Managing Environment Risk in Offshore Operations in Oil and Gas Industry

Running head: DISSERTATION
Dissertation
Name of the Student
Name of the University
Author Note

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Abstract
This is a study, which had highlighted the various environmental threats caused by the offshore
operations in oil and natural gas sector. Moreover, the research paper had analyzed the methods
that had already been applied by various organizations to mitigate the risk and new technological
methods that can be applied. Oil and gas industries are established all over the world and
different organization operate in different environment. There had been some differences in
policies in various organizations and the operational activities had significant impact on the
corresponding environment and the society. Thus, it is essential to take measures to mitigate the
risks of harming the corresponding environment and the study had analyzed the measures and
their implications in the managing the sustainability of the global ecosystem.

2DISSERTATION
Acknowledgement
By this research, I have experienced best possible learning of my life. By conducting this
research, I have learnt various concepts, models and theories. I first thank to the almighty God.
After that, I want to thank to my supervisor ______________ who is my friend, philosopher and
guide. I also thank my parents for being supportive and accommodative for completing this
research. I want to thank my friends for giving me the moral support while conducting this
research.

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Table of Content
CHAPTER 1....................................................................................................................................5
INTRODUCTION...........................................................................................................................5
1.0 Introduction................................................................................................................................5
1.1 Background of the research.......................................................................................................5
1.2 Aim of the Research..................................................................................................................7
1.3 Research Objectives...................................................................................................................8
1.4 Research Question.....................................................................................................................8
CHAPTER 2....................................................................................................................................9
LITERATURE REVIEW................................................................................................................9
2.0 Literature Review......................................................................................................................9
CHAPTER 3..................................................................................................................................19
RESEARCH METHODOLOGY..................................................................................................19
3.0 Research Methodology............................................................................................................19
3.1 Research Philosophy................................................................................................................20
3.2 Research Approach..................................................................................................................21
3.3 Data Collection........................................................................................................................23
CHAPTER 4..................................................................................................................................27
FINDINGS AND ANALYSIS......................................................................................................27
4.0 Findings and analysis...............................................................................................................27
4.1 Risk factors..............................................................................................................................27
4.2 Global trends and impacts.......................................................................................................30
4.3 Discussion................................................................................................................................40

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CHAPTER 5..................................................................................................................................43
CONCLUSION AND RECOMMENDATION............................................................................43
5.0 Conclusion...............................................................................................................................43
5.1 Recommendation.....................................................................................................................44
6.0 Reflection.................................................................................................................................47
References......................................................................................................................................49

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Topic: Managing environment risk in offshore operations in the oil and gas industry
CHAPTER 1
INTRODUCTION
1.0 Introduction
This is a study, which will highlight the various environmental threats caused by the
offshore operations in oil and natural gas sector. Moreover, the research paper will analyze the
methods that have already been applied by various organizations to mitigate the risk and new
technological methods that can be applied. Oil and gas industries are established all over the
world and different organization operate in different environment. There will be some
differences in policies in various organizations and the operational activities will have significant
impact on the corresponding environment and the society. Thus, it is essential to take measures
to mitigate the risks of harming the corresponding environment and the study will analyze the
measures and their implications in the managing the sustainability of the global ecosystem.
1.1 Background of the research
The recent trends in the market show that there has been a rise in the consumption of fuel
and energy in the industry. The production and consumption of fuel have increased significantly
since the year of 2013 (Griffin et al. 20014). Thus, the rising demand in the global economy will
risk the corresponding environment and society. Thus, the oil and natural gas organizations are
faced with challenges of fulfilling the energy demand by minimizing the negative impacts of its
operation on the environment. Even though, the industry has set benchmarks both nationally and

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internationally to incorporate best practices organizations but the majority of the problems faced
by the oil and natural gas industry are specific to sites, which consist of detail analysis of the
corresponidng environment, and identification of the precautionary measures as it cannot be
solved by using generalized frameworks. Thus, the organizations will have to develop their own
risk management systems so that they can mitigate the harmful effects on the environment and
society. Thus, environmental pro activity is essential, as unsustainable practices in operations
will pose serious threats to both local and global environment (Silvestre and Gimenes 2017).
Exploration of oil and gas causes threats of destroying habitats, loss in biodiversity and emission
of harmful gases in to the air.
UN report suggests that environmental damage due to corporate activities costs around
$2.2 trillion per annum and this cost is expected to rise to $28 trillion by the end of 2050
(Mendes et al. 2014). There has been rise in the emission of green house gases in to the
environment, which has increased the temperature in the atmosphere and sea level. Moreover,
the precipitation pattern has been altered due to global warming effect. Thus, it can be seen that
the operations of these oil and natural gas organization have not only threatened the quality of
the environment but at the same time has caused dramatic changes in the climatic conditions all
over the world.
Thus, environmental concerns will have to be incorporated in to the daily operations of
the organizations, as external sources have been ineffective in altering the environmental risk
valuation processes in corporate industry. Over the past decades, various environmental treaties
and frameworks have been developed for mitigating the risk of environmental degradation but
their effectiveness is limited. Thus, the major oil and natural gas organizations are facing various
challenges in offshore activities and managing environmental risks. Moreover, the national and

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global policies set by various countries are not effective and international protocols have not
been able to bring all the countries in agreement.
Thus, this study will aim to indentify standard practices, which can be used by the
organizations at a global level to mitigate the environmental hazards and risks. Bureau of Safety
and Environmental Enforcement (BSSE) are placed to monitor and regulate the offshore
activities in the oil and natural gas sector (Cordes et al. 2016). However, the rules are not
stringent enough which led to disasters such as Deepwater Horizon Spill in the year of 2010
(Cordes et al. 2016). Thus, integration of environmental risk management procedures in to the
organizations could be effective in mitigating the risk factors. The major global oil and natural
gas companies face issues in exploration and production of oil and gas. Thus, it has been
identified that the oil and natural gas organizations are facing challenges in keeping their short
term, goals in alignment with that of the long-term environmental impact. Thus, the
organizations are under immense pressure of fulfilling the goals and objectives of the
shareholders, and at the same time improving the environmental standards with the organization.
Thus, the study will be able to identify the essential measures that can be taken by the
organization to maintain the long-term sustainability in the environment (Ahi and Searcy 2013).
1.2 Aim of the Research
This study will aim to identify the methods that have been used by the oil and natural gas
organizations to manage the risk factors in offshore operations. The offshore operations by the
oil and natural gas industry will have significant impact on the marine life, which includes flora
and fauna of rare species. Moreover, hazardous events are quite frequent in this industry and the
offshore industries have experienced gruesome incidents of oil spills which has deeply impacted