Developing A Sustainability Model for Socially Responsible Oil and Gas Production

The effects of COVID-19 will have a long and profound impact on the oil and gas industry in the long term. It is expected that the world will change how it operates as more people become cautious of the outdoors while others adopt remote working as a concept – meaning, fewer people may require to travel. In addition, companies’ dependent on fuel and gas such as the airline and ship industries may take longer to regain their former status. Furthermore, reports indicate that environmentalist will likely heighten their appeal for sustainability and accountability of companies operating along in the oil and gas supply chain following previous accusations over pollution and irresponsible operations (Milman, 2020). With these risks remain a threat to the future of oil and gas production, coupled with the objective to develop a more sustainable and socially responsible production process, the company should adopt a more sustainable approach to gas and oil production as a means to remain competitive, add to the gains achieved on the environment following the slowed down economic activities from the pandemic, and as a means to compete in the new emerging economy.(If you need a similar paper, contact buytermpaper online)

           Historically, companies operating in the oil and gas industry have been criticized for investing in social infrastructure that does not limit their impact on the society they operate. For instance, following the 2010 oil spill at the gulf, BP was criticized for the lack of ethics in its business operations despite having a seemingly strong and proactive CSR program. To skeptics such as MacDonald (2010), BP’s CSR objectives are not social and should be categorized as the company’s obligation to its stakeholders. MacDonald contends that objectives such as having a duty to the customer, dealing honestly with suppliers, and ensuring reasonable health and safety for employees are the company’s duty and should not be viewed as a favor to society. Equally, ExxonMobil objectives match those of BP. As indicated on its website, the company’s social responsibility on governance is to “creates a business environment conducive to long-term growth” (ExxonMobile, 2020). To protect the environment, the company begins by acknowledging that “ access to reliable and affordable energy is essential to economic growth and improved standards of living,” hence, the company strives to “demonstrate leadership in environmental management” and by recognizing the environmental risks associated with the industry as well as evaluating potential and actual risks at each stage its projects to mitigate environmental impacts. While these statements may appear to affirm these companies resolve to protect the environment, they fail to address social concerns over production processes and do not indicate sustainability measures the companies are implementing to protect the environment, personnel, and other stakeholders.  (Order a custom paper @ Discussionboardhomeworkhelp.com)

           As the world re-opens economies and production processes begin, I recommend that our company redevelops its social and sustainability efforts in production. The process should begin by redesigning the objectives and separating the businesses’ economic and financial objectives from those of the CSR program. The company should also invest in new technology as part of its social responsibility and as a means to remain competitive. Should economic predictions hold, demand for oil and gas products could require the company to innovate to capture new markets. Equally, should societies and governments demand products with minimal environmental impact, the company will have to develop new production processes, products, and marketing strategies to meet consumer demands.

Leave a Reply

Your email address will not be published. Required fields are marked *