The Oil And Gas Industry

The passage I will analyze in this close reading is from the works of Theodore

A risk to any drilling operation is the unplanned release of hydrocarbons to the surface. This condition results from formation pressure of the reservoir overcoming the drilling rig’s safety and control devices (which are a combination of the hydrostatic pressure of the drilling fluid, diverter systems, blowout preventers, etc.). Many factors can contribute to unplanned hydrocarbon escapes to the surface, but the vast majority of events are brought under control in a safe and efficient manner using practices established in driller training, specifically designed to

The oil and gas industry is expansive and rather complex industry consisting of oil, fossil fuels, natural gas, oil and green energy sources. Combined the above sources make-up 32% of total energy consumed worldwide.

Halliburton is one of the largest Drilling companies in the world. This company has over 50,000 employees and operates in more then 70 Countries including North America, Central & South America, Africa, Europe, Middle East, Asia, and Oceania. Halliburton consists of two company divisions-(1) Drilling and Evaluation and (2) Completion and Protection This paper will go over the various aspects of Management planning within Halliburton.

Oil was first thought to be discovered in the state of Louisiana in 1868 by the Louisiana Oil and Coal Company fifteen miles west of Lake Charles. However, the Louisiana Oil and Coal Company was unsuccessful at drilling oil but the company did find extensive sulfur deposits. (Louisiana Mid-Continent Oil and Gas Association. (n.d.). Retrieved October 07, 2016, from http://www.lmoga.com/resources/oil-gas-101/history-of-the-industry/) Oil was first discovered in Louisiana on September 21, 1901. (Louisiana Mid-Continent Oil and Gas Association. (n.d.). Retrieved October 07, 2016, from http://www.lmoga.com/resources/oil-gas-101/history-of-the-industry/)

Independent Marketers - The Independent marketers, comprises largely indigenous petroleum marketing companies. The FGN introduced the Independent Marketing Scheme in 1978 because of petroleum products shortage of the 1970s and the lack of sufficient investment by major marketing companies in the rural areas. This led to the establishment of the Independent Marketers Association of Nigeria (IPMAN) in 1982. Membership is open to every independent marketer duly licensed and authorised to operate by the NNPC or other appropriate organisation in charge of this function. The trade group of these companies is referred to as the independent Marketers Association of Nigeria (IPMAN). Examples of Independent marketers are Zenon Petroleum, Capital Oil & Gas and Ascon Oil & Gas.

The risk, which the proposed project exposes the marine ecosystems and fresh water rivers to, will be very high. However, the report in the volume seven has presented a comprehensive risk assessment and mitigation procedure. Despite having recorded some oil spills history, it has made a significant contribution in minimizing oil spills. I will be therefore, unjust for the critics of this

Petrobras was an oil rig which was designed for an offshore production unit off the coast of Brazil. The oil rig was primarily designed as a floating drilling unit but was modified in 1997 to 1999 for it to become a production unit, to save money and space by moving the Emergency drain tanks (EDTs) from the platform into the structure but they were not checked properly meaning there was poor alignment to the production heaters, which lead to the accumulations of hydrocarbons which brought about the initial explosion. There was also a second explosion, caused by gases escaping through a leakage which lead to the structure’s eventual sinking. In this report I will be discussing which were more important to the disaster, technical or human factors and what risk controls should have been in place to avoid this disaster from happening. The main technical flaws were component failure without a backup system, poor control of the emergency notification system layout and poor design of the placement of the safety critical paths. Some human errors were lack of training and communication. The consequences which occurred from this disaster were financial losses, environmental impact and modifications to the rules.

The oil and gas industry is crucial to the U.S. economy and plays a central role in its environment, society, and economic development . The U.S. consumes more oil than any other country. Products derived from oil include medicine, recreational sports items, cosmetics, plastic, chemicals, transportation liquids, etc... This is to say, crude oil is the most important natural resource of the industrialized nations, as it has assisted in the technical expansion and discovery of new sources and production of existing oil fields (Wintershall, 2015).

Preparing safe work procedures for people who have to deal with dangerous equipment or situations

“If we do nothing, it doesn 't matter how we feel. And that’s exactly what oil companies are banking on: out of sight, out of mind” (Hart, 24). Petroleum is a naturally occurring oil found under deep layers of rock (“oil drilling”). Oil drilling is when a pipe penetrates through these several layers of rock in order to reach the petroleum oil underneath. This oil can then be purified or turned into gasoline for energy use. Offshore oil drilling, like its’ name describes, is specifically oil drilling on the ocean floor, away from a shore line. Offshore oil drilling provides one of the most consumed American energy resources, but also provides a risk to the environment (Crawford et al. 2&7). The United State’s

“Since 1975 offshore drilling has had a 99.999 percent safety record”(Horton). While the chances seem very slim for an incident to happen that harms the ecosystem it still happens more than you think. “There will be no less than one spill a year of 1,000 barrels… a spill of 10,000 or more can be expected every three to four years”(Horton). And for the high safety rate of 99.999 percent of success and safety it isn’t as good as it can be. “While the 99.999 percent safety record sounds nice that 0.001 percent can be pretty horrific for people living there”(Horton).

The drilling for extraction of oil and gas are intrinsically risky businesses. Technical personnel and management people always need to prevent unfortunate incidents and improve process safety at offshore platform. The United States Environmental Protection Agency stated that the tragic oil spill in in the Macondo Prospect in the Gulf of Mexico, exploded and sank the platform resulting in loss of lives and unprecedented $5.5 billion Clean Water Act penalty and up to $8.8 billion in natural resource damages in Deepwater Horizon(DWH) and the largest oil spill in the history of marine oil drilling operations. The ongoing oil exploration in Gulf of Mexico shows us that offshore drilling could be dangerous and hazardous for marine wildlife and ecosystems.

When drilling for oils, companies need to have regulations and one of those requirements is for environmental protection. This is a requirement that conducts operations in a way, that protects mineral resources, other natural resources. The companies need to be paying attention to the environment and what is affecting the environment. The companies have to inspect the land and determine what material is being drilled. (University of Colorado).

The construction industry like many other industries has changed and evolved with time. It is the fourth largest contributor to Australia’s GDP and has played a major role in determining economic growth of the country. In terms of employment, the industry has employed 9% of the Australian workforce making it the fourth largest industry (ABS data).