Shell's Upstream Activities: Impact & Mitigation

This assignment involves analyzing a questionnaire about Shell's gas and oil upstream activities, with a focus on their environmental impact and how they affect various stakeholders such as local communities, government, investors, and employees. The questionnaire covers topics like oil spills, gas flaring, corporate social responsibility (CSR), and regulatory controls. It aims to evaluate Shell's promises of providing better lifestyles to its employees and local communities while examining the company's image in the market place.

Analysis of the Environmental Impact of
Shell’s Oil and Gas Upstream Activities on
Land: A case study of Niger-Delta

TABLE OF CONTENTS
CHAPTER 1 - INTRODUCTION...................................................................................................1
1.1 Overview of research.............................................................................................................1
1.2 Rationale of Study.................................................................................................................2
1.3 Research aim and objectives..................................................................................................3
1.4 Research questions.................................................................................................................3
1.5 Framework and analysis........................................................................................................4
CHAPTER 2 - LITERATURE REVIEW........................................................................................6
2.1 Introduction............................................................................................................................6
2.2 Various ways pollution is being caused by oil and gas production.......................................6
2.3 Identification of stakeholders who are impacted by the activities of oil companies.............7
2.4 The impact of Shells oil and gas upstream activities on the environment and land..............8
2.5 Expansion of oil extraction activities is troubling the local communities and traditional
business of people......................................................................................................................11
CHAPTER 3 - RESEARCH METHODOLOGY..........................................................................14
3.1 Overview..............................................................................................................................14
3.2 Research design...................................................................................................................14
3.3 Research approach...............................................................................................................15
3.4 Research philosophy............................................................................................................15
3.5 Data collection technique....................................................................................................16
3.6 Sampling technique.............................................................................................................16
3.7 Research Limitation.............................................................................................................17
3.8 Ethical consideration...........................................................................................................17
3.9 Validity and reliability.........................................................................................................18
3.10 Data analysis......................................................................................................................19
CHAPTER 4 - DATA ANALYSIS...............................................................................................20
4.1 Overview..............................................................................................................................20
4.2 Thematic analysis................................................................................................................20
CHAPTER 5 - RECOMMENDATIONS AND CONCLUSION..................................................32
5.1 Recommendations................................................................................................................32
5.2 Conclusion...........................................................................................................................33

REFERENCES..............................................................................................................................34
APPENDIX....................................................................................................................................37

