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Plummeting Oil Prices
How does the plummeting oil prices affect the climate?
The recent fall in oil price from about USD 115 to 50 per barrel in mid-2014 and August 2015 respectively has contributed to diverse views regarding the adverse effects on the environment. These views may be divided into three groups;
a) Plummeting oil prices is regarded to exert downward strain on gas oil cost as well as the price of natural gas. This is likely to divert significant ventures from environmentally sustainable energy methods to gas-driven electric plants. The required change of the globe’s energy technologies from fossil fuels to low-carbon techniques may be significantly stopped (Kurtz, 2004).
b) Falling oil prices and the low cost of petroleum by-products including gasoline, may exert increased demand on internal combustion engine (ICE) driven vehicles. This may hinder not only development but also diffusion of ecologically friendly options, like electric vehicles (EVs) that do not emit CO2 emissions. Also, advanced vehicle travel may, in turn, lead to further emissions.
c) In the context of low oil price, global attempts to attain the relevant diplomatic agreements on the conservation of the planet, like the UN Sustainable Development Summit, could be hindered by the remarkable opportunity costs countries will experience in dissociating from fossil fuels.
Plummeting Oil Prices
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Electric Vehicles
Plummeting oil prices are regularly seen as contribute to reduced pump price of gasoline and diesel. Something, some people believe that can adversely affect a nascent sector of Zero-emission automobiles like EVs, which use fuel-cell technologies or even lithium-ion battery, which some see as a challenge when it comes to competing with incumbent ICE. In reality, reduced oil cost per barrel does not imply low pump prices.
Less than a half of the retail cost of diesel and gasoline in the United States is based on the cost of crude oil. The remaining is going to refinery, distribution, marketing and taxes. As as matter of fact, much as the price of crude oil has declined to approximately 57% since 2014, gasoline has reduced by about 36% (U.S. Department of Energy 2016).
With the considerable reduction of oil prices, it is not certain the degree of EV producers will be affected. For instance, the main players, in battery-driven EVs, Telsa and target premium Model S cars and compete with other premium car producers.In this case, the client base is less concerned with opportunity costs of using electricity as a result of the price of oil. Instead, they are mainly interested in environmental benefits as well as reputation associated with having a Telsa.
Nevertheless, the price of gasoline has little impact on the general demand of vehicle travel; this means that vehicle travel is, in fact, inelastic. This may illustrate by the ill-timed reality of the present day transport structure is significantly reliant on oil. Individuals want to move around, go their workplaces, take children to school and buy goods. Particularly, in the United States individual motorized mobility, ICE is the most suitable alternative for personal transport. They prefer to purchase and use gas despite its costs since it’s a necessity.
Plummeting Oil Prices
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Thus plummeting price of fuel may be expected to have little impact on the CO2 emission in the environment. Regardless of the falling oil price, renewable energy is primarily cost-competitive with fossil fuel in different areas. For certain applications including off-grid, they are without a doubt superior. Moreover, solar PV cells are cost-competitive at utility-level. These is likely to develop further while the falling costs of battery technologies can, together with widespread use of smart grid applications, result in an absolute change in terms of how energy is produced and used (COSNRC, 2003).
More so, the plummeting oil price poses a low-carbon transmission cannot be overlooked, since full influence on deployment and investment in renewable energy is not evident yet. Again, it is challenging to establish the appropriate counterfactual of how to be invested in renewable energy with the recent oil price reductions and therefore to recognize the degree of harm on climate.
Nonetheless, it is proposed that the latest plummeting oil price has hindered the installation of new investments as well as shale exploration, as the majority are not viable based on the current costs. This demonstrates that falling oil price can materialize like a two-fold sword. On one hand, possible increasing demand for oil while diluting economic incentives for changing to low-carbon options, which can prevent supply by ensuring that new investments are economically not viable on the other.
Perhaps the question one would ask is whether or not the current oil price nosedive has an effect on the environment. For too long environmental activists have been concerned with carbon taxes to inflame oil costs and pave the way for clean-energy innovations. However, the recent price crash has been upheld as good for the environment, since it could gravely weaken big oil and its grip on the world’s energy business (Kurtz, 2004).
