Question

analyse the potential effects that oil and gas operations have on marine ecological system and what corporate social responsibility petroleum companies have tried to put in place in an attempt to follow the ethical operation methods.

i want long discussion thank you.

Answer 1

                        The given case talks about the industrialisation of the deep sea and the environmental challenges keeping the economics of the sustainable development in focus. The deep sea explorations across the globe have created huge challenges in the marine environment. The direct impacts of the infrastructural installation includes the sedimental resuspension and the burial by seafloor anchors. The discharge of drilling beds and oil in the deep sea has resulted in further challenges to the deep sea organisms and animals underneath. The coral reefs have been affected the most which has in turn resulted in the loss of many lives which lives around the same. Although Environmental Ecological Zones [EEZ] are being created around the

belts of ocean, there has been frequent violations of the same as majority of the exploration firms looks at the profit maximisation technique resulting from the overexploitation of the natural resources which in the long term results in the economic downfall of not only those who conduct the exploration activities but also all other major firms and industries that works in the inherent domestic economy as well as international trade effects.

                        It is in this juncture that we have to consider the concept of Corporate Social Responsibility [CSR]. CSR is a new concept that have been introduced in the industrial establishments which aims at setting apart a specific profit of the firm towards better social effects. Most of the petroleum companies across the globe have so far dedicated crores of rupees which have proved to be beneficial for the social development of the economy. The improvements have been made in many sectors like revamping the lost environmental potential, building roads, developing the local economy etc. There have been increasing contribution of the CSR over the years. For example, the Shell firm caused various problems in the North Sea region and over time they invested huge amounts in the region which has been able to revamp the North Sea region as the region being the centre of oil and exploration activities. But it can be seen that the National Oil companies have made lesser contribution than the International oil companies in this regard. More than 700 tonnes of oil spills have occurred across the globe since 1970’s and the contribution of the CSR in this regard has indeed helped a lot to bring back the lost potential of the sea. Another example is that of BP which have estimated that over the years it has contributed to more than $0.65 billion savigs by cutting down on venting and flaring of natural gas following its cap and trade scheme.

                        Apart from the above and similar activities that have been taken by firms in the international scale, it can be seen that there have been developments in the same as much of the contributions of the CSR has been now dedicated to preventing the cause on marine environment to be specific and other environmental benefits in the long run. These environmental benefits are expected to bring in huge benefits for the inherent economy in the future.