Environmental Management for Sustainable Development in Oil and Gas

This report provides a detailed analysis of environmental management for sustainable development within the oil and gas industry. It begins by outlining the three stages of oil and gas production: upstream, midstream, and downstream, emphasizing the crucial role of sustainability. The report explores the impact of sustainability on oil and gas companies, highlighting the benefits such as improved brand image, increased efficiency, and compliance with regulations, while also acknowledging the associated challenges, including high implementation costs. It further examines the challenges faced during and after the implementation of sustainable methods, such as financial burdens and operational complexities. Finally, the report discusses future developments in sustainability and sustainable development, emphasizing the importance of these concepts for long-term success and environmental protection. The report concludes that promoting sustainability is essential for the oil and gas industry's future.

Running head: Environmental management for sustainable development
Environmental management for sustainable development

Environmental management for sustainable development
Table of Contents
Introduction.................................................................................................................................................3
Upstream, midstream and downstream......................................................................................................3
Impact of sustainability on oil and Gas Company........................................................................................4
Challenges facing oil and gas companies during and after implementation of sustainable methods..........5
Future development in the field of sustainability and sustainable development........................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
2

Environmental management for sustainable development
Introduction
The report talks about the oil and gas company and it also explains the significance of
sustainability in such company. It describes that how sustainable factors influence the business
activities and operations of the oil and gas company. It tells that how sustainable development
protect the business as well as natural environment across the world. It explains the stages of oil
and gas sector such as upstream, downstream and midstream. In addition, it explains adverse
impact of the sustainable methods in the organization. Along with this, the report explains the
future benefits in the field of sustainable and sustainable development within the oil and gas
industries.
Upstream, midstream and downstream
Petroleum is an integral part of the modern day. Sustainability plays a vital and crucial
role in oil and gas companies. There are three stages of the oil and gas production such as
upstream, midstream and downstream. The costs of other commodities increase with an increase
in the cost of oil and gas. Therefore, it is essential to regulate and formulate the cost of oil and
gas in order to ensure the prices of other products and services which are decreasing. None of the
modern society can run easily without oil and gas sector. The demand for oil and gas is
increasing day by day (Henry, and Henry, 2015).
Upstream: Upstream refers to the production and exploration sector. Upstream is the important
sector of the oil and gas company. This sector involves extensive and intensive towards deciding
the actual places where crude oil and gas is located (Cocuzza et al, 2012). In upstream,
exploration is very complex process thus it requires the product and service of the specialist and
experts in the same field. Moreover, information technology plays an integral role in the
searching and exploration of crude oil in order to easily discover new grounds to gain the various
advantages in the market. The upstream sector involves various types of operations such as the
searching and exploration under gas and water oil field, and it also includes the requisite
operations on the wall so that natural gas and crude oil could bring to the ground surface ( Saad,
Mohamed Udin and Hasnan, 2014).
3

Environmental management for sustainable development
Midstream: It is the second stage of the oil gas industry and it plays a vital role in oil and gas
sector. This sector includes the refined petroleum or transportation of crude products such as
truck or rail, pipeline, and oil tanker barge. This sector also includes wholesale marketing efforts
and storage of products around the world. Midstream helps to purify plants where natural oil and
crude gas passes through entering the refinery (Hashim, Tariq, and Sinha, 2014).
Downstream: It is one of the essential sectors of the oil and gas industry. This sector includes
the refining of the natural gases and crude oil acquired in the upstream sector as well as
distributing or selling of the products and services (Fitzpatrick, Fonseca and McAllister, 2011).
There are many products that derive from the refining of oil and natural gases such as asphalt,
diesel oil, gasoline, rubbers, liquid petroleum gas, petroleum coke, pesticides, jet fuel, synthetic
rubber and others. The downstream sector is related with consumers around the world. There are
various facilities which include in this sector such as oil refineries, petrochemical plants, retail
outlets and natural gas distribution companies. The main processes include in the downstream
and upstream such as extraction, exploration, marketing, refining and transporting. Now it is
assumed all three stages play a significant role in oil and gas industry. Further, there is a close
relationship among sustainability, upstream, downstream and midstream (Maleki, Rosiello and
Wield, 2016).
Impact of sustainability on oil and Gas Company
Sustainability plays a vital role in oil and gas industry in order to achieve the sustainable
development and growth. Through sustainability, the oil and gas company tries to mitigate and
eliminate risk and challenges of the market across the world. In today’s era, sustainability plays a
vital and integral role in each and every business. There are three components of sustainability
which include social, economic, and environmental. The triple bottom line can be used in
evaluating and analyzing an organizational performance in social, environmental and economic
dimensions. The high greenhouse gas emissions and contribution to climate changes are leading
factors to maximize and increase investor and regulatory (Guilford, Hall, O’Connor, and
Cleveland, 2011).
There are various benefits of the sustainability in oil and Gas Company. It improves the
brand image and reputation of the company. Further, it helps to increase and maximize the
4