Plummeting Oil Prices
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Oil prices are now less than 50% of what it used to cost in less than one year ago. Logically, this may escalate the volume of oil burned regarding energy, largely because people are somewhat less cautious with cheap stuff, and because plummeting fuel costs will spur economic activities. Low fuel cost will equally deject outlay in alternative sources of energy like renewables. However, the oil greed demonstrates no signs of easing, as some of the leading oil producing nations under the OPEC umbrella are not ready to pump more oil to the market.
The high cost of oil reduces petroleum demand an aspect that makes petroleum options more viable, while plummeting oil costs re-energize the demand for the product, culminating in massive production due to demand. When oil prices go up, people tend to drive less, but with low oil prices, people prefer fuel-guzzlers because of the purchasing power. Nonetheless, there is an argument that price decline could enhance green gains. That is mainly because low oil costs may spell doom for big oil and the necessity to look for alternative sources of black coal.
Precisely, declining oil costs make a huge investment in new oil reserves appear like bad deals because of the high costs associated with drilling new sites, whether it deep off-shore drilling or Arctic (U.S. Department of Energy 2016). Analysts suggest that unrelenting oil costs could weaken investment by entities involved in oil probe and production. Again, dropping oil prices will slow the need for developing alternative sources of clean energy. This will help conserve the environment by making the coal and oil deposits unburnable hence curtailing global temperature rise to two degrees Centigrade.
Plummeting Oil Prices
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The reality about oil companies is to make a profit. So, falling oil prices will mean less exploration, an issue that will help conserve the environment because some of the most ecologically hurting oil exploration transpire in the expensive regions. The underlying economics with cheap oil is increased consumption. Commuters are more likely to avoid cycling during winter.
The demand for petroleum is widely unbendable, in simple words; people may hardly change with a change in pricing (Kurtz, 2004). While crude oil is employed to make petroleum items used to fuel airplanes, vehicles; warm homes and produce pharmaceutical products, less activity owing to dropping oil prices will reverse the adverse effects that the glut for the exploration has had on the environment.
Exploration and oil drilling distracts land and maritime environments. These activities may hamper fish and marine life. While modern technology can enhance the proficiency of exploration and drilling operations, dropping, oil prices will lessen these activities. Hydraulic fracturing is a method employed to produce oil not only from shale but also from tight rock formations. This approach has enabled the US to enhance its domestic fuel production while minimizing the amount of fuel imported.
Plummeting Oil Prices
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These are ecological issues related to this technique. Fracturing rocks involve large quantities of water and utilize high levels of hazardous chemicals to produce fuel from rocks. In particular regions, the use considerable amount of water to produce fuel can remarkably impact the availability of water as well as aquatic life. Faulty wells or poor handling may lead to spills and leaks. With less activity when it comes to exploration, the marine life would be saved from such disasters. Furthermore, hydraulic fracturing generates significant amounts of waste water, which contains chemicals and other hazardous compounds that require treatment before recycle or disposal.
Since the quantity of water utilized and intricacy of treating particular waste water, treatment and disposal are crucial and challenging. In most cases, disposal of sewage entails injecting it into deep wells, which can contribute to earthquakes, in turn, lead to adverse effects on the environment. However, the perpetual oil price drop will mean less activity in this sector hence less hazardous substance will be generated.
References
Committee on Oil in the Sea, National Research Council. (COSNRC) (2003). Oil in the Sea III: Inputs, Fates, and Effects. Washington, D.C.: The National Academies Press. Available from http://www.nap.edu/catalog/10388.html.
Kurtz, Rick S. (2004). Coastal oil pollution: Spills, crisis, and policy change. Review of Policy Research 21, no. 2: 201-19.
U.S. Department of Energy (2016). “Energy Efficiency and Renewable Energy.” Available from http://www.eere.energy.gov.