CHAPTER 1 - INTRODUCTION
1.1 Overview of research
Africa has become a beacon to the world when it comes to oil and gas production. It is well
known that it is a continent that has more than 30% resources under its bedrock which makes it a
highly attractive location for major oil companies. It accounts for more than 13% of global
production of oil. This is the level of contribution of a continent as whole which is considered to
be in exploratory phase. By the end of 2015, European Union was one of the biggest importers
amounting to 400 million barrels worth more than 73 billion Euros. There are more than 500
companies that are operating in Africa upstream oil and gas industry (Inkpen and Moffett, 2011).
There has been surge in the number of companies from Asia as they are the ones that has huge
energy requirements. The biggest oil company like Shell is one of the leaders in growing market
of Africa. It has one of the largest bases in the continent. All the activities that are conducted by
these organisations have a great impact on the environment which reduces quality of atmosphere
and gives birth to diseases and destruction.
Background of Study:
Environment is a crucial aspect for any industry to maintain. if a firm is found to be
exploiting the resources present in nature then they have to stop. The expansion of operation by
oil and gas companies has caused maximum level of destruction of nature and available
resources. It is the people and long term side effects that threaten society as well as stability in
continent. Oil spills and other issues have a direct impact upon the environment and human
health as well as it threatens traditional business of people in continent (Papavinasam, 2013). In
Niger, the worst case scenario for day can lead to loss of more than 722 barrels’ loss of oil on
daily basis. At minimum, there is 93 barrels’ loss of oil per day which is also a lot as these spills
have impact upon the land as well as surroundings. The prime issues which is a cause of concern
is compensation that is given by these organisations to the communities that are impacted by the
spills. In case of Niger, MNC companies like shell transfers money to government which then
provide that financial compensation to communities but it does not reach them as per
requirements.
Another major concern is gas flaring which is one of the most common practices which is
conducted in Africa by oil and gas organisations. This is mostly happening in Niger Delta which
is causing addition to the increase in greenhouse gases. It has higher level of impact upon the
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health of people and damages livelihood of local communities. The issues is that all this flaring
happens in on shore of Niger Delta ranging from 19% to 75% while globally this average is at
around 4.8%. Due to this, number of reporting regarding diseases have increased in local
communities that are living near Niger Delta (Ite and et. al., 2013). Some of the issues which
were reported are cancer, gastrointestinal, respiratory ailments, etc.
Background of Organisation:
Royal Dutch Shell Is a British-Dutch oil and gas company that has operations in multiple
countries. It has its headquarters in Netherlands while it was incorporated in the United
Kingdom. It is in the top six of being super big oil and gas organisation and was 5th as per its
revenue in 2016. It is a vertically integrated organisation that participates in exploration,
production, refining, marketing and distribution, power generation, trading and petrochemicals.
The company is also known to involve itself in renewable energy field where it works in
biofuels, wind and hydrogen.
Shell has an operational capability in approx. 70 countries where it produces more than
3.7 million barrels of oil every single day. Also, it is known to have more than 44000 service
stations across these countries. The organisation has proved reserves of more than 13.7 billion
barrels of oil. Shell has many subsidiaries around the globe and they are all major companies in
the field of oil and gas. It has 93000 employees working at different shifts in various countries. It
is the biggest organisation that is listed on London Stock Exchange, while for its secondary
listing, it is cited on Euronext Amsterdam as well as New York Stock Exchange. There are two
major shareholders in company which are Capital Research Global Investors and BlackRock
who owns 9.85% and 6.89% of shares respectively.
Shell is one of the biggest explorers in Africa and it is a company that has significant
level of operations in Niger Delta. It is expanding its operations in the cited area which requires
changes in the land as well as forest area. This has higher level of impact upon the quality of
environment and living of local communities. They are also considered to be the reason behind
poverty, social unrest and forcing them out from their homes to other places.
1.2 Rationale of Study
The researcher has to first state about purpose behind conducting research work and
manner in which whole study will be completed. Complete research work that is being
considered in the present scenario is very important and valuable as it will assist in achieving a
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level of purpose. It is essential for investigator to identify rationale behind fact that why research
work is being conducted. The current research work is conducted to determine impact of
operation that are being conducted by Shell on environment and land of Niger Delta. There are
various issues exist that enhances the chances of more unrest and problems to local communities
as well as they lead to destruction of land. However, this expansion is very important as it will
ensure that organisation is able to dig and get more oil out of land.
There is a relationship that exists in between people and the oil companies that are working
in Niger delta region. Any changes in the natural geography can lead to issues to people and their
livelihood. This is the reason; it is important for companies to ensure that each aspect is properly
analysed and factors are used in an appropriate manner. Every single company is spending a
huge sum of money on the operations of extracting oil and gas and this is the reason that it is not
possible for government to completely shut them off (What is an Oil spill at sea?, 2017). This
report will assist the investigator as well as reader in understanding as how the activities that are
conducted by these oil and gas organisations affect environment and land. This research work
will cover various aspects that will state about activities which are root cause behind increase in
pollution and greenhouse gases. The research into consideration will focus on understanding how
programs and other events in Niger Delta will have an impact upon resources and overall
environment. Along with that, it will assist in finding probable ways to sort this situation out.
1.3 Research aim and objectives
Aim:
“To analyse the Environmental Impact of Shell’s Oil and Gas Upstream Activities on
Land: A case study of Niger-Delta”
Objectives:
 To evaluate various reasons behind pollution caused by oil and gas production
 To identify stakeholders who are impacted by the activities of oil companies
 To analyse the impact of Shell’s oil and gas upstream activities on environment and land
 To determine the way expansion of oil extraction activities is troubling the local
communities and traditional business of people
1.4 Research questions
 What are the ways by which oil and gas production is polluting environment?
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 Who are the stakeholders that are impacted by activities of oil corporations?
 How the impact of Shell’s activities in oil and gas upstream can be analysed in context of
environment and land?
 What impact does expansion of oil companies in Niger Delta region give on local
communities and their traditional form of business?
1.5 Framework and analysis
The research work includes a brief framework on which each and every activity is taking
place. This will aid in attaining valid outcomes as well as ensure good results. The current
research work is based on analysis of environmental impact of oil and gas companies. Following
tools and techniques will be used as a structure to form an understandable report:
Chapter 1: Introduction- It is made up of brief information regarding summary and states about
objectives as well as questions. It has covered complete data that is needed to understand the
operations of organisation. Rationale of study and its significance are stated here as well.
Aim: An aim is set as a long term goal which answers the question as why this research
work is being conducted. This will assist investigator in setting a path that can be followed to
attain the end goals.
Objective: Research work that is being conducted has to have some targets so that it can
attain the prime goals. These will assist investigator in measuring the impact in future as well as
analyse the quality of report work. The case study of Shell’s operations in Niger Delta has been
used as a way to analyse the impact of oil and gas production on environment. This research
work put a special focus on attaining all the objectives
Questions: The researcher is stated to be responsible for defining a list of questions that
he will be using to guide himself and get the whole research work completed. In the present case
scenario, researcher puts a special emphasis on identifying the solutions to questions.
Chapter 2: Literature Review- This is a section which states about viewpoints of different
author on the issues which are being investigated in this research work. They will be collected
from secondary sources of data.
Chapter 3: Research Methodology- This part covers all the information regarding various
approaches that are required by the investigator to conduct research work. The study will be
based on Qualitative approach as to analyse various factors and their impact upon organisation
effectiveness.
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Chapter 4: Data analysis- All the information that has been collected by individual will be
analysed and presented in graphical and mathematical manner. Questionnaire will be used.
Chapter 5: Conclusion and Recommendations- On the basis of findings, conclusion will be
stated and certain recommendations will be made.
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CHAPTER 2 - LITERATURE REVIEW
2.1 Introduction
This is a section that comes in after introduction to the basis of report. In this part,
investigator is engaged in conducting an in-depth analysis with the aid of information that is
already existing in books, journals. Various authors work will be used to form arguments and
state about various aspects as how activities of oil and gas companies are impacting
environment. This information will aid researcher in completing whole study in an effective
manner.
2.2 Various ways pollution is being caused by oil and gas production
Oil and gas industry is one of the major pollution causing industry that impacting
environment in a drastic manner. There are various ways in which this sector is causing issues
and pollution in surrounding areas. According to Mitchell, Marcel and Mitchell (2012), Oil and
gas extraction causes higher level of impact upon the environment. Companies are blamed for
not taking care of the ways they are extracting the natural source of energy. All the organisations
that are working in Niger Delta are known for having system that can extract raw fuel at a higher
rate. But this leads to minimisation of systems that will control pollution to the surrounding.
Also, this endangers lives of employees who are working these sites from a very long time.
There are various ways which are stated by the author in which these companies are hurting
environment and people. They are stated below:
 Oil Spills: These are the main source of pollution that is happening on land. It makes the
whole earth no effective for living and growing crops. At a bad day, it is forecasted that
there would be oil spill of more than 700 barrels/day (Environmental pollution centres,
2017). There are ultimately issues which needs to be addressed by the companies for
reducing this. But they are putting minimum effort in managing the issue of oil spills.
Basically, oil spill is a situation where crude/raw version of fuel is spilled over land while
it is being extracted. This leads to displacement of people as well as hazard to people.
 Gas Flaring: This is the second issue where organisation let the gas flare while it is
extracted. There are different methods which are used for reducing the level of natural
gases to go and mix into the environment. At present, the rate of gas flaring is around
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19% to 75% which is way above international standard of 4.8%. This has to be reduced
for making sure that environment is protected and gas is saved.
 Forest cut down: It is the requirement of oil producing and refining companies to have an
expansive area for their sites. This leads to cutting down of forest areas in Delta which
results into solid erosion. This also threatens wild life and people who are living near to
the sites. Basically, these companies do not replant they just cut down forest which is not
good for long term.
 Maximisation of resource consumption: All the oil corporations are using resources
which are available in abundance. But the way they are using them is not right and can
impact organisation ability to achieve targets. Also, this leads to higher level of pollution
that can enhance global warming in long term. There is no restriction for these
organisation at present which makes keeps them out of control. Also they are hurting the
environmen5t at a rate that sooner everything will collapse.
These are the ways the oil companies are impacting environment and land. The
government and other stakeholders need to analyse how these activities conducted by oil
companies hurts them and ensure that they attain a higher level of growth.
2.3 Identification of stakeholders who are impacted by the activities of oil companies
There are many stakeholders of oil companies which will include staff members, local
communities, government and many more. Activities of company can provide negative as well
as positive impact to them. As they are continuously increasing their production; therefore, it can
affect environment of a nation in huge way. Through activities of oil firms, many harmful gases
will release which are much dangerous for health of people. Therefore, it is required to establish
this kind of firm out of city area. According to FROM (2010), there are many negative affect
which can provide impact on these stakeholders which are stated as beneath:
Local communities: As oil companies can influence people of country in negative way.
Many harmful gases will release from these kind of organisations so that individuals can go to
some other places for residence. The oil producing and extraction organisations aims to increase
the total output for which they tend to exploit environment and people living around these places.
The current activities of companies in Niger Delta region are too much and needs to be
monitored before they destroy the surroundings and people.
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Environment: Activities of oil firms can affect environment in huge way; so that it will
be difficult for people to survive over there. The whole process of oil extraction and production
has severe effects on the environment. Government needs to regulate these organisations so that
they can enhance safety for people as well as exotic natural resources. It is very important to
protect environment or else it will result in imbalance that leads to storms and other chaotic
events. There are different environmental treaties which are being signed by countries today, and
this is being done to ensure that future generations are able to gain maximum benefits.
Government: It is required for regulatory bodies to develop some rules and regulations to
reduce harmful exercises in nation. An effective policy will help them to control on oil
companies. As per the view of Bear and Verruijt (2012), it suffers from huge losses in revenue
and taxes as these companies are exploiting market and its forces which are resulting in acute
shortage of things that are necessary for survival. The government needs to step up for making
sure that in no way, these companies can harm people, environment or wild life. There have been
numerous incidents which stated that government soft approach can result in losing opportunities
for economic growth.
Employees: If any kind of gas leak at premises when staff members are working then,
this can affect their health and they will get any dangerous disease. They are the ones who face
extreme environment while working on a site that is in a hot African country. Employees need to
be trained so that their actions are beneficial and there are less chances of accidents. As per the
view of Beazley and et. al. (2011), in Niger delta, companies usually try to find cheap labour
which means that they will not train them and directly engage them in the work of extraction or
any supporting task. There is a requirement of a standardised legislation so that effective output
can be gained. Today, it is vital for companies to provide a safe and secure environment to
individuals so that they can work as per requirements.
2.4 The impact of Shells oil and gas upstream activities on the environment and land
Shell is a world known organisation for its petroleum products and goods. It has a
standard to maintain which is only possible when they are producing and selling more of the core
products in market. There are different issues which are there due to the activities of Shell. It is
causing conflict between people as well as is one of the factors that is behind environment
deformation. Shell is mainly engaged in upstream activities where it conducts geological
surveys, mining and drilling and manufacturing. Basically, combined activities related to oil and
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gas production can lead to threat to human health as well as environment. As stated by Cecez-
Kecmanovic (2011), there are different activities which are conducted by an oil and gas
