Sustainability Challenges in Gas And Oil Industry Assignment

Sustainability Challenges
in
Gas And Oil Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Relationship between managing ethical risk in oil and gas industry and reduction in
accidents .....................................................................................................................................1
2. Compare the risks that BP, Exxon, and the fracking industry continue to face in providing
an adequate supply of energy?....................................................................................................3
3. How can ethical leadership help the oil and gas industry to manage risk?.............................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Oil and gas is the one of the industry that contribute a lot to the nation in meeting its energy
related needs. There are number of firms that are operating in relevant field. It can be observed
that in past couple of years many incidents of oil spill happened which negatively affect natural
environment to great extent. There are number of reasons due to which cases of oil spill comes in
existence. In the current report, different cases of oil spill are identified and analyzed and it is
identified whether it is possible to manage and eliminate probability of happening of accidents of
oil spill in ocean (Fingas, 2016). Detailed analysis of multiple cases is done and it is identified
that it is the human negligence that lead to origination of such kind of incidents. Hence, it can be
said that firms must follow detailed procedures when they are carrying out specific procedures.
In the report, risks that BP, Exxon and fracking industry face in providing adequate supply of
energy is also identified. At end of the report, role that ethical leadership play in helping oil and
gas industry to manage risk is also discussed in the report. At end conclusion is formed on the
basis of overall discussion.
1. Relationship between managing ethical risk in oil and gas industry and reduction in accidents
In past couple of years many accidents takes place due to oil spill. It is observed that oil
and gas are explored from sea surface level and many times mistakes are made in oil extraction
due to which oil spill happened and sea water get contaminated. Due to contamination of oil
thousands of sea water species get affected and died (Kostka and et.al., 2011). Apart from this
aesthetic nature of under sea water area heavily get affected. Thus, it is very important to ensure
that proper precautions and safety measures are adopted by the business firms to ensure that
accidents will not take place in the ocean. It is observed that these accidents takes place due to
negligence behavior of individual. This is reflected from the case of Exxon which was operating
in the oil and gas industry. As per this case operator of ship going to take rest on deck and give
its charge to the cousins. These people were not expert in operating ship and does not have
license to do so then also they were allowed to operate ship. This was the serious case of the
personal negligence. It was responsibility of captain to operate entire ship. By same does not do
so and give responsibility to those that were untrained. This was first mistake and second one
that was made by the captain of ship is that it was dunked and does not have right to operate
ship.
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