Plummeting Oil Prices
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Pollution Prevention and Water Conservation
Water is a very essential commodity in life. It supports the life of human beings, plants and animals. Additionally, water is used in various processes in the world. All production processes are supported by water. As a result of the great importance of water in life, it is important to ensure water conservation and pollution prevention all the time. It is important to conserve water to ensure that it is always available and in a safe state.
For water conservation, everybody should play a part through planting of trees. According to Ehlers, and Krafft (2011), planting as many trees as possible plays a major role in water conservation. This is through preventing direct heat from the sun. Plantations are known to prevent water sources from being interfered with. Additionally, trees are known to play a major role in the formation of rain. Additionally, everybody should be able to try as much as possible to create water reservoirs within their environment.
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Prevention of water pollution should be made the responsibility of every individual in the world (Unesco, 2006). So that water may be kept free from pollution, there are actions that should be taken by all means. Ensuring that sewerage systems are well managed is one of the things that are likely to avoid water pollution. With proper sewerage systems, all waste will be driven to the desired disposal areas and not the water points.
Secondly, proper garbage disposal is also necessary in the prevention of water pollution. Additionally, everyone should ensure that chemical substances are not poured or drained into water points. Chemical substances should be disposed off as per the requirements of the control boards. This will ensure that no water is polluted by anyone using chemicals in one way or another. Furthermore, everyone should try as much as possible to come up with proper sanitation systems. This is a good way of ensuring that all refuse is managed properly thus avoiding water pollution.
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Water Conservation and Prevention of Pollution
Water is a very essential commodity in life. It supports the life of human beings, plants and animals. Additionally, water is used in various processes in the world. All production processes are supported by water. As a result of the great importance of water in life, it is important to ensure water conservation all the time. It is important to conserve water to ensure that it is always available and in a safe state.
For water conservation, everybody should play a part through planting of trees. According to Ehlers, and Krafft (2011), planting as many trees as possible plays a major role in water conservation. This is through preventing direct heat from the sun. Plantations are known to prevent water sources from being interfered with. Additionally, trees are known to play a major role in the formation of rain. Additionally, everybody should be able to try as much as possible to create water reservoirs within their environment.
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Prevention of water pollution should be made the responsibility of every individual in the world (Unesco, 2006). So that water may be kept free from pollution, there are actions that should be taken by all means. Ensuring that sewerage systems are well managed is one of the things that are likely to avoid water pollution. With proper sewerage systems, all waste will be driven to the desired disposal areas and not the water points.
Secondly, proper garbage disposal is also necessary in the prevention of water pollution. Additionally, everyone should ensure that chemical substances are not poured or drained into water points. Chemical substances should be disposed off as per the requirements of the control boards. This will ensure that no water is polluted by anyone using chemicals in one way or another. Furthermore, everyone should try as much as possible to come up with proper sanitation systems. This is a good way of ensuring that all refuse is managed properly thus avoiding water pollution.
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Regulatory mechanisms for the oil and gas industry in a developing world setting
Introduction
As today’s society is organized, oil plays a critical and immense role. Petroleum products represent a lot more than just a major energy source that mankind uses. Other than being a vital source of energy, oil serves as feedstock for a number of consumer goods, and it therefore plays a pertinent and increasing role in the lives of people (Mariano & Rovere, 2012). Conversely, the oil and gas industry holds a significant potential of hazards for the environment and it might impact the environment at dissimilar levels including soil, water and atmosphere, and subsequently every living being on earth.
In this context, pollution is the most dangerous and extensive consequence of the activities of the gas/oil industry (Buchsbaum, 2013; Mariano & Rovere, 2012). This essay critically examines the regulatory mechanisms for the gas and oil industry within the context of the developing world. The essay does so by presenting theoretical, legal framework and environmental policies employed by developing countries in managing the impacts of the gas and oil industry.
The essay will particularly explore the regulatory mechanisms in the following oil-producing developing countries located in the Middle East, Asia, Africa, and South America: Venezuela, Peru, Colombia, Trinidad and Tobago, Algeria, Yemen, Philippines, Cambodia, and Sudan. Others are Papua New Guinea, Kazakhstan, Thailand, Afghanistan, Mauritania, Angola, and the Democratic Republic of Congo.
