Analysis of Harmony in Business: OGUK and Environmental Impact Report

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This report analyzes the principles of harmony in business with respect to the UK-based oil and gas extraction company, OGUK. It examines the environmental damage caused by the company's activities, focusing on emissions, oil spillage, and their impact on human health and the environment. The report explores the 'triple bottom line' approach, considering the impact on people, the planet, and profit. It highlights the importance of responsible business practices, including the need for companies to control environmental damage and invest in sustainable technologies. Examples of businesses like BP and Sunoco are provided to illustrate the importance of harmony in business. Finally, the report offers recommendations for OGUK to improve its environmental performance and contribute to a safer and more sustainable future, emphasizing the benefits of harmony for the economy and society.
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Business and harmony with enviornment
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ENVIRONMENT FRIENDLY BUSINESS
Table of Contents
Introduction................................................................................................................................2
Analysis of the functions of OGUK...........................................................................................2
Environmental pollution by the activities of the company........................................................2
Principles of harmony with a responsible business....................................................................3
PPP Approach: The ethical measure of businesses:...............................................................3
The people bottom line.......................................................................................................3
The environment bottom line.............................................................................................3
The future impact bottom line............................................................................................4
Harmony Business and Economy..........................................................................................4
Example of businesses which recognise the importance of harmony in business.................5
Recommendations:.....................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................9
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ENVIRONMENT FRIENDLY BUSINESS
Introduction
In this report the principles of harmony will be analysed with respect to oil and gas extraction
offshore company of UK named as ‘OGUK’ this is one of the famous oil and gas exploration
and Production Company of UK. Oil and gas companies are responsible for damaging the
environment because of their operational activities. Business activities of OGUK will be
analysed in this report. An analysis will be done over the impact of the various activities of
oil & gas exploration firms on environment. The focus will be given on the social,
psychological and economic problems of the business. In the end, recommendations and
suggestions are derived by analysing the case study in order to get a safer environment by
establishing harmony in business.
Analysis of the functions of OGUK
The OGUK is the major representative company in the offshore oil and gas industry in UK. It
makes a major contribution in the economy of UK by producing various significant products
like oil, gas, energy, fuels and many other supplementary products which are very useful and
demanded by the people of society. The company extract crude oil and other hydrocarbons by
extracting it from oil & gas reservoirs inside the earth crust. Usually these reservoirs exist
near the offshore of any oceans or water bodies (OGUK, 2019).
Hydrocarbons and crude oil are brought to be on the surface of the earth with the help of
drilling from the surface of the earth into the reservoirs. In all the process of extracting the
hydrocarbons, the harmful emission of greenhouse gases generated. Especially generation of
methane gas is occurs in this process and emitted directly into the environment which is 86
times more harmful than carbon dioxide gas (OGUK, 2019).
Environmental pollution by the activities of the company
If these activities are taking place near the residential areas than these harmful emissions of
gases results in various human diseases like Asthma, respiratory diseases, skin diseases,
irritation in eyes, headache, sleep disorder and many other life taking diseases (Zhuanlan Sun,
2019).
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The emission of these harmful gases not only harmful for the health of the people of the
society but also it leads towards the global warming by increasing the temperature of earth. In
the process of extraction of oil, the oil spillage happens over the surface of oceans because of
accidental cases. Since oil is less dense than water, it floats over the surface of water and
block the oxygen supply inside the oceans or water bodies. It leads towards the death of
aquatic plants and animals which resides in that particular area. It not only responsible for
water pollution but also a heavy loss of bio-diversity occurs in that area which results in a
huge loss for the environment (MS Islam, 2004).
Principles of harmony with a responsible business
Every business should be responsible to the environment for its future growth. With the help
of favourable environment approach, the company can develop a positive image and
reputation in the eyes of customers, employees and investors. Moreover harmony with the
environment is one of the urgent requirements for the people of society. Any business has to
take care about the activities of its operation and ensure about a sustainable growth of
business while having an environment friendly approach. There are few models exists, on the
bases of these models the harmony of the business can be measured with respect to economy,
society and environment. Some of these models are as follows:
PPP Approach: The ethical measure of businesses:
This approach is known as a triple bottom line approach which consists of People, Planet and
Profit. This measures the positive and negative effects of the business over the people,
environment and society (arthamoney, 2018).
The people bottom line
This includes the impact of various activities of business with respect to people of society,
employees, customers and every person. According to the study of this company, the
emission of harmful gases is extremely harmful for the employee who is involved with the
extraction process. The emission of harmful gases like carbon di oxide, methane and other
greenhouse gases are results in severe diseases. It negatively impact over the health of the
people (Jennifer Schneider, 2013).
