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Environmental Management for Sustainable Development in the Oil and Gas Industry: A Case Study of Royal Dutch Shell

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This report examines the environmental management practices of Royal Dutch Shell, a major oil and gas company, in the context of sustainable development. It explores the three stages of oil production (upstream, midstream, and downstream), the environmental impacts of the oil and gas sector, and the challenges faced by companies in implementing sustainable practices. The report also discusses vital strategies for achieving sustainability, including the use of renewable energy sources, information technology, and corporate communication. Finally, it analyzes future developments in the field and the challenges that lie ahead for the oil and gas industry in achieving sustainable growth.

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Environmental Management for Sustainable Development
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Contents
Introduction:............................................................................................................................... 3
Report:........................................................................................................................................4
Background:............................................................................................................................... 4
The three Stages of oil production:........................................................................................5
Impacts of oil and gas sector on environment:....................................................................... 6
Challenges faced by oil and gas companies:..........................................................................7
Vital strategies:...................................................................................................................8
Environmental pollution:....................................................................................................9
Future development in field:................................................................................................10
Challenges in development:..............................................................................................11
Conclusion:.............................................................................................................................. 13
References:............................................................................................................................... 14
2

Introduction:
Oil and gas can be estimated as one of the biggest areas on the planet as far as earning; it is a
livewire for drawing in a huge number of specialists all through the World and furthermore
producing billions consistently. In the task, a report will be presented as a consultant on the
sustainable factors that oil and gas companies require to plan for the purpose of
implementation. Royal Dutch Shell a United Kingdom oil organization situated in Britain and
works one of the main single hydrocarbon systems. In the undertakings, the parts and exercises
inside the downstream division of Royal Dutch Shell are clarified. The impacts of the
macroeconomic elements are contemplated and an exchange of the manners in which how
Royal Dutch Shell finances to the indigenous individuals is given. The hugeness of
accomplishment in the business condition has been examining the assignments underneath. A
critical reflection on the insights how the oil and gas companies need to manage and
accommodate the future changes have been provided.
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Report:
Background:
Sustainable development is an indispensable strategy that takes into consideration the
advancement and adjusts of the environment. Alternate types of improvement are impelled by
particular need with no emphasis on the future ramifications. The harm can be seen and felt
everywhere throughout the world. Living in as far as possible is among the fundamental
standards of sustainable improvement. Nonetheless, the focal point of reasonable advancement
is very broad than simply concentrating on the environment. It includes being enthused about
the solid, wellbeing and network by and large. This includes obtaining the broad wants of the
network presently and later on and also propelling individual affirmation and social
development. This attention to maintainable advancement includes getting enhanced
approaches to meet objectives today and later on (Abdulrahman, et. al., 2015).
We may need to modify the way that we work and live. This has no implying that the nature of
our lives will be affected in an unfavourable way. A sustainable advancement strategy includes
procuring a few points of interest in a particular day and age. In countries where oil and gas
assets are in huge numbers, they are being progressed to a more noteworthy level because of the
monetary points of interest that are obtained. As on account of the United Kingdom that has
petroleum derivative holds that are gradually getting drained, they need have to consider
different types of vitality that are sustainable. Being among the main purchasers of vitality and
maker of power there is need to have centred around more sustainable wellsprings of vitality. It
has possessed the capacity to centre around territories like hydroelectric power creation and
sun-powered vitality among others. These among other Sustainable energy sources are
intended to go about as a pad to help control the declining climatic conditions.
Contemplating that different nations have started to centre around feasible sustainable power
source assets emerging from the nonappearance of non-renewable energy source stores, United
Kingdom can turn into a decent case. A decent case of the returning to the utilization of
