Oil and Gas Operations: Sustainable Approach and Response to Accidents

Oil and gas companies should develop a more sustainable approach in operations and management to achieve a fine balance between production and its subsequent effects on environment. This article discusses the damages caused by Exxonmobil, BP, and Royal Dutch Shell and the steps taken in response. It also emphasizes the need for a sustainable approach to business and environmental policies and regulations. The subject matter is relevant to courses related to environmental studies, business management, and engineering.

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Oil and Gas Operations
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Oil and gas companies should develop a more sustainable approach in operations and
management to achieve a fine balance between production and its subsequent effects on
environment. The operation should be designed in such a manner so as to have a minimum
environmental impact like fresh water depletion or damaging the flora and fauna. In this
respect the project management team should pay due attention to the various oil and gas
related activities like drilling, field development, and transportation of oil. Oil and gas
companies should develop a sustainable approach to business which would craft
environmental policies and regulations protecting the best interest (Grant 2016) . A judicious
approach is fundamental to eradicate social problems like squalor, proliferation of filth and
pollutants are important. In order to achieve the same many oil companies have adhered by
the policy of implementing employee training and grooming sessions by which they will be
able to alleviate vast amount of environmental issues related with such operations.
Damages caused by exxonmobil
1. ExxonMobil is a global industry leader that has taken extensive strategies to deliver
its products and services around the world (Brauer 2016). However during one of its
projects the company has caused damage to around 1500 acres of marshes, wetlands
and fresh waters in New Jersey as a result of which it caused harm to large number of
birds and marine species. It triggered mass projects due to the tremendous amount of
damage it caused to food and environment. Consequently the damage had a long-term
impact on climate of the area (Sarpy et al. 2017).
2. Another major malfunctioning of operation occurred in 1989 when Exxonmobil, then
Exxon, spilt oil causing large scale devastation to marine life, destroying fish stocks,
seabirds the carcass of which was washed up ashore (Fingas 2016). This destroyed the
aesthetic quality of the area and hampered the reputation of the company

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Steps Taken in Response
Today they have acquired an approach of sustainable development and handling of
operations, through which they design, operate and manage its projects so as to ensure best
measures to mitigate some of the plaguing issues associated with oil and gas operations for
instances emission of greenhouse gasses and toxic discharge into the sea(Brauer 2016).
Furthermore they have hired a number of experienced professionals capable of supervising
over drilling operations by strictly complying with environmental rules and policies and
encourage a feel of responsibility towards the surrounding environment amongst the workers.
Exxonmobil has also framed IMS Framework dedicated to address the immediate risk in their
business and operating as well as taking into consideration the impact it may have on the
larger community (Enneking 2014).
Damages by BP
1. According to Parsons et al. (2015). British Petroleum has made a mark in media due
to the massive amount of damage it caused to the Deepwater Horizon oil killing 11
people and destroying coastal ecosystem and marine life for years to come. The
accident which took place in 2010, made the oil spread to the deepest recesses killing
pelicans, turtles, seabirds and dolphins (Grant 2016). The 22 mile oil plume also
damaged the sea corals and caused a huge financial loss to the company. The accident
made apparent BP’s failure to implement experience team members with capability of
executing an operation anticipating its possible risks and dangers. It lacked the insight
needed to understand the value of managing freshwater and controlling toxic
discharges during operations (Fingas2016).
2. In 2009, BP witnessed an uncontrolled gas leak around Alaska’s North Slope region
which destroyed the ecological balance of the area (Langston 2017).

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3. Another major instance of BP’s carelessness happened around 2005 when a giant
explosion in Texas claimed the life of 15 workers after causing life-threatening
damage to 180 workers (Langston 2017). Due to the negligence of BP almost 15
workers were admitted with burns and critical injuries. After examination experts
found negligence in the maintenance of equipment and lack of safety workplace on
the part of BP’s organizational structure. A defective management led the massive
explosion incurring extensive loss to the company.
Steps Taken in Response
In response to these accidents BP has developed a number of sustainable goals and
strategies and has collaborated with IPIECA to achieve utmost collaboration in order to
execute projects in a sustainable manner. Over the years, they have been able to address the
key issues and assess their inadequacy in mitigating those issues. In 2016, they decided to
collaborate with FFulcru BioEnergy to get access to sustainable fuel which will control
excessive damage to fresh air that major oil and gas companies are creating (Hennchen
2015). BP has also acquired spot chattered vehicles. BP also developed a team to address the
community problems and complaints in regard to environmental issues and their operations.
They adhere to IPIECA on ensuring that their operations are not damaging the community
business ad livelihood (Sarpy et al. 2017).
Damages by Royal Dutch Shell
1. Royal Dutch Shell has evolved over times to become environment conscious
however, Royal Dutch Shell caused more than 88,000 oil spill in the Gulf of Mexico
polluting drinking waters in wells, polluting terminal and pipes (Hennchen, E., 2015).
The ecological catastrophe fetched criticisms from environmentalists over such an act
of carelessness on the part of project management’s team.

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2. Furthermore in 2003 a gas leak claimed the lives of 2 workers due to the release of
hydrocarbon gas resulting due to inefficiency in planning and organizing and a lapse
in following the improvement notice (Avio, Gorbi and Regoli 2017). This resulted in
a major halt in their operations due to their failure on ensuring the safety of their
workers.
Steps Taken in Response
Shell has however responded to accidents by deciding to upgrade its platforms and
inventing $1bn to ensure the safety of workers as the first priority (Stout et al. 2016). An
updated safety and training meant thorough compliance with the standards and safety
procedures that should be maintained in the oil and gas project operations. Shell has also
decided to cooperate with global vice-president responsible for safety, health and
environment of workers in the unit especially around the most dangerous site of operation
(Stout et al. 2016).
Additionally Shell has also carefully made large amount of investments in developing
renewable solution like wind power and bio fuels to reduce the chances of fatal accidents and
irreplaceable damage to the environment (Stout et al. 2016). These measures have the
possibility to eliminate the scenarios of oil saturation in sea beds. It is estimated that the
clean up often takes up two decades for a complete clean up and reduce further damage to
marine life. Shell has also agreed on paying compensations in order to diminish the large-
scale damage that some of their operational mismanagement that affected the livelihoods of
many people. The steps eliminated to some extent the huge damage that their series of leaks
caused to the environment.

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BP Exxonmobil Royal Dutch Shell
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Financial Loss
Severity Level
Figure: Comparison between three companies
Source: (Sarpy et al. 2017).
The above chat explains the rate of severity level that some of m
projects of the mentioned companies have caused. Severity level of enviro
indicated by green blocks while financial loss through red blocks.

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