Crude Petroleum & Natural Gas Extraction - Group Project By Anthony Abdelnour
•Download as PPTX, PDF•
1 like•823 views
This document provides an overview of the crude petroleum and natural gas extraction industry. It discusses that the industry sector is mining and the sub-sector is oil and gas extraction. It notes the major oil producing states in the US and that the industry's main products are crude oil and natural gas. It discusses some of the critical CSR issues facing the industry like the resource curse, lack of access to energy, oil spill prevention and damage control. It provides assessments of Royal Dutch Shell and BP in terms of their CSR strategies and recommendations for how they could improve in areas like oil spill prevention, human rights, and increasing investments in alternative energy and green infrastructure.
Recommended
More Related Content
Similar to Crude Petroleum & Natural Gas Extraction - Group Project By Anthony Abdelnour
Similar to Crude Petroleum & Natural Gas Extraction - Group Project By Anthony Abdelnour (20)
Recently uploaded
Recently uploaded (20)
Crude Petroleum & Natural Gas Extraction - Group Project By Anthony Abdelnour
- 1. CSR: Crude Petroleum & Natural Gas Extraction Anthony Abdelnour Conor Jackman Sophie Johnson NAICS Code: 211111
- 2. Industry Wake Up Call
- 3. Revenue • Lets put revenue into perspective
- 4. Industry as a whole • Very problematic • But…Very wealthy
- 5. Industry • The industry sector is Mining • The industry sub-sector is Oil and Gas extraction • 7 Sisters – Focus on BP, Shell • Leader & Lagger
- 6. Companies primarily engage in: 1) Exploration, production and/or development of natural gas or petroleum from wells. 2) Production of crude petroleum from surface shale or tar sands from reservoirs where hydrocarbons are semi-solids Industry Description
- 7. Major Oil and Gas producing states in the US
- 8. Products/Services/Customers • Industry’s main products are crude oil and natural gas
- 11. Major Industry Participants - 6,650 businesses -Combined annual revenue $329.9 billion dollars
- 12. Critical CR Issues The Resource Curse
- 13. Critical CR Issues Lack of Access to Energy
- 14. Critical CR Issues Oil Spill Prevention & Damage Control
- 17. SRI Candidate Firm: Royal Dutch Shell • 1995: Execution of Ken Saro Wiwa Wake up call: Rebrand with SustainAbility • 1998: 1st CSR Report • CSR Focus: • Climate change • Water • Human rights • Renewable energy
- 18. SRI Candidate Firm: Royal Dutch Shell Assessment • Focus on Transparency • Sustainability Report • External Review Panel • Stage 3: Innovative
- 19. British Petroleum Assessment • Strategic Intent – Elementary
- 20. British Petroleum Assessment • Citizenship Content – Engaged 2009 Greenwash Award nominee •Transparency – Innovative
- 21. British Petroleum Assessment • Leadership – Elementary • Issues Management – Engaged •
- 22. Recommendations – Shell • Access issues • Combat with green infrastructure • Supplement with access to oil and natural gas • Oil spill prevention efforts • Disaster preparedness • Human rights • Move beyond damage control and towards real communication
- 23. Recommendations - BP • Instill attitude of compliance • 3rd Party inspections • Create trust • Increase percent of revenue dedicated to alternative energy • Net income $25 billion • Increase to $2.5 billion • Oil Spill Prevention • Improve warning systems • Install Remote Acoustic Switch
- 24. Thank you for your attention Any questions?
Editor's Notes
- First identify most important issues THEN identify leader and laggard Recommendations should flow from industry issues (given what we said in the beginning) about 4 minutes
- 1) This is done by normal pumping techniques in which hydrocarbons flow.
