Wednesday, May 6, 2020

Structural crisis in oil and gas industry - Myassignmenthelp.Com

Question: Discuss about the Structural crisis in oil and gas industry. Answer: Introduction Oil industry plays a significant role in the society, which is one of the important sources of fuel. It provides huge amount of energy resources to the whole mankind. The oil and gas industry is one of the important resources, which affects on the business aspects and make the impacts on the environmental issues. It helps to increase the business growth with a great economical value but it has bad impacts due to the excessive use of the energy resources. It affects on the environment, which create risk and hazards on the stages of the environmental protection table. The environment get polluted through various ways, like wastewater, gas emission, aerosols generated during drilling, solid waste, refining and production of various chemicals, which are harmful for the health of the green world[1]. On accordance with those issues, the water bodies and the marine world also affected while the transportation of the oil from the seas. However, several environmental policies have introduced in different countries, which helps to decrease the pollution levels but while in this system, some countries failed to apply such policies for improving on the environmental issues[2]. The risk operation concerns with those matters for minimizing the risk hazards in environmental operation. In several United nations Environment Programs, the environmental situation has been discussed about the risk factors in the presence of the chemicals and how it effective in the environment[3]. Several legislations have been introduced for the prevention and controlling of the environmental risks. The oil and gas industry in UK produces almost 1.508 million bpd of oil and 2.735tcf of gas per year, which is a significant number in the petroleum industry[4]. The country has introduced several legislations, wh ich makes impact of the control of the pollution. In a recent research by the Meteorology and Environmental Protection Agency (MEPA), it has been found that Saudi Arabia has a great business root of oil and gas industry, which has great environmental impacts towards the ecological balance table[5]. However, there are various lacks in maintaining the ecological balance in those countries[6]. It has been said that the Oil and Gas industry is one of the major polluters in the world. While industrial countries maintain strict environmental standards covering the oil and gas industry on both onshore and offshore[7]. However, many developing countries either lack transparent and enforceable environmental regulations, or effectively enforce them. Nature, Causes, and Burden of Air and Water Pollution According to the environmental pollution, it causes health risks for the human world due to the pollution of the air and water pollution. It is need to become aware for the developing countries about the health risk, which causes due to the environmental pollution. Most of the time, the air pollution caused due to the biomass burning of oil and the water pollution, which caused for the poor sanitation at the household level of using excessive oil and gas. According to the global evolution pollution hazards, the level of pollution is increasing every day, which caused infectious diseases related to drinking water, sanitation, and food hygiene; respiratory diseases related to severe indoor air pollution from biomass burning; and vectorborne diseases with a major environmental component, such as malaria. The World Health Organization has published a report where it shows that the 0.6 to 1.4 percent of the burden of disease in developing regions is mostly occur due to the oil, air and wa ter pollution[9]. Under the UK government, the environment management process on the control of the environmental risks, this helps to demonstrate the pollution harm level in the nature. However, The European Union Emission Trading Scheme (EUETS) research on the after effect of the use of oil and gas, which showed that it caused an excessive emission of the carbon dioxide and effects on the climate changing[10]. Saudi Arabia provides one of the best oil and gas industries, which produces almost 11.6 million barrels of oil per day[11]. They have the largest petroleum production system in the world. The Saudi Aramco mainly controls their oil and gas industry by the Saudi Arabias Ministry of Petroleum and Mineral Resource and the Supreme Council for Petroleum and Minerals. In this country, the government has implemented huge transformations throughout their economic, social and environmental issues[12]. However, in recent research, it has found that the bulk of Saudi Arabias environmental pollution is caused because of CO2 emission, which has increased more rapidly over the past years than waste by-products[13]. The emissions of house hold or municipal, industry based and medical wastes has increased rapidly which caused CO2 emissions[14]. A vast petroleum reservation is the only reason of great economic growth in Saudi Arabia but in this Desert Kingdom, the citizens are facing such harmful dis eases due to the excessive use of the petroleum sector. The Meteorology and Environmental Protection Agency (MEPA) controls the environmental issues in Saudi Arabia. Most of the air pollution occurred due to the presence of the sulfur dioxide, inhalable particulates, ozone, nitrogen oxides, carbon monoxide and hydrogen sulfide, among other pollutants[15].The Energys Carbon Dioxide Information Analysis Centre (CDIAC) has analysis the environmental reports of the Saudi Arabia where they have mentioned about the production of the carbon dioxide, which increased 21.1 metric tonnes per person in every year. Saudi Arabia ranked 11th in the world in 2010 for total CO emissions from natural gas flaring and fossil fuel burning, with China, the US and India ranked in the first, second and third places[16]. The causes of the environmental affects due to the oil and gas industry In the oil and gas industry, the oil is referees as the petroleum or crude oil, which formed through the combination of the liquid, gas, and sticky, tar-like substances whish are mainly uses as fuel. Most of the oil and gas are consists of carbon which creates several disadvantages for the environment[17]. The oil and natural gas has formed due to several biological