This essay will also examine the efficacy of the regulatory mechanisms in the aforementioned oil producing developing nations. This will help to determine whether or not the regulatory mechanism has actually been effective in preventing companies in the oil and gas industry from contaminating the environment in their operations.
The paper may determine that in some oil-producing developing nations, there are regulatory mechanisms but their enforcement is weak. This poor implementation of regulatory mechanisms could be due to a number of reasons such as lack of monetary and human resources required to ensure effective environmental governance, as well as corruption (Ingelson & Nwapi, 2014). In the countries with weak environmental laws, this essay provides a number of recommendations to ensure strict enforcement of environment laws for environmental protection in oil-producing developing nations.
Environmental impact of oil and gas industry
Pollution is linked to almost every activity throughout every phase of the production of gas/oil from exploratory activities to refining. Exploration of oil brings about many environmental problems such as the environmental degradation and economic loss due to gas flaring; soil contamination as a result of oil leaks and spill; and increased deforestation (Perunović & Vidić-Perunovié, 2012).
Gas emissions, waste waters, aerosols, and solid waste produced throughout drilling, production, refining and shipping amount to more than 810 dissimilar chemicals, amongst which prevail petroleum and oil products. The other impacts on the environment include contamination of the ground water, poorer quality of water, acid rain, and the intensification of the greenhouse effect (Klare, 2014). Additionally, the gas/oil industry might contribute to the loss of biodiversity and the destruction of ecosystems, which might be unique (Mariano & Rovere, 2012).
In any nation around the world, particularly developing nations, the discovery of natural resource could be the start of economic growth in that nation. If managed well, the wealth derived from that natural resource can promote sustained economic development within that nation. Duncan (2013) noted that the exploration and exploitation of natural resources usually comes with a number of challenges, the major one being the industry’s negative environmental impact.
It is notable that the environmental impact of the gas and oil industry could be very disastrous to the country, that it necessitates a properly designed policy for managing controlling, and monitoring the industry’s negative impact on the environment (Ingelson & Nwapi, 2014). In many developing countries such as Mauritania, Cambodia, Kazakhstan, Colombia, Algeria, Nigeria, Trinidad and Tobago, Argentina, Peru, Angola, Venezuela, and Ghana among others, the gas and oil industry is marred by various environmental challenges (Tan, Faundez & Ong, 2015).
The environmental challenges are even considered a significant national concern since most of these developing nations have actually not performed well in terms of managing environmental problems brought about by the oil and gas industry (Vining, 2012).
The regulatory mechanisms in developing countries
The aim of environmental regulations in the natural gas and oil industry is basically to develop the framework in which regulatory programmes ensure that safeguarding of the environment is given greatest consideration as regards the development of gas and oil resources (Duncan, 2013). The goals of gas and oil regulation are to: present an effective and efficient framework for facilitating development and exploration of the nation’s oil/gas resources; reduce or eliminate risks to public safety and health and the environment and ensure proper resource management; and provide certainty and clarity to license holders with regard to the regulator’s requirements (Anejionu et al., 2015).
There are many developing nations that are producers or potential producers of oil and gas. These are illustrated in the table below:
Sub-Saharan Africa
The Caribbean and South America
Europe and Asia
North Africa and Middle East
Nigeria
Mexico
Papua New Guinea
Yemen
Sao Tome and Principe
Venezuela
Thailand
Syria
Angola
Colombia
China
Egypt
Mauritania
Peru
Philippines
Algeria
Democratic Republic of Congo
Argentina
Azerbaijan
Gabon
Equador
Kazakhstan
Cameroon
Trinidad and Tobago
Afghanistan
Sudan
Brazil
Cambodia
Ghana
Indonesia
In most of these developing nations, there is in place an adequately appropriate, though mostly theoretical, legal framework and environmental policy that is used to manage the impacts of the gas and oil industry (Tan, Faundez & Ong, 2015). On the whole, the regulatory system principles that have been adopted already in many developing nations are for the most part transposed onto the national legislation of these countries.