Environmental management for sustainable development
productivity and efficiency of the company and it reduces the cost of the firm in the global
market. It increases and enhances the ability to comply with rules and regulations. Sustainability
has a positive impact on the investors and employees (Cocuzza et al, 2012). It helps to attract
more employees and investors in oil and gas industry. Along with this, it also helps to mitigate
and eliminate the wastage and greenhouse gas emissions in the environment. It preserves the
human resource by reducing the cost of oil and Gas Company. The shareholders and employees
make happy by maintaining sustainability in the organization as well as the environment. It also
helps to improve the utility grid management (Spence, 2011). Further, sustainability protects the
environment and it also helps to maintain effective ecosystem within the organization. Through
sustainability, the company is able to meet the long-term goals and objectives of the firm. Along
with this, it reduces the ecological impact of the environment. It also minimizes and eliminates
the damages and wastage of the company. Apart from this, there are some disadvantages of the
sustainability which affect the business activities and operations negatively (Cocuzza et al,
2012). The companies invest a huge amount to make sustainable strategies and policies within
the organization. It increases the cost of the company. Therefore, the company has to bear a lot
of loss. It affects the profit and revenue of the company adversely. It is one of the biggest cons of
the sustainability in oil and gas companies. The company can encourage and promote innovation
and modernization through sustainable development. It also improves and enhances the living
standards of the people with maintaining sustainability within the organization (Yusuf et al,
2013).
Challenges facing oil and gas companies during and after
implementation of sustainable methods
Sustainable development refers to the development of an economy or a country in a way
that does not deplete and exhaust the natural resources in the environment. But sometimes it is
difficult for the companies to maintain sustainability within the organization as well as the
environment (Dincer and Acar, 2015). Therefore, the oil and gas companies will have to face
various challenges while implementing sustainable methods within the organization. The costs of
the sustainable methods are much higher than the costs of non-environmental friendly methods
in the global market. Further, organizing, administrative and monitoring costs are much higher
while implementing sustainable methods in the organization. These costs affect and influence the
5

Environmental management for sustainable development
sustainable development adversely. The company cannot utilize the natural resources while
implementing the sustainable development methods in the organization. It also affects the whole
economy of the country. In this way, various challenges and obstacles are faced by the oil and
gas company around the world (Fitzpatrick, Fonseca and McAllister, 2011).
Sometimes, oil and gas companies also break the rules and regulations during
implementing sustainable methods in the organization. Along with this, the company is not able
to maintain transparency and flexibility in the global market while implementing sustainable
development methods and approaches globally. Further, the company will have to face
operational challenges within the organization (Chu and Majumdar, 2012). The employees will
have to take training and development coaching to the employees for implementing sustainability
within the organization (Cocuzza et al, 2012). It will increase the training cost and operation
cost of the company. The employees have to learn and understand the new process, plans,
policies, and strategies of the company for implementing new technologies in the organization.
Therefore various challenges are faced by the company while implementing sustainability in the
organization. It is the time consuming and expensive process (Fitzpatrick, Fonseca and
McAllister, 2011). In this way, the company cannot overcome on the competitors around the
world. It also reduces the labor cost of the oil and gas industry. Further, the company needs to
focus on the climate and environment of the country. In this way, the company is not able to look
after the business activities and operations of the firm (Guilford, Hall, O’Connor, and Cleveland,
2011). It affects the success and growth of the company. In this way, sometimes organizations
face various challenges and difficulties before and after implementing sustainable development
methods within the organization. Further, sustainability is not enough to conserve the natural
resources of the environment (Lam et al, 2016).
Future development in the field of sustainability and sustainable
development
Sustainability and sustainable development play a vital and crucial role in order to
expand and flourish business activities and operations across the world. Sustainable development
is a development that attains and meets the needs and requirements of the present without
compromising the ability and potential of future generations’ to meet the needs, desires, and
expectations of the future (Schneising et al, 2014). It provides satisfaction and morale to the
6

