Business Ethics for Oil and Natural Gas - MyAssignmenthelp.com

Question: Discuss about theBusiness Ethics for Oil and Natural Gas. Answer: The oil and natural gas are the most widely demanded sources of energy in this entire global economy. It can be stated that this commodity has the power to change the entire socio-economic and environmental balance of any country. The crucial point in the extraction of oil and gas lies in the safety measure taken up by the company prior to the operational process. In addition, the company should also be ready for taking up any kind of operation required in case of accidents. They should not negate away from their liability. There have been several major accidents in the oil and gas companies that had long term impact on the society. Two such accidents have been highlighted in the given paper. A synopsis of these two incidents can clearly highlight the basic flaws and ethical issues that exists in this industry. The first incident relating to the wreck of the cargo ship Exxon Valdez during 1989 highlights the fact that there was no official license available for Gregory Cousin in piloting that vessel. Moreover the captain of the ship felt asleep. In addition, to add on with the problem it has later been found that the captain had blood-alcohol level higher than permitted and the Pipeline service which was suppose to help out in this disaster were too late in their services. The second incident related to the deepwater explosion of BP rig in Gulf of Mexico on April 20, 2010. As a result of this explosion not only 15 employees died but also it distorted the environmental balance and dampened the companys reputation in front of their stake holder. The explosion occurred possibly because there were lack of proper tests and experiments carried on prior to oil digging. Further investigation highlighted that the blowout preventer were out of service for nearly 5 months and henceforth the oil spill could not be arrested. There are several reasons which have been identified as the cause behind any of these kinds of accident. Few such reasons which has been common for any mishaps are as follows: Non-availability of proper training: It has been observed that in most of the cases the workers are not well-trained and it is this dearth in their skills that increases their negligence level which often results in fatality. Negligence on Authoritys part: The authority of the oil and gas industry often looks after the major issues and discards small problems. It is these small problems that turns out to cause a huge impact after any accidents. Say in the case of deepwater explosion, the blow out preventer was not working properly. If this small part had functioned properly it could have saved the ecosystem by reducing the level of oil spills. Usage of old technologies: The second accident reveals that the company has been using old designs and cheaper materials in making up the pipelines. In spite of the fact that the accident occurred due to some other reason but still using of old technologies should be prohibited in such a sensitive working operation. Lack of precautionary structure: Most of the company from the oil and gas industry have highly advanced equipments for daily operation of extraction of oil but most of them do not possess any proper plan for dealing with accidents. No sooner any accident occurs than the different segment in the company ends up with blame game rather than taking immediate action to stop the negative consequences of the mishaps. All the above mentioned points clearly highlights that the authority of the oil and gas company should deal more strictly in their daily operation. It is lack of proper work culture that creates the negligence. It is their duty to remember that any accident might cause a hole in their pocket in the form of penalty but it has long term impact on the environment. Oil spills kills several thousand aquatic animals. It created pollution to such an extent that the result is felt even after two decades. Hence, the government of all the nations should regulate the norms of the oil and gas industry and charge such a heavy penalty so that the company fears to break any rules. Their penalty should not be limited to one time payment but which lasts as long as the impact of the accident lasts. Hence, training on ethical issues might boost the morality of the workers and refrains them from being careless. On other hand it might also increase team unity and lessen the risk after accident by increas ing efficiency in their group work. References: Boopathy, R., Shields, S. and Nunna, S., 2012. 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