Put simply, most developing nations that produce oil have developed, in theory, a regulatory and legal framework consistent with the ones in place for the benchmark nations (Tan, Faundez & Ong, 2015). Most of these nations have established a dedicated institution whose purpose is to manage the social and environmental impacts of gas and oil industry; in most cases, this is usually a ministry for environment.
The regulatory, legal, and contractual frameworks in oil producing developing nations are as described below: environmental governance objectives – in these countries, the legal system is mainly reliant upon incentives or penalties to accomplish its environmental objectives. Constitutional rights and obligations – in oil producing developing countries, there are constitutional obligations and rights which specifically address ownership of natural resources, address the status of indigenous communities, sustain and protect the environment, and protect the health of people (The World Bank, 2011).
Environmental policy for the oil and gas industry – in the oil producing developing nations,
(i) specific laws have been put in place which establish policy for the development of this industry. Relevant regulations have also been duly enacted which give direction to executing the policy.
(ii) There are environmental laws which set policy for addressing environmental issues which arise from the exploration and development of oil and gas. There are a number of regulations duly passed providing direction for execution of policy (The World Bank, 2011).
(iii) Within the context of gas and oil industry development, oil producing developing countries have a set of laws which establish policy regarding use of water; emissions and effluents into the water, into the atmosphere, and onto land; noise; pollution; abandonment and decommissioning; and waste management including the management of hazardous wastes (The World Bank, 2011).
In addition, appropriate regulations have been duly enacted which give direction to the execution of the policies and have quantitative standards.
Production-sharing agreement/host government agreement –
(i) in the oil producing developing countries, there is a particular host government agreement which clearly spells out the contractual obligations and rights of the host government that arise out of a gas and oil development. In addition, this specific agreement directly addresses the host government’s related environmental obligations and rights (The World Bank, 2011).
(ii) In these oil producing developing countries, there is a particular production-sharing agreement which spells out the contractual obligations and rights of the proponents of a gas and oil development. Moreover, this production-sharing agreement addresses the proponents’ related environmental obligations and rights (The World Bank, 2011). International agreements and obligations –
(i) most national governments of the oil producing developing countries have included international law rights as well as obligations in their legal system which addresses the environmental issues that arise out of gas and oil industry development.
(ii) The governments of these developing nations have established policy for addressing possible environmental impacts which affect adjacent nations by means of consultation or notification.
(iii) For transnational firms that operate in the gas and oil industry in these nations, the companies are required to comply with the corporate policies developed due to the jurisdictional requirements followed within its country of origin (The World Bank, 2011).
Environmental disputes –
(i) in these nations, there is actually an important access to a quasi-judicial commission or board as well as access to a national court system for every stakeholder to a functioning judiciary for ultimate, independent adjudication of disputes and determination of remedies that arise out of the environmental implications of the gas and oil industry development.
(ii) These countries also have laws which identify and establish public hearings or appeals process for projects that are complex and/or controversial.
(iii) Members of the public have access to the legal system and the court to get remedies for environmental nonconformity (The World Bank, 2011).
Protected areas, parks, and other restrictions on gas and oil activities – in many oil producing developing nations, the development of gas and oil is inadmissible within protected areas and parks. Before the bidding process, there are clearly identified restrictions which apply (The World Bank, 2011).
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Many developing nations have in place regulations and laws on the environment that seek to regulate the activities of companies in the oil and gas industry to minimize the negative impact of their activities on the environment (Abdalla, Siti-Nabiha & Shahbudin, 2013). There are oil/gas drilling and production regulations that restrict oil/gas companies operating in the developing country from using land within 50 yards of any public road, reservoir, dam or building; establish that oil/gas companies should take appropriate measures to prevent pollution of water, and to stop it if it happens; and prohibit oil and gas companies, without rightful permission, from cutting down of trees in the developing country’s forest reserves (Abdalla, Siti-Nabiha & Shahbudin, 2013).
