A Business Of Oil And Gas Exploration

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CHAPTER TWO LITERATURE REVIEW Just as the business of oil and gas exploration and production is capital and human intensive (Johnson, 2006), so is the risk. The human risk is underscored by the high fatality rate experienced in the sector (Mode & Conway, 2008), which by far is greater than that of other industries like construction, automobiles and the general industry within the period of 2003 to 2013 (Cole, 2003). With the advancement in the oil and gas exploration technology, more companies are investing in even more unconventional methods of exploration and operations activities, like drilling in the deep offshore, exploring in the deserts and harnessing the shale technology to produce oil and gas which where hitherto trap within the…show more content…
The CFOI released data in 2013 shows that about 50% of the fatality rates in the oil and gas extraction industry are with the well service companies. A whopping 40% of the accidents in the sector occur from transportation, while 25% occur with direct contact with the equipment. Between the oil boom period of 2003 to 2013, according to the data released by the Bureau of Labor Statistics (BLS) as compiled by the Census of Fatal Occupational Injuries (CFOI), occupational fatality rate of oil and gas workers was seven times higher than the national average (Mode & Conway, 2008) and 2.5% higher than that of construction workers (Witter, Tenney, Clark & Newman, 2014). Not neglecting other hazards like chemical exposure, noise and other environmental hazards present, accidents resulting from transportation and direct contact of workers with equipment far exceeded others (Mason, Retzer, Hill & Lincoln, 2015). In a sharp contrast, according to the data released by the National Institute for Occupational Safety and Health (NIOSH), the recordable non-fatal accidents in the construction sector was three times more than that of the oil and gas extraction sector (Witter et al). Occupational Safety and Health Administration (OSHA), a government safety regulation and administration body has frowned at the increasing trend (Cable, 2013), promising new safety
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