producing companies which ultimately impacts environment that is existing. At present in Niger
Delta region, various companies are operating which are focusing on exploring maximum part of
this oil rich region. This is where they exploit the place and transforms it into a wealth generating
area. Basically, all the companies are trying to gain maximum via exploring and registering land
for future extraction and development. At present, there are three types of impacts which are
there due to Shell’s activities in Niger Delta region:
Air issue: This is the first issue which is caused by all the activities that are being
conducted by Shell. It is causing changes in the quality of air that is used by living beings. There
are commonly six pollutants that are produced due to various programs that are there in oil and
gas extraction. They are stated to be particulate matter, ground level ozone, nitrogen oxides,
sulphur oxides, carbon monoxide and lead. All these pollutants can cause harm to people as well
as other living beings that are staying in surrounding area. In Niger Delta region, there is
requirement of an act that will ensure that companies like Shell do not impact the quality of air.
As said by Chen and et. al. (2013), pollutants generated by these oil manufacturing companies
are categorised into three headings:
 Criteria air pollutants: These are made up of ozone, CO, SO2, particulate matter
(PM) and their precursors that includes NOx and VOC’s.
 Hazardous air pollutants: These type pf pollutants mainly comprise HAP, Primarily
fugitive VOC emissions from oil and gas production).
 Haze precursors: It includes ozone, NOx, SO2 and particulates.
These are some of the primary type of pollutants that impacts air quality in a region and
can have a major impact upon the way organisations functions. Also some additional gases that
are produced during oil and gas development are CO2 and CH4. Basically, Shell needs to ensure
that it does not affect the air quality by minimising dispensing these harmful gases in the air.
Water issue: This is another major issue that concerns government and people in Niger
Delta region. Basically, all the unconventional natural gases need higher amount of water
resources. So that they can be successfully extracted out of land. The water which is used by
these oil companies is either released in large amounts to get treated or it is reinjected into the
surface for its improvement. In the words of Geerts (2011), the prime issue that causes water
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pollution is that it is released on surface instead of injecting it into the ground. This leads to
destruction of land as well as impacts the lives of people living nearby. The surface released
water is usually used by people for their daily use as well as for farming and other activities. The
reason behind companies not using the method of injecting is stated to be related to high cost and
lengthy process that is there. Till there is no good alternative, this will keep on happening as
organisations like Shell won’t be using any expensive method that will reduce its margin of
profits. The prime impact of this type of pollution is on people who live nearby as well as wild
life is threatened.
Land usage issue: Oil and gas extraction requires various intensive activities that has
impact the land quality and stability in the region. According to Huang and et. al. (2014), Most
of the pollution issues revolve around few activities which are stated below:
 Surface disturbances that are there due to drilling and other mechanical work that is done
on the sites. There are different techniques which are used for reducing level of impact
upon organisation.
 There is impact of oil spills and gas flaring on wildlife as there are surface disturbances
that keep on happening. As well as various industrial activities lead to changes within the
land type.
 Waste material that is released by organisation without treatment spoil the fertility of
land.
 Land pollution also happens when separation of upper crust and minerals take place. It is
a major process where drilling and mining is done for extracting anything that might later
on act as a hurdle in the process.
As per the statement of Hunleth (2011), land pollution is the first major outcome of all
the activities that are conducted by Shell within Niger Delta region. For setting up its facilities,
company is cut down heavily forested area in the delta region. It also does so for conducting geo
logical survey. The vast expansive size of its facilities need large area for which whole place is
cleaned and any type of barriers are removed. The time organisation starts drilling, it causes
changes in the structure of platonic plates that causes earthquake if they are moved. As well as
separation process of minerals and upper crust can lead to deformation of whole area and
surrounding parts.
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Environment elements: There are different environmental elements which are impacted
by Shells upstream oil and gas extraction activities. Wildlife, people, and other stakeholders are
the primary factors that are affected while there are secondary areas too. According to Pickerd,
and et. al. (2011), Environment is made up of various elements that are essential part of every
person life. Such as water, air, food, sand, etc. The pollution caused by production and
refinement of oil leads to global warming where ice caps at both poles are melting and giving
rise to sea level.
2.5 Expansion of oil extraction activities is troubling the local communities and traditional
business of people
All the organisations are expanding their oil and gas extraction activities as to enhance
their ability to serve market in a more effective way. Today each and every organisation wants to
attain better position in the market of oil as to ensure that its superiority remains same in the
market. As stated by Pierre (2012), multiple issues and problems are being faced by
organisations that are engaged in production and extraction of oil and gas. The rise in these
activities in Niger Delta region is forcing people and other stakeholders in moving out, changing
their profession or even leaving region for jobs and other task. These activities are resulting in
higher level of pollution which impacted flora and fauna of wilderness. There are certain
examples which states that these activities have led to collapse of social systems and conflicts
within people. Shell is one of the organisation that is dealing in this sector from more than 50
years. It entered into Africa in early 50’s when this region was a part of British Empire. It has
been there since then and is trying to gain more and more effectiveness in order to enhance its
own capabilities within market. There are different ways in which expansion of these oil
companies is impacting local people, their lives and business. It is important to ensure that each
factor is properly analysed and understood so that better effectiveness can be attained. They are
stated below:
 Expansion means more oil spills and gas flaring: With expansion in the size and scope
of these enterprise, there are sheer chances that issues like oil spills and gas flaring will
increase. These incidents are already out of control as companies are not using standard
procedure for extracting oil and gas from land and ocean. These issues are causing higher
rate of pollution within region which has impacted lives of people who are living in
surrounding area. Also, these companies are using resources at a much higher rate than
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they are investing back in the environment which is leading to shortage of essential
amenities for people. Oil spills are gas flaring is making air as well as water un bearable.
These two are one of the most important element that are required for survival of humans.
 Impact on local farming and fishing: The second impact is stated to be concerned with
the business or a lifestyle of people. The expansion of oil and gas extraction is attracting
masses as it is a better opportunity for people to earn fixed amount of money each month.
It has become a point of attraction for African youth. Shell is one of the biggest recruiter
of these individuals who want to work on oil rigs and other parts of industry. This has led
to destruction of farming and fishing business which was primary recruiter in Niger Delta
region. Also, Shell is one of those organisation that has taken over lands of people legally
or illegally which leaves people with no choice and to leave their business and engage
themselves in something else. The company is polluting environment which has impacted
the density of wild life that use to live nearby. As per the viewpoint of Roberts (2013), it
is affirmed that these companies are behind doing traditional business impossible for
people. Shell is one of those organisation which wants to grow its size and scope within
the area and for this it is trying to attain a better and more effective level of growth.
 Conflicts and social unrest: This is another impact which is there due to company’s
policies and framework. It is constantly trying to gain control over the region and for it
there are certain unethical activities which are done by it. Today, this is causing massive
social unrest as well as issues in society as there are civil unrest are taking place in Niger
Delta region. As much as these organisations are trying to gain more control over the
area, they are committing more crimes. Today, Shell is one of the top five companies that
is operating in this industry as well as region. It is one of main element that has somehow
led to armed conflict in region. Also scarcity of resources has made people leave and
boosted unrest within this territory.
 Chances of companies replacing government as ultimate authority: According to
Seinfeld and Pandis (2016), these companies are becoming a substitute for government.
They are the ones who are running various social programs as to assist people in
enhancing their standard of living. This way they are taking the role of government which
is supposed to provide all essential as well as advance facilities to its people. At present,
authorities are failing to present themselves as a sole operator that can assist people in
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having all essential resources. This has created a vacuum which will only be lead to
people looking towards alternatives, which are these oil companies.
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CHAPTER 3 - RESEARCH METHODOLOGY
3.1 Overview
Research methodology is a much systematic process which can be opt by a researcher
when they are gathering data as well as information. An individual will utilize many techniques
and tools to collect data in an adequate way. In this assignment, info which is gathered by a
researcher is getting through assistance of primary method. With aid of many sources, proper
data can be utilized effectively and efficiently (Sirés and Brillas, 2012). This report is based on
Shell Corporation and they are going to analyse effect of oil and gas extraction on environment
and land. This provide is going to describe influence of oil and gas which is affecting
environment in an adverse manner. Along with this, some tools are using by employer to collect
information and data which is associated with recent topic. With the help of research
methodology chapter, researcher can easily found relevant data which is essential for them. It
provides brief overview of research approach and design which is necessary to be use in present
project. Also it consists further topics such as data collection method, ethical consideration,
research limitation and much more. For the purpose of meet set of objective, investigator needs
to frame various strategies or plans and try to implement in effective manner. This process plays
important role in preparing of best dissertation. Different research techniques need to be used in
present dissertation for collect significant data (Qualitative research, 2017). Two types of
techniques such as qualitative and quantitative data collection methods are majorly used in this
process. Individual person who is responsible to gather data needs to be use his entire skills,
knowledge and work experience. They have to use ultimate efforts which is compulsory to be
used in preparation of present dissertation.
3.2 Research design
It is fundamental for a researcher to choose best and effective design to gather data as well
as information in an effective way which is requisite for them. Therefore, some questions are
formulating by them and after that they resolved it appropriately (Vaioleti, 2016). Fundamental
target of design of research is to examine entire data in a corrective way. Thus, there are some
kinds of research designs, such as descriptive, exploratory, case study and many more.
In this dissertation, company is utilizing descriptive design to conduct a research. With the
help of this, manager can easily find out those factors which are affecting environment is an
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adverse way. Therefore, it is required for employer of Shell Corporation to analyse these
components in an adequate manner. Additionally, it is essential for them to develop proper
strategies as well as plan to reduce its affect. Hence, with proper aid of appropriate research
design firm can easily deal with overall issues effectively and efficiently. In this present
dissertation, primary data needs to be collect which is based on descriptive design. With this data
researcher is able to collect significant data which is necessary to be gather. They are bound to
follow rules, regulation and policies which are imposed on them as per the procedure of
dissertation. Descriptive design consists several process which is compulsory to be fulfil by
them.
3.3 Research approach
Every research required particular approach or a method which lead to execute the project
in an appropriate manner. Every project is based on definite method through which whole survey
become proper and appropriate (Vera and Fabian, 2016). Thus, by using effective and efficient
method of working investigation will reach to an evaluation or a conclusion so that maximum
return could be gain. There are mainly two types of approaches are identifying to conduct a
survey which includes inductive and deductive. Information which is based on primary data are
consider under inductive approach whereas deductive approach is usually based on secondary
source of information. Primary source of information is based on various individual opinion,
interviews, survey etc. whom are ethical in nature and be able to provide great information which
enable intake beneficial decisions. Hence, a major thing which is related with this concept is to
take effective outcome and create hypothesis as well.
Secondary source of information is based on deductive approach in which data get
collected and analyse through authors and writer’s perspective. There are various authors’
defined concepts accordingly so that maximum return would be gain and a hypothesis get framed
in order to make project correct (Research, 2017). For this project inductive approach get used in
which questionnaire get prepared which will provide best results on the basis of various
respondent’s opinion and interest. This will enable in making research appropriate in nature with
all ethical considerations. Along with, it is also reliable and valid in nature.
3.4 Research philosophy
Philosophy define the process which includes growth and development related concept
which stated about growth of hypothesis in past few years (Williams, 2011). Thus, every
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investigation is based on a particular philosophy so that complete essential gets fulfil. There are
mainly two types of philosophy are identifying interpretivism and positivism.
The present report is based on positivism philosophy. This project is based on Niger
Delta under which analysis of environment get done. Every project need to get execute in an
appropriate manner so all its essential get fulfil properly. Positivism approach enable to get
execute an investigation properly by meeting all quality standard.
3.5 Data collection technique
Data collection is a task which facilitate business to get grow and developed. Data
collection get made on various respondents which selected on the basis of interest and response.
Research require more and more number of people interest so that appropriate decision could be
carrying down (Williams, 2011). In such context, there are various number of methods are used
which enable in data collection process: random sampling method, quota sampling method etc.
All these are helpful in gather of information and for this project random sampling method has
been used. This is a critical task which have to get done in an appropriate manner and project
quality is highly based on this context and it is a duty of researcher to maintain keen focus on
this context. Data collection have to get done in an appropriate manner so that all of its essential
get fulfil properly. Solely this research is based on primary information not on secondary
information. Data collection embedded to make the project outcomes appropriate in nature.
Researcher can collect online data as well where social media work as a platform to execute the
investigation properly. This should be focused on questionnaire and its quality rather than
anything else. This project includes primary source of information process and for that
questionnaire get prepared which also get circulated on social media. This enables in gather
source of information from various respondents. This research has to be based on high quality
standard so that appropriate outcomes could be gain in an appropriate manner.
3.6 Sampling technique
Sampling is known as a process that is used by investigator to set criteria according to
which he will be collecting information. This is a section which needs to deal with a huge part
that is taking out samples from the population (Ite and Ibok, 2013). In this concept, researcher
collect data from few people only rather than consult with entire population. In this present
dissertation, investigator gather views from around 30 people. In this investigator have to use
their entire efforts. Sample size should be select by investigator himself without any interference
16