The environment bottom line
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Oil and gas companies are very much responsible towards the environmental pollution
including air and water pollution at a massive level. Not all the oil is found on land or in
shallow water. Sometimes the drilling has been done inside the deep of the water of oceans. If
not done properly, it is extremely harmful for oil workers and aquatic life of oceans.
OGUK reports in 2018, regarding accidental oil cases of North Sea oil and Chemical Spills. It
stated that around 256 tons of chemicals and 23 tons of oil were accidentally released and
spilled over the North Sea in 2017. The marine environment of North Sea has faced 451 oil
and chemical spillage cases only in 2017. The oil spilled amount in 2016 was 115 tons that is
almost five times the oil spilled in 2017. According to the OGUK’s health & Safety report
2018, around 100 hydrocarbons are released into the North Sea in 2017 (Husseini, 2018).
This statistics represents that all oil and gas extracting companies including OGUK is highly
responsible for the environmental damage. Oil and chemical spillage results in a severe
damage of nature (Husseini, 2018).
The Environmental report of 2018 stated that oil and gas industry contributes around 3% of
total greenhouse gases emission of UK which is stable since 2016. The Environmental
manager of Oil and Gas UK named as ‘Katie Abbott’ pointed out that despite of having
advanced technology in the field of oil and gas extraction, they are facing challenges related
to protection of environment (McPhee, 2018).
The future impact bottom line
This approach refers to the analysis of the activities of the company over the future. The
companies have to control over the environmental damage for the safety of future generation.
The oil and gas companies need to control over the accidental cases related to oil and
chemical spillage in the Oceans and water bodies. The emission of harmful greenhouse gases
also needs to be controlled with the help of latest techniques (Jennifer Schneider, 2013).
Harmony Business and Economy
Harmony business will not only beneficial for the environment but also leads towards the
benefits for the whole economy. Environment friendly activities of business will results in
good reputation in the eyes of customers and investors. Good public image results in
enhancement of sale and ultimately it leads towards profit to the firm. If the business
practices are damaging the environment, the company has to spend to recover the damage of
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the environment and it will results in financial loss for the company. That is why doing
business with harmony will always beneficial for the company. Harmony business refers to
such types of business practices which ensures about the well-being of people, environment
and economy (Mehmet Sinan Bilgili, 2019).
For example: If any oil and chemical spillage accidental case occurs, it severely affect the
marine life as well as if the company adopt the technique to clean its oil spillage from water,
it costs a lot to the company (Alberto Ribotti, 2019). It represents that company should have a
control over oil spillage rather than controlling the side effects of the accidental cases
(Husseini, 2018).
Like: SCO are using to clean oil, petrol, plastics, sludge and debris from the oceans in order
to make the aquatic life better and for the safety of environment (Cleaner, 2019).
The oil & gas exploring companies are struggling for reducing the emission of greenhouse
gases. Although companies are doing a lot of activities related to CSR for controlling the air
pollution. But making a control in its operational activities related to emission of harmful
gases is more important (Vartan, 2011).
Emission of green-house gases results in global warming and to cope up with the effects of
global warming is a matter of concern for the government and the economy of the country.
Global warming results in many natural hazards like: floods, droughts, acid rain and other
harmful natural phenomenon. Several people die every year by floods and the properties
being damaged. It cost very much to the economy of the country. It also affects the lifestyle
of the people of the society by affecting them with various diseases. That is why rather than
dealing and spending on the consequences of air pollution, it is far better to control the air
pollution at preliminary stage (Cheremisinoff, 2018).
For example: Air purifier and carbon particle absorber plants should be established by oil &
energy exploration companies by making sure that emitted air is mixed with the environment
only after its purification by removal of SPM and carbon particles from it (affairs, 2019).
The air pollution generated by oil & gas exploration companies may results in SMOG. It is an
extensive form of air pollution made by combining smoke and fog which results in blocking
the view. Smog also creates problem in breathing and become a cause of diseases of
respiratory system. The government of the country has to adopt various techniques to remove
the smog to avoid accidental cases on road and in air (arthamoney, 2018).
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People are suffering a lot because of the harmful effect of air pollution. Air pollution not only
results in diseases of respiratory system but also it leads towards accidental cases because of
fog and smog on roads. Delay in flights and trains are very often because of blocking view
due to fog. The increasing level of nitrogen di oxide results in acid rain. It is responsible for
damaging buildings and monuments. Companies have to control over the air pollution by
limiting their use of fossil fuels and by filtration of air (Cheremisinoff, 2018).
