Category: Petroleum

Introduction

Petroleum products provide for the vast majority of man’s energy needs. These products are used to power industries, transportation, and to provide heat. Petroleum products are obtained from fossil fuels which have to be refined to be converted into products that can be put into various uses. One of the processes carried out during refining is hydrotreating. Speight and Ozum assert that the use of hydrogen in thermal processes is the single most significant advance in petroleum refining technology during the 20th century (472). This paper will provide a brief but informative description of the hydrotreatment process. The paper will begin by defining this process and highlighting the objectives of the hydrotreatment process.

Definition of Hydrotreatment

Hydrotreatment refers to a series of hydrogenation reactions subjected to crude petroleum and other refinery streams to remove impurities or saturate a variety of unsaturated hydrocarbons contained in the crude petroleum. Maples asserts that the hydrotreatment process is essential for all refining plants that convert various fossil fuels into transportation fuels (472). Hydrotreating is becoming more necessary as the supply of light crude oils becomes scarce. Heavy sour crudes are becoming more prevalent and these products contain many undesirable components including nitrogen, iron, and iron compounds. Through hydrotreating, the petroleum residents, which are the residual portion of the initial atmospheric crude oil distillation, can be converted into viable diesel and other lighter fuels (Speight and Ozum 470).

Objectives of the process

Hydrotreating is carried out to achieve several important objectives. The first major objective of hydrotreatment is to remove impurities from petroleum products. These impurities, which include sulfur, nitrogen, and oxygen, reduce the efficiency of the final products from the refining process. Lawrie states that hydrotreatment results in the conversion of organic sulfur, nitrogen, and oxygen compounds to hydrocarbons and hydrogen sulfide, ammonia, or water (223). Through hydrotreatment, the impurities are removed for the control of a final product specification.

The process also aims to change the composition of some renewable fuels to make them similar to fossil fuels. By doing this, hydrotreating makes it possible for biofuels to be used in place of fossil fuels without having to modify the vehicle’s engine (Lawrie 225). This is achieved since the process changes the composition of the renewable fuels into a form that is similar to normal fossil fuels used by vehicles.

Another objective is to remove metals from petroleum products. This objective is fulfilled in a separate guard catalytic reactor where the metallic compounds contained in the petroleum are hydrogenated and decomposed to create metal deposition. Maples reveals that with the increasing mandates in many countries for the burning of cleaner fuels, hydrotreating has become essential in the removal of heavy metals to produce a cleaner-burning fuel (243).

Hydrotreatment is done to convert inferior or low-grade materials into valuable products. Saturate olefins cannot be used as fuel in their unstable compounds. Through hydrotreating, unsaturated compounds are transformed into the corresponding saturated hydrocarbons. This transformation enables the otherwise unusable saturates to be used as fuel (Maples 250). Through hydrotreatment, the productive life of oil, which is our society’s main energy source, is optimized.

Hydrotreatment ensures that the various products of crude oil such as gasoline, kerosene, and diesel oil meet the various standard specifications. The increase in fuel oil demand and the gradual decrease in the availability of lighter types of oil has meant that heavier feedstocks have to be used. As the fossil fuel reserves are used up, the quality of the world’s crude oil will decrease even further with time. Hydrotreating is the only way that clean transportation fuels can be produced from these heavy feedstocks (Maples 250). For this reason, this process is regarded as one of the most important catalytic processes in oil refineries.

Hydrotreatment Process

A typical hydrotreater operates in the following way. The reactor has a feed that contains the fuel that is to undergo the hydrotreatment process. The fuel feed stream is combined with recycled hydrogen and makeup hydrogen. This combination of hydrogen and fuel is heated in a fired heater as it heads to a fixed bed reactor. The effluent obtained from this reaction is separated in a high-pressure separator into a liquid phase and a recycled hydrogen stream (Lawrie 225). The liquid, which is at high pressure, is flashed into a low-pressure separator producing gas and a liquid feed. The gas is directed to a gas plant to recover hydrocarbons while the liquid is fractionated into a hydrotreated product and lower boiling material produced in the reactor.

Feeds Used

The feed stream is generally made of any petroleum stream that is in need of further treatment. Straight-run naphthas, which are intermediate hydrocarbon streams, are the most prevalent feeds for hydrotreaters. Naphthas are obtained from refining crude oil, coal tars, a distillation of wood, or coal gasification. Due to this wide variety of sources, as well as the unique chemical makeup of crude oil from various regions, the composition of naphthas differs significantly (Lawrie 225).

Middle distillates such as diesel, kerosene, and jet fuel are also used as feed. Hydrotreatment in this case aims to remove sulfur mostly for environmental reasons (Maples 250). In addition to this, the process increases the cetane number by hydrogenating aromatic components in the feed. Cracked gasoline can also be used as a feed. When this fuel is used, the aim of the process is to hydrogenate undesirable sulfur and nitrogen compounds contained in the cracked gasoline.

Fuels derived from renewable organic material are also used as feed for hydrotreaters. Hydrotreatment is necessary to convert the feedstock obtained from renewable organic matter into fuels that can be used in vehicles.

Operating conditions

Hydrotreating operations are carried out at different conditions depending on the type of feed used. However, hydrotreatment generally occurs at very high temperatures and pressure to promote the kinetics of a number of the reactions that occur during this process (Maples 255). For naphtha feeds, the reactor temperature is between 280⁰ and 425⁰C while the pressure is at 200 to 800 (psig). When using gas oil feeds, reactor temperatures are between 340⁰-425⁰C and the pressure is between 800 and 1600 psig (Maples 257). For resid, the operating temperatures are 340⁰-450⁰C while the pressure is between 2000 and 3000 psig.

Catalyst

Catalysts play a crucial role in the hydrotreating process. Some of the traditional catalysts used were nickel/molybdate. These catalysts are active for the hydrogenation of nitrogen compounds to ammonia and a hydrocarbon. They also produce some saturation of olefins and aromatics. To increase the efficiency of catalysts, modern refineries also make use of cobalt/molybdate. Use of both cobalt/molybdate and nickel/molybdate catalysts results in greater purification of various crude oil fractions (Lawrie 223). A layer of relatively inert spheres that are packed into the reactor supports the catalyst. When using heavy feeds, the catalysts’ pores at the top of the bed become blocked with metals and the high molecular-weight hydrocarbons present in the feed. This leads to a reduction in the catalyst activity and the catalyst must be regenerated in order to resume optimal efficiency.

Main Reactions

The reactions during the hydrotreatment process are mostly exothermic. This means that the reactor temperature rises as new feed goes through the hydrotreater. A major reaction is desulphurization, which is the removal of sulfur from the feed by reacting a combination of the feed and hydrogen in the presence of a catalyst. This process requires high temperatures and hydrogen pressures. Another reaction is between Hydrogen and nitrogen compounds contained in the feed. The reaction takes place between Hydrogen and the Nitrogen compounds to form NH3 which can be removed together with other gaseous products. Reactions also occur between hydrogen and impurities such as coke and metals in the presence of a catalyst. This reaction results in the deposition of coke and mental compounds on the catalyst.

Hydrotreating can be used to convert hydrocarbons by changing their molecular structure. This is achieved by reacting hydrogen with hydrocarbons to reduce the molecular weight of the hydrocarbons. When this occurs, heavy hydrocarbons can be converted into light hydrocarbons that can be used as engine fuels.

Main Products

There is a wide array of products that can be obtained from the hydrotreatment process. In gas plants, LPG and Fuel gas are produced. These plants also produce gasoline (Speight and Ozum 466). Crude oil produces various grades of kerosene including mid-distillate kerosene and naphtha kerosene. Paraffins are also obtained from hydrotreating biofuels. At a higher temperature, crude oil products including Gasoline and diesel oil are produced as the finished products from the hydrotreatment process. At the highest temperature, lubricating oil and grease are produced

Technologies

Hydrotreating technology has not undergone many changes since its invention more than 6 decades ago. The process is still based on passing the feed and hydrogen through a catalyst at elevated temperatures and pressure. However, different technologies have been invented to increase efficiency. For the processing of petroleum resides the three-phase ebullated beds’ reactor is preferred (Speight and Ozum 470). This hydrotreater comprises a liquid phase, an inlet gas phase, an outlet gas phase, and solid-phase catalysts. A significant technological advancement in hydrotreaters has been the introduction of bimodal catalysts. Unlike typical catalysts that have uniformly sized pores, bimodal catalysts contain both large and small pores (Speight and Ozum 471). These catalysts overcome the problem of blocking caused by heavy feeds. As a result, the operating cycle of the catalyst is extended since it takes longer before the heavy feed block the catalyst with metal.

Conclusion

This paper set out to describe hydrotreatment, highlight the objectives of the process, and elaborate on how it is carried out. It began by underscoring the importance of the hydrotreating process in petroleum refining. The paper has noted that hydrotreating is done for environmental and economic reasons. Through this process, oil refiners can utilize the available fossil fuels optimally. The paper has articulated the role that hydrotreating plays in the quality improvement of petroleum products. It can be expected that this process will continue to play a major role in petroleum products processing.

Works Cited

Lawrie, Lloyd. Handbook of Industrial Catalysts Fundamental and Applied Catalysis. NY: Springer, 2011. Print.

Maples, Robert. Petroleum Refinery Process Economics. London: PennWell Books, 2000. Print.

Speight, James and Ozum Baki. Petroleum Refining Processes. Boston: CRC Press, 2001. Print.

Introduction

Bjorlykke defines petroleum engineering as “a field associated with the production of natural gas and crude oil” (19). The exploration, extraction, and production of hydrocarbons are high-tech practices characterized by extensive use of resources. The exploration of hydrocarbons might not be executed successfully without the involvement of geological engineers. The role of these engineers is to investigate and control the impact of earth procedures on human activities such as petroleum extraction. This discussion therefore examines how geology is applicable in petroleum engineering. The paper goes further to explain why geology has become one of the core courses for petroleum engineering educational programmes.

Application of Geology in Petroleum Engineering

The extraction of various hydrocarbons begins with the placement of oilfield structures on the targeted location. Throughout the process, petroleum engineering companies must complete numerous geological surveys. Such companies will definitely outsource geologists or employ them to complete such surveys. These studies must be completed before any construction begins (Hyne 19). This is the case because the foundation of the targeted oilfield structures must be designed in accordance with the aspects of the terrain. This practice is done to ensure the extraction process is conducted without any challenge.

More often than, oil deposits and hydrocarbons are “discovered in the most unlikely places such as at seas” (Hyne 26). When reserves of oil are discovered, it is mandatory to undertake various activities such as Remotely Operated Vehicles (ROV) and Shallow Seismic (SS) surveys. It is agreeable that many oil drilling firms contract these services from geological engineers (Weszkalnys 618). This fact is a clear indication that geology is an important field that cannot be separated from petroleum engineering.