sustainable power sources. Considering that these countries are not helped by the creation of
sustainable assets, all the more so oil and gas, they have ventures that consider the economy to
flourish. Consequently, United Kingdom is a decent case of a nation that utilizations
inexhaustible advances for a financial advance. For carrying out the discussion about
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sustainable development further an example has been taken on a major oil and gas company
from the United Kingdom, i.e. Royal Dutch Shell.
The three Stages of oil production:
There are generally three divisions in the oil and gas industry, upstream, midstream and the
downstream. The downstream division identifies with the cleaning of the oil rough and after
that additional allotment of the natural gases (Junior, et. al., 2017). The downstream activities
are thru after formation fragment through the purpose of the offer. At Royal Dutch Shell
activities of the downstream division may incorporate cleansing of the raw petroleum and after
that apportioning its side-effects. Royal Dutch Shell manages items like gas, diesel, gaseous
petrol fluids and different wellsprings of vitality at the retail level. Imperial Dutch Shell has
advertising associations with various ventures in Saudi Arabia, Singapore, China and
Netherlands which helps them to arrange the traverse of the value tie from apparatus to the
customers, this additionally helps them to increase the value of their items at each progression.
Royal Dutch Shell is completely incorporated oil undertaking and furthermore a World pioneer
in the test, cleansing, circulation and promoting of the petrochemicals. To accomplish the
objectives Royal Dutch Shell has been making some genuine speculations to swell their
purging and the petrochemical generation capacities. Royal Dutch Shell is planning to have
further local refineries to expand their downstream they have in progress edifice of a refinery in
the United Kingdom and furthermore finishing the assembling of synthetic concoctions plant
that will be able to yield in excess of 3 million tons of Chemical compounds each year. For
more noteworthy downstream Royal Dutch Shell persists to pursue and evaluate the overall
openings to develop their filtering and Chemical capacities and to produce the higher forms of
significant worth.
To improve the adequacy and the downstream of Royal Dutch Shell they have two noteworthy
tasks in progress. One of the ventures incorporates low-esteem deposit to high-esteem olefin
and gas produces. The second task in other countries incorporates current offices to produce
polypropylene and propylene oxide and recover ethylene. Royal Dutch Shell will be choosing a
location as a strategic accomplice for the ground-breaking strategy in refinery advancement
venture. They likewise settled an arrangement with Royal Dutch Shell for the usage of
conclusive contracts to separate the broadcast of advantages and obligations and business of the
other endeavours (Junior, et. al., 2017).
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Impacts of oil and gas sector on environment:
The oil and gas industry's tasks conceivably have positive and negative effects on a scope of
regions secured, including on networks, environments and economies. The business adds to
practical improvement in various ways, including creating immediate and roundabout
employments; providing access to vitality that empowers financial action and social
improvement; contributing significant assessment and different sorts of income to
governments; empowering advancement of cutting-edge innovations and items; putting
resources into the long haul social and monetary accomplishment of the networks in which they
work, and dealing with the effects of its activities by underlining natural security, wellbeing and
wellbeing, and human rights.
Oil and gas organization exercises, especially those in remote or immature zones, can add to
wellbeing challenges, including roundabout effects because of changes to the neighbourhood
condition and networks. Distinguishing potential difficulties requires understanding the
perplexing social, financial, geological and organic flow of a given zone. Successful outline
and administration of activities empower alleviation of potential wellbeing dangers, for
example, introduction to air and water discharges, fires, perilous gear and irresistible ailments.
Wellbeing sway appraisals can be a helpful methodology in controlling the improvement and
execution of an orderly wellbeing activity arrange for that incorporates an organization's
inward wellbeing strategies, its wellbeing hazard administration programs and any corporate
social speculations (Harhara, et. al., 2015). Insurance techniques for the strength of workers and
nearby networks could be fused from the get-go in the outline and arranging process.
The impacts of the oil and gas sector and the environment if sustainable development is
implemented can be understood in political, social technological and other factors. The
political factors in the oil and gas industry have been spoken to by the impact of a political
element. For this sector, it is measured as a vital point in the political, monetary as well as the
social level. Oil and gas companies affect the vitality creation, compound generation and
transport capacity of diverse nations. For every country autonomy in vitality, the basis is a need.
The national political variables are introduced by experts of the state, political elements and
some other non-administrative associations (Kirat, 2015). The connecting between the oil
business and the economy at a worldwide level holds immense significance as it vigorously
cooperates with each other. The overall monetary development drives the all-inclusive
utilization of oil and gas. A portion of the financial elements that are affecting the industries is a
6