of other person. According to this, they have to deal with different set of mind people and try to
collect data accordingly.
3.7 Research Limitation
Research on any topic may not be complete without any limitation. Preparing of
dissertation is not an easy task for researchers. While presenting the present project person faced
various challenges which are reduce work quality and performance as well. This factor is not
helpful for betterment of complete project. Limitation of dissertation is as follows-
Time and money consuming process- The present study is based on to analyses the
impact of Shell’s Oil and Gas on environment. In formation related to this topic is difficult task
for investigator. Research spend huge time and money on gathering relevant information or data
(Ubani and Onyejekwe, 2013). It should be gather from conducting personal interviews, surveys
and much more. Furthermore, present dissertation needs to be complete within stipulated time
period. Researcher must prepare questionnaire and asked same questions with people. This is
time consuming process. Also person spend huge money in collection of present data and
information. Framing of different plans or strategies and its implementation is process which
take time. Because every person having different set of mind or behaviours, so that it is difficult
task for researcher to deal with them.
3.8 Ethical consideration
Research must do in ethical and transparent manner. This is significant for preparing of present
dissertation. Researcher must follow policies and rules which are imposed on them while
conducting research. They have to use collective efforts in order to meet standard of report.
Ethical consideration is an important aspect of any research report that has to be prepared as per
requirements of individuals. There are different rules and regulations that need to be followed by
investigator as to make sure that each aspect is properly covered and completed (Anejionu,
Ahiarammunnah and Nri-ezedi, 2015). Furthermore, current research work is not complete
without following ethical aspect of investigation. There are different ethical aspects that are
stated below and needs to be considered by individuals:
 Restricted Access: Researcher was not able to access everything as there were certain
restriction on the sources of information. This was due to the fact that there is data that
cannot be shared to people. Delta Niger is a region which is considered to be oil rich and
very vital for economic growth of country. There are several sites which were banned for
17

