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Rough Cut
Russia: Island on the Edge
A rough, new energy frontier
BY Nick Guroff
May 17, 2007 |
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Background Story LinksFor more coverage of the petro-politics surrounding Sakhalin Island's vast oil and gas reserves, and for some history of the island, follow these links.
 Nick Guroff is a recent graduate of the University of California, Berkeley, Graduate School of Journalism. Before attending Berkeley, Guroff was a grassroots organizer, working for a number of state, national and international nonprofits. He is currently finishing his third film, a look at the unlikely meeting between Libyan leader Colonel Muammar Gaddafi and American radicals in the 1980s. Sakhalin was Guroff's fourth reporting trip to Russia, where he has many distant relatives and studied as an undergraduate.
Sakhalin Island is what international oilmen might call a "hardship post." It is on the very edge of the Russian Far East, the historic equivalent of America's Wild West. The narrow, 600-mile-long island is populated by only half a million people, and its seasons are severe even by Russian standards. But underneath the surface of the island and the surrounding seas is enough oil and gas to power the United States for as much as a decade.
Ten years ago, energy giants Royal Dutch Shell, ExxonMobil and other multinationals negotiated contracts with a Russian government hard up for cash and eager for foreign investment. Deals were made to extract Sakhalin's oil and gas for export to markets from Shanghai to San Diego. Moscow was promised a cut of the profits once the projects got out of the red.
 | Sakhalin Island |
Then the protests started ... over environmental damage, public health and the rights of indigenous peoples. For the most part, Moscow stayed out of the fray. But then, in 2006, with construction nearing completion on Shell's Sakhalin 2, the world's largest oil and gas project, the Kremlin intervened. The project was shut down, and the Russian national gas company, Gazprom, maneuvered to take it over. Some energy experts viewed it as a nationalist takeover under the guise of environmental protection.
While the power play between Western oil companies and the Russian government unfolded, I traveled the length of the 500-mile pipeline to see the project firsthand. I wanted to know what construction had already meant for the people living in its shadow ... and what difference, if any, Russian ownership would make.
My interest in the story began in 2002 in Novosibirsk, Siberia, nearly 2,000 miles away from Sakhalin. I had been invited by an American environmental group to lead some training workshops for Russian nonprofits. I witnessed Russia's burgeoning grassroots environmental movement and also became aware of the country's vast oil and gas reserves.
Several years later, news of the massive Sakhalin development and the protests it provoked made its way into national papers in the United States. It quickly became clear that events on Sakhalin were going to tell the outside world a great deal about the future of foreign investment, the growth of citizens' movements and the evolving role of the central government in Russia.
Sakhalin is a remote and rough place with a long, contentious history. In 1890, when the great Russian author Anton Chekhov visited Sakhalin, it was divided between the Japanese inhabitants in the south and the Russian prisoners in the czarist penal colonies in the north. The island was also home to hundreds of native peoples, such as the Ainu, the Nivhki and the Evenki.
During World War II, the island's wealth of natural resources was cause for the Soviets to wrest southern Sakhalin from the Japanese, deporting them and the Ainu wholesale from the island. The Russians began prospecting for oil, although fishing remained the mainstay for much of the island's population.
Today, the relics of Sakhalin's past litter the landscape -- ships rust near the island's main port; old Japanese paper mills decay along the coast; and military outposts built by Stalin to defend against a possible American invasion lie in ruins along the main road. Cratered dirt roads are the only means of transportation on most of the island, but signs of change and modern development are everywhere, from the boomtown capital, Yuzhno-Sakhalinsk, to the colossal offshore oil rigs. In many places I visited, it is hard now to imagine what the island was like before energy companies laid claim to this frontier territory.
-- Nick Guroff
About FRONTLINE/World Fellows
Nick Guroff's story about the Sakhalin oil and gas reserves is the latest story in the FRONTLINE/World Fellows program, sponsored by the Carnegie Corporation of New York. It is part of our ongoing effort to identify and mentor the next generation of video, print and online journalists.
The program, started in 2003, has showcased the work of talented young journalists, who have traveled across the world to report their stories. You can see them all here.