Worldwide monetary emergency, over an obligation of open and private areas of United
Kingdom. The social factors express moderation, culture, religion, salary and demography of
the United Kingdom. Being an open nation there are very fewer obligations that should be
satisfied by the companies for the nearby individuals there. Oil and gas companies don’t utilize
the filthy non-renewable energy sources and coals after the mindfulness and accentuation on
the more congenial energizes. Certain industries are locked in with the Corporate Social
Obligation projects and help the countries in development.
Challenges faced by oil and gas companies:
Royal Dutch Shell or other companies can continually centre around advancement and
increment their proficiency as they have higher money saves. Royal Dutch Shell keeps a look
on open development display that appearances to the utilization of asset base. Royal Dutch
Shell has proceeded with interests in the key advancements and other joint ventures that are
aiding its downstream business (George, et. al., 2016). The exploration of Royal Dutch Shell on
its area of expertise is typically centred around the upstream, downstream and other feasible
areas that help them to develop. The vitality endeavours of the Royal Dutch Shell essentially
centres around the upstream and downstream interests in the oil and gas, sustainable power
source, the productivity of water divisions et cetera.
Oil and gas companies have certain administration directions on their oil and gases. A portion
of the innovative and modern fixations are likewise looked by the industry. The innovative
limit is expanding with specific ventures. The lawful variables are spoken to by the constant
laws, directions and the boundaries all over the world. For this companies’ lawful elements are
additionally forced on the contamination, work associations and the buyer security (Oltmans,
et. al., 2016).
The oil and gas companies working in the country have done interests in the inexhaustible
division. The financial specialists can be baited by the feasible factors in the forthcoming
perspective of the Initial public offering. Royal Dutch Shell is intending to create around 10
gigawatts of vitality by the usage of sun oriented, wind and the atomic assets. This move of
Royal Dutch Shell will be the arrangement of United Kingdom to be a powerhouse of the
sustainable power source in the long haul by 2030.
There is diverse kind of challenges that are faced by the oil and gas companies during and after
the application of sustainable methods. Some of the effects are of handling the government
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pressure over the environment. The governments all over the country have been introducing
ambitious carbon reduction targets which have been put into the business in the high pressure of
slashing the emissions (Martini, et. al., 2017). The oil and the gas industry have been
scrutinised closely and the various firms have also been expected to be device and fresh ways to
extract the natural resources at the time of diminishing the pollution. The other issues were of
attracting the investment as the production had been slammed in the year 2011. This thing had
caused the investors to have various thoughts before putting their money into the oil industries.
To meet with the demands of all over the world there is need of sufficient depth, accuracy and
the transparency.
There are many other sustainability challenges faced in the oil and gas industries. Issues of
growth, balances. Technology or innovations there is diverse kind of challenges. Overall
forces, for instance, geopolitical weights are irritating the business. Henceforth, there is a need
for data and aptitudes to successfully acclimate to the geopolitical diffidence in the business. It
is moreover imperative to endeavour reasonable undertakings towards imagining and
responding to the essential changes in the whole circle. A couple of challenges in the upstream,
downstream and midstream oil and gas industry consequent to implementing sustainability can
be feasibly settled if highlight can be laid towards the new dependencies in between the senior
organization information, operational feasibility and fundamental direction. There is
furthermore demand to assess and understand their influence on the overall by and large
incomes (Epstein, 2018).
Vital strategies:
The important strategy for the production of this issue is by coming up with voting means and
streets for the oil examination. All the more thusly, there is a need to use the best in class
progressions available today for changing over various regular advantages for oil-based wares.
Selective wellsprings of oil can be planned with a specific utmost impartial to except the
world's oil and gas (Wagner, 2015). A better than average occurrence of this is agrarian things
and biofuel. in Utilisation of Shale oil can be utilised as an elective wellspring of oil or
imperativeness.
The models utilised by the oil business in the twentieth century are twisting up slightly
antiquated. The models are currently truly standing up to encounters of sustainability and
clearly, new models are actuality created. The joined model has a special propelled justification
8