matters and the hydrocarbons, which is the mixtures of molecules of hydrogen and carbon, methane gas and trapped in the rock. The petroleum is formed from the small packet of liquid gases which are found trapped been the rocks[18]. The crude oil is used for manufacture gasoline and petrochemicals, which are the production of plastics pharmaceuticals and cleaning products. Environmental impact of drilling for oil Most after Oil Companies pumps the liquid oil from the grounds by drilling Rig and wells. According to the oil resources in the rock layers the oil fills and through the water. It spreading through the open space and collect on a giant pool of liquid. In this process, the dealers need to extend or relocate the ways after the immediate areas has been emptied. Most of the oil drilling rigs collect the oil from the sea floor and it bill to Excess oil reserves in deeper water[20]. Refining Petroleum creates air pollution while cruel oil transferred into the petrochemicals. While transforming the crude oil it releases toxins, which mixed with the atmosphere and create dangerous diseases for the human and the ecosystem[21]. At the time of burning gasoline, release is CO2 to reach not produced by the oil directly but it is the equal amount of CO2 while burning the coal. It affect on the greenhouse gases to the atmosphere and increases global warming. Oil spills causes great environmental damage while drilling transport and use of the Natural sources. The natural gas is clean burning full sources but it is the main cause of produce half of the carbon dioxide emission and causes global warming. The natural gas is separate from Petroleum, which is releases from the rocks, and captures it for using as fuel through a process of hydraulic fracturing or fracking. In this process, the natural gas needs to inject by a liquid mix of chemicals sand and water with a super high pressures, which helps to crack for open the rock and released the trapped gases in this process. The sand and chemicals, which are left behind[22], went to the ground water, create pollution, and became less stable bedrock[23]. Effects in the environment for boy pollution The environment is polluted mainly through air and water, which causes the global warming around the world and reduce of greenhouse gas emissions. According to the location, the environment is become polluted and affected by the diseases. The rising sea levels, draught or major storm all causes due to the extreme weather. Due to the Global Warming, climate gets warm and changes the weather, which become more frequent. Snowfall is one of the reasons of the extreme bad weather[24]. The melting of ice at the Arctic poles is one of the harmful effects of the greenhouse emission. The polar ice reflects on sunlight and if its heat when it melts and the heat states in the atmosphere. The melting of the Greenland and western Antarctica Shades ice sheets threatens an extreme rise in sea levels. It warns the oceans wild life, which is expanding and causing sea levels to rise and kill the coral reefs and essential seafood chain system. Environmental regulation According to the Department for Business, Energy and Industrial Strategy (BEIS) the environmental protection is one of the major issues, which are, need to be measured through a perfect regulatory system[26]. The perfect measure of regulatory framework helps to found and minimize the pollution. The regulatory framework also helps to control the consistency of the application throughout the whole country. However, the legislative parts are derived from the legislative framework of the European Union[27]. UK has adopted the concept of the legislative framework from the Oslo and Paris Convention for the Protection of the Marine Environment of the North East Atlantic (the OSPAR Convention)[28]. The regulatory framework has been implemented through the OSPAR decisions and recommendations[29]. For the offshore environmental protection helps on the oil and gas development throughout its life cycle, from the initial license application to the final decommissioning of facilities. It potential ly influences the environment, which is control through a particular consents or authorizations. There is also an inspection and enforcement regime in place to confirm compliance with the conditions included in the environmental approvals[30]. The UK legislations are: Clean Air Act 1968 Clean Air Act 1993 Clean Neighborhoods and Environment Act 2005 Climate Change Act 2008 Climate Change and Sustainable Energy Act 2006 Energy Act 2010 Environment Act 1995 Environmental Protection Act 1990 The regulatory framework of UK and Saudi Arabia is completely different from each other. The President of Meteorology and Environment (PME) is the new and developed version of the Environmental Protection Administration (MEPA), which is actively worked with the environmental issues in the Kingdom of Saudi Arabia. However, PME has several limitations where they failed to apply the regulation[31]. These include: Environmental pollution assessment, surveys and control Establishment of environmental regulations and standards Providing recommendations on practical measures for emergency situations in environment working on the development of the regulatory framework Formation and preparation of the environmental, climatological and meteorological analyses, forecasts and bulletins[32] The legislations, which are applicable in the Saudi Arabia, are listed below: Rules for Implementation (28 Rajab 1422 H) 10/15/2001 Public Environmental Law (Royal Decree No. M/34) 10/2001 Resolution No. 1/1/4/5/1/924 Implementing Requirements under the Public Environmental Law Ambient Air Standard 2012 3/24/2012 Standard on Emissions from Mobile Sources 2012 3/24/2012 Water/Wastewater National Ambient Water Quality Standard of 2012 3/24/2012 Wastewater Discharge Standard of 2012 3/24/2012 Technical Guideline of 2012 on the Prevention of Major Accidents 3/24/2012 The government of the Saudi Arabia has different legislations, which are applicable in particular, states but they have some common facts, which helps to application of the regulatory framework. The Competency Agent, which is control by the Presidency of Meteorology and Environment (PME) or Meteorology and Environmental Protection Administration (MEPA) the regulations which are implemented by the General Environmental Regulations[34] The competent minister