- Anthony: Get numbers! Describe graph
- increasing
- Demand output revenue
- Handoff to sophie
- Resource curse: articulated by Jeffery Sachs as an issue affecting countries and regions with an abundance of natural resources, specifically point-source non-renewable resources like minerals and fuels. These countries tend to have less economic growth and worse development outcomes than countries with fewer natural resources. Case of Nigeria: rapid expansions of its debt burdens during the 1970’s oil boom. However, when oil prices fell in the 1980’s, bankers stopped lending to Nigeria, triggering penalty interest charges that made its debts grow even more. Economic instability then caused cultural cleavages and political-institutional and socioeconomic weaknesses. According to German Institute of Global and Area Studies, oil even indirectly boosted the risk of violent conflicts. Members of the industry have even been reported to hire “security teams” that terrorize employees and local communities to achieve their business agenda. Also, corruption, bribery and “revenue skimming” play a huge role. Industry is “bad for democracy,” as dictatorships are said to be more likely to stay in power if the country has a natural resource abundance. Negative social and economic impact = responsibility to improve the economies and the lives of individuals affected by the industry’s presence. Although some cases of CSR programs in “resource curse” regions have been effective, the industry as a whole needs to dramatically enhance its efforts, so that it is a positive contributor to its host country. 2. Lack of access to energy: unequal distribution of energy is particularly evident in the region of Latin America and the Caribbean, such as Haiti, were there are virtually no sources of domestic energy 3. risk management in terms of oil spill prevention and damage control: U.S. accidents of the Exxon Valdez and Deepwater Horizons oil spills, public pressure has called for the industry to have a more pro-active, responsive and preventative role in the areas it drills in bad rep. the industry’s responsibility to ensure secure, updated and functioning machinery and the health of the ecosystems it is present in 4. Environmental impact: powering of the facilities and machinery and the burning of the fuels causes significant air pollution, while water pollutants are an issue facing any offshore drilling activities. Soil conditions are often affected near extractions sites and the impact of drilling efforts on biodiversity remains a hotly contested issue Fracking 5. CO2 emissions released from the consumer’s burning of the industry’s products could be taken into account as part of the industry’s CSR program, as global warming and climate change are playing an ever-increasing role in our political and social environment and are affecting consumer choice every day
- Resource curse: articulated by Jeffery Sachs as an issue affecting countries and regions with an abundance of natural resources, specifically point-source non-renewable resources like minerals and fuels. These countries tend to have less economic growth and worse development outcomes than countries with fewer natural resources. Case of Nigeria: rapid expansions of its debt burdens during the 1970’s oil boom. However, when oil prices fell in the 1980’s, bankers stopped lending to Nigeria, triggering penalty interest charges that made its debts grow even more. Economic instability then caused cultural cleavages and political-institutional and socioeconomic weaknesses. According to German Institute of Global and Area Studies, oil even indirectly boosted the risk of violent conflicts. Members of the industry have even been reported to hire “security teams” that terrorize employees and local communities to achieve their business agenda. Also, corruption, bribery and “revenue skimming” play a huge role. Industry is “bad for democracy,” as dictatorships are said to be more likely to stay in power if the country has a natural resource abundance. Negative social and economic impact = responsibility to improve the economies and the lives of individuals affected by the industry’s presence. Although some cases of CSR programs in “resource curse” regions have been effective, the industry as a whole needs to dramatically enhance its efforts, so that it is a positive contributor to its host country. 2. Lack of access to energy: unequal distribution of energy is particularly evident in the region of Latin America and the Caribbean, such as Haiti, were there are virtually no sources of domestic energy 3. risk management in terms of oil spill prevention and damage control: U.S. accidents of the Exxon Valdez and Deepwater Horizons oil spills, public pressure has called for the industry to have a more pro-active, responsive and preventative role in the areas it drills in bad rep. the industry’s responsibility to ensure secure, updated and functioning machinery and the health of the ecosystems it is present in 4. Environmental impact: powering of the facilities and machinery and the burning of the fuels causes significant air pollution, while water pollutants are an issue facing any offshore drilling activities. Soil conditions are often affected near extractions sites and the impact of drilling efforts on biodiversity remains a hotly contested issue Fracking 5. CO2 emissions released from the consumer’s burning of the industry’s products could be taken into account as part of the industry’s CSR program, as global warming and climate change are playing an ever-increasing role in our political and social environment and are affecting consumer choice every day