went for providing a trademark bolster, grandstand get to and balanced financing. The
downstream part could subsidize the upstream fragment with a particular ultimate objective to
achieve more noticeable movement. By making sure better coordination, the oil and gas
industry can alter its upstream as well as the downstream assignment and from this time
forward reduce unconventionality and perils.
Oil wanders, for instance, ExxonMobil, Royal Dutch Shell, and ConocoPhillips by and large
use vertical blend show which incorporates the entire regard chains. Uneasiness in hypothesis
has in like manner extended since all the higher market does not comprehend the approximation
of compromise. Economies of scale and the admittance to development have been lacking to
deal with the concerns looked towards the upstream piece of the oil business. A part of
challenges looked in the upstream sections today are instigated by the construction of the
downstream portion, sustainability and money related pros.
This is another danger looked in the oil and gas division after supportability which has
provoked the direct improvement of a couple of firms in the upstream part (Barati and Liang,
2014). Most by far won't orchestrate budgetary defencelessness as a challenge or danger
anyway on intentionally dismembering, it will end up being to a great degree apparent this is a
challenge. It is only defencelessness in money related viewpoints. It can be effectively
portrayed as the dark vision or likelihood of getting or adversity. Notwithstanding whether this
feature is estimated as a risk or not, it specifically influences work, pays points of view and
correspondence among the diverse associations and the industries in the regard chains of the oil
business.
Environmental pollution:
Environmental pollution is said as an imperative concern towards the upstream oil and gas
fragment. There are packs of oil and corroded pipelines that are still utilised today coming to
fruition to the oil spill that ruins the earth. Downstream section is going up against a veritable
challenge after supportability in the opinion of truancy of the Information knowledge
management (IKM). With a specific utmost objective to make due, there is a requirement for
joint forces and participation in between diverse organizations to have the capability to
fastening the concerns in the oil and gas part (Contrafatto and Burns, 2013).
There is an improvement of a helper overall surplus with basic fiscal advancement in numerous
areas. That is ambitious by extending purifying limit in various zones, for instance, Asia (China
9

and India), the Middle East (Saudi Arabia and the United Arab Emirates) and in Latin America
(Brazil). The total impact on an overall scale could be abridged edges (Davies, et. al., 2014).
The net advancement rate would be someplace in the scope of 25 and 30 per cent advanced than
as far as possible with a CAGR of 4% consistently. Clearly, the organized improvements may
not all be approved or wrapped up.
Diverse challenges are looked in the source segment of the crude oil and generally after
execution of viable techniques. The execution of the stock system can be fundamentally
pretentious by an advantageous stream of correct information. All desire lies in data
development to make sure the improvement at the same time regardless of the way that it starts
at now is in every way a bulk challenge. To make sure the adequacy of this methodology,
diverse systems and points of interest need to be joined together. These consolidate illustrating,
delineating and seeing of building assets (Carrier, et. al., 2012).
Corporate correspondence incorporates sorting out and managing particular inside and outside
exchanges for developing a great point of view towards the accomplices. This incorporates
delivering a message by a relationship to its gatherings of spectators that may join the
specialists, the media, assistants and so forth. With the assistance of the corporate
correspondence, affiliations will have the ability to illuminate their missions as well as the
apparatus towards achieving their inspirations and dreams. It makes accomplices be associated
with the association being alluded to.
Future development in field:
The security of the human condition and moreover prosperity protection needs to be the
primary need or stresses towards the oil and gas industry. Weight driven breaking, a run of the
mill technique in removing gas from uncommon storehouses have come to fruition to heaps of
character issues with the water table. Legislation such as utilization of ISO15926 has compelled
oil and gas associations to come it. In like manner, oil firms should pay more important
contemplations to prosperity and security subjects with higher broad undertaking stresses
through the distinctive periods of the regard chains (Lima, et. al., 2016).
With the use of strong transport system and smart procedure for spreading data, oil supply
could be automatic and pass on cost could be diminished. Information advancement should be
joined by oil firms to arrange suppliers and the customers. This can be suitably proficient with
the fitting usage of ERP. An instance of best in the class course of action is an instrument, for
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instance, GTL wanders with Qatar Oil. Royal Dutch Shell has in like manner been accepting a
basic part in this by coming full circle the advancement behind Pearl and thusly it can hold 3500
licenses in the GTL wander (Peischl, et. al., 2016).
Challenges in development:
Some of the genuine challenges in diverse parts of the world stance piles of issues and
consequences for extended esteeming. For instance, the adequately nearby oil is gotten in a
couple of locales of the world and along these lines is closed off. In like manner supply
occasionally starts from challenging as well as remote areas of the globe and its consequences
to high oil costs (Lamorgese, et. al., 2015). In case the creation price of foul is greater by
expenses will in like manner get higher. In perspective of beforehand said factors, grungy
expenses are respectably upper on the planet. To disentangle the challenge, data development
could be effectively conveyed into the circumstance to discover elective wellsprings of oil and
gas. Cutting-edge advances can be used to utilize oil sources, for instance, shale gas and so
forth.
Unmistakably, in regard chains of the oil and gas industry, upstream and downstream stands up
to bundles of troubles that have been evidently measured (Allred, et. al., 2015). These
challenges have gratified heaps of the actions towards the oil and gas industry and harmed
groups of methodology. Regardless, it has moreover ended up being extremely sure that
information advancement and customized contraptions including mechanical self-governance
are incredibly anticipated that would settle few of the challenges in the oil and gas industry and
what's more each other industry in the twenty-first century.
To know if the invert is financially plausible, the cost of the oil and gas fill in as the essential
factor. The value dangers have been looked because of the offbeat extraction that costs higher
rather than the vertical bore down to the store. The ventures of Royal Dutch Shell could not be
closed straightforwardly yet the organization endeavours to estimate the costs that are probably
going to increment over the term of the task. Value hazard fills in as a constant partner
alongside the undertaking
For Royal Dutch Shell free market activity can be genuine stuns, tasks of the items take a great
deal of capital and day and age. The uneven creation of produces is the thing that aftereffect of
the adjustments in costs. The adjustment in costs can become scarce the supply of the items and
the request can vary with the variance of costs (Hasheminasab, et. al., 2018). Putting resources
11