revealing data regarding region and state about the masses that has to be covered by
people.
 Work of scholars: There are different authors whose work has been taken as a source of
reference to complete this study work. But this is done only after taking permissions from
the researcher and authors whose work is being used. All the things which are being used
in this research work are ethically equipped and made as to make a real time difference.
 Privacy issues: The collection of data include information of people and other individuals
who are being part of research work (Bellema Ihua and et. al., 2011). Their data needs to
be carefully kept as it can be misused by various parties for wrong purposes. It is
ethically wrong to share information with other parties and all the data needs to be
secured so that effective application can be achieved.
3.9 Validity and reliability
While completing this research work, it was made clear that each and every aspect is
covered in a more appropriate manner so that effective results can be obtained. Various
techniques are being used to conduct research work and it is important to make sure that each
task is completed in a set period of time. All information which is being collected by researcher
has to be from valid source with authenticated references. Validity is idea which can shows how
perfect a specific present research is. This is the successful instrument which can be utilized or
applies in outline and a few strategies for inquire about which are utilized as a part of present
paper. At the season of accumulation of information legitimacy ought to be considered as
discoveries. As it demonstrates genuine impression of marvels. Such idea is being measured by
examiner. Inward legitimacy has been worried about legitimacy of related tests. As which have
been utilized by agent (Ismail and Umukoro, 2012). On the opposite side, outer legitimacy has a
place with capacity with which such discoveries of a particular present report which can be
summed up to vast number of populace.
Reliability is another concept that is important for increasing the impact of research and
improve its qu8ality. If all the results are obtained as per requirements and right parameters are
achieved, then reliability will be considered to be similar. The current study is based on
understanding and evaluating the impact of Shell’s activities on Niger Delta that is affecting
environment and land of region. There is requirement of authenticated sources so that reliability
can be increase and impact of study can be improved.
18

