, such as local governments and communities. This will in turn enable companies to obtain the social license to operate.


2021 ◽  
Author(s):  
Lenin Balza ◽  
Lina M. Díaz ◽  
Nicolás Gómez Parra ◽  
Osmel Manzano

The Latin America and the Caribbean region has benefited significantly from economic growth driven by the extractive sector. At the same time, the region has experienced high levels of conflicts related to this sector. This paper presents an overview of citizens' perceptions of the extractive industries in Bolivia, Colombia, Ecuador, Peru, and Venezuela. Using a representative sample for each country, we identify regional and country-specific determinants of the Social License to Operate (SLO). The SLO is an unwritten license of social approval accorded to extractive projects by citizens. In this paper, we investigate a generalized version of the SLO, capturing public sentiment toward the mining and the oil and gas sectors in general. While our findings confirm that perceptions vary across countries, we show that governance is the strongest predictor of trust between citizens and the extractive sector, which is consistent with the evidence in the literature. In addition, procedural justice, distributive justice, and nationalism play essential roles in shaping individuals' attitudes. These findings suggest that strengthening government institutions could contribute to the prevention of conflict around extractive industries.


2019 ◽  
Vol 16 (6) ◽  
pp. 50-59
Author(s):  
O. P. Trubitsina ◽  
V. N. Bashkin

The article is devoted to the consideration of geopolitical challenges for the analysis of geoenvironmental risks (GERs) in the hydrocarbon development of the Arctic territory. Geopolitical risks (GPRs), like GERs, can be transformed into opposite external environment factors of oil and gas industry facilities in the form of additional opportunities or threats, which the authors identify in detail for each type of risk. This is necessary for further development of methodological base of expert methods for GER management in the context of the implementational proposed two-stage model of the GER analysis taking to account GPR for the improvement of effectiveness making decisions to ensure optimal operation of the facility oil and gas industry and minimize the impact on the environment in the geopolitical conditions of the Arctic.The authors declare no conflict of interest


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