Furthermore, many oil-producing developing nations have in place petroleum refining regulations which require the manager of an oil refinery to take the reasonable measures in preventing and controlling environmental pollution, and which stipulate how infringement of the regulation would be punishable, for instance through imprisonment or fine (Anifowose et al., 2014).
Oil-producing developing nations have also put in place regulations that set down the necessary precautions that any oil and gas company in the production, loading, transportation as well as storage of petroleum products is required by law to take in order to prevent pollution on the environment (Laurent, 2015). There are also relevant regulations concerned with the control and licensing of oil and gas refining activities. Such regulations prohibit unlicensed refining of hydrocarbon oils and petroleum products in locations outside an oil refinery, and require hydrocarbon oil refineries in the oil-producing developing country to maintain pollution prevention facilities (Aldhous, 2012).
In addition, these countries have in place regulations that seek to prevent the discharge of hydrocarbon oil and petroleum products from ships. Such regulations prohibit ships of oil and gas companies in the oil-producing developing country from discharging oil into shorelines or territorial waters (Abdalla, Siti-Nabiha & Shahbudin, 2013). These regulations have also made it an offence for companies that transport petroleum products to discharge any oil on the waters of the developing nation.
Oil and gas companies are required to install antipollution equipment in their ships (Atsegbua, 2012). The laws actually make such discharge punishable with a heavy fine and require the oil/gas company to keep records of incidences of oil discharge into the country’s shorelines or territorial waters. The oil-producing developing nations in which oil/gas is extracted offshore have in place relevant laws for oil pollution prevention offshore (Laurent, 2015). All discharges of oil from gas/oil offshore installations need to be controlled in a careful manner in order to reduce marine environment contamination and the contamination of the living resources which the marine environment supports (Farrington, 2014).
Many oil producing developing nations also have some type of Environmental Impact Assessment (EIA) process which has been included in their regulatory and legal framework. Nonetheless, the emphasis of the process is largely directed towards regulatory approval of gas and oil projects and not towards developing a life-cycle approach for reducing social and environmental impacts all through the life of the whole project (Duncan, 2013).
Environmental Impact Assessment is essentially a legal procedure wherein the oil and gas company is required to present environmental information to a consenting body so that the information could be utilized to make better informed decisions. In addition, EIA entails publication and public disclosure/comment or consultation. Visser and Larderel (2012) reported that this information is often presented in an Environmental Impact Assessment Report.
There are a number of goals of an Environmental Impact Assessment. An EIA is a tool for identifying possible environmental impacts of a proposed project, assessing how important or significant these environmental impacts are and propose suitable mitigation, monitoring and management measures for preventing or reducing impacts to levels that are good enough (Visser & Larderel, 2012).
Environmental Impact Assessment is also a tool and process that aids decision-making. The information collected during an Environmental Impact Assessment could feedback into project design. Outcomes of Environmental Impact Assessment are usually utilized in managing subsequent stages of project design, construction, as well as operation (Visser & Larderel, 2012).
As dictated by best practice, the full extent of the Environmental Impact Assessment process in some oil-producing developing nations has yet to be executed. What lacks in particular is adequate and systematic participation of local stakeholders and the public, access to baseline social and environmental information within the affected areas, comprehensive examination of project alternatives, as well as consideration of cumulative and regional impacts further than the project level (Visser & Larderel, 2012).
In most of these nations, project follow-up and environmental monitoring are seen as part of the Environmental Impact Assessment framework regulatory enforced. Even so, actual enforcement practices is usually insufficient, there is inadequate environmental monitoring, and monitoring data are either not divulged or they are not made extensively accessible to the affected stakeholders and the public (The World Bank, 2011). Furthermore, many oil producing developing nations have inadequate – at times completely absent – enforcement and control mechanisms in the post-Environmental Impact Assessment approval stage.
Although a lot of oil-producing developing nations claim that risk management procedures and regulatory enforcement mechanisms for gas and oil activities are included into the regulatory framework, actual enforcement of Environmental Impact Assessment approval conditions and regulatory limits on-the-ground is not happening systematically and effectively (The World Bank, 2011).