3.10 Data analysis
Information investigation assume critical part in strategy of information gathering.
Through this scientist is successfully take a section in basic leadership process. It incorporates
assessment of present point. This part additionally comprises introduction of information which
is imperative for them. Information investigation can give help to the specialist to the reason for
examination, cleaning and in addition change of data or information. It is huge device for coming
to or meet the outcome (Anifowose and et. al. 2014). There are just two sorts of procedures has
been utilized, for example, quantitative or qualitative techniques for information examination.
Qualitative method is being used for making sure that all intangible aspects are covered
and impact of Shell’s gas and oil upstream activities on environment and land is properly
understood. It is vital for company to ensure that all aspects are covered so that their
effectiveness is understood. Company has to bear different issues which are in its immediate
environment.
19

CHAPTER 4 - DATA ANALYSIS
4.1 Overview
This is part where data will be analysed as per the collected information and requirement.
Data analysis is a significant concept as it is very useful and important for investigator to collect,
transform and evaluate it. With the assistance of this researcher is able to make certain decisions
and recommendation for improvement in system. It is essential as it allows investigator in
maintaining the quality of study. Also, there are certain qualities which make it more important
and that is thematic analysis that is based on questions which are prepared by investigator as to
understand the impact. All the questions will be put into a questionnaire [See in Appendix 1] and
given out to respondents as to collect their responses for a certain query.
4.2 Thematic analysis
THEME 1- Knowledge of people regarding Shell’s oil and gas upstream activities.
1. Do you know about Shell’s gas and oil upstream activities? Frequency
Yes 19
No 6
Not sure 5
Interpretation: It is very important for people to know about company first of all. If they
are unaware with the work that is done by it then they will fail in understanding the very impact
caused by organisation. There are various activities that are conducted by Shell division in Niger
20

Delta. When respondents were asked about whether they know about Shell’s oil and gas
activities they stated that they are very familiar with company and its activities in Niger Delta.
Out of 30 individuals 19 stated that they have knowledge regarding organisation and its
activities. This states that company is able to register a mental visibility between people. There
are further issues which exist within system and that can impact target achievement of people.
Only 6 respondents were not aware regarding company and its activities while 5 individuals were
found to be not sure with various facts and figures.
THEME 2- Impact of Shell’s oil and gas upstream activities on market variables.
2. Is there any impact that you think which is being caused by
Shell’s upstream activities?
Frequency
Environmental impact 4
Social impact 5
Lifestyle issues 3
All of the above 18
Interpretation: There are different impact that are there due to activities which are
conducted by organisation on surrounding elements. There are majorly 3 types of impacts which
are there on the surrounding areas. Environmental, social, lifestyle impact. It is important to be
understood as to check on which factor company’s impact is major. When people were asked
what they think, then they stated that Shell’s oil and gas upstream activities are causing all three
types of issues to people in region. It is behind destroying environment, people and society as a
21

whole. It is very important for company to ensure that they are able to control the level of
pollution that it is causing in environment as to ensure that each task is completed in a set period
of task. 18 respondents agreed that all three issues are being a secondary output of activities
conducted by Shell in Niger Delta region. While rest of the responses were divided into
environmental (4), social (5), Lifestyle (3) respectively.
THEME 3- Perception regarding Shell’s ability to fulfil all of its promises to its employees and
local community.
3. Do you think Shell is fulfilling its promise of providing
better lifestyle to its employees and local community?
Frequency
Yes 12
To an extent 3
No 15
Interpretation: Shell is a global brand and is among the top 5 oil and gas extractor in the
world. It has to maintain its image of being the most efficient and effective company which is
focusing on providing better lifestyle and standards of living to its employees and local
community. This is only possible when company is able to maintain standard set of policies and
plans for its global branches. They need to provide training and other incentives to employees so
that they are motivated and able to safely accomplish their task. There is different risk which
need to be averted so that higher level of effectiveness can be attained and this is only possible
when workforce is ready and prepared. If they do not know, as what has to be done then they
22