- 3. risk management in terms of oil spill prevention and damage control: U.S. accidents of the Exxon Valdez and Deepwater Horizons oil spills, public pressure has called for the industry to have a more pro-active, responsive and preventative role in the areas it drills in bad rep. the industry’s responsibility to ensure secure, updated and functioning machinery and the health of the ecosystems it is present in 4. Environmental impact: powering of the facilities and machinery and the burning of the fuels causes significant air pollution, while water pollutants are an issue facing any offshore drilling activities. Soil conditions are often affected near extractions sites and the impact of drilling efforts on biodiversity remains a hotly contested issue Fracking 5. CO2 emissions released from the consumer’s burning of the industry’s products could be taken into account as part of the industry’s CSR program, as global warming and climate change are playing an ever-increasing role in our political and social environment and are affecting consumer choice every day
- 4. Environmental impact: powering of the facilities and machinery and the burning of the fuels causes significant air pollution, while water pollutants are an issue facing any offshore drilling activities. Soil conditions are often affected near extractions sites and the impact of drilling efforts on biodiversity remains a hotly contested issue Fracking 5. CO2 emissions released from the consumer’s burning of the industry’s products could be taken into account as part of the industry’s CSR program, as global warming and climate change are playing an ever-increasing role in our political and social environment and are affecting consumer choice every day
- These are outline notes that I am going to spruce up before tomorrow morning, I just wanted to make sure to get the powerpoint to you In comparison to Shell, British Petroleum aka BP is the industry laggard in terms of Corporate Responsibility. BP has a long history of disregard for the law BP dumped hazardous waste into a snow bank on Alaska’s Northern border, seeped into groundwater systems 2002 private settlement with South Coast Air Quality Management District TX city explosion kills 15 workers and injures 170 others 2007 EPA fine for violations of Clean Air Act 2009 Occupational Safety and Health Administration for “failing to correct safety hazards after the 2005 disaster”. after reporting that employees were falsifying inspection reports in Prudhoe Bay 2005 years Prudhoe Bay experienced several close calls including multiple pipeline malfunctions 538,000 lbs of toxic chemicals released into the city unknowingly “instances of a lack of operating discipline, toleration of serious deviations from safe operating practices and apparent complacency toward serious process safety risk existed at each refinery”. cancellation of all federal contracts with BP -prohibit BP from operating on federally owned land due to, -former EPA lawyer Jeanne Pascal, “They are a recurring environmental criminal and they do not follow U.S. health, safety and environmental policy”. 2) BP has allocated millions to community groups such as indigenous people in Alaska. BP donated money to a community college to develop a jobs preparation and training program BP invested millions in infrastructure in Wamsmouth, WI developing roads and supporting a community development council with funds 3) BP corporate and employee disconnect, fundamental culture of distrust because high ranking employees are not held accountable BP Alaska fined for falsified inspection reports, Manager of Prudhoe bay was promoted BP Cali was fined for falsified emissions data, Manager given VP job at corporate HQ 4) BP is reactive 5) BP has release seven Sustainability reports and has released numerous BP continues to make “draconian” cost saving measures that threaten the safety of workers and the environment. According to an external review performed in 2004 a “fundamental culture of distrust” persists between employees and management
- Handoff to Conor
- Comprehensive third-party/government agency inspections of all production sites operated by laggard Temporary Debarment from operation at Prudhoe Bay and other sites with repeated violations BP Global has the largest revenue of any company aside from Exxon but donates one of the smallest percentages BP needs to invest in alternative energy because land acquisition was halted to pay off $20 billion dollar settlement over Deepwater Horizon, recent market analysts have said BP needs to take immediate action to restore growth. Current rates are not good
- Anthony