As part of the latest Fellows projects, made possible through our partnership with the U.C. Berkeley, Columbia and Northwestern Graduate Schools of Journalism, we will be publishing stories from China, Liberia, and Morocco in the coming weeks.
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Sue Furick - Alexandria, VA
Excellent coverage! This made me stop and think about the parallels between this venture and the Alaskan pipeline. There, too, we affected the natural environment and its indigenous people. We need to push for alternative fuel sources. Thanks for making me think globally and not locally for a change! - Vienna, VA
Geographically, it makes sense that eastern Russia would be an oil rich area, especially given the United States' interest in Alaska's resources, but I had honestly never given much thought to the possibilities of areas outside the Middle East, Gulf of Mexico, and Alaska. We hear so much about the effects of drilling on the Alaskan wildlife that the concern for Sakhalin Island, Russia was not on my radar. This article opened my eyes to the more global issue of environmental effects caused by our dependence on oil and gasoline. (anonymous)
I found this story to be quite insightful, I loved how it was able to show how something (like oil drilling) can be so beneficial to people at one end of the world and then that same thing can be detrimental to people in a different part of the world. It just shows how we need to come to a major consensus on how we are going to attack problems and obtain resources without affecting others, and that is no easy task. Washington, DC
Interestingly, the Russian government agreed to the conditions of these companies at the onset but has recently become more and more interested in environmental issues; eventually leading to an almost violent assumption of control of the projects. In the aftermath, some also estimate that Shell may have to pay as much as one billion dollars per year for the damage caused to Sakhalin. When you consider all of the factors at play, I think one has to wonder about Putin's motives. Some of the locals question if this is truly a display of concern for the local citizenry, or if there are much bigger "political games" at play here. Reston, VA
In my opinion, Sakhalin has been exploited because of its abundance of natural resources. The oil that lies beneath Sakhalin's soil will forever change the island and its people. Fishing will continue, but will pale in comparison to the money that the oil will bring to the area. The people of Sakhalin seem to understand their heritage, though. They have protested for the environment and the people of Sakhalin. If they continue to fight for the rights as the inhabitants of that island, maybe some balance can be reached. The oil industry should further strive to improve environmental conditions surrounding any oil and gas extraction areas. (anonymous)
I believe that the Russians just wanted to be able to cash in on the vast amount of oil and natural resources on Sakhalin Island, which is not a bad thing. I just think they used the environmental issue to get the big oil companies off their land so they could drill or work there. While there might have very well been an environmental issue, the takeover by the Russian government is probably not going to solve the issue. The Russian government is probably still going to drill for oil for its own monetary gain. Therefore, it is not even certain that the Russian government is going to have a better effect on the environment than the oil companies. MdbZqePZDPtqvllkpZZ, QCAunyOjpp
a8ewls skfye73mg08dmadvp937fh5v1 James Brown - Reston, Virginia
This is a very thought provoking piece. Journalism is in a transition period. Print journalism is disappearing. The "in depth" reporting previously undertaken by important print journalists is becoming a dying art. In this environment, it is very important that a new generation of "media journalists," who are able to function in this new environment are established. Hopefully, with the advent of the Internet, this new generation will be able to move the quality of journalistic endeavor far beyond what was possible before. Mr. Guroff demonstrates in this piece the potential to be one of the new kind of journalists who are very much needed. Jerry Murphy - Syracuse, New York
Excellent portrayal of a very serious event. We worked on this same project. Several years ago all info from there stopped. Go back to before the Military moved in and see how the environment was abused from that time on. I believe as much as 20% of the hard woods on the Island are down and rotting. Pipeline to Japan? M. B. - Washington, D.C
Great story and reporting... and all under seventeen minutes ! Loved how it addressed all the different parties involved. When will we ever be able to trust oil companies to conduct environmentally friendly operations? Sure would be interesting to know what has happened since Gazprom has taken over. Jason Blalock - oakland, CA
Great job, well balanced. Must the picture be SO small? I would sacrifice a few minutes of upload time to see a larger picture. Image quality is important to really see that rust colored water, spotty salmon, and galloping caribou (or were they reindeer?). Nice balance, great work. Sean Cannon - Los Angeles, CA
What an eye-opening piece. Great job. It has opened my awareness to our addiction to oil and the impact it has, in this case, Sakhalin Island. I look forward to seeing your next piece! Mollie D - Mission, KS
How many other little corners of the world has this happened to? Very interesting piece. (anonymous)
Nice job, and balanced. I am an American living in Russia, and the Sakhalin project has been big news all year. I was skeptical about the enviromental impact, since the main objective seemed to be the government takeover of the project. However, your piece showed that the environmental impact was high. Jay - Norfolk, VA
Were the Sakhalin people better of with Shell as a poor steward than with Gazprom?