will not be able to execute any change within system. Shell is failing to provide better lifestyle to
its employees and local community as it is constantly focusing on profitability and not employee
welfare. Out of 30 respondents 12 stated that they find Shell a good company as it is providing
better lifestyle while majority was against this statement and argued with facts that they are not
following the protocol. 3 respondents were not sure to which extent company was focused on
employee and local community welfare.
THEME 4- Activities of Shell that are impacting society as well as environment.
4. What are the activities that are impacting environment and
society?
Frequency
Oil spilling 7
Gas flaring 8
Unethical activities 10
All of the above 6
Interpretation: There are different types of activities which are conducted by Shell in
Niger Delta region. It has to manage and engage with all other aspect to ensure that its operations
are not impacted in any case scenario. When individuals were asked as which activity is
considered to be the most impactful for society then it was understood that most of the people
agreed with the fact that unethical programs run by Shell are the worst thing. They also agreed
with the fact that oil spilling and gas flaring is also essential aspects that needs to be reduced by
23

organisation. Three stated things were identified as an issue which is impacting environment and
society.
THEME 5- Actions that are required by organisation for building its image within market place.
5. What needs to be done by company to build its image
within market place?
Frequency
Indulge in CSR 11
Execute policies as per requirement 9
Marketing 10
Interpretation: Shell is already a world famous company and it has a good image in
market. But certain factors such as political and environment changes need to be analysed and
calculated for making sure that each aspect is covered and company is able to register a good
visibility in market. It is important as to keep stakeholders informed regarding various changes
that will be taking place within organisation system. The most effective way that is identified
after collecting data was indulging company within CSR activities and ensure that they are able
to assist society in achieving its goals and objectives. 11 respondents stated that they agree with
the fact that CSR activities will allow organisation in developing a good image within market
environment. While Marketing became the best tool to check as how they can develop plans and
polices to gain better market productivity.
THEME 6- Ways in which environment is impacted by Shell’s oil and gas upstream activities.
24

6. How environment is being impacted by the activities of
Shell?
Frequency
Land pollution 2
Air pollution 3
Water pollution 4
All of the above 21
Interpretation: Environment is being impacted by organisation activities. Basically
drilling and other oil and gas extraction activities have major impact upon the surrounding. They
damage all resources and reduces quality of surroundings. Shell is a major organisation that is
working in the region and needs to ensure that it does not lead to hurt environment which needs
to be protected as to keep earth safe for future generations. The current activities of company are
not eco-friendly and it is impacting all three bases of life. Land, air and water. 21 respondent
stated that they agree with the fact that Shell activities have changed geography and natural
conditions that use to prevail. Oil spilling and gas flaring are two major causes behind the impact
that is there due to Shell increase amount of activities. Today, it is essential for organisation to
ensure that they are able to limit this as people are aware that it is the main cause of pollution in
region.
THEME 7- Type of stakeholders that are impacted by Shell upstream activities in Niger Delta.
7. Which stakeholders are impacted at most by Shell’s gas
and oil upstream activities?
Frequency
25

Communities 8
Government 7
Investors 9
Staff 6
Interpretation: There are different types of stakeholders who are there for an oil and gas
extracting organisation. It is essential for them to ensure that each and every aspect is properly
analysed so that effectiveness can be judged. Most of the times it is the investors who are
impacted by anything that is done by company or happens to the organisation in which they have
made investment. They are the one who has to suffer losses and gain on improvement that is
made by organisation. 9 respondent agreed with this fact. It is essential for company to ensure
that each task is completed in a set period of time while following all ethical aspects. The second
type of stakeholders who are impacted at most are communities which are living in nearby area
to the oil extraction site. They have to face extreme condition and also their business is
disturbed.8 respondents agreed with this fact. Government and employees are also impacted as
they are the one which are relied on the activities for gaining better growth. Basically, if
company will not take precautions then employee life will be endangered.
THEME 8- Steps that can be taken by government for stopping oil companies from replacing it
as final authority.
26

8. What do you think Government should do to stop oil
companies from becoming an alternative authority?
Frequency
Fulfil its promise to its people 10
Provide all amenities 9
Implement policies to control oil companies 7
Punish the law breakers 4
Interpretation: Today, this is a real threat that these oil companies are slowly-slowly
replacing government as a final authority. Basically, the issue is that companies are assisting
local communities in getting vital resources which is making them reliant on entities. It is
essential to keep a check on the activities that are being conducted by oil firms as to ensure that
they are not hoarding things which were meant to reach people and swelling these items to them
for higher price. This is only possible if various aspects are covered in a desired manner.
Basically, government has to be one which has all power. If companies start running places, then
there will be chaos and inequality. With this fact people agreed that government has to fulfil its
promises to people (10respondents were in favour of this argument) while others were divided on
the fact that that government has to provide amenities as well as implement policies and plans as
per requirements. Also it will have to punish law breakers.
THEME 9- Expansion of Shell activities and capabilities in Niger Delta should be allowed or
not.
9. Is expansion of Shell’s oil and gas upstream activities should Frequency
27

be allowed?
Yes 9
No 21
Interpretation: No, shell activities need to be restricted. This is what 70% of responses
stated. People are against company plans for expansion as they are scared that this might lead to
displacement, pollution and other issues which are happening at a lower level at the moment. It is
necessary for government to put up a bar so that the activities of these gigantic companies can be
restricted. There are multiple issues which are there in system and has to be managed in
accordance. 21 responses which were received stated that there is requirement of controlling
activities of company and no further expansion should be given yes. While 9 responses recorded
were in favour of company.
THEME 10- Affect that oil spilling and gas flaring has on region.
10. Oil spills and gas flaring will damage region in which
ways?
Frequency
Cause disease 18
Social unrest 6
Conflict 6
28

Interpretation: There are different impacts of oil spilling and gas flaring on society as
well as environment. These can result in spoiling quality of land and air which ultimately leads
to bad health of people who are living around the areas. People need to ensure that they are
aware with each aspect so that effectiveness can be enhanced. Basically, oil spilling and gas
flaring cause’s disease as well as conflicts between people. 18 respondent stated that they agree
with the fact that oil spilling causes disease. 12 agreed with the fact that it causes unrest and
conflict between people.
THEME 11- Perception regarding Shell being involved in bringing in instability to the region for
its own profitability.
11. Do you think Shell is involved in bringing instability in
region for its own profits?
Frequency
Yes 17
No 13
29