Like: UK is using smog stop barrier technology to break down the particles of smog and get
the area smog free. The cost of these techniques has to bear by the whole economy. That is
why it is better to have a control over the air pollution at the beginning stage of its creation.
The oil & gas companies have to make proper plants to stop the emission of harmful gases in
environment (System, 2018).
Example of businesses which recognise the importance of harmony in business
(1) British Petroleum (BP):
BP is very concerned with the environment protection because of climate change. It
is investing money in biofuel technologies which are perfect substitute of fossil fuels
like investing in solar and wind projects and investing in fuels of hydrogen. These
fuels do not emit carbon particles after burning. BP is also involved in reducing the
water pollution, reducing the emission of greenhouse gases and other latest
technologies to reduce the emission of harmful gases like carbon di oxide, methane
and other greenhouse gases (Ross, 2019).
(2) Sunoco:
Sunoco is a Pennsylvania based oil and energy company which is famous for his
environment friendly techniques to reduce the emission of harmful gases and prevent
water, air and earth pollution. It is promoting sustainable use of natural resources. It
focusses over conserving energy. Moreover the firm is taking the responsibility, if any
harm is caused by the activities and operations of the company to its employee,
consumers and the people of the society (Ross, 2019).
(3) Exxon Mobile:
In 2009, Company invested around $100 billion in research of techniques of biofuel
with its agenda “Protect tomorrow. Today” The Company is doing a lot of research in
reducing the emission of harmful gases and enhances the use of biofuel (Ross, 2019).
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The company developed a very feasible and suitable approach related to the
protection of environment with the help of increase the use of bio fuel.
(4) Aerial Power:
It is a London based company which manufacture small drone based vehicles. These
vehicles are used in cleaning the solar panels and helps in gaining the solar energy
without any obstacle for the various operations of the company (Jones, 2019). The
company focusses over the use of solar panels by which need of electricity generation
can be reduced.
Recommendations:
(1) The companies having the operations of extracting oil and energy from earth has to be
aware about the limited consumption of fossil fuels as these fuels should be conserved
for future generation (NEWS, 2017).
(2) The company should avoid the accidental cases related to oil and chemical spillage
over the oceans. In spite of alertness, if these types of cases happen, the company has
to take responsibility to clean the oil from the surface of oceans using latest and
advanced techniques (Jake R. Nelson, 2019). More research and efforts are needed by
the companies of oil & energy to discover latest techniques of oil separation from the
surface of water (Zykamilia Kamin, 2019).
(3) The companies should involve in stopping the marine pollution in order to save the
aquatic plants and animals by not creating water pollution. Most of the time wastage
water directly mixed with water bodies which is poisonous for the animals of water. It
should be mandatory for every industry to implement water treatment plant inside
their firm to treat the harmful water with the help of suitable process.
(4) Company should focus on reuse and recycle of water in order to avoid the water
pollution and save the biological chain.
(5) Most of the industries are emitting very harmful gases inside the environment which
are severely affecting the health of people and becoming a cause of global warming.
Air treatment plant should be implemented by companies for extract the carbon
particles by plant and filter the air (JS Devinny, 2017).
(6) Air purifiers should be established inside the firm in order to get fresh air even after
emitting harmful gases from their operational activities (Ann-Kristin Bergquist,
2019).
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(7) Company should be aware about the go green concept of environment protection by
planting more trees inside and outside the organisation. Every firm should focus on
using environment friendly products especially biodegradable products for reducing
the wastage and improving the environment (S Li, 2019).
(8) The companies should strictly prohibit the use of polethyne, plastics and lithium
batteries because these are non- bio degradable products. Especially polybags and
plastic wastage severely affecting the aquatic life and becoming cause of loss of bio-
diversity.
(9) Although scientists has discovered hydrogen fuel, that do not generate any harmful
gas while burning but it is very costly for use. Hydrogen is one of the non- polluting
fuels that should be used to reduce the air pollution. That is why a lot of research is
required in the field of creation of non-polluting and affordable fuel (Hoffmann,
2019).
Conclusion
By the analysis of the OGUK Company of Oil & energy extraction, it can be said that
companies which are extracting crude oil and other hydrocarbons are responsible for creating
water and air pollution up to a massive level. Every company should involve the concepts of
harmony in their business by take care the impact of their operational activities over the
environment. If the activities of companies are damaging the environment and people of the
society, it should take responsibility of its misconduct and recover the losses done by the
company. A lot of research is required to identify and implement the useful techniques
related to reduce the emission of harmful gases, minimise the use of non- biodegradable
product and to control the marine and air pollution.