Regulations and policies to reduce environmental impact of pit-wastewater: some oil-producing developing countries such as Brazil, Venezuela, Mexico, Colombia and Thailand have in place appropriate regulations aimed at reducing the environmental impact of pit-wastewater which include wastewater and sludge that is generated through drilling activities (Mariano & Rovere, 2012). Oil and gas companies are required to install pit-wastewater processing systems.
To avoid affecting local environments, these companies are expected to return pit-wastewater – wastewater that treatment facilities emit and production water attendant to gas and oil – underground, and treat pit-wastewater with the use of microorganisms and discharge the treated water into the ocean (Perunović & Vidić-Perunovié, 2012). Companies are also required to design and install their facilities and establish operating manuals basing upon their risk assessment in order to prevent contamination as a result of crude oil and pit-wastewater leaks (Anomohanran, 2012).
Gas and oil companies are also required to establish an operating structure under which they monitor the operations of their facility with the use of twenty-four hour patrols and remote systems. This ensures that even in case of an accident, any leakages could be reduced (Mohamed & Al-Thukair, 2013)
Regulations and policies to prevent air pollution: in a number of oil-producing developing nations including Argentina and Thailand and Egypt, there are laws that require oil and gas companies to avoid air pollution as much as possible. Emissions from combustion equipment utilized in production sites such as gas engines and boilers are required to be below the regulation standard limits for concentrations of nitrous oxide and dust (Managi et al., 2012).
Critique of the impact and application of the regulatory framework in oil-producing developing nations
Even though these developing nations have a regulatory framework, the efficacy of the regulatory frameworks is compromised by the lack of an adequately organized administrative structure which facilitates effective regulatory conformity and enforcement. Furthermore, the other factor that compromises the effectiveness of regulations is the lack of monetary and human resources required to ensure effective environmental governance.
In the oil producing developing nations, the institutions that are responsible for environmental management generally have inadequate or little resources – information systems, technology, training, personnel, and budget – to properly execute their strategies and perform their regulatory mandate (The World Bank, 2011).
Although the governance structure and frameworks are in existence in oil producing developing countries, the execution of governance in an effective and efficient environmental management system for gas and oil activities is not well established. As such, efforts are required for strengthening the technical and administrative capabilities of governments in such countries so as to improve the environmental governance of the gas and oil industry (Duncan, 2013).
Nowadays, environmental concerns are not regularly taken into account in plans for offshore gas and oil exploration and development. Depending on the oil producing nation where they are working, most oil and gas corporations also operate to different social and environmental standards. In some oil producing developing nations, this implies that even the most fundamental requirements are not met (Tan, Faundez & Ong, 2015).
Decommissioning of infrastructure is also a key issue and is rarely taken into account during planning and control. The life of a lot of oil exploration wells is limited; some wells with as short as just 1 – 3 months, though their construction often has long-term impacts. If planning for decommissioning is taken into consideration in the process of design, then environmental disruption will be decreased (Vining, 2012). All in all, thanks to weak environmental laws in many oil producing developing countries, many oil and gas companies continue to cause irreparable damage to the environment through their gas and oil exploration and development activities.
What the governments need to do to strengthen their regulatory framework
Governments of these nations need to establish stringent laws and regulations and take drastic actions against any oil and gas company that violates such laws and regulations not only through paying of fines (Anejionu et al., 2015). Firms that violate the established laws/regulations have to be fined very exorbitantly to serve as a deterrent against other oil and gas companies that plan on deliberately and carelessly polluting the environment during their gas/oil exploration and development in developing nations.
Conclusion
In conclusion, most developing nations that produce oil have developed, on paper, a regulatory and legal framework similar to the ones established in the benchmark nations. Many oil-producing developing countries have established a dedicated institution whose main purpose is to manage the environmental impacts of gas and oil industry. Although oil-producing emerging economies have a regulatory framework in place, the efficacy of the regulatory frameworks is compromised by the lack of a properly organized administrative structure that actually facilitates effective regulatory conformity and enforcement.