Environmental management for sustainable development
people around the world. Further, it increases the living standards of the people in the world. It
helps to remove the poverty of the country. In addition, it will also contribute to future economic
development to gain long-term success and growth around the world. Equal income of
distribution is possible by maintaining sustainability within the organization. Effective and
unique planning can be possible through sustainability and sustainable development (Chima,
2011).
It will also help to protect the rights of the stakeholders within the organization. There are
various factors involve in sustainability such as legal, industrial, financial and environmental
factors which can affect the performance and efficiency of the organization as well as employees
positively and negatively. It also helps to render various growth and success opportunities to the
organization. Along with this, it will conserve natural resources and it will reduce the pollution
of the environment (Rawat et al, 2011). Sustainable development reduces the negative impact of
the environment by creating energy efficient and effective model of self-sufficiency. It will also
help to maintain an effective and unique culture in the organization to do work effectively and
efficiently. There are three pillars of the sustainability such as economic development,
environmental protection and social development (Cocuzza et al, 2012). It also reduces the
financial burden and it also reduces the power consumption within the organization. It also helps
to maintain corporate communication and collaboration within the organization. It will also
reduce the negative impact of Ozone gas in the environment. Further, the company will comply
the health and safety regulations within the organization. It will provide job satisfaction and job
security to the employees. In addition, it will increase and maximize the net worth of the
shareholders within the organization (Chu and Majumdar, 2012). It will also help to provide a
favorable working environment to the employees for improving the productivity and efficiency
of the organization. Along with this, the oil and gas company can predict the future challenges
and risks by maintaining sustainability within the organization.
Conclusion
On the above discussion, it has been concluded that sustainability plays a major role in oil
and Gas Company. It provides various benefits to the employees within the organization. The oil
and gas industries must promote and enhance the sustainability and sustainable development in
the organization to protect the environment of the country. On the other hand, the oil and gas
7

Environmental management for sustainable development
company also face some challenges while implementing sustainable development methods
within the organization. Further, the company should make effective policies, plans and
strategies to beat the competitors around the world. Sustainability and corporate social
responsibility play a crucial role in every organization in order to fulfill the needs and
requirements of the organization.
8

Environmental management for sustainable development
References
Chima, C.M., 2011. Supply-chain management issues in the oil and gas industry. Journal of
Business & Economics Research (JBER), 5(6).
Chu, S. and Majumdar, A., 2012. Opportunities and challenges for a sustainable energy
future. nature, 488(7411), pp.294-303.
Cocuzza, M., Pirri, C., Rocca, V. and Verga, F., 2012. Current and future nanotech applications
in the oil industry. American Journal of Applied Sciences, 9(6), pp.784-793.
Cocuzza, M., Pirri, C., Rocca, V. and Verga, F., 2012. Current and future nanotech applications
in the oil industry. American Journal of Applied Sciences, 9(6), pp.784-793.
Dincer, I. and Acar, C., 2015. Review and evaluation of hydrogen production methods for better
sustainability. International journal of hydrogen energy, 40(34), pp.11094-11111.
Fitzpatrick, P., Fonseca, A. and McAllister, M.L., 2011. From the whitehorse mining initiative
towards sustainable mining: lessons learned. Journal of Cleaner Production, 19(4), pp.376-384.
Guilford, M.C., Hall, C.A., O’Connor, P. and Cleveland, C.J., 2011. A new long term assessment
of energy return on investment (EROI) for US oil and gas discovery and
production. Sustainability, 3(10), pp.1866-1887.
Hashim, A.S., Tariq, D.M. and Sinha, E.P.K., 2014. Application of Robotics In Oil and Gas
Refineries. International Journal of Mechanical Engineering & Technology (IJMET), 5(10),
pp.1-8.
Henry, N.F. and Henry, O.N., 2015. Wireless sensor networks based pipeline vandalisation and
oil spillage monitoring and detection: main benefits for nigeria oil and gas sectors. The SIJ
Transactions on Computer Science Engineering & its Applications (CSEA), 3(1), pp.1-6.
9

Environmental management for sustainable development
Lam, S.S., Liew, R.K., Jusoh, A., Chong, C.T., Ani, F.N. and Chase, H.A., 2016. Progress in
waste oil to sustainable energy, with emphasis on pyrolysis techniques. Renewable and
Sustainable Energy Reviews, 53, pp.741-753.
Maleki, A., Rosiello, A. and Wield, D., 2016. The effect of the dynamics of knowledge base
complexity on Schumpeterian patterns of innovation: the upstream petroleum industry. R&D
Management.
Rawat, I., Kumar, R.R., Mutanda, T. and Bux, F., 2011. Dual role of microalgae:
phycoremediation of domestic wastewater and biomass production for sustainable biofuels
production. Applied Energy, 88(10), pp.3411-3424.
Saad, S., Mohamed Udin, Z. and Hasnan, N., 2014. Dynamic supply chain capabilities: A case
study in oil and gas industry. International Journal of Supply Chain Management, 3(2).
Schneising, O., Burrows, J.P., Dickerson, R.R., Buchwitz, M., Reuter, M. and Bovensmann, H.,
2014. Remote sensing of fugitive methane emissions from oil and gas production in North
American tight geologic formations. Earth's Future, 2(10), pp.548-558.
Spence, D.B., 2011. Corporate social responsibility in the oil and gas industry: The importance
of reputational risk. Chi.-Kent L. Rev., 86, p.59.
Yusuf, Y.Y., Gunasekaran, A., Musa, A., El-Berishy, N.M., Abubakar, T. and Ambursa, H.M.,
2013. The UK oil and gas supply chains: An empirical analysis of adoption of sustainable
measures and performance outcomes. International Journal of Production Economics, 146(2),
pp.501-514.
10