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Introduction
Sustainable business development involves formulating and implementing business strategies, innovations, and initiatives to help create a more sustainable world (Turekian & Holland, 2004). Apparently, the challenges to sustain growth and development have become more difficult due to the complexities of the business environment and the demanding expectations of customers, stakeholders, and society (Juhasz 2011, p. 120).
Sustainable corporations tend to focus on development and investments, not just on growth and profitability. While making money and achieving an adequate return on capital are important, sustainable business development envisions balanced performance and outcomes as well as long term improvements (Turekian & Holland, 2004).
Indeed, one of the main premises of the twenty first century strategic thinking is that success depends on the rate of improvements in all dimensions, not just the rate of growth on revenues, net income or market capitalization (Rainey 2006, p. 265). For example, the dot.com failures of the late 1990s and early 2000s made a few people richer, but ultimately, thousands lost their investments and became poorer. Sustainable success is, therefore, not about short term gains for a few, but rather about long term gains for everyone.
Sustainable Business Development in the Oil Industry
Emiri and Deinduomo (2009, p. 49) claim that gas flaring, the process of burning unutilized associated gases into the atmosphere, is not a new phenomenon especially in the oil producing communities in Nigeria. However, what is new and not readily forth coming is the sensitization of the oil producing firms about the calamitous effect of gas flaring on their land and their health.
Globally, Nigeria is the country that is associated with the highest level of gas flaring. If we recall, therefore, that oil exploration generally causes a spectrum of environmental catastrophes which include contamination of the surface and ground water, and of the soil through oil spill, then we will appreciate the effect of the additional problem of environmental degradation caused by gas flaring in the Niger Delta (Juhasz 2011, p. 120).
Legal Framework for the Flaring of Gas in Nigeria
Although the provisions of the Associated Gas Re-Injected Act appear to be prohibiting the flaring of gas, it is at the same time blamed for encouraging the same in Nigeria. As noted by Emiri and Deinduomo (2009, p. 51), section 1 of the AGRA requires that every company producing oil in Nigeria must submit to the Minister in charge of petroleum for two main reasons.
The first reason is to ensure that there is viable utilization of all associated gas produced from a field or group of fields. A second reason requires any project or projects to re-inject all gas produced in association with oil but not utilized in an industrial project.
Section 2 (1) of the AGRA further requires oil and gas producing companies in Nigeria, after the submission of the preliminary programme, to submit to the Minister a detailed programme and plans for either the implementation of programs relating to the re-injection of all produced associated gas, or scheme for the viable utilization of all produced associated gas and the fact that some of the gas produced in association with oil has been earmarked for some alternative utilization shall not attempt compliance with section 1 of the Act (Emiri & Deinduomo, 2009).
Section 3 (1) of the AGRA renders illegal the flaring of gas produced in association with oil without the permission of the Minister. Clearly, the AGRA does not have a permanent plan to stop the flaring of gas in Nigeria given the conditions set out in section 1 of the Associated Gas Re-injection regulations.
The AGRA regulation in section 1 empowers the Minister in charge of petroleum to issue a certificate for the continuation of flaring of gas in a particular field or fields where more than 75 per cent of the produced gas is effectively utilized, or where the produced gas contains more than 15 per cent impurities that render the gas unsuitable for industrial purposes, or where an on going utilization programme is interrupted by equipment failure.
The implication of this is that the Minister shall continue to permit the flaring of gas in Nigeria as long as a desiring oil and gas company satisfy one or more of the above conditions. Unfortunately, this reveals the unwillingness of the Nigerian government to stop gas flaring. As if demonstrating readiness to enhance the quality of Nigeria’s air resources, the Federal Environmental Protection Agency (FEPA) was established by the Federal Environmental Protection Agency Act.
The Federal Environmental Protection Agency Act requires every single agency to put in place strict measures that will not interfere with the environment and the general health of Nigerians. The key responsibility of the Act, therefore, is to guarantee the safety of all Nigerians. As a result, oil producing firms in Nigerian have an enormous responsibility.
Regrettably, the provisions of the FEPA do not categorically make reference to air pollution arising from gas flaring. It could be argued, therefore, that the FEPA Act merely contemplates such air pollution to ensure quality air like emissions from automobiles, factories, and power generating plants.
Conclusion
Generally, gas glaring negatively impacts the environment and local inhabitants. The flares are very loud, dangerously hot, and ascend to the heavens twenty four hours a day, thereby depriving the surrounding area of natural night. It emits thick, black, densely cloudy smoke containing several harmful gases. For this reason, it has been argued that an ever increasing and uncontrollable pollution leaves people to perish in their own waste (Emiri & Deinduomo, 2009).
Clearly, it is critical for business enterprises to ensure that as they strive to innovate in order to gain a competitive advantage and realize greater profits, they must do so in a way that guarantees benefits for everyone. It is selfish to only focus on growth without caring about negative impacts to the environment and the society in general (Turekian & Holland, 2004). Any form of innovation must, therefore, be properly aligned.
References
Emiri, F & Deinduomo, G 2009, Law and Petroleum Industry in Nigeria: Current Challenges: Essays in Honour of Justice Kate Abiri, African Books Collective, Oxford, UK.
Juhasz, A 2011, Black Tide: The Devastating Impact of the Gulf Oil Spill, John Wiley & Sons Inc., Hoboken, NJ.
Rainey, DL 2006, Sustainable Business Development: Inventing the Future through Strategy, Innovation, and Leadership, Cambridge University Press, Cambridge, UK.
Turekian, KK & Holland, D 2004, Treatise on Geochemistry, Elsevier Science, Oxford.
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