Before undertaking any oil exploration process, petroleum companies must use the findings presented by geological engineers or geoscientists (Taylor 3). For instance, geologists use a wide range of tools such as chisels and hammers to collect soils samples. They go ahead to use technological equipment to search for mineral deposits and oil reserves (Hyne 72). Geoscientists use radar equipment to identify regions that might have mineral deposits. This fact explains why petroleum engineering is supported by the activities, competencies, and skills of these geoscientists.

During the discovery process, petroleum companies collaborate with geologists to search for oil deposits (Taylor 5). Geological engineers work with various agencies and organizations to preserve the environment. Bjorlykke believes that environmental conservation is something that has gained much support with the past six decades (47). The case of Beyond Petroleum (BP) can be used to examine the relationship between petroleum engineering and geology. The infamous “BP oil disaster started in 2010 in the Gulf of Mexico” (Hyne 104). After the disaster, BP liaised with many environmentalists and geoscientists to ensure the most appropriate measures were put in place to deal with the leakage.

The other critical issue is that geoscientists (and petroleum geologists) possess adequate competencies that make it easier for them to target specific regions for oil. Additionally, the petroleum geologist will provide evidence-based information that can be used whenever undertaking any oil exploration activity (Bjorlykke 48). The scientists can successfully estimate the amount of gas or oil deposits in a specific region. That being the case, petroleum engineers can use this information to pursue their objectives (Taylor 5).

The above arguments explain why petroleum engineers might not realize their goals without the support of geologists. With petroleum being one of the major resources used to support every economic activity, new measures have been considered in order to explore and identify new oil deposits. Many petroleum exploration companies have therefore continued to contract different geologists in order to realize their potentials (Bjorlykke 59). Additionally, many institutions teaching petroleum engineering have included geology as one of the core courses. This has been the case because the field is of great relevance to petroleum engineering.

Geology has become a critical field that is embraced in the world of oil exploration and extraction. Although some analysts have argued that geology is important for reservoir engineers, the most outstanding fact is that the field is applicable throughout the oil production process. Every type of petroleum engineering will definitely benefit from various geological concepts and competencies (Hyne 82). For instance, a proper understanding of geology can make it easier for petroleum engineers to analyze the absorbency of various rocks.

Experts in geology can also use various indicators to analyze the presence of various minerals. This means that different engineers including petroleum experts will benefit significantly from this field. A proper “background in geology will make it easier for oil explorers and engineers to examine the big picture when trying to discover hydrocarbons” (Taylor 6). This knowledge will make it easier for the engineers to examine rocks carefully and determine whether they contain certain minerals.

This understanding can help petroleum engineers to complete oil reserve reports. They can also use their skills in geology “to survey and present detailed graphs showing the projected oil production volumes” (Taylor 6). They can successfully when the production might start to decline (Hyne 87). After exhaustion of the reserves, petroleum engineers with a background in geologists can use their concepts to implement environmental mitigation initiatives.

Because of the aspects associated with petroleum engineering and geology, new academic programmes have decided to combine the fields (Weszkalnys 621). Most of the targeted learners acquire new ideas about the physical world and its past history. Specific geological processes such as crustal movements and volcanic activities are taught in such classes. Many students pursuing the course learn much about geophysical processes, sedimentary basins, conventional reservoirs, and nature of hydrocarbons.

Modern technology is supporting the goals of many petroleum engineers. This fact explains why many students pursuing various academic courses in petroleum engineering are taught how to use computer applications and geologic maps (Bjorlykke 94). These skills can make it easier for petroleum engineers to identify regions that contain considerable oil deposits. The other undeniable fact is that future petroleum engineering scholars will be equipped with new skills in geology in order to pursue their career objectives successfully.

Conclusion

Geologists are known to use their competencies to analyze earth-structure interactions and examine how various seismic processes impact different artificial activities (Weszkalnys 632). That being the case, petroleum engineering is a field that cannot succeed with a detailed background in geology. Companies exploring hydrocarbons in different regions will definitely require the skills of geoscientists and geological engineers. The strategy will make it easier for more corporations to realize their goals and maintain the integrity of the natural environment. In conclusion, these facts show conclusively that geology is a useful field that has numerous applications in petroleum engineering.

Works Cited

Bjorlykke, Knut. Petroleum Geoscience: From Sedimentary Environments to Rock Physics. Springer, 2010.

Hyne, Norman. Nontechnical guide to petroleum geology, exploration, drilling and production. PennWell Corporation, 2012.

Taylor, Ione. “Methods of Exploration and Production of Petroleum Resources.” Geology, vol. 5, no. 1, 2012, pp. 1-7.

Weszkalnys, Gisa. “Geology, Potentiality, Speculation: On the Indeterminacy of First Oil.” Cultural Anthropology, vol. 30, no. 4, 2015, pp. 611-639.

The costs of crude oil had fallen into their lowermost ranks from the time when the similar crisis occurred in 2009 worldwide downturn, pounded by the disappearing possibility that Saudi Arabia would decide to decrease the production in order to pause the product’s shifting in the course of the last year.

According to the author of the article ‘Oil Prices Plunge 5% After OPEC Stands Pat’ Clifford Krauss, the costs for oil throughout the world have distorted from more than a hundred and ten dollars for a barrel to less than half of this price in one year and four months.

Moreover, the author states that the oil business is winding from its most intense catastrophe since the end of the twentieth century not only on the territory of the United States but throughout the rest of the world. Not so long ago the American standard for oil prices crossed the mark of thirty-eight dollars for a single barrel. This cost appears to change drilling and carrying out shafts into a mislaying suggestion in almost every oil arena across the nation.

Furthermore, the author states that a broad diversity of issues could be responsible for the decreasing of the oil prices. As the experts claim, these factors most likely include the progression of the oil industry in America and Iraq during the past several years and a decelerating in request progress from China and other emerging nations.

Nonetheless, the final factor that has led to the price decreasing was the choice made by the Organization of the Petroleum Exporting Countries also referred to as OPEC and is controlled by Saudi Arabia and a small number of Persian Gulf associates. At the end of the autumn in 2014, the OPEC decided not to change manufacture in order to support the costs, as the similar situation frequently occurred in the past, and this decision was the one that directed the expenses into a downfall.

The OPEC claimed that “before they made any decision about future production cuts, they wanted to see the impact on global markets of new barrels from Iran — expected to be as many as 500,000 a day by the second half of 2016 — as Tehran complies with the recent nuclear deal” (Krauss, 2015, para. 8). Moreover, they proposed that Saudi Arabia could be eager to reduce the prices under the condition that the rest of the most important manufacturers were ready to implement the same strategy.

From the analytical point of view, the strategy of Saudi Arabia towards the oil prices could be evaluated as a risky move in an attempt to prove their superiority over the other leaders in this industry sector. Nonetheless, it is known that the economy of Saudi Arabia stands on the oil production, as it makes almost ninety percent of the export of the country. As a result, the implemented strategy is not safe for the economy as well as the state of business throughout the world economic arena.

As a result of this strategy, the International Monetary Fund has made the warning that their reserves possibly will end on the course of several years due to the condensed incomes and high communal expenditure they depend on in order to preserve the internal harmony, even despite the fact that the Saudi Arabia endures to possess substantial assets. This would result in shifting of the whole economic sector and the Saudis becoming the chief oils producers.

References

Krauss, C. (2015). Oil prices plunge 5% after OPEC stands pat. Web.

Introduction

In 1960s, a league of twelve countries who are giant oil producers from Africa, Asia and America came together to form an enduring intergovernmental organization, Organization of the Petroleum Exporting Countries (OPEC) with a common objective. Four countries from Africa (Angola, Libya, Algeria and Nigeria), one from South America (Ecuador) and seven from Asia (Kuwait, Saudi Arabia, Qatar, Venezuela, Iran, the United Arab Emirates and Iraq) agreed to form an umbrella called OPEC.

Until 2008, Venezuela was a member state of this organization. These countries agreed to base the headquarters of OPEC in Vienna. Since then, Vienna has continued to accommodate OPEC meetings of oil ministers from these twelve countries. Previously, Organization of the Petroleum Exporting Countries (OPEC) had Indonesia as one of the member state.

However, Indonesia withdrew its membership from OPEC after realizing that, it had become an oil importer instead of exporting. With a population of over 400 million people, these twelve countries depend on oil as the major export commodity hence, foreign exchange. Outstandingly, oil has been a fundamental key to economic, social and political development of OPEC member states.

OPEC member states use the revenue generated from exporting oil in the expansion of their economy through a vast industrial base. Additionally, the revenue generated after exporting oil helps member state governments to fund social developments like healthcare, education, creation of jobs and increase the general living standards of the citizenry. (Organization of the Petroleum Exporting Countries, Para. 1-3).

Of course, the formation of OPEC accompanied statutes aimed at governing member countries to work within its brackets. For example, the statutes allow other countries with similar interests but oil exporters to join OPEC so long as 75% of member states voter in favor of that country. OPEC composes of three types of membership as stipulated in OPEC statutes.

Firstly, there are countries falling under founder membership. These countries held the first OPEC meeting in Baghdad, in 1960, and later on agreed to institute such an intergovernmental organization. Secondly, some countries with same interests gained full OPEC membership following their application to Baghdad conference.

The last category of membership comprises of countries that never qualified to attain full membership, but the Conference accepted them under special conditions. The paper will examine the goals and objectives of OPEC as stipulated in its statutes. (Organization of the Petroleum Exporting Countries, Para. 5-12).

The main objective of creating this intergovernmental organization was to oversee and safeguard OPEC interests both jointly and independently. The statutes sought to look for ways, which will guarantee efficient stabilization of oil prices in international oil and petroleum markets. This is because; there had been obstacles in international markets leading to price fluctuations.

Therefore, these countries read mischief in international markets and decide to act on it, with an aim of attaining steady income. OPEC member states a fair deal of the oil exported to consumer nations and that, the supply had to be regular in order to meet consumer expectations and avoid any oil price fluctuation.

Since then, there have been diverse views regarding the formation of this intergovernmental organization. This is because; OPEC became the determinant in production and pricing of oil something that did not ogre well with international consumers. For example, there have been remarkable restrictions in the international arena regarding the control of oil prices.

At times, OPEC member states especially from Arabian countries use their statutes to embarrass developed countries. For instance, during the Yom Kippur War, Arabian OPEC countries used the ‘oil weapon’ strategy to stop further political intervention from the West. These restrictions regarded as oil embargo, led to the 1973 oil crisis that paralyzed the whole world.

Since then, OPEC has constantly determined the price of oil. Political explanations from OPEC member states show that, the control of oil prices came because of unilateral changes happening in the fiscal structure of the world. Thus, these countries sought to ensure that, both underdeveloped and developed countries felt the same effect when it comes to inflation matters. (Hyder, Para. 1-10).

The 1973 oil crisis created unyielding hostility between consumers of the West and OPEC member states from Asia. The oil embargoes from OPEC member states awakened developed countries to look for alternatives in oil markets. OPEC’s ability to manage and dictate oil prices was never to last forever. This is because; there have been recent developments of oil reservoirs in the Gulf of Mexico, some parts of Russia, Canada, and United States.