which s controlled and regulated by the Minister of Defense and Aviation and Inspector General The public agency is regulated by the ministry or government institutions The Licensing Agency and Concerned Agency who are work on the environmentrelated project and negative impact on the environment The Environment and Environmental Protection works on the land, water and air, which are the natural sources. They also work on the prevention and preservation of the natural resources[35]. The Environmental Disaster works on the issues which damage the environment and other pollution accidents The Environmental standards, quality and criteria works on the limitation, percentage, standards, quality and the specification in environment[36]. The regulatory frameworks have set their aim to achieve on the implementation, which help to control the pollution on the environment, which is causing for the excessive emissions of the Carbon dioxide and Methane. Saudi Arabia is one the developing country which economic growth is completely depends on the oil and gas industry but there are several issues are found which failed to establish a pollution free country[37]. In development, preservation and protection of the environment pollution, it applied their general environmental regulation but meanwhile it somehow failed to work on the protection of the underwater world. At the time of digging of the oil from the seabed, it mixes with seawater, which produces harm for the underwater world[38]. Due to the mixture of the natural oil, it is not possible to remove completely. Most of the oil-based companies are established near the sea and the industries hazardous are directly go to the sea, which is another important reason of the wa ter pollution. Comparison between the application of the regulation in the oil and gas industry of UK and Saudi Arabia United Kingdom The United Kingdom Offshore Combustion Installation (Pollution Prevention and Control) Regulation 2013, Offshore Installations (Emergency Pollution Control) Regulations 2002, Environmental Protection Act 1999, Greenhouse Gas Emissions Trading Scheme Regulations 2012 and Offshore Petroleum Licensing (Offshore Safety Directive) Regulations 2015 guided with the best efforts of the legislations and the oil and gas industries which are worked on the several issues related with the environment hazardous[40]. UK has implemented the environmental regimes like Environmental Permitting Regime (EPR), combining the pollution prevention and control (PPC) regime and waste management licensing and industrial emissions, which are working on issues and solved with great potential. For the breach of the environmental rules, the UK government influences the legislations separately in every state, which is one of the best parts of them[41]. The Environment Agency (EA) is regulated the control policies a ccording to the Regulatory Enforcement and Sanctions Act 2008[42]. They have separate NGOs who only work for the environmental issues and ensure that that issues must be solved. Most of the time, the organizations are worked for the monetary penalties and enforcement of the laws. They help on the derivation actions against the breaches and request for the actions for the environmental damages. Saudi Arabia Saudi Arabia is facing several challenging issues, which are occurred for the high consumption of oil and gas uses. They have high consumptions of electricity (LCOE) which causes environment disasters. The country has own domestic oil consumptions which is the actual reason of the environmental hazards[43]. The Risk management teams failed sometimes in the protection and preservation of the energies. The oil experts has stated that from the mid-1980s to present year the country has a significant develops in their economic growth but in the control of the environment issues they have less impacts. According to the government revenues, the risk potentiality increases less[44]. For the emission of the excessive carbon dioxide, in the domestic oil digging, it costs more than any other countries. While the burning of the oil, the natural gas is produced but along with it, CO2 is also consumed which is the actual reason of the environment pollution. The dessert lands are the results of such excessive consumptions of the CO2 and Methane. Oil spills is one of the major issue in the Saudi Arabia because it caused damages to the Red Sea and the Persian Gulf. For the heavy oil trafficking increase the risks in the environment which is mostly occurred through the Bab el-Mandab, the Strait of Hormuz, and the Suez Canal and Sumed Pipeline[45]. The spills caused million of the environmental threats in this country. The Gulf Area Oil Companies Mutual Aid Organization (GAOCMAO) is one of the significant organizations, which was established for the protection of the marine environment in the Persian Gulf[46]. They ensure the responsibilities for operating the pollution co ntrol board, which helps in the environmental developments, and facilitate communications between the oil industry and relevant organizations on environmental issues[47]. Conclusion Although technological innovations have reduced the impact that oil exploration and extraction have on the environment, several risks remain. Offshore drilling can affect the integrity of the coastal shelf, as well as have a negative effect on marine life[48]. Transporting oil to world markets--via barge, supertanker, or pipeline--runs the risk of spillage. Although improved ship design and better cleanup techniques have reduced the impact of oil spills, oil discharges in the Persian Gulf--both accidental and otherwise--have been on the increase, posing a threat to Gulf ecology and environment[49]. In the UK, the International Petroleum Exchange has developed the industries day by day, which is the result of the environment condition in this country[50]. The industry's vision, which guides the environmental management process, is to understand and manage environmental risks to achieve demonstrable no harm levels by 2020. Bibliography Alshehry, Atef Saad, and Mounir Belloumi. "Energy consumption, carbon dioxide emissions and economic growth: The case of Saudi Arabia." Renewable and Sustainable Energy Reviews 41 (2015): 237-247. AlYahya, Sulaiman, and Mohammad A. Irfan. "The techno-economic potential of Saudi Arabia? s solar industry." 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