Sustainability issues in oil and gas sector
Student name: Ms Urvi Gulati
Guide: Dr Smriti Das
Year of completion: 2011
Host Organisation: Ernst & Young Pvt. Ltd.
Supervisor (Host Organisation): Mr Indra Guha and Ms Shivani Datta
Abstract: Sustainability is a business concept that is based on a long-term view. The emphasis on
continued efforts to improve environment and societal aspects requires expanding the
organizational viewpoint beyond the conventional importance on profit- a concept that is
sometimes referred to as “people, planet and profits†or the triple- bottom line approach
(coined by John Elkington, 1998). Keeping the objective of long-term growth an increasing
number of organizations are becoming aware of the sustainability paradigm and, in many
cases, adopting sustainability-related strategies and principles.
As the world’s population faces energy crunch; heavy reliance on hydrocarbons – for fuel,
power, plastics and fertilizers – has led to considerable environmental and societal
implications.
The oil and gas industry not only has serious implication for the environment but also has
created a divide between oil-producing and consuming countries causing fluctuation in oil
prices, concerns about accountability on energy security, emissions, land use conflict and
food-security; which have implications not only for western consumers, but also for millions
of people in low- income countries that rely on oil-based agricultural inputs, transportation,
diesel powered generators and kerosene lamps.
The project covers issues that face the sector as a whole - price fluctuations, challenges, risk
and opportunities, geopolitical scenario etc. It highlights on the value chain where
sustainability issues can be encompassed. Also, a comparison between various international
and national oil companies brings forth the issue they are tackling and the way the companies
are trying to bring in the aspect of sustainability within the organization and strategizing
accordingly. Various material issues have been covered to bring about a combined matrix of
materiality for the sector which could be seen as a roadmap for various organisations to deal
with their sustainability issues. The project brings forth a case for companies to get involved
and accountable to their stakeholders and exploring the way forward for the organisations.
