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Online Stock Market Trading Once a place where czars exiled their prisoners, and Chekhov came for grim inspiration, Sakhalin Island in Russia's far east has more recently acquired a reputation for its clean offshore waters and its rich store of crab, herring and cod. Nowadays, it also stands at the center of a fight over how multinational companies should extract oil and gas along a shoreline as sensitive as any in Alaska.

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Stock Investing Course A recent Wall Street Journal investigation suggested that international oil and gas consortiums including Exxon Mobil and the Royal Dutch/Shell Group have failed to take many of the precautions at Sakhalin that would be required to protect the environment in America. If a double standard is allowed to govern exploration and drilling off Russia's shores, Russia, the global environment and even the industry itself will be poorly served.

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Stock Market Game Russia's environment is still suffering from a Soviet industrial policy that plundered natural resources in ways not seen in the West since the start of the industrial revolution. A few Russians are now mobilizing to protect areas like the northern parts of Sakhalin Island. But Western oil companies promise money, advanced technology and jobs. As detailed in the Journal investigation, the companies are blasting too close to endangered Western Pacific gray whales and planning to maintain oil rigs during periods of heavy ice floes when oil spills would be more difficult to contain. One company also allowed drilling muds to be discharged in the shallow ocean rather than pumping them underground as required along much of Alaska's shore.

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Stock Investing Game The companies deny The Journal's charges and argue that Alaska and Sakhalin present different shorelines and different challenges. They also insist that the Western companies are striving for higher environmental standards than are required elsewhere in the world. Their operations are certainly cleaner than any Russian oil rigs. Still, this is a time when international companies and environmentalists are warily circling each other, hoping to agree on ways to promote sustainable development. If Russia is a cheap date for the Western oil interests who were rebuffed in Alaska, they must be careful not to abuse this distant spot. That would spoil the environment far beyond Sakhalin.

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Journal Prime Rate Street Wall New York Times - 9/18/2002

Topic: Petroleum Industry

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