SAJC Cluster 1 Lecture 9 Notes (Extractive Industries)

St Andrew’s Junior College H2 Cluster 1: Development, Economy and Environment (Topic 1.1) H2_Cluster 1_Lecture 9_2024/pg 1 Lecture 9 Managing Resources (III): Extractive Industries KEY QUESTION: How do we manage the extraction of non-renewable resources by the extractive industries? With the completion of this lecture, attached readings and tutorial, you should be able to discuss: - the characteristics of extractive industries - variations in economic, environmental and social impacts of extractive industries between places - varying success of strategies to manage impacts of extractive industries on places Lecture Outline 9.1 Introduction: What are extractive industries? 9.2 Characteristics of extractive industries 9.2.1 Extraction of non-renewable and locationally specific resources 9.2.2 Capital and technology intensive 9.2.3 Dominated by large private and state-owned firms 9.3 Variations in impacts of extractive industries between places 9.3.1 Economic impacts 9.3.2 Environmental impacts 9.3.3 Social impacts 9.4 Strategies to manage impacts of extractive industries on places 9.4.1 Economic diversification and prudent investment 9.4.2 Transparency and accountability 9.4.3 Regulation and enforcement 9.4.4 Rehabilitation and restoration 9.5 Concluding remarks: Why do strategies work better in some places than in others? The well-known Deepwater Horizon oil spill happened in 2010. The rig explosion, which killed 11 workers and sent oil spewing into the Gulf of Mexico for 87 days, triggered one of the worst environmental disasters in US history. BP, one of the world’s largest energy companies, is accountable for this event.

St Andrew’s Junior College H2 Cluster 1: Development, Economy and Environment (Topic 1.1) H2_Cluster 1_Lecture 9_2024/pg 2 Glossary of Terms (These terms will be re-introduced to you in more detail in Topic 1.2 in subsequent lectures) Production Circuit: An interconnected series of functions, operations and transactions through which a specific commodity, good or service is produced, distributed and consumed. Every economic activity can be thought of as a production circuit Production Network: The full mesh of relationships (such as between the different suppliers, business owners, consumers, etc) that lies behind any economic activity. Global Production Network (GPN): The production network very likely takes on a global characteristic, involving relationships among firms all over the world. A global production network (GPN) often results, leading to the eventual production of goods or services. Transnational Corporation (TNC): A firm with the power to coordinate and control operations in more than one country, even if it does not own them. State-owned Enterprise (SOE): A public enterprises that is directly owned and managed by the state. 9.1 Introduction: What are extracti