References
Abdalla, Y. A., Siti-Nabiha, A. K., & Shahbudin, A. (2013). Examining the regulatory frameworks for the oil and gas industry in Sudan. Journal Of Environmental Assessment Policy & Management, 15(1), -1. doi:10.1142/S1464333213500063
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Environmental Pollution: Case Study of Lagos Nigeria
As it is evident today, the increased exposure to harmful environmental pollution resulted from irresponsible human activity. Environmental pollution can be categorized into diverse forms. This includes water, air and soil pollution. Other forms of industrial pollution encompass heavy metal and chemical pollution as well as occupational pollutants. There is no doubt that air pollution is the primary accelerating factor behind global climate change in both developed and developing nations.
The air pollution menace is apparently emerging as a complex phenomenon driven by persistent failure of the global environmental management initiatives that have been created to stem the runaway trend currently witnesses in major cities worldwide. The Lagos state metropolis is currently facing myriad air pollution related problems most notably due to rapid urbanization and road traffic emission.
The devastating effects of this observable fact are more prominent in the metropolitan cities of the developing than developed nations. Lagos, a rapidly growing megacity in Nigeria hasn’t been spared the brunt of air pollution. As an emerging metropolis, and its phenomenal rise as an epitome of industrialization and commercialization on the African continent, many predictions indicate a looming danger due to the adverse effects of climate change that is emanating from persistent industrialization related pollution.
Although significant effort has been directed towards stemming the runway global pollution levels, challenges have continued to constraint this effort largely due to insufficient program funding. Subsequently, there is sufficient evidence that warrants a thorough review of the literature on the adverse environmental impactsof air pollution, its principle role as an agent of climate change and its adverse effects on the health and wellbeing of the crowded inhabitants of Lagos.
This research will specifically focus on air pollution. Current literature suggeststhat pollution is the world’s largest environmental cause of poor health responsible for an estimated 9 million premature deaths in 2015-2016 and large burden of non-communicable disease, including respiratory, cardiovascular and neurological impairment. Air pollution, combining both ambient and household air pollution (HAP) is responsible for 6.5 million deaths per year with another 7 million from tobacco smoke and this number will increase is urgent measures are not taken.
Monitoring and management of air pollution remains ineffective and poorly enforced due to a number of factors.Monitoring equipment can be expensive and requires regular checking and maintenance, while enforcement in a growing megacity of 16 million people and unknown numbers of businesses is a major challenge. An alternative approach to the ‘top down’ processes of monitoring and enforcement would be to encourage a more community-led approach and local action.
However, there are many questions as to how such a ‘grassroots’ approach would work in practice, and there are many knowledge gaps as to their applicability for measuring air pollution in the megacities of the developing world. The research seeks to address some of these gaps in knowledge by first exploring how local communities can assess the level of air pollution and its environmental impacts. Subsequently, there is need to identify indicators of air quality that are used by communities, even if they may tend to be more qualitative than quantitative.
An example could be the frequency at which clothes and indeed furniture, windows etc., in household buildings become dirty. Indicators of the effects could be related to health and may include breathlessness. Communities will be asked to identify indicators of relevance to them, and these will be ranked. It is possible that the choice and ranking of these indicators will be influenced by social factors such as gender and age. Currently, the exposure to harmful environmental pollution is created through human activities. Mobile Air measurement System: This advanced equipment employs geospatial technology thus it is referred to as Geospatial Measurement of Air and Pollution (GMAP).
Air pollution is one of the major environmental challenges that Nigeria faces today. This phenomenon is threatening the socio-economic development gains that have been made since independence. The number of power plants has grown to unprecedented levels whereas mortality rates resulting from low quality air have continued to rise. Reports indicate that environmental pollution can be linked to the recent upsurge in cardiovascular diseases as well as other respiratory complications.
Nevertheless, the primary causes of environmental pollution are activities linked to industrialization such as extraction, transportation and the export of oil at the Gulf of Guinea. Similarly, traffic, rapid industrialization and gas flaring are the most common causes of air pollution in Nigeria. Thus pollution is adversely affecting different sectors such as health and environment, and has been linked to the destruction of ecosystems and climate change among other socio-economic ills.
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