Furthermore, subsequent modernization of oil markets has seen the influence of OPEC diminish. Nevertheless, about 67 percent of oil consumed in the world, come from OPEC countries. This means, OPEC countries still manage to control international oil prices in global markets.

Establishment of Organization of Petroleum Exporting Countries (OPEC)

For over five decades now, OPEC has been a central figure in controlling global oil prices. Ironically, it is very interesting to note that, even Britain, which is the biggest world oil supplier, has no say when it comes to price control. This is because; OPEC countries disregard Britain, as it was one of the colonial masters who once proscribed the nature of oil industry. A good example of price control occurred between 1973 and 1974 at the expense of western nations.

This oil embargo led to a dramatic oil crisis, which paralyzed industries and the transport networks all over the world. The political dimension of controlling oil prices in international markets started in 1949 when Venezuela and Iran chose to form a political dispensation with Iraq, Kuwait and Saudi Arabia on oil production and pricing under the umbrella of OPEC.

Their first aim was to deliberate on new modalities and avenues of forming and maintaining mutual communication amongst nations that produce petroleum. Joining the founder members of OPEC were other oil producing countries like Libya, Algeria, Ecuador, Gabon, Qatar, Nigeria Indonesia and United Arab Emirates. (Hammes and Willis 501-504).

Oil ministers from Iraq, Iran, Saudi Arabia, Kuwait and Venezuela met in Baghdad, in September 1960 aiming to strike a common deal of escalating the price of crude oil by a certain margin in order to meet the world financial system. United States of America under President Dwight Eisenhower enacted an oil law confiscating petroleum from Venezuela and instead opted for oil coming from Mexico or Canada, an act read as mischief by Arabian countries.

The law did segregate oil imports from Persian Gulf and Venezuela by creating forced quotas hence, low prices. Under this scenario, President Eisenhower explained certain issues like the importance of oil in war, national security and ease of access to terra firma as factors of controlling oil prices. Interestingly, the enactment of this law led to a vivid downfall of oil prices in Asia.

As a sign of disgust, Venezuela President Romulo Betancourt sought to avenge this law by reaching out Arab oil producing countries. The reaching out of oil producing counties meant to seal a solid preventative strategy whose aim was to maintain the status quo (prosperity and self-sufficiency) of Venezuela’s petroleum. (Hammes and Willis 507-511)

President Romulo managed to convince oil-producing countries in the Arabian region to strike a common statue leading to the formation of OPEC. Most importantly, this organization, initially started by five oil producing countries, sought to address three paramount oil measures. The fists one was to synchronize and amalgamate oil policies falling under member states and identify better ways of discouraging external monopoly.

Secondly, this intergovernmental organization, sought to address new channels aimed at stabilizing the prices of oil in international markets and confiscate detrimental trade obstacles, which always led to price fluctuation. Lastly, this cartel of oil producing Arabian countries sought after tackling irregularities in the supply of oil to shopper countries in exchange of fair return capital.

How OPEC Functions

Although sometimes influenced by politics, the determination of oil prices occurs within certain timings. For example, member countries convene a meeting at the headquarters to analyze the scenario at international oil markets. The lowering of increasing of oil price depends largely on market forecasts ranging from the demand of oil to world economic growth rates.

After thorough analysis of the two market fundamentals, OPEC Secretariat will then make informative choices starting from changing the current petroleum guiding principles.

Lowering or raising oil prices will depend on market fundamental features intended to stabilize oil prices while at the same time, maintaining its steady supply to consumers, in order to control oil demand. (Organization of the Petroleum Exporting Countries, Para. 12-14).

Oil and Politics

The whole process of controlling oil prices has some political intrigues surrounding it. For example, the doggedness of conflict between Arabs and Israel propelled the once price controlling intergovernmental organization into a forceful political icon in Middle East.

In 1967, the Six Day War, between Israel and Arab countries led to the development of a revolutionary faction, Organization of Arab Petroleum Exporting Countries, whose role was to enact and upshot new policies, which will act as revenge to western countries supporting Israel.

The situation deteriorated further, when minor oil-producing countries like Egypt and Syria joined this faction to push sanctions and mount pressure western countries. In 1973, the Yom Kippur War electrified Organization of Arab Petroleum Exporting Countries’ policies and strengthened their stand.

The supply of oil from western countries to Israel enabled Israel forces to triumph over Syria ns Egypt. On realizing this, Arab oil producing countries introduced an oil embargo, 1973, oil embargo, which saw United States and other western countries go without oil from Arab OPEC countries. Although not supported by other OPEC countries outside Arab land, the situation became worse hence, paralyzing production in industries and movement globally.

Nonetheless, because of the oil embargo, there was oil price decrease between 1980 and 1986 leading to oil glut in international markets. The glut caused by over-exploitation and low demand from oil consumers brought forth disunity in OPEC who suffered a 46 percent decline in revenue. (Parra 1-37).

Analysis and Conclusion

Political dissension among Arabian countries weakened OPEC political force. The Gulf War in Middle East was categorical in weakening the once powerful political front. President Saddam Hussein cited that, the increase of oil process through OPEC helped Iraq and other debt-ridden OPEC countries service their loans slickly.

OPEC infightings like the Iraq-Iran War and the invasion of Kuwait by Iraq marked a new era of OPEC conflict leading to the distraction of oil supply hence; reduction of oil prices. Nevertheless, Venezuela benefitted a lot by doing massive scaling of oil production in 1990s.

Later, President Hugo Chavez hosted OPEC summit of OPEC to discuss their achievements. Sadly, the extremist attack in United States opened a new era of wars starting from Afghanistan and Iraq invasion leading to unprecedented increase in oil prices, higher than OPEC targets.

The situation on the ground prompted Indonesia to withdraw its OPEC membership fearing production interests. There came yet another obstacle in 2007, when OPEC countries opted for a euro instead of a US dollar. This fight saw oil prices increase from US$15 to US$ 85 per barrel, in New York Mercantile Exchange, in 2008. (Smith 51-82).

Although OPEC had been successful in controlling oil prices, competition levels from other countries pose serious threat. Entry barriers in international markets provide yet another challenge to OPEC oil dominance.

Without further deliberation, about three-quarters of the world’s oil reservoirs exist in OPEC countries. There is further development going on all over the world to identify oil reservoirs. Perhaps, this will reduce the autonomy of OPEC countries that regulate oil prices whenever they choose. Non- OPEC oil-producing countries seem to benefit when oil prices increase.

Nevertheless, the small production from these countries limit the revenue generated and sometimes, this production does not even meet internal needs. What makes control of price unachievable is that, coordinated efforts from OPEC countries have policies, which discourage any legal intercession albeit, sovereignty of member states.

Market researchers and economists have failed to depict the influence of OPEC in controlling the price of oil in international markets. It is not yet conversant whether the action to increase oil prices occurs due to individual stakes or monotonous and aggressive coalitions among OPEC members or collectively as one unit in OPEC.

Overall, OPEC countries opt for classic cartel whenever they want to raise or lower oil prices. Market research shows that, OPEC members participate in deliberate production restrictions, which will increase demand of crude oil due to paucity. At this instant, the possibility of raising oil prices is actually high. Astonishingly, production of crude oil by OPEC members hit highest between 1973 and 1985 but later on reduced by 50 percent.

According to the current statistics, crude oil production from OPEC countries is extremely low as compared to what these countries were producing in 1973. Ironically, oil consumption levels have increased by 50 percent meaning, there is great demand from consumers who will in turn, meet high prices posted by semi-autonomous OPEC members. (Adelman 170-190).

As it stands, there is no signal whether OPEC member states will reduce their stance and choose to settle on a fixed oil price. The problem with OPEC countries is that, they lack proper revenue distribution modes.

Therefore, individual revenues from oil sales determine individual revenue arising from each quota. Some researchers argue that, economic and demographic disparities among OPEC member states contribute to the warring prices of oil in international markets.

Highly populated oil producing countries like Nigeria and Venezuela have high-cost oil reservoirs unlike less populated oil producing countries like United Arab Emirates, Kuwait and Saudi Arabia, which seem affluent courtesy of the high revenue generated. The future still looks gloomy as geopolitical and serendipitous OPEC episodes continue to harm international oil markets.

Nevertheless, the fixation of oil prices is sometimes god for a liberal market where oil-producing countries will receive a lion share equivalent to its production. OPEC continues to register history in the world courtesy of its unresolved price changing tactics. Through oil export, countries once considered poor are now competing with developed countries.

Works Cited

Adelman, Morris. World Oil Production and Prices: 1947-2000. Quarterly Review of Economics and Finance, 42(2), 2002, 169-191.

Hammes, David and Wills, Douglas. Black Gold: The End of Bretton Woods and the Oil-Price Shocks of the 1970s, The Independent Review, 10(4), 2005, 501-511.

Hyder, Joseph. Organization of Petroleum Exporting Countries (OPEC). 2004. Web. https://www.encyclopedia.com/social-sciences-and-law/political-science-and-government/international-organizations/opec#3403300568

Organization of the Petroleum Exporting Countries. About OPEC. 2010. Web. <https://www.opec.org/opec_web/en/17.htm>

Parra, Francisco, Oil Politics: A History of Modern Petroleum. London. Taurus Publishing Corporation. 2004. Print.

Smith, James. Inscrutable OPEC? Behavioral Tests of the Cartel Hypothesis. The Energy Journal, 26(1), 2005, 51-82.

Introduction

BP is a multinational corporation whose main activities include exploration and trading in oil and gas. BP is the 3^rd largest company in the energy sector in the world and 6^th in the overall category. The company is involved in several activities within the energy sector especially exploration of gas and oil, refinery and distribution of the same, generation of power and in retailing of gas and petroleum products.

BP has also made major strides in the renewable energy sector especially in bio-fuels, wind power, hydrogen and solar energy. The parent company has its global headquarter in London.

There have been several suits brought against BP due to their negligent and unethical behavior which put both people and environment at risk. BP has had many negative incidents which have dented its social responsibility image around the globe. Some of these mistakes have had severe environmental impacts and have affected the livelihoods of several people.

There seems to be a culture of impunity within the company’s top executives since some of its mistakes keep happening again and again. Needless to say the company has ended up on the negative side of several product liability suits due to accidents in its site and the use of some of its products.

These suits have been brought by people, companies and groups who have been hurt during these accidents and are demanding justice and retribution for the actions or lack of them on the part of BP.

Product Liability Suit against BP

There have been several product liability suits against BP across the world due to accidents and harm from using some of its products. But this paper considers the recent and ongoing litigation against BP due to the adverse effect occasioned by the oil spill at the Gulf of Mexico.

Recent revelations by the Orlando Sentinel have revealed a damning truth on the part of BP that the designs they used in the deep water rig were not the best for that particular purpose and location. Even more horrifying is the accusation by the sentinel that this particular design was not only inappropriate but also flawed. This conclusion was arrived at through several interviews with engineers.

