MPs critical of value of investments in drilling

Many MPs feel that the potential risks of arctic drilling do not justify the potential benefit.

08:29 31 July 2013

Drilling in the Arctic is drawing concern from the MPs due to the possibility of spills which may not be able to be properly cleaned up. While the drilling is thought to have more detrimental environmental consequences, the greater threat is that the drilling companies supposedly do not have the resources and ability to deal with the damage or unexpected spills and other dangers.

This is one of the times that the value of the drilling should be scrutinised to ensure that the value received is worth the potential risks. It’s standard procedure when looking at investments and this situation should garner similar consideration. Any investment should be analysed for the true values and risks.

• The only way an investment looks positive is when the potential outcome outweighs any of the potential risks. If the risks outweigh the potential benefits, it usually is not considered a worthwhile investment.

 

• The direct investments are not the only thing that should be considered when trying to find something worthwhile to put money into. If there are potential side effects, the costs of dealing with those side effects must also be considered in the appropriate category, either risks or benefits.

 

• For any investment there is also the final decision regarding the risks. Investments should only be made if the potential loss is acceptable. There are many times when the true scope of side effects is not known, and because of that factor the safety of an investment should be called into question.

 

• Whenever possible the history of similar investments should be fully researched before coming to a decision. Thorough research can help determine how to improve the investment and to avoid any issues that might have occurred in the past. Research can also give you an idea of the most likely outcome which makes decisions much easier.