The development of offshore hydrocarbon resources has frequently been
characterised by considerable negative environmental, economic and soc
ial impacts. The Shetland Islands have been noted as a successful exam
ple of how a small local authority can successfully plan and manage su
ch impacts. This paper focuses on the strategies and institutional arr
angements utilised by the local authority in order to reduce and contr
ol impacts from the development of hydrocarbon resources in the Shetla
nd Basin in the decade beginning in 1970. It provides a hindsight eval
uation of the measures taken to achieve the authority's goal of only a
ccepting essential development which would not put at risk the traditi
onal economic activities and social patterns of the Shetland community
. The consistent application of the policy of insulation and containme
nt of the major aspects of development proved appropriate in achieving
this goal. This paper discusses the monitoring procedures established
to record changes in environmental and socio-economic conditions over
the last two devades, and the dimensions of the changes which have oc
curred during this period. This paper concludes that the Shetland situ
ation does indeed stand as a successful example of impact management a
nd control, and, while Shetland has not emerged unchanged from two dec
ades of oil-related development, it has managed to shield the traditio
nal activities and way of life from much of the effects of the develop
ment. the wreck of the tanker Braer in January 1993 serves as a remind
er, however, of the vulnerability of areas such as Shetland to externa
l circumstances beyond their control.