This unearthed the fact that BP chose to use a design which was cheaper and unreliable. In addition to the used design, there were several mechanical blunders which should have been an indication of possible crisis. Oil specialists have singled out the Gulf of Mexico as one of the places where drilling is hard and therefore requires safer and reliable drilling methods.

BP clearly ignored all this pool of great advice and chose to place cost cutting before human safety and environmental concerns. The resulting spill, one of the largest in history, has put BP on the line of fire and is facing several product liability suits from affected people and businesses.

Due to the many product liability suits filed against BP, the plaintiff lawyers have decided to use a litigation strategy called multidistrict litigation (Ashby, 2010). This system of litigation has been used several times in the US in major litigation against major companies. This allows all cases brought against a single company to be brought to one court and be heard by one judge for the purpose of efficiency.

The major benefits are time saving mechanisms like sharing depositions and pooling resources in the process of evidence collection. This in turn reduces resource wastage in scenarios where lawyers would have to argue the same in different courts. BP recently had to pay several millions due to a similar issue in Alaska and it’s highly likely that they will be ordered to do so again after the completion of this product liability suits.

Mitigation against product liability suits and other crisis

Six sigma analyses should have influenced BPs management in using the right system from the start or changing it when system and maintenance problems started occurring. They should have used the data collected in this deep sea rig and in other sites to calculate the possible risk and enact the right mitigation measures.

But they dismissed most ideas brought about by renowned experts in the field, something which contradicted the sigma approach (Meredith & Schafer, 2010). They also failed to establish high standards in building the rig and hence the low standards might have caused the explosion and the escalation of the crisis.

The cause and effect ideology can be seen at work during this crisis where BP’s faulty design and their unwillingness to listen became the cause of both the disaster and the great extent to which it affected the surrounding environment. Needless to say, had they being reasonable from the start, they would have prevented the current cost of redress and the subsequent product liability suits.

Crisis management has gained significance in recent times due to the ability of single crisis to erode the benefits accrued over time by a firm and cause loss of life and revenue. However, the implications of a crisis might haunt an organization as is the case of BP for a long time to come.

BP has shown that the cost of a crisis is monumental and the cost of redress is always massive. One of the risks that face companies during times of crisis is product liability cases. There is no better example than BP’s recent historical settlement of a product liability case. The result is not just paying out large settlement or damages but the cost of instituting a PR campaign to rebuild the company’s image.

It is not always possible to predict the occurrence of a crisis and the resultant loss that follows, but it is possible to mitigate that probability. This would ensure that should they occur, the extent to which they affect the organization and those around the affected areas won’t be as drastic if no measures had been taken.

It is no wonder that many feel that BP should be punished harshly for its many blunders that cost lives and severe damage to the environment. Most academicians believe that there exist enough signals to predict the possible occurrence of catastrophe and ignoring them until it’s too late constitutes negligence.

It is only fare then that companies who failure to do so should be held accountable and be made to pay for the cost of repair and compensate the affected individuals. So long as companies continue to ignore mitigation by creating strong crisis management teams, then product liability suits will are here to stay.

Conclusion

This paper shows clearly that the conduct of BP was irresponsible and should be held accountable for the loss of life and the catastrophic damage to the environment. Although the company has pledged billions in rehabilitation effort, it is not enough for the people who have lost a livelihood due to the oil spill.

It remains to be seen whether the courts will rule in favor of the several plaintiff’s who have filed a product liability class suit against BP. But by all indications, it would be unjust to rule otherwise in the face of such gross misconduct and negligence on the part of BP.

References

Ashby, J. (2010). As BP Suits Take Off, a Hard Look at the ‘MDL’ Process. Wall Street Journal. Web.

Meredith, J. & Shafer, S. (2010). Operations Management for MBAs, 4th Ed. John Wiley & Sons.

Introduction

The Deepwater Horizon accident took place on April 20, 2010. This was after the explosion of an offshore drilling rig in the U.S waters on the Gulf of Mexico. The accident led to the spilling of large volumes of oil into the waters on the Gulf of Mexico, thereby endangering aquatic lives. Several people also died due to the accident, while others sustained serious injuries. An estimated 4.9 million barrels of crude oil leaked into the ocean, polluting the environment.

The oil spill continued for 84 days until a leaking cap was put in place. The Deepwater Horizon explosion was the largest and longest oil spill in the history of the U.S, not to mention that it had severe effects on the environment on the Gulf of Mexico’. Following the accident, U.S Barrack Obama president issued a ban on deepwater oil drilling. However, the ban was lifted after six months.

Different parties such as the BP Company, the State and the Federal governments were involved in efforts to curtail the damage. The oil spill also led to the compromise of various environmental regulations and laws. The following paper describes the Deepwater Horizon accident on the Gulf of Mexico. In addition, it also highlights the economical and environmental impacts of the oil spill, along with the impact of the accident on existing environmental regulations and laws.

The Deepwater Horizon accident

On April 20, 2010, tragic events took place on the Gulf of Mexico in which 11 people died on the spot while another seven were seriously injured. The incident later came to be recognized as the Deepwater Horizon accident, after the vessel was blown out following the explosion of a Deepwater Horizon petroleum-drilling rig.

This was followed by a series of explosions and fires that spread rapidly. On 22^nd April, the rig sank into the water resulting in an oil spill that spread to the Gulf of Mexico’s coastline. The oil flowed from the rig for a period of 87 days and in the process, 4.9 million barrels of oil were discharged to the U.S waters. Large amounts of hydrocarbons and carbons were also released into the waters after the emergency system failed to disconnect from the vessel.

In a bid to prevent large volumes of oil from spreading to the nearby wetlands and estuaries, use was made of skimmer ships and floating booms. However, on September 19, 2010, the leak was stopped after a cap was fitted into the well, thus preventing any further oil spread and spills. Although there were reports that the capping was not fully achieved, a report by UNEP (2010) states that “British Petroleum (BP) succeeded in fitting a tight sealing containment cap, which stemmed the leak” (P.1).

A report released by the Center for Biological Diversity (2010) shows that more than one thousand miles of shoreline were affected by the oil spill. This affected marine life and caused health problems to people living around the Gulf of Mexico and other regions. Over 2 million gallons of dispersants had to be sprayed on the spilled oil in a bid to disperse the oil and ease up the clean up activity on the Gulf of Mexico.

However, the dispersants were toxic to marine life (Center for Biological Diversity, 2010). The report by the Center for Biological Diversity further indicates that more than half of the oil spilled remained at the bottom of the ocean where it continued to endanger marine species.

Both the State and the Federal governments assisted BP to undertake investigations on the safety of onshore oil drilling (Hagerty & Ramseur, 2013). After the investigations, the BP Company was blamed for the accident on account of an ineffective and insufficient safety system. After the incident, the Environmental Protection Agency announced temporary ban on BP (Hagerty & Ramseur, 2013).

Environmental and Economical Impacts

Oil spills are a real threat to marine life in oceans and on coastal; areas. Also, plants in the coastline are affected by chemical components found in crude oil. Based on this line of thought, marine species in the Gulf of Mexico were largely affected by oil spill from the Deepwater Horizon accident (Hagerty & Ramseur, 2010). Marine species such as whales, sharks, sea turtles, crustaceans, mollusks, birds, are different types of species were affected by the accident.

For example, a study conducted by the Center for Biological diversity (2010) showed that “82,000 birds; about 6,000 sea turtles; nearly 26,000 marine mammals, including dolphins; and an unknown numbers of fish and invertebrates may have been harmed by the spill and its aftermath” (p.1). Since the oil spilled contained high levels of methane, dead zones were created, which suffocated marine life. Moreover, the level of polycyclic aromatic hydrocarbons (composed of chemicals and carcinogens) were increased, thus endangering marine and human life.

The oil spill mainly affected the economy of BP and that of the Gulf of Mexico. Fines and penalties were imposed on BP, not to mention the claim payments the company had to pay the victims of the accident. Other costs that the company incurred included spill response and containment costs, as well as the cost of the damaged Mobile Offshore Drilling Unit.

Moreover, the Environmental Protection Agency (EPA) temporarily banned BP from undertaking any further oil exploration contracts from the U.S government (Hagerty & Ramseur, 2010). This was a major economical and financial setback to the company. BP has since lost its market share to its competitors. The Deepwater Horizon accident affected the supply and price of oil (Hagerty & Ramseur, 2010). Although the shortage was short lived, the economic impact cannot be ignored.

Prior to the Deepwater Horizon accident, more than 50,000 Louisiana residents were employed by the company (Hagerty & Ramseur, 2010). However, after the accident, local officials estimated that most of these jobs were lost thus affecting the economic and social welfare of local residents. Other commercial activities affected by the oil spill include tourism in the region, the fishing sector, and recreational fisheries sector.

Restaurants and hotels operating in the region were also affected as the region was closed for cleanup activities (Hagerty & Ramseur, 2010). However, the cleanup activities, created employment for the local people although this was a short lived exercise. Owing to changes in consumer perceptions and attitudes on the safety of seafood on the Gulf of Mexico following the oil spill, there was a decline in the sale of seafood in the region.

Impact of the accident on existing environmental regulations and laws

There are multiple environmental laws that have been implemented by both State and Federal governments to protect the environment. Some of rules and regulations that affected by the Deepwater Horizon accident include the Clean Water Act (CWA) which prohibits pollution of the U.S waters, and the Toxic Substances Control Act (TSCA) which is concerned with hazard dispensation in oceans (Hagerty & Ramseur, 2010).

In 1973, the International Maritime Organization enacted the International Convention for the Prevention of Pollution from Ships which according to Smith (2009) prohibits “all oil tankers, cruise ships, general cargo and container vessels, tugs, ferries, yachts and small pleasure craft from releasing substances that would pollute the marine environment” (p. 1481). Although this environmental regulation lacks regulatory provisions to address the Deepwater Horizon, the law was nonetheless affected.

Another regulation violated by the accident was the United Nations Convention on the Law of the Sea (UNCLOS) as “UNCLOS directly addresses international regulation of fixed, offshore drilling platforms like the Deepwater Horizon, and thus is the most comprehensive, current international treaty for oil pollution” (Smith 2009, p. 1484). Therefore, the Deepwater Horizon accident not only impacted on U.S’ laws but also affected the international environmental laws and regulation.

Fiorino (2006) observes that “current environmental protection system cannot deliver healthy and sustaining world that Americans want” (p.9). This has been attributed to designing and implementing environmental statuses and regulations, which addresses current issues.

For example, most of the present environmental regulations and laws do not support or keep up with the changing oil drilling technologies. Moreover, most of these regulations were implemented in the 1980s and have never been reviewed. Agencies responsible for gas and oil drilling, especially the Bureau of Ocean Energy Management was limited in their response to the accident as they lacked adequate capacity to deal with such an accident (Norse & Amos, 2010).

Conclusion

The paper has provided a description of Deepwater Horizon accident in the Gulf of Mexico, highlighted the economical and environmental impacts of the oil spill and accident, as well as the impact of the accident on existing environmental regulations and laws.