Interpretation: Companies like Shell have resources that are equal to the GDP of
African countries. They can change environment and everything else in nation by just a flick of
their thumb. But this is considered to be wrong as various unethical activities take place in this.
The responses which were received were kind of mixed and stated that company is engaged in
activities that can hurt environment within society.
THEME 12- Issues which are there due to Shell activities.
12. Is its activities causing issues in local communities? Frequency
Social conflicts 11
No law and order 4
Poverty 8
Displacement 7
30

Interpretation: There are several issues which are there due to activities that are
conducted by Shell in Niger Delta region. The company has a bad record in stopping oil spillage
as well as gas flaring. It is one of the firms that has the highest record of causing issues to people
as well as society and environment. There are several changes that are required for making sure
that each task is completed in a set period of time. Government needs to check on the activities
of these oil firms which are huge in size and scope. They can lead to conflicts, poverty and other
issues. 11 responses that were recorded stated that social conflicts are there due to these
companies which are trying to divide and rule. As well as poverty and displacement are second
major issue. Also there is no law and order in areas where they are functional.
31

CHAPTER 5 - RECOMMENDATIONS AND CONCLUSION
5.1 Recommendations
There are different problems that have been covered in the above stated report. It is
important for organisation to function so that effective results can be gained. Shell is a large
enterprise that is working in the region since early 1950’s. It is on expansion drive ever since and
occupied a substantial amount of time. It has seen an upward trend in its business operations
from long time. There are certain issues which have been identified which are related to its
operational capabilities. The company is now known for its exploitation of region. There are
different variables that have been changed or shifted by them as to ensure that their profitability
remains constant. The company has been building itself in region from long time and it has
caused severe issues to environment as well as supporting factors. People as well as resources
have been exploited equally as to gain higher level of effectiveness. Today, it is important for
government to check all the activities of company for making sure that they do not consume
national resources for their own growth and prosperity. They need to ensure that society as well
as company both are able to grow at a much faster speed at the same time. It is also important for
company to ensure that they are able to attain a higher level of effectiveness while assisting
society in it growth and developmental story. The primary recommendation for company are
stated below:
 Reducing reliance on resources: Company is currently utilising resources at a much
higher rate. It has to reduce its focus on these resources and ensure that they are not
consumed in a same manner. They need to make sure that they are able to do so that local
business and lifestyle can improve. Sometimes organisation need to keep its own
profitability aside so that it can serve market in a better way.
 Boosting capabilities of individuals: Employees working in company needs to be trained
on time so that they can boost organisation effectiveness. Basically, a trained employee is
important for ensuring that each task is accomplished in a set period of time. it is
important as activities that are there in oil sector needs specialised trained force. This is
why, management need to make sure that each and every individual knows as what has to
be done and at what time.
32

 Reducing oil spills and gas flaring: There are higher amount of oil spills and gas flaring
in region. They are at record high due to incompetence of labour as well as careless
behaviour of management of Shell. If organisation is able to put a limit on these then they
will be able to attain a higher and better level of profitability. These are the main source
of pollution which is causing global warming and other issues. Also, this has added to
loss in business for local people.
 Enhancing CSR: There is requirement for company to focus on improving its corporate
social responsibility. If they are engaged as per requirement, then they will be able to
gain better market positioning and effectiveness. It is important to focus on people
development as well as organisation growth. This can be done once both start aligning
themselves and growing upwards.
These are the four stated ways that can be used by company for making sure that its impact
upon environment and society can be reduced.
5.2 Conclusion
This research work is completed for understanding as how various activities of Shell
impact upon environment and land. This study has covered as how oil firms in Niger Delta
region are impacting surrounding areas and people living in it. This is a major issue for the
company to find out changes in the system. There are changes which are required so that issues
can be sorted out and better effectiveness can be achieved. At the end of report, it can be stated
that the impact of Shell in oil and gas extraction on environment and land has caused issues in
the region of Niger delta. It is a major oil hub and a natural resources filled place where this
company has exploited both resources and people. Literature was reviewed from the viewpoint
of various authors, as well as research methodology was stated. Data which was collected was
analysed to get a report regarding people vi9ew on the activities of company as well as
recommendations were made.
33

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36

APPENDIX
Appendix 1
Questionnaire
Name:
Age:
Profession:
Place:
1. Do you know about Shell’s gas and oil upstream activities?
 Yes
 No
 Not sure
2. Is there any impact that you think which are being caused by Shell’s upstream activities?
 Environmental impact
 Social impact
 Lifestyle issues
 All of the above
3. Do you think Shell is fulfilling its promise of providing better lifestyle to its employees and
local community?
 Yes
 To an extent
 No
4. What are the activities that are impacting environment and society?
 Oil Spilling
 Gas Flaring
 Unethical activities
 All of the above
5. What needs to be done by company to build its image within market place?
 Indulge in CSR
 Execute policies as per requirement
 Marketing
37

6. How environment is being impacted by the activities of Shell?
 Land pollution
 Air pollution
 Water pollution
 All of the above
7. Which stakeholders are impacted at most by Shell’s gas and oil upstream activities?
 People
 Government
 Investors
 Staff
8. What do you think Government should do to stop oil companies from becoming an alternative
authority?
 Fulfil its promise to its people
 Provide all amenities
 Implement policies to control oil companies
 Punish the law breakers
9. Is expansion of Shell’s oil and gas upstream activities should be allowed?
 Yes
 No
10. Oil spills and gas flaring will damage society in which ways?
 Cause disease
 Social unrest
 Conflicts
11. Do you think Shell is involved in bringing instability in region for its own profits?
 Yes
 No
12. Is its activities causing issues in local communities?
 Social unrest
 Civil war
 No law and order
13. Recommend way that can be used by company as well as government for reducing impact of
38

its activities on environment and its element.
39