High risk is experienced for the most part by the oil and gas industries causing high accidents. The environmental danger is the main risk in these industries. Released toxic gases by drilling oil and gas causing air pollution and water contamination. The emission of toxic gases from drilling of ocean also causes the depletion of ozone layer with the global heat. Oil spills are unsafe for the ecosystem as the drilling of oil can destroy the marine environment aggravating and affecting the marine life.
Thus, for minimizing the ethical risk, which is associated with oil spillage, the gas and oil industries have approved security plans.
It can be viewed that the companies do not take any activities and initiatives for natural disasters in the occasion of one of the largest oil spill named ‘Exxon Valdez’. Due to lack of care they are responsible for environmental disrupt and has spread oil slicks in coastline and sea over 2600 miles. Hence, if they would have taken initiatives in investing more capital in their organization for equipment and giving training to the new staffs, this could have successfully prevented by the oil industries.
Furthermore, it could be detected the areas of gap by taking the feedback from the employees in every one week performed by higher authority.
On the other hand, utilization of remote control system can be installed to close the wells. Proper communication is fundamental for exchanging information that can reduce the rate of accident. The fracking can cause serious infection and now and then death to people and creatures.
Thus, the government of each nation should act to restricted fracking everywhere throughout the world. This is a serious and viable step to manage ethical risks as it can keep from discharging methane, which brings hurtful radiation than some other gases. By implementing measuring gear in oil and gas, industry can give wellbeing work practice and it will secure for the people from any unnecessary dangers.
The work places of gathering oil and gas in the off-shores are very dangerous. With the help of cloud technology, the industries can store and monitor data in anywhere in the world. Thereby, it can be monitored technically by remaining in safe place rather than monitoring physically on the sites. Ethical measures are also taken for those who will not be using the equipment correctly. Additionally, for minimizing personnel and maintain equipment the companies are applying smart strategy where they are managing risk with the use of cloud technology. Hence, it has prevented the industries in managing risk within the workers and in environment.
COMPARE THE RISKS THAT BP, EXXON, AND THE FRACKING INDUSTRY CONTINUE TO FACE IN PROVIDING AN ADEQUATE SUPPLY OF ENERGY?
The movement of drilling oil and gas acts unfavorably by affecting the environmental and financial condition. Moreover, affecting challenges has been looked by most of the countries as the demand of crude oil has expanded to 90 million in every day. In like manner, from the exploration it has been discovered that the expanded interest is with the overwhelming. Hence, as it is identified with oil and gas industry so hazard stays as the main concern. It is apparent that it additionally causes environmental risk by polluting air and water with harmful gases. It contaminates the water by influencing marine ecosystem as oil spills is main disasters. Along these lines, the risk completed by oil and gas industry is high, for which the strategies of safety policies are undertaken to reduce negative effect.
The case happened in Exxon Valdez was dangerous, as it has killed a huge number of marine living spaces because of quick spillage. It has caused death to birds where in excess of 200 species were lost. It has also closed the finishing season where the annual sales came up to 100 million dollars. It has been noticed that Exxon was not prepared with the situation of chemical dispersants. With the delay in disaster management, it has affected the ocean and coastline regions with the oil spill for more than 2600 miles.
The consequences caused because of the BP oil spill are huge. The accident took for three months and the oil spilling has spread over the Gulf for which it has transformed the shorelines into black. The human habitats in Gulf of Mexico were likewise influenced from this circumstance. In addition, it has affected in excess of 640 miles the whole way across the coastline when the substantial outcomes of spillage were fixed. The environment was containing a huge measure of oil underneath the water level. As indicated by the researchers the BP oil spills has caused massive wildlife loss in the Gulf of Mexico that was a risk to coral reefs just as another marine ecosystem.
Furthermore, the fracking process is connected which is another risky action used to rise the natural gas to the surface of sea, where the chemicals substances are embedded into shale rock. The fracking process releases toxic chemical like methane that is highly hazardous. The process of gas drilling has extended by 45% when the hydraulic fracking techniques were adopted. The seismic movements have been discovered while fracking process happens by discharging unsafe substances, for example, hydrochloric acid, benzene and other harmful elements. In view of the above discoveries, by receiving appropriate and powerful environmental process can wipe out hazard particularly for the networks that is available close fracking can be saved.
To let down the risk of water contaminating, fixing of well shafts should be possible by coming about an effective solution. The risk found in fracking industry is high because many studies has found that hydraulic fracturing mud is harmful for those people who are involved in this practice as it releases toxics and radioactive. In this way, the government of each nation where fracking industries are present should take initiative by passing new laws for creating a favorable environment by checking the strategies of risk management that are connected by these organizations.
HOW CAN ETHICAL LEADERSHIP HELP THE OIL AND GAS INDUSTRY TO MANAGE RISK?
The term ethical leadership is a leadership approach that is coordinated by organization ethical beliefs and values. It additionally guarantees in regarding rights and dignity of others. Subsequently, it is mostly the trust, fairness and consideration that an organization adopts, while managing staffs and different people. At the point when an association keeps up proper ethics, it motivates the workers to work for it and a leader is constantly accessible to upgrade their ethical improvement.
A leadership ethics ensures the staff members of gas and oil industry to redesign and look into the machines that are with high risk. Thus, it causes less risk for the people who are into this field. Thus, with the help of proper leadership ethics the oil and gas industry can benefit themselves by protecting the stakeholders from serious health hazards or accidents. It also protects the ecosystem by ensuring safe environment for the wildlife habitats. An ethical leader is composed with various essential values which is essential while working with large group of people.
These incorporates, care, respect and integrities. The deep-water oil spills were very dangerous, for which the ecosystem system has lots of many habitats. Here, safety is the main aspects that are to be considered first as the risk possessed here is too high. Along these lines, for implementing ethical leadership within an organization, they need to adopt few effective strategies, which is suitable for both humans and environment. These incorporate safety management, environmental risk management, culture of transparency and quality management.
Adopting ethical leadership within oil and gas industry, it can set up transparency and cultural responsibility that is quite beneficial. Exxon missed these essential features, due to which they had to face such disasters affecting human and marine life. If the management would have taken better approach by focusing on ethical leadership, the company could have saved themselves from such loss of oil spills. For the disaster incident, the captain was responsible. The captain was with high with the level of alcohol consumption. Such issue with the captain was also faced before and the officials of Exxon have warned the captain with his alcohol related behavior. He was once charged for such behavior. However, such circumstances could have been avoided if the management would have taken initiatives in showing responsibilities and being transparent in the work. Here, the approaches of ethical leadership could be effective in preventing such irresponsible and unethical behavior.