The Deepwater Horizon accident took place after the Deepwater Horizon petroleum-drilling rig exploded. A series of explosions and fires spread rapidly, causing the rig to sink in the U.S waters. The oil spill lasted for a period of 84 days before the well was capped to stop further spillage. Oil spills and accidents significantly harm marine organisms and the economy as well.

The oil spill had a negative impact on the marine ecosystem in the region. From an economic point of view, the oil spill mainly affected the economies of BP and the Gulf of Mexico. Jobs were lost even as BP incurred extra expenditure which included penalties and fines, claims payment, containment, and spill response costs. Commercial and leisure fishing, restaurants and hotels operating in the region were also affected as the region was closed for the cleanup exercise.

Some of environmental regulations and laws affected by the oil spill include the Clean Water Act (CWA), the Toxic Substances Control Act (TSCA), and the International Convention for the Prevention of Pollution from Ships, and the United Nations Convention on the Law of the Sea (UNCLOS). The Deepwater Horizon accident on the Gulf of Mexico is a reminder to all environmental protection agencies on the importance of new environmental regulations and laws to safeguard the environment.

Reference List

Center for Biological Diversity. (2010). Catastrophe in the Gulf of Mexico: Devastation persists. Web.

Fiorino, D. J. (2006). The new environmental regulation. Cambridge, Mass: MIT.

Hagerty, C. L., & Ramseur, J. L. (2010). Deepwater Horizon Oil Spill: recent activities and ongoing developments. Congressional Research Service, 1-12.

Hagerty, C. L., & Ramseur, J. L. (2013). Deepwater Horizon Oil Spill: Selected Issues for Congress. Congressional Research Service, 1-48.

Norse, E., & Amos, J. (2010). Impacts, perception, and policy implications of the Deepwater Horizon oil and gas disaster. Environmental Law Reporter, 1-16.

Smith, M. (2009). The Deepwater Horizon disaster: An examination of the spill’s impact on the gap in international regulation of oil pollution from fixed platforms. Emory International Law Review, 25(3), 1477-1516.

UNEP. (2010). The Gulf of Mexico oil spill: The world’s largest accidental offshore oil. Web.

Appendices

Appendix 1

Appendix 2

Appendix 3

The BP oil spill which is also referred to as the Deep water horizon oil spill took place in the Gulf of Mexico in the United States. It took place in the year 2010 and has been termed as one of the worst crises in the company. It affected the economy that is dependent on the ocean.

Fishing could no longer go on with the gushed oil. The oil spill has devastating consequences on the marine and human life. It also disrupted activities along the Gulf of Mexico (Landau, p. 10). The spill of the oil took place within a span of three months without being abated.

The oil spill resulted from an oil gusher at the sea floor as a result of the deep water horizon explosion. Notably, eleven BP workers were killed in the explosion. Also, the explosion left many others with injuries. This was one of the worst environmental disasters to have occurred in the history of oil exploration within the petroleum industry. The disaster left the company with a tough responsibility of stopping the oil spill.

This was a daunting task for BP. The company was forced to apply several techniques one of them being systems engineering (Hagerty and Ramseur, p. 1). Therefore, this paper analyzes the projects that were initiated and used in mitigating this environmental disaster (Stephen, Gold and King, Jr., para. 1-3). The paper looks at the problems, costs, risks, schedules, timelines, success, and lessons that can be derived from the response projects.

The first projects were regarded to be rapid response projects to aid in stopping a further spill of the oil in the ocean waters. Other subsequent response projects were aimed at averting the environmental impacts that had resulted from the spill (Hagerty and Ramseur, p. 1).

Capping the leaks – Detection and response to leakages

There are a number of standardization rules that have been set and which can be used in enhancing the pace at which capping is done. This includes the presence of a working oil detection system. Early detection of the oil spill is a milestone as it can help early taming of what would have becomes an environmental disaster. The spill size is greatly minimized as quick response is in place (BTC Project, para. 2-10).

A normal detection process to such a project could take a relatively shorter time if all the proper preparedness measurers are in place. This can be summarized as shown below:

Figure 1.0 Oil leak detection and estimate of time to be taken in responding to different magnitude events.

Source: BTC Project

The detection is done with the help of system patrols by the design engineers

For the BP case, the spill continued for long before the company could establish a response emergency team for sealing the leaks. The team encountered challenges to seal the leak because of unpreparedness. Therefore, as they continued to make efforts to cap the leaking points within the underground storage tanks, the oil continued to leak and increased the devastating consequences (Stephen, Gold and King, Jr., para. 1-5).

The population in the Gulf of Mexico had requested to be allowed to respond by putting a barrier to prevent the polluted water from reaching other regions. However, they were denied permission to do so by the authorities in the region. The authorities were waiting for a structured response from the responsible bodies. Therefore, it took long before an active response was initiated on the ground. The team that was deployed to contain the leak ascertained that it had to employ unique features of engineering to contain the leak.

The oil was gushing from underneath the water. This was more than one mile underneath the ocean waters. Therefore, experts warned about the situation taking too long before being contained. It required the deployment of massive skills to stop the leak. It was estimated that about five thousand barrels of oil were being gushed into the ocean during the entire time that the leak continued (Farrell, p. 43).

The first response to the oil spill was aimed at containing the short-term impacts. The first response involved the use of underground vehicles that were remotely operated. The vehicles were aimed at closing the blow out preventer valves. This attempt did not attain success. They failed at their initial stages. The second response entailed the use of the use of 125–tone for containing the dome. This had some level of success.

However, its success was limited as it was only effective to contain leakages in the shallow waters. It could not work for deep water spills because of the leakage from gas pipes. When the gas combined with water, it formed methane hydrate leading to the blockage of the dome.

The other attempt was made and it involved the pumping of heavy fluids into the preventer helping to restrict oil flow temporarily before permanent sealing of the leaking points was done. This also failed to materialize. It was evident that the response team was practicing trial and error responses not being sure about the best method (Farrell, p. 43).

The most successful response action employed high level system engineering. The team positioned a riser insertion tube into a wide burst pipe. The tube had a stopper like a washer around it which helped in diverting the flow into the tube. The collected gas was then flared, and the oil was stored on the Drillship discoverer enterprise. A voluminous amount of oil was collected before the removal of the tube. A total of 924 gallons of oil were collected.

However, this was not as more oil was still escaping. Therefore, another oil containment system was installed. This system was directly connected to the “blow out preventer”. This system became more effective in carrying gas to the servicing vessels (Amina, para. 3). However, the amount of oil collected was still less compared to projections.

The containment cap was later replaced with a fitting cap. The new cap had a Flange Transition Spool as well as a 3 Ram Stack. This enabled the team to pump cement and mud into the gushing points of the well. This was a temporary solution that required more actions to stop the possibilities of leakages (Mason, para 2-6).

This emergency response team was prepared and dispatched to the site after the calls for response from various bodies including the media, the public and environmental organizations. The team could only manage to come into the weeks after the leak has begun. By this time, the oil had spread to a relatively larger area and caused wider damage to marine life (Mason, para 2-3).

This response was not done timely, and this is the reason why it took the team and the capping project a longer period than the perceived time. It took approximately one hundred days before the team stopped the oil from leaking. This was contrary to what the company had termed as an easy exercise before they began undertaking it (Mason, para 4-6).

The project succeeded. However, alt of damage had already been done leaving behind major devastations to the marine life and the population. It was evident that the company was not ready to handle a disaster of such a huge magnitude. For instance, they tried to make use of equipment that are used is shallow spills to this case. The equipment that is being referred to here is the steel containment dome that goes for only forty feet. Moreover, this equipment was to be shipped from far (Farrell, p. 43).

Containing the spilt oil

The Deep-water horizon oil spill was characterized by two major response projects. These were the detection and buffing or sealing of the leaking wells. The second response was cleaning up the ocean. The first response projects were crucial and were deemed to involve a lot of technology.

Therefore, systems engineering was a critical part of this response. The second response was going to employ three sub-responses that included containing the water surface, diluting and dispersing the contaminants in areas that were deemed to be less sensitive. The third sub-response was to remove the contaminants from the water (Gelsi, para 2-5).

After the company had managed to stop the leaking oil, it was faced with another hurdle, which was dealing with the oil that had spilt in the ocean. Many oceanographers were warning of the rate at which the spilt oil was spreading to other parts of the ocean thus spreading the impacts across a larger area. This was being aggravated by the ocean loop currents that were directing the slick to Florida and the Atlantic Ocean (Gelsi, para 2-5).

The coast of Louisiana had a large coverage of the oil spill and the more the oil would remain uncontained, the more it would impact negatively on the marine life. Most of the slick was being directed to the Gulf of Mexico where the impact was very severe. At this point in time, many bodies were assessing the effects of the oil spill. Some bodies were struggling to establish the contents of the oil and the effects that these pollutants had on the marine life.

It took long to discover that the explosion at the oil exploration site had resulted in the bursting of oil tanks and that oil was leaking into the sea. This is because the oil was leaking from underground. The leakage was discovered days after the explosion. The amount of oil leaking in the sea could not be easily established.

However, from several reports including the assessment done by the US, it was evident that voluminous amounts of oil were spilling into the sea. The BP estimates were critiqued for being biased and favoring the interests of the company (Cullen, para 1-6).

By the time the oil leak had been stopped, the oil has been sighted in areas far as more than 16 miles away with the entire Gulf of Mexico Island covered with the polluted water. All the surrounding areas like Louisiana had also been affected up to Texas and Mississippi. The scale of the spill was enormous, and this meant it was going to take much time to deal with the situation. The cleanup of the water involved detoxification of the water using chemicals that would help in leaking the carbonic toxicants of oil (Gelsi, para 2-5).

The British Petroleum Company launched the oil containment project. This response project entailed the deployment of containment boom to wide areas. The purpose of the project was to prevent the spilt oil from mashing into the sensitive areas or corralling the oil. The booms were to extend into the deep water horizons.

The amount of booms was extended as the exercise progressed. The boom needed experienced operators who would ensure that the right amount of booms was being discharged. It emerged that the people who were used in conducting this exercise had less expertize and experience that hindered them from effectively discharging the duty (Sidlow, p. 341).

The dispersion of oils dispersants in the sea was launched. The objective of this exercise was to detoxify the water by deactivating the lethal components of oil in the water. The de-toxicants would help in dispersing the chemical pollutants in the ocean thereby minimizing their effects.

The major dispersant chemicals used in the exercise were EC95237A and EC9500A. These dispersal chemicals contained 2-butoxyethanol, propylene glycol and dicotyl Sodium sulfosuccinate. All these elements have chemicals with side effects on the people who get exposed to them while they are still in their active forms. They also have long term effects resulting from exposure to them such as causing cancer (Sidlow, p. 336).

AC-130 Hercules was also used in spreading the dispersants in the Gulf of Mexico which had high deposits of the leaked oil. This was somehow successful, but because of the toxic chemicals that were used in the exercise, the project was termed as unsatisfactorily. The efforts to clean-up the water are still ongoing, and they are expected to continue for a longer time (Sidlow, p. 336).

