Risk And Uncertainty Of The Oil And Gas Industry

Offshore drilling has become an essential part of today’s oil production and demand for energy. With the growth of population comes the increasing demand for oil. The oil industry today, is one of the most used providers of energy. Today in the 20th century the majority of the population in America has a car and cars needs gas to run. The oil reserves in the earth that are easily accessible via land are starting to run dry and are becoming harder to find. This is why we have begun to see more and more offshore oil drills. Although there are benefits of offshore drilling such as profit, lower gas prices, and becoming less dependent on foreign oil. There are also many drawbacks in which if something were to go wrong, the mistake would be catastrophic impacting the environment, the nature, and have trickling effects all around the world.

Risk refers to any potential problems that would threaten the likelihood of success for or any project. These potential problems might prevent a project from achieving some or all of its objectives by increasing time and cost. Risk factors can even

Risk: A risk is the chance, high or low, that any hazard will actually cause somebody harm. (the likelihood of it happening).

Fumes in heavily oiled area can also affect the community and there is widespread concern that some workers are not being given sufficient safety equipment, including respirators — and volunteers, who may not have as much training or experience as hired workers, could be in the greatest danger. So far, more than 400 oil-exposure

Nature is unpredictable and one cannot prepare for every outcome. While nature is a big factor in well breaches, one main factor is the oil companies’ lack of restrictions. This is demonstrated in "National Environmental Health Association Position on Offshore Oil Drilling", where the author states: "An ABC News review of federal records shows that in spite of chronic safety violations, MMS… In a majority of cases in which workers were killed, there was no record of fines paid. When fines were imposed, the maximum penalty was only $25,000" (5). This quote shows how much the oil companies are allowed to get away with. If this were to happen in any other industry, they would have been arrested and forced to pay millions of dollars in fines, but not when it comes to oil because of how much revenue it brings in. The amalgam of these three facts shows the dangers of oil drilling in the extreme environments that oil is found in.

According a Philadelphia Inquirer analysis, approximately 705,00 people live or work within a half mile of rail lines that carry crude oil. Furthermore, few of these citizens are aware of the movement of Bakken Crude Oil through the city. Even fewer still are aware of the great danger that a Bakken derailment and the damage a subsequent explosion would cause the community. This analysis will spotlight the hazards associated with a Bakken Crude Oil derailment.

To date there has been a contestation around risk approach. One approach is so called realism. The exponents of realism propose that risk is the outcome of probability

Taking risks is a thing that every moment of your life you use. You have to take important decisions in order to achieve what you want or improve what you are doing wrong. Taking risks help you learn from your mistakes and provides you information on what or how to do things next time.

The oil industry was a new industry in the setting of the film. However a few times throughout we see causalities in the workplace, including the deafening of Plainview’s son H.W. Because the industry was new it was not regulated. For the various depictions in the film are why regulation is vital today. The accidents in the movie are the results for laws like the Occupational Safety and Health Act. This law ensures that all employees are subject to safe working conditions. The oil industry is not the only reasons for this law, it covers a lot of industries health and safety rules. Various administrations would make sure equipment is safe enough so we can avoid accidents like the ones that happened in the wells to the men. When Oil is burned so we can use it for energy it emits a lot of toxic gases including CO2. Burning oil pollutes our air and is a harm to our environment. The Environmental Protection Agency, a federal agency to protect human health and the environment must enforce the Clean Air Act. Burning oil and other dirty energy sources like coal can deplete the ozone but also put

There are many environmental hazards that come along with offshore oil drilling, including pollution and the risk of oil spills. Expanding offshore drilling will increase carbon dioxide emissions, increasing temperatures globally. This has been a continuing issue for decades that does not need to be increased any more than it already has. Since petroleum is the main cause of air pollution in the world today, pollution is an ever increasing problem of this industry. The only way to truly address this pollution problem is to stop increasing expansion of offshore drilling.

Oil drilling has many harmful effects on our environment. Accidents can happen extremely easily because of how complex drilling for oil is. In addition, the piping that the oil runs through can corrode over time because it’s made of certain metals. This corrosion can lead to contaminating the water and land around it. Even if the pipes don’t corrode, large waste pits which are usually left opened and unmarked also emit contamination. In addition, Dust from drilling the oils can coat the surrounding areas and flames from burning the natural gas found in oil fields can cause air pollution. Furthermore oil spills and accidents can have devastating ecological and health consequences that can last for decades. Oil contamination can wipe out entire ecosystems. Water produced by oil drilling contains arsenic, as well as cadmium, mercury, lead, zinc, and copper. These heavy metals are toxic to humans and animals. Not to mention that the oil during these oil spills can smother fish and coat birds feathers, which reduce their ability to maintain their body temperature. ("The Effects of Oil Drilling."

When people take risks they are willing to put themselves into situations that they can both lose or gain something valuable. The object can be both tangible and tangible. Uncertainty is when a person is unsure about a situation. An example of uncertainty is when a person is in doubt and not sure how to handle the situation. Risk and uncertainty are separate, but they are typically found within the same situation (McConnell, 2015).

Defined by Coopers textbook, risk is the exposure to the consequences of uncertainty and has two elements: the likelihood of something happening that has an impact on the project objectives, and the positive or negative consequences of something impacting the project objectives (Cooper, Grey, Raymond, & Walker, 2005)

There is no single definition of risk. Many insurance authors traditionally have defined risk for uncertainty. A risk is an uncertainty concerning the occurrence of a loss.

Concept of risk, risk assessment, risk management and how uncertainty affects the process will be discussed.