Are the monetary commitments to the indigenous people being honored?
"Natural gas, the future of energy", give me a break.
Brian C. - Los Angeles, CA
This is truly an eye-opening documentary! Well done. I want to learn more about this. stephen platenberg - washington, dc
A very well reported and produced piece. Very intriguing. Nice work, Nick. San Francisco, CA
Great stuff. Important story. Please keep it up. anne bacon - san francisco, california
It's lucky for all of us that someone's eyes are on this story. This is what journalism is for. thank you. christopher michael - san francisco, ca
Thank you for this timely, fascinating report highlighting the largest oil development project in the world. As a supporter and regular viewer of PBS, it doesn't surprise me that this important, balanced and beautifully shot video may be found on Frontline. I appreciated Guroff's reporting style and efforts to ensure various viewpoints were heard and their actions were seen. Additionally, the footage following this massive project's web of offshore and onshore pipelines (500-miles of piping that crosses 1,000 rivers and streams), processing facilities, terminals and offshore platform illuminated the current and projected threats to the environment and the residents of Sakhalin and beyond. There is no doubt that role of Sakhalin's vast oil and gas reserves will continue to play a major role in facilitating our disastrous reliance upon oil. Guroff's report encourages us all to keep apprised of the developments in Sakhalin and further question the efficacy of the project and what appear to be incredibly hazardous and short-sighted practices of the companies involved. (anonymous)
Great job. I can't wait to see your third piece. M. Slater - Midland, MI
I enjoyed this piece. Normally I'm skeptical of the PBS reporter running around the wilderness looking for environmental problems, but sometimes it's warranted. You handle it objectively. Thank you. Is there a longer version for broadcast? FRONTLINE/World's editors respond:
Not at the moment. Unfortunately, FRONTLINE/World only airs abut 4 to 5 times a year on the PBS series, Frontline. Our next episode is June.... We started our Rough Cut online videos as a way to publish more stories, and we began our Fellows program to give young journalists like Nick Guroff a chance to show their work on our Web site.
Every now and then a story originally done for our Web site does find its way onto one of our broadcasts. If that happens, we always alert the subscribers to our newsletter. brooklyn, NY
I thought this was a very interesting piece that showed some incredible footage of this oil project. But I'm not sure I'm completely convinced about the environmental impact. Also, I wanted to know more about how Russia is using the environment to take control of the rig. That to me seems the more important story.
Barbara Stearns - Webster City, Iowa
A very impressive piece of journalism on a very important issue. Keep up the great work. Evan Paul - Washington, DC
Thank you for covering this important issue. Corporate social responsibility is all the rage nowadays and it's important to provide some balanced assessment of their claims.
This story shows Americans the impacts, both positive and negative, of our natural resource use on communities around the world. Keep more of these coming.
eric fetterman - denver, co
Wow, what an amazing story. Well-reported and totally showed all the sides. I love getting so much info in under 20 minutes. - St. Paul, MN
The world is a small small place and I am grateful for videos like this to remind me of that fact....and hope others become aware as well. We need to be responsible in our actions... Andrew Featherston - L.A., CA
This was a great piece of journalism about current and specific events that gives us the opportunity to keep history from repeating itself once again. This type of journalism offers all of us the opportunity to react and possibly prevent another native people from being displaced or completely destroyed by the interests of privilege and power.
Well done and beautifully shot.
anderson brian - minneapolis, mn
I wasn't aware of this mammoth project until I viewed this video. Thanks for showing how our dependence on oil is causing environmental and social problems on the other side of the globe.
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