into oil and gas can't be a whole deal for Royal Dutch Shell as there is a substantially higher
prerequisite and interest for the vitality that makes the oil and gas as a side piece of the request
yet at the same time there could be higher benefits in the oil and gas industry for Royal Dutch
Shell.
Worldwide demand for oil keeps on growing and there are diverse possibilities of development
in the sustainability of oil and gas industries. In this industry, lower prices are a challenge and
also an opportunity for the industry. The companies that are a strong presence in the industry
tend to grow even stronger in the future. There are various tricky tasks for the engineers in this
field such as of lowering the production cost and increasing the efficiency of current workings.
Currently, the alternative of oil and gas services are getting much viable. In the future terms,
there will be electrically operated machines in the commonplace. The renewable energy
sources such as wind power are developing much economical, this can probably crowd out the
fossil fuels. Many of the individuals pretend that environment is not a part of their world and
utilise the resources as per their needs. There is large scale pollution occurred at the time of the
oil rig, this leads in developing the ways and accepting to secure the environment. Social as
well as economic systems at various conditions mimic towards the natural systems. There is a
diverse kind of legal and social factors that are protecting the environment. There is a need of
taking up steps towards securing the environment by saving the fuel. The major oil and gas
industries are located in Saudi Arabia, the United States, Russia and other such countries. Oil
and gas provide large benefits to the economy and the sustainability needs to be maintained so
that environment can be protected.
12

Conclusion:
From the task above it can be concluded that the oil and gas industry is on constant
development and there are chances of higher growth in the future. There is a large number of
challenges when it comes to sustainability such as expansion, environment, technology and
support which could lead to high changes in this sector. In the assignment, learnings have been
gained on the upstream, downstream and midstream of the oil and gas production. The task
provides knowledge of the impacts of the oil and gas sector on the environment if sustainable
development is implemented. The challenges that were faced in the task had been also
explained in the context of oil and gas industries. Few of the theories had been explained by
using Royal Dutch Shell as the initial organisation.
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References:
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Fuhlendorf, S.D., 2015. Ecosystem services lost to oil and gas in North
America. Science, 348(6233), pp.401-402.
 Barati, R. and Liang, J.T., 2014. A review of fracturing fluid systems used for hydraulic
fracturing of oil and gas wells. Journal of Applied Polymer Science, 131(16).
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phytochemicals, primary metabolites and value-added biomass processing. John Wiley &
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gas company. Journal of cleaner production, 136, pp.197-212.
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Environmental Management for Sustainable Development in the Oil and Gas Industry: A Case Study of Royal Dutch Shell

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