Lessons learned from the case

Several lessons were learnt by the company regarding this response. Fist is that the organization must have a detailed plan for pipeline leaks. Therefore, the organization should have clearly outlined procedures including training of the response staffs and equipping these staffs with the required equipment. The emergency or disaster preparedness plans must always be active (BTC Project, para. 2-10).

Conclusion

The BP oil spill in the Gulf of Mexico was an accident that resulted from an exploration mission of BP and other companies. BP had a lot of shares in this mission. The accident occurred resulting in oil leaks under the ocean. Two major responses were critical in averting the effects of the oil spill.

This was the stoppage of the spill and the cleaning up of the water. All these responses needed a lot of technical expertise approach with systems engineering being the major driver of the responses. Both short and long-term response programs were used with each having its success pints and flaws. The company had to derive a lot of preparedness lessons from this disaster.

Works Cited

Amina, Khan. Gulf oil spill: Effects of dispersants remain a mystery. 2010. Web.

BTC Project. Oil Spill Response Strategy. Web.

Cullen, Elaine. Problems with BP Oil Spill Response Plan Outsourcing. 2010. Web.

Farrell, Courtney. The Gulf of Mexico Oil Spill. Edina, Minn: ABDO Pub, 2011. Print.

Gelsi, Steve. Gulf Coast expands oil spill emergency defenses. 2010. Web.

Hagerty, Curry L. and J.L. Ramseur. Deepwater Horizon Oil Spill: Selected Issues for Congress. Washington, DC: Congressional Research Service, Library of Congress, 2010. Print.

Landau, Elaine. Oil Spill! Disaster in the Gulf of Mexico. Minneapolis, MN: Millbrook Press, 2011. Print.

Mason, Rowena. BP attempts to ‘dam’ Gulf of Mexico oil spill. 2010. Web.

Sidlow, Edward. Govt3. Belmont, CA: Wadsworth Cengage Learning, 2012. Print.

Stephen, Power, R. Gold and N. King, Jr. Staffing Levels on Deep-water Horizon Are Questioned. 2010. Web.

Petrol stations cannot be left behind in environmental conservation because they are the largest producers of carbon wastes that contribute to global warming due to the emission of greenhouse gases. Petrol retailers are therefore in constant quest of coming up with working environmental policies with necessary health and safety measures while at the same time satisfying the needs of their customers. The environmental management system adopted should be geared towards bettering environmental criteria, mitigate health and safety requirements while still enabling the venture to break even (UNEP/IPIECA, 1995). It is imperative, for purposes of posterity that Shaq petrol station builds a working relationship with its financial investors, the local people in the neighborhood, its customers and the staff in general. For the aforementioned to be actualized Shaq petrol station will have to integrate into their system environmental policies that cut on operational costs; entice the environmentally aware individuals in their attempt to show they are environmentally conscious; be proactive on matters about health, environment and safety; differentiate the services Shaq offers from those of its competitors; Shaq petrol station should also contemplate going for the services of environmental accreditors and after which decide on whether they should make the report on environment assessment private or public. This will help in improving the management of environmental issues. The benefits will encompass saving on operational costs because there would be minimal legal tussles, lower insurance premium, a few insurance claims and insurance premiums; efficient ways of implementing environmental policies with good public relation coverage; good management practices and coordinated flow of information concerning customer inflow; availability of proof that the venture is meeting regulatory health and hygiene requisites.

Formulation of policies and a show of commitment is not a guarantee that environmental performance will meet the demands of both the business venture and law. Environmental policies should have some point of convergence with management aspects in order to fully address environmental performance (Training Resource Package, 1996). Health, safety and environment management system to be adopted by Shaq should entail leadership and commitment; policy and strategic objectives; organization, resources and documentation; evaluation and risk management; planning, implementation and monitoring and finally conducting of review (UNEP/DHA, 1996). Effective implementation of management system calls for proper ventilation of the current practice, involvement of every employee in the organization and development of proper communication channels and proper training. Management is supposed to show their commitment to environmental conservation by clearly articulating the objectives and policies; allocation of adequate resources; provision of motivation; making sure they fully participate; delegation of responsibilities and ensuring utmost accountability and finally instituting proper communication channels. Shaq’s Health, safety and environmental safety management system policy and strategic objectives ought to guarantee consistency, relevance and at par with other competing partners’ policies and objectives. Environmental training of the staff should be packaged with policy, plans and management; objectives, targets, performance; local, national and international environmental issues; legislation, consents and compliance, procedures relating to operation, prevention of pollution; use of chemical in waste management: emergency response and reporting. The environmental impact assessment should identify legislation; critically describe environmental baseline; classify areas deemed sensitive; assess the risks that are to be encountered; come up with the effects of the projects; attach value to the impacts of the project; select an environmental option that is best practicable; investigate the possible ways of solving the effects of the project on the environment; evaluate the residual impacts; consideration of contingency planning; coming up with a management plan that constitutes monitoring, consultation, reviewing and taking of audits. Risk evaluation and management involve preoccupation with description of the project; identification of hazards and consequences; evaluation of the magnitude of the consequences; establishing the probability of the consequences and eventual management of risks. Environmental planning principles should entail preparation of environmental profile, carrying out impact assessment, evaluation of risks involved, integration of the environment with design, preparation of project environmental plans, formulation of compliance programs, and initiation of monitoring programs. Shaq’s environmental plans, programs and procedures should integrate aspects of consultation and communication, prevention and control of pollution, management of waste, targets set and levels of performance, ways of monitoring and ensuring there is compliance with the set-out policies, waste management, decommissioning and rehabilitation. Shaq should adopt a way of monitoring its objectives that guarantee effectiveness of planning decisions, gauge efficacy of operational procedures, confirm compliance with statutory and corporate requirements and be able to formulate expected changes. In order for Shaq to have an up to date environmental management system they have to do audit that ensures feedback is got; proper documentation; efficient reporting and communication; verification of laid out ways of combating environmental degradation; close monitoring of programs; facilitation of means of conducting awareness and training, procedures, standards and targets.

Monitoring of environmental management system is important as it is a means of confirming that a corporation’s commitments are met. It entails measuring and recording quantitative data pertaining to quantities and concentrations of discharges and comparing them against Shaq’s standards and layout standards (UNEP, 1998). Monitoring also entails aspects of environmental quality measurements around the location of the venture using biological, physical and chemical indicators. Monitoring also calls for cooperation from the local community by assessment of their grievances. Shaq’s environmental monitoring should be one that ensures that tankers loaded with petroleum possess two hoses: one that injects fuel in the tanker and another that collects vapor that comes from the tanker which will later be taken to recovery unit and recycled back to petroleum. The vapors are an environmental hazard as they contribute to formation of photochemical smog, a major contributor to poor visibility in urban setups. The vapors are also a source of benzene that is carcinogenic. Shaq should also devise a mechanism whereby vapors that come from underground tanks are safely taken to the tankers by two hoses while filling. One horse should be for pumping petrol into the tank and the other for siphoning vapor from the storage tank to the tank. At the time of delivery of fuel from tankers to the storage it is pertinent that the flanges, caps and seals are properly checked to confirm that they are in good state and to avert any possible and subsequent emission of vapor into the environment. Leakage can lead to pollution of water bodies. Shaq petroleum station should ensure that the service station operators are abreast with vapor recovery procedures. A form of environmental monitoring should ensure that vent pipes are extended or all in all moved to avoid the complaints that may come from the neighborhood related to bad odor at the time of tank refueling. Moreover, use of pressure vacuum valves should be avoided at all costs as they risk initiating underground tank leakage especially if they are not properly fitted and calibrated. Supervision of fuel delivered should be done to prevent the fuel from draining into the sewerage system and drainage system. This can be actualized by availing collection traps to collect spilled fuel and take them to appropriate waste collection facilities. Shaq petrol station should also ensure that their thermoplastic and flexible metal pipework used in underground installation are leakage proof, have the right hydrostatic strength and cannot burst due to pressure build-up (ILO, 1992). The piping system should also have the right cyclic pressure and vacuum as per the guidelines spelled out by the accreditation bodies like the Institute of Petroleum Specification for underground pipework system of filling stations. Pipework should also be resistant to crush and puncture, and have some bending radius and low be flexible to temperature changes. Piping system has to be compatible with the fuel to avoid possibility of reactions that may be near-fatal to the lives around. Frequent tests must be conducted on the connectors. Moreover, the piping system should not allow the fuel to permeate through it and swelling. Creep testing should be conducted on the piping system by the staff. Shaq should consider a form of environmental monitoring that has a documented scope and is continually improved. It is supposed to be well established, maintained and be seen to be working.

Putting in place an efficient environmental management system by Shaq will help the venture to become environmentally conscious thereby putting more effort into initiatives that are inclined to environmental conservation. This may be part of a corporate social responsibility that may also act as a marketing initiative. Naturally, many will only want to identify with business enterprises that have the interest of people at heart. This may result in increment of sales as many would want to fuel at Shaq only. Decision-making processes will also be enhanced as there will be a homogenous management team and the employees who work towards realizing one goal (UNEP/IEO, 1990). Personnel will feel overly motivated because of their full involvement in the company’s environmental conservation efforts. This motivation will impact positively their production and the turnover of the company. Shaq petroleum station will cut operational costs as the money that could have been used in legal suits filed by the offended people will be channeled into other noble activities. Product quality will also improve especially if the petroleum station decides to sell petroleum products that are environmentally friendly like sale of petrol with low or no lead at all. When the accreditation bodies carry out quality assurance on Shaqs environmental conservation efforts and find that they are up to standards and eventually make their report public, many people would want to identify with Shaq petroleum station. This will be a boost to its public image. As aforementioned the venture will not be entangled in costs incurred due to liability, insurance and non-compliance charges slapped on them due to non-compliance with the concerned environmental agencies (UNEP, 1994). As a matter of fact Shaq will be center of focus for prospective employees, investors, and customers. Winning the confidence of the regulatory agency will help in reducing regulatory requisites. Moreover, the venture shall develop a good rapport and relationship with environmental groups. Advantages of environmental conservation are divided into the external and internal benefits. The external benefits comprise winning the confidence of the customers and the authorities, better public relations tool, the venture becomes more competitive against its rivals whom they share with the market share, there would be less pollution to the environment and provision of improved products and services. Internal motivation helps in improving service delivery to customers, protecting and psyching up of the co-workers, reduction of emissions such as benzene and vapor, early detection of environmental concerns and coming up with ways of combating them before they blow out of proportion. Internal benefits of instituting efficient environmental management system also ensure that people develop foresight to help in the detection of future environmental hazards. It also guarantees that they would not be entangled in protracted legal battles (UNEP, 1992).