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References
affairs, D. f. (2019). CLEAN AIR STRATEGY 2019. Retrieved January 3, 2020, from
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/
attachment_data/file/770715/clean-air-strategy-2019.pdf
Alberto Ribotti, F. A. (2019). An operational marine oil spill forecasting tool for the
management of emergencies in the italian seas. Journal of Marine Science, 7(1).
Ann-Kristin Bergquist, S. A. (2019). Understanding and Overcoming Roadblocks to
Environmental Sustainability: Past Roads and Future Prospects. Business history
review, 93(1), 127-148.
arthamoney. (2018). People, Planet & Profit — Triple Bottom line — The Ethical Measure of
Businesses. Retrieved January 3, 2020, from https://arthamoney.com/people-planet-
profit-triple-bottom-line-the-ethical-measure-of-businesses-53750035035f
Cheremisinoff, P. (2018). Air pollution control and design for industry. New York:
Routledge.
Cleaner, S. (2019). SurfCleaner - for marine oil spill. Retrieved January 3, 2020, from
https://surfcleaner.com/applications/marine-oil-spill/
Hoffmann, P. (2019). The forever fuel: the story of hydrogen (1st ed.). New York: Routledge.
Husseini, T. (2018). OGUK reports on 2017 ‘accidental’ North Sea oil and chemical spills.
Retrieved January 3, 2020, from https://www.offshore-technology.com/news/oguk-
2018-environment-report-north-sea/
Jake R. Nelson, T. H. (2019). Oil spill modeling: computational tools, analytical frameworks,
and emerging technologies. SAGE Journals, 43(1), 129-143.
Jennifer Schneider, S. G. (2013). Towards Sustainability in the Oil and Gas
Sector:Benchmarking of Environmental, Health, and Safety Efforts. Journal of
Environmental Sustainability, 3(3), 1-17.
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Jones, J. (2019). 25 SUSTAINABLE UK COMPANIES THAT ARE OUT TO SAVE THE
PLANET. Retrieved January 4, 2020, from https://www.businessleader.co.uk/25-
sustainable-uk-companies-that-are-out-to-save-the-planet/66208/
JS Devinny, M. D. (2017). Biofiltration for air pollution control. Washington DC: CRC
Press: Lewis Publishers.
McPhee, D. (2018). Official website of ENERGY VOICE. Retrieved January 3, 2020, from
https://www.energyvoice.com/oilandgas/north-sea/187718/nearly-300-tonnes-of-oil-
and-chemicals-accidentally-released-into-north-sea-in-2017/
Mehmet Sinan Bilgili, E. A. (2019). Characterisation of wastes collected from beaches,
coastlines, marine surface cleaning processes and ships: A case study of Istanbul.
Sage Journals: Waste Management and Research, 37(6), 621-630.
MS Islam, M. T. (2004). Impacts of pollution on coastal and marine ecosystems including
coastal and marine fisheries and approach for management: a review and synthesis.
Marine pollution bulletin, 48(7), 624-649.
NEWS, B. (2017). How can the UK reduce air pollution? Retrieved January 3, 2020, from
https://www.bbc.com/news/uk-38990192
OGUK. (2019). The official website of OGUK. Retrieved January 4, 2020, from
https://oilandgasuk.co.uk/knowledge_centre/
Ross, S. (2019). Top 4 Oil Companies That Protect the Environment. Retrieved January 4,
2020, from https://www.investopedia.com/articles/markets/030816/top-4-oil-
companies-protect-environment-xom-sun.asp
S Li, M. G. (2019). Optimization on emergency materials dispatching considering the
characteristics of integrated emergency response for large-scale marine oil spills.
Journal of Marine Science , 7(7), 1-214.
System, G. B. (2018). BOTTOM-LINE BENEFITS: Reducing air pollution saves lives - and
money. Retrieved January 3, 2020, from https://www.smogstop.co.uk/
Vartan, S. (2011). Some Oil Companies are More Eco Friendly: Who’s Fuelling Your
Summer Drives? Retrieved January 4, 2020, from
https://www.huffpost.com/entry/some-oil-companies-are-mo_b_204477
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Zhuanlan Sun, D. Z. (2019). Exposure to outdoor air pollution and its human health
outcomes: A scoping review. Plos One, 14(5).
Zykamilia Kamin, R. S. (2019). MELT BLOWING PROCESS CONDITIONS FOR
NANOFIBERS OF POLYMERS FOR OIL-WATER SEPARATION IN MARINE
OIL SPILLS CLEAN-UP APPLICATIONS: A. Journal of Mechanical Engineering
Research and Development ( JMERD), 42(5), 205-210.
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