To address the growing concern that leakages in underground fuel storage tanks contribute enormously to contamination of groundwater and death of life forms in soils and human beings, accreditation bodies should come up with legislations that ensure that all underground fuel storage tanks are made of material that cannot be easily corroded. Devices should also be installed that will check on overfills, spills and leakages. Records should be kept and that owners of business ventures should deposit some generous amount of money with insurance companies so that if they happen to spill oil on any water body, or contamination arises due to leakages they can foot the costs of cleaning up the contamination. This should also apply to non-oil marketers like the car rentals who have their private filling stations. In a situation where there has been massive leakage of fuel from underground storage tanks, the owners of such business enterprises have to be forced to excavate the fuel-soaked dirt. The soil has to be subjected to burning to eliminate the petroleum-contaminated dirt. The expenses of course have to be borne by the perpetrators. In such cases, accreditation bodies should also consider instituting legal charges against such offenders. Contaminated grounds should also entail mechanical pumping of air otherwise known as air sparging to contaminated grounds. In the process, a soil vapor extraction system will suck out all the fuel-laced vapors from the soil as these vapors contain benzene that is responsible for cancer development in human being apart from contributing to poor visibility. Another option that accreditation bodies can float to owners of petroleum stations other than the mechanical clean-up after oil spills can be the natural clean-up. It may be preferable in cases where spills do not pose a major health risk to the ecosystem. It is often referred to as natural attenuation (UNEP/UNIDO, 1991). It uses the naturally occurring bacteria to break up components of petroleum and render it less dangerous to the ecosystem. Fertilizer can be used as a source of nutrients for the bacteria, to encourage the growth of bacteria that disintegrates the petroleum. The regulatory measures should be put in such a way that it is not only the petroleum stations that are targeted but also large industrial establishments especially those that use heavy-duty automobiles that consume petroleum. They should be compelled to also minimize fuel spills and leakages.

References

Audit and Reduction Manual for Industrial Emissions and Wastes. UNEP/UNIDO, 1991, 127pp.

Chemical Pollution, a global overview. UNEP, 1992.

Company environmental Reporting: A measure of the progress of business and industry towards sustainable development. UNEP. 1994,118pp.

Environmental Auditing. UNEP/IEO Technical Report No.2.1990.

Environmental Business Management- an Introduction. ILO, 1992.

Environmental Management Practices in oil refineries and terminals- An overview. UNEP,1998, 103pp.

Environmental and Safety Incidents Concerning Tailings Dams and Mines. UNEP/DHA, 1996, 129 pp.20

Monitoring Industrial Emissions and Wastes. UNEP/UNIDO, 1991, 131 pp.

Risk Management of Contaminated Industrial Land. Training Resource Package, 1996, 110pp

The Oil Industry Experience: Technology cooperation and Capacity Building. Contribution to Agenda 21, UNEP/IPIECA, 1995.

Summary of the most important points

The initiative proposed by Ecuador’s Yasuní-ITT aims at reducing overreliance on fossil fuels in the generation of energy. The model seeks to avoid all the possibilities of exploiting oil reserves in the country. In other words, it is a conservation approach on this rare, useful and environmentally harmful resource. It is apparent that there are significant underground oil reserves in the Amazon region of Ecuador. When the oil reserves are not exploited, the country will expect to be compensated by the international community on missed income.

Petroleum extraction in the Amazon region has been the mainstay of Ecuador. Hence, there is urgent need to shift the national attention from over-reliance on a single source of energy and instead seek other alternative sources. If Ecuador can be paid back handsomely owing to missed revenues, then the state can indeed fast track sustainable economic development. The initiative presented in the essay also explores the proposals in line with a political pilot project. For instance, the global environment service possesses a lot of new economic opportunities contrary to the popular belief that a nation like Ecuador should entirely depend on crude oil for economic growth.

The carbon-and-conservation collaboration model and some of its short and long term implications have been critically discussed in the paper. As a matter of fact, this form of collaboration may bear a lot of significance both at the national and international level. The implementation and institutional design of the proposed carbon collaboration is a major step in the right direction especially in regards to conservation matters. On a final note, such a shift in environmental conservation projects a number of governance challenges facing Ecuador as discussed in the paper.

Critics of the project and government’s point of view

The Yasuní-ITT Initiative received a lot of support from the government. For instance, various polices related to the initiative were substantially changed by President Rafael Correa in order to favor or enhance environmental conservation and at the same time safeguard the economic wellbeing of Ecuador. Although petroleum development sector has been a key pillar in economic growth over the years, the government pledged its readiness to support the Yasuní-ITT conservation initiative. It is also interesting to mention that no new oil extraction activities were halted by Ecuador’s president in 2008. This declaration covered regions that had already been earmarked for protection.

If it would be very necessary to extract oil from the protected regions, then the interested companies were supposed to seek and be granted permission by the state. However, the extraction project would be given a go ahead only if the nation benefits positively from it. After this declaration, a trust fund was created by the UN. The latter would enable adequate funding of all projects that enhanced sustainable development. In a nutshell, the government has been fully supporting the initiative bearing in mind that substantial pieces of legislations are firmly in place to reduce oil extraction and diversify national economy through other sources.

How much of the project is being protected

The portion of the project that is being protected comprises of a rich habitat of wild animals and human residence. For instance, there are countless communities of trees, mammals, birds, amphibians, and other animals. It has been referred to as a diversity maxima region that surpasses the IUCN database. The protected region is indeed part of the National Park. It is an ‘Intangible Zone’ as declared by the Ecuador’s government way back in 2007. The region covers an estimated area of 7,580km² . Both the central and southern regions of the park are part of and parcel of the covered region. It is crucial to mention that the cultural integrity and ecological wellbeing of the protected region are of great significance to the state and that is why they are off-limits when it comes to the extraction activities for crude oil.

Names of the oil companies in Ecuador

A number of oil companies have been on the forefront in the rampant and in discriminate extraction of oil within the Amazon region of Ecuador. In fact, several protests and lawsuits were witnessed against these oil-extraction companies before the government eventually agreed to take control of the situation. Some of these companies include Chevron, Texaco and PetroEcuador.

Perspectives on the project

According to the authors, the project is indeed the best step to take towards environmental conservation and protection of the national diversity. Oil extraction activities in the Amazon region had led to disastrous effects to both human and animal life. In addition, the authors note that overdependence on oil resources has culminated into poor economic diversification. As a result, Ecuador is often vulnerable to fluctuating oil prices. The authors are of the opinion that if the Yasuní-ITT Initiative is fully adopted and implemented, the government will be in a stable position to minimize the debt burden and equally boost foreign direct investment.

The King Fahd University of Petroleum & Minerals (K.F.U.P.M.) and Stanford University are worlds apart. This can be said literally and figuratively. This is because the two universities are located in different parts of the world, on two different continents. The former is in the Middle East while the latter is in America. Aside from the location, the other major difference concerns cultural diversity within both universities. It will be explained later in detail that the cultural diversity in terms of the number of foreign students enrolled as well as the different types of courses offered in each university greatly affect the quality of education in both universities. Thus, the administrators of King Fahd University of Petroleum & Minerals tried to establish cultural diversity. Yet when course offerings, the number of foreign students, and the type of services available to students were compared to those found at Stanford University it was discovered that K.F.U.P.M. has still a long way to go before it can experience the same level of cultural diversity found in Stanford.

Importance of Cultural Diversity

Cultural diversity begins in the development of the program. Each university must be committed to encouraging diversity in the campus by first providing resources that will lead to the establishment of an academic program as well as in attracting foreign staff, faculty, and students to the university. Cultural diversity will impact the following aspect of university life:

• Learning Environment;
• Extracurricular Activities;
• International Faculty and Staff; and the
• Courses that will be offered in the said university.

Quality of Education

There is no clear-cut definition of what comprises quality higher education. Still, there have to be some standards that exist in guiding administrators and regulators whose main task is to monitor the performance of colleges and universities. Parents and students will also demand some kind of a mechanism to determine what university will provide a good return of investment. Some of the widely accepted standards are as follows:

1. The percentage of graduates able to hurdle licensure exams e.g. civil engineering and medical licensure exams etc.;
2. The existence of a program that will ensure that graduates will readily make an impact in their chosen field;
3. The existence of a program that will help students contribute to the sciences and the arts.

The following will help deepen the understanding of what is exactly the meaning of quality education. Quacquarelli Symonds or QS is an education organization that sets standards for global higher education. It comes as no surprise that QS works with multinationals and global recruiters such as Goldman Sachs, Morgan Stanley, AT Kearney, Bain, Eli Lily, GE, Shell, and McKinsey. This simply means that QS helps these companies to hire the best and with their connections with top universities it is easy for them to network with educational institutions and employers to facilitate hiring the most competent individuals suited for the job. Quacquarelli Symonds is also the producer of the world renowned QS University Rankings making them an expert in assessing quality higher education.

Quacquarelli Symonds use of the following indicators reveals much about how to assess the relative strengths of the world’s leading universities; these indicators are listed as follows:

• Employer Review
• Faculty Student Ratio
• Number of international faculty
• Number of international students

The last two indicators are crucial to this discussion. This simply means that a university cannot experience significant improvements if it will close its doors to the outside world. In the 21^st century isolation is an unacceptable policy. The whole planet is interconnected. What happens in New York will reverberate in many parts of the globe. In the same way, the behavior of Saudi Arabian firms will greatly impact the rest of the world. Therefore one way to keep updated about recent developments in the global arena, universities must strive to increase the number of international faculty and international students.

Two World-Class Universities

Thus, one can argue that quality education is about the program, the facilities, the students, and the faculty. It is also dependent upon the goals set by the university and its ability to achieve those goals. But at the same time, a third party like QS can come in and evaluate the capability of the university. In the case of K.F.U.P.M., the university’s main goal is to produce top-notch graduates that will be able to contribute to the field of engineering. A review of the current crop of graduates will easily reveal if K.F.U.P.M. is an institution that provides quality education.

Stanford University on the other hand aims to produce graduates that will make significant contributions in the sciences and the arts. The same standard should also apply as mentioned above. But aside from tracking the performance of graduates, one must begin with the study of the university’s current baccalaureate programs and find out how the said program is helping the students learn more about the world they live in and then at the same time learn the necessary skills to make that world a better place.

But it has to be pointed out that the quality of higher education can also be measured in different ways. It can also be gauged by the quality of the graduates in terms of their ability to work and serve in a real-world setting. Quality higher education can also be measured apart from the technical skills learned in college. This means producing graduates who will work not only for profit but also striving to make the world a safer place and ensure its survival for generations to come. In short quality higher education must not only produce technically proficient graduates but also men and women who will make contributions that will, in turn, improve the plight of humanity. In the context of the 21^st century, this means, among others, the ability to comprehend the consequences as well as opportunities of globalization. In a paper submitted to the 1^st European forum for quality assurance, it has been pointed out that universities are evolving due to the emergence of markets as tools for public policy as well as the impact of globalization.

There are many educational institutions all over the world whose core values reflect the above-mentioned sentiments. The University of Melbourne in Australia for instance believes that universities should, “…develop bilateral relationships with government, business, and the community and become increasingly visible, relevant, and accessible to society’s changing needs. The faculty and staff of the said university believe that quality higher education is not simply about mastering math, science, and language skills. These are graduates who do not shy away from the challenges of globalization and continually working toward the attainment of world peace, the eradication of poverty, and the lessening of the impact of deadly diseases and other epidemics. These are graduates who wisely understand that everyone is interconnected and that this earth that they call home will perish if its inhabitants will not work hand in hand.

But if one will allow for a more critical evaluation of the capabilities and resources of K.F.U.P.M., that person will also realize that it is in a disadvantageous position when it comes to increasing cultural diversity within the university. There are two reasons for this:

1. First of all, K.F.U.P.M. was established in response to the fossil fuel industry in the Middle East in general and Saudi Arabia in particular; and
2. Secondly, K.F.U.P.M. will always find it a challenge to attract foreign students to come to Saudi Arabia to study. This may not be a problem for those coming in from neighboring regions like Africa and other far-away countries in the Middle East but to convince Europeans to come and study in K.F.U.P.M. is an entirely different matter.

Stanford University on the other hand does not have the same problem. It is a world-renowned institution that has successfully adjusted to the needs of the outside world. Its location is also a plus factor. It is located in the United States of America, a nation known to easily assimilate peoples from different cultures. America is a melting pot of culture – a nation built by immigrants of diverse ethnic backgrounds. This means that its link to Europe as well as its proximity to Latin American countries enables Stanford University to attract Europeans, Africans, and Latin Americans and make them part of their diverse student body.

With this view in mind, one can conduct an informal investigation into the educational programs using online resources and be able to conclude that both institutions are committed to providing quality higher education to students who wish to study under their respective educational programs. K.F.U.P.M. has been recently recognized as one of the top 400 universities in the world by Quacquarelli Symonds’s world university ranking system. This is no small feat considering that there are thousands of universities scattered all over the globe. In the case of Stanford, no further argument is needed to prove that this highly successful university needs further coaxing to achieve greatness. While K.F.U.P.M. occupies the 400^th spot in the world rankings, Stanford University currently occupies the 17^th spot in the world rankings.

Overview of K.F.U.P.M.

Before going any further there is a need to have an overview of the two universities. Beginning with the King Fahd University of Petroleum & Minerals, the first important thing to consider is that this is a relatively young university as compared to Stanford. The university was officially established on September 23, 1963, but admitted its first student a year later. The first batch where all men, 67 students enrolled in what was then the College of Petroleum and Minerals. The said university held its first graduation ceremony only in 1971 and all the graduates were engineers.

The goal of the university is related to petroleum and mineral deposits. The challenge was to successfully manage Saudi Arabia’s vast oil reserves. The official website provided the following, “To meet the challenge, the university has adopted advanced training in the fields of science, engineering, and management as one of its goals in order to promote leadership and service in the Kingdom’s petroleum and mineral industries.” The university is intensely focused on preparing professionals that will further develop the Kingdom in the field of science, technology, and business. It is also committed to producing graduates that will contribute knowledge that will ensure the sustainable development of the Kingdom.

It does not require a genius to perceive that patriotism and national interests are important in K.F.U.P.M. culture. After all, it is located in Dhahran, near the headquarters of the Saudi Arabian Oil Company (SAUDI ARAMCO). Aside from that, it is situated in an area where the first Saudi Arabian petroleum was discovered – in Dammam Well No. 7, about half a kilometer from campus. Petroleum is therefore central in the consciousness of the students, faculty, and staff. But it is also interesting to note that the university’s vision is to establish a vibrant multicultural university. This will be a challenge considering the facts mentioned in the preceding discussion.

Overview of Stanford University

The university is located in the world-famous Silicon Valley in the state of California, in the United States of America. It was Leland and Jane Stanford who founded the university in 1891. They founded the university to, “…promote the public welfare by exercising an influence on behalf of humanity and civilization…” and this serves as guiding words for the said educational institution even after more than a century in existence. The university is driven by the idea of helping others and this is only possible by forging partnerships and by having a worldview that includes people of various ethnic backgrounds.

Comparing the two Universities

Compared to Stanford University the academic program of K.F.U.P.M. leaves much to be desired. If the university is serious in its bid to create a multicultural university then it needs to consider upgrading the academic program offered in K.F.U.P.M., there are only five colleges as seen in the following list:

• Community Colleges
• College of Sciences
• College of Engineering Sciences
• College of Computer Sciences and Engineering
• College of Industrial Management
• College of Environmental Design

According to K.F.U.P.M., there are 15 departments all in all. At Stanford University, on the other hand, there are close to one hundred departments that include aeronautics, philosophy, photon science, and surgery. In K.F.U.P.M. there are only five colleges that are at the same time focused on the field of engineering and learning is aimed at mineral exploration and extraction. But at Stanford University seven major schools are teaching a variety of courses. These are the schools of:

• Business;
• Earth Sciences;
• Education;
• Engineering;
• Humanities and Sciences;
• Law;
• Medicine.

It is no wonder then that according to QS there are only a total of 7,327 students in K.F.U.P.M. and of that figure a small number, 820 are international students. When it comes to the faculty at K.F.U.P.M. there are only 1,113 but interestingly the number of international faculty is more than half, 762. It is a great contrast to Stanford University where the total number of students is higher. There is also a significant difference in terms of the number of international students.

According to QS school statistics for Stanford University, the total number of students is 19,782. In that figure, there are 4,214 international students. When it comes to the faculty the total number is significantly higher than K.F.U.P.M. because Stanford has 1,772. But interestingly the number of international faculty staff at Stanford is only 92. But Stanford University makes up for the low number of international faculty by attracting a significant number of international students. This is made possible by the course offerings. To have an idea of the different courses offered at Stanford a sampling of different departments will be listed below:

• Department of Anthropology
• Department of Asian Languages
• Department of French and Italian
• Department of German Studies
• Department of Slavic Languages & Literatures
• Department of Spanish and Portuguese

As mentioned earlier there are close to one hundred departments at Stanford University, the above-mentioned departments are just examples to show why it is possible to attract a large number of foreign students as well as interest the rest of the student body to learn about other people and other cultures. Aside from the varied course offerings, there are also offices across the university geared towards helping the diverse population of students at Stanford University. An example of such offices are shown in the following: a) Asian American Activities Center; b) Black Community Services Center; c) Center for Comparative Studies in Race and Ethnicity; d) El Centro Chicano; e) Native American Cultural Center; and f) Stanford School of Medicine Office of Diversity and Leadership.

Conclusion

Before conducting a comparative analysis of the King Fahd University of Petroleum and Minerals and Stanford University it was first established that the main aim of the study is to find out the link between cultural diversity and achieving quality higher education. This means figuring out what cultural diversity and quality higher education mean. This also requires understanding the standards that will help assess if the university can deliver quality higher education or not. In this regard, an organization that is world-renowned in networking with universities proved useful in providing the indicators of quality education.

It did not come as a surprise that two major indicators are related to cultural diversity: a) several international faculty and b) the number of international students. This is not hard to understand. International faculty and international students bring different perspectives to the discussion table. They will help enrich the learning experience as they will be able to provide insights and information that could not be gleaned from books or websites. The presence of foreign students will also help others deal with people of other ethnic backgrounds. This ability will undoubtedly help future graduates deal with real-world conditions especially in a time when globalization is an important aspect of the business.

It has been pointed out that quality education is not only about producing graduates that can easily hurdle licensure exams. Quality education also means producing a graduate that will be able to help others especially when it comes to the eradication of global problems such as poverty, sickness, and diseases as well as environmental concerns. It is perfectly all right for an educational institution to prepare students for a demanding workplace thus teaching them the necessary skills to make contributions in their chosen field.

These qualities are evident in the graduates from both King Fahd University of Petroleum and Minerals and especially from the graduates of Stanford University. But again highly proficient graduates will never be able to make this world a better place if they are ignorant of the many implications of globalization. These graduates will be severely limited if they will not be able to forge partnerships and reach an understanding with people from all walks of life and diverse cultural backgrounds.

Thus, it has been pointed out time and time again in the course of the discussion that there is a need for a multicultural university, an institution that will provide a learning environment where students can interact with others especially those whose worldviews are different from theirs. An overview of the K.F.U.P.M. academic program, as well as the mission statement of the university, created an impression that this educational institution is well aware of the need for multicultural diversity but is at a serious disadvantage considering its history and the purpose why it was established in the first place.

As mentioned earlier K.F.U.P.M. is no ordinary university. It was founded for the sole purpose of developing future leaders as well as engineers who will help the Kingdom of Saudi Arabia reached its full potential in terms of managing its petroleum reserves. This single-mindedness of purpose is both the strength and weakness of K.F.U.P.M. It is considered the strength of the university because it has a clear-cut goal of what is needed to accomplish to be considered as a success. On the other hand, this can also be a weakness because the university should also develop well-rounded graduates who are not only knowledgeable about Saudi Arabia’s oil fields but also skilled in solving the problems that plague the world today such as the impact caused by globalization, migration, and environmental degradation.

It has been found out that there is no simple way to eradicate these problems. What is needed is a globally concerted effort. This means working across borders and even working outside the Middle East. This is an impossible task for narrow-minded graduates who are only concern about profit and how they can secure their local surroundings. In an age of globalization, an ordinary person living in the desert will experience the effect of global warming regardless of the fact if he contributed to the problem or not.

Stanford University does not share the problems encountered by K.F.U.P.M. when it comes to achieving multicultural diversity in terms of attracting foreign students to enroll in their academic programs. While K.F.U.P.M. is a new university, Stanford University is more than 100 years old. That kind of experience is difficult to beat. But the strength of Stanford lies in the vision of its founders. Leland and Jane Stanford did not merely envision an academically proficient university; they also wanted to build an educational institution that will be relevant and able to make contributions in improving the plight of humanity.

As a result, Stanford University’s course offerings are varied and it will surely attract foreigners from all over the world. There are courses on Slavic languages, Asian Studies, French, and Italian among others. Aside from that the university is actively pursuing a campaign that will ensure that diversity will work at Stanford. In this regard, a consortium of offices is working together to promote multicultural diversity. Some offices cater to African-Americans, Hispanics, Asian-Americans, etc.

It will take some time before K.F.U.P.M. can catch up. It is still possible to attract foreign students even if K.F.U.P.M. will continue to focus on the field of engineering and teaching the necessary skills involved in mineral extraction. But with the ongoing energy crisis, it is safe to assume that foreign students, especially Europeans, would rather enroll in universities that offer training on how to harness solar energy and develop hydrogen fuel rather in institutions that teach the art and science of drilling for oil.

Bibliography

Amaral, Alberto. “Higher Education and Quality Assessment: The Many Rationales for Quality.” European University Association. 2008. Web.

King Fahd University of Petroleum and Minerals. 2008. Web.

Stanford University. 2008. Web.

The University of Melbourne. 2008. Web.

Quacquarelli Symonds. “The World’s Leading Network for Top Career and Education.” 2008. Web.

Quacquarelli Symonds. “QS Top Universities.” 2008. Web.