A research Study on the Challenges Faced in the Oil and Gas Industry

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This study is aimed at using the mixed method techniques to evaluate the results and theoretical background related to the oil and gas industry usage in gearing up the employee’s safety and benefits. Employees are the key parties of the organizational framework. There is an utmost effort required to inherent the rules and regulations those must be supposed to be followed by the employees at organization for their personal safety as one who think for his safety would also contribute towards the safety measures of the others as a whole.


Oil and gas industry has various growing and devastating aspects that can be considered in the studies but it is hard to find any study regarding the effective safety measuring tasks associated with the employee’s satisfaction and safety. Oil and gas industry issues has been arisen in the last five years as there has been more transverse of ideologies towards social responsibility and sustainability through ethical measures adaptability. Employees have not focused on the labor laws yet before in the apart structure of unions (Boone, 2002). They have been communicated about their rights and labour rules those must be conform by each and every industry to avoid any contemporary issues. OSHA has provided with the certain rules regarding managing the labour laws and getting all the employees assured for the Health issues they are to be catered with the oil and gas industry onshore working (Gallagher, 1969).

Background and Issues of Oil and Gas Industry

There is a specific change in the history or background of the oil and gas industry as there had been political, technical and geological difference created and covered up in different regions of the world. There is difference in the historical background in parallel movement of the control and system development in differ eras through last 100 years of evolution (Hinkle, 1951). Oil and gas industry has various modes of working that are varied as per the country in which the organization is working (Angle and Perry, 1981). Taxation, mode of organization, leasing, places and the mode of dealing with the governmental and external bodies are the key factors that make it differentiable from the country to country. Surveys made it clear that there is 60 percent energy needs provided by the oil and gas industry to the 7 million people in the world (Eisenberger et al., 1986).

It has made it easy for people to survive for their needs along with the basis of oil and gas. Remained 40 percent is due from the nuclear, coal and hydroelectric power, "renewables" like solar, wind, and tidal power, and firewood type products based upon biomass. Oil and gas keep the weather warm in in the result of cold weather (Huie, 1965). For many years, there has been usage of oil and gas in our homes and industries as well. Areas of oil in shallow reservoirs, there might be a natural development of seeps of crude oil. Some of the oil reserves might be gotten from the tar ponds or seepage. Going background, there is eternal fire tales, and gas was burnt and ignited. One major example of this can be cited as the building of oracle of Delphi around one thousand B.C years ago (Jin and Jorion, 2006).

Chinese researchers have developed the rules and regulations to use the natural gas for boiling water. Until 1859, it was impossible till the first well was drilled by Edwin Drake successfully, as he was working with the sole aim of discovery oil. Through modern standards, these wells were shallow. Soon there was a replacement of the motorized transport fuels by the oil (Kerr, 1989). The automobile industry was developed till the end of the 19th century and soon it changed into the oil centered industry. It was essential for gasoline engines to be used in aircrafts designing for a successful completion. There was no boom in oil industry till 1821, as after World War II, pipe rolling, welding techniques, metallurgical advances were used for reliable distant gas lines constructions that gave a boom to the natural gas usage (Hinkle, 1951).

At the meantime, there were remote sites economical transfer of the natural gas in liquefied form that made an increased market share for the petrochemical industry. There is a vast product line increased by the oil and gas usage in producing and using the material, fibers, and daily life products (Lilien and Pastena, 1981). Major challenges or the recent accidents faced by the oil and gas industries in the recent years can be dividing up in the four categories, operational, market, social and security issues.

Global oil and gas industry shares have been increased and decreased as per the challenges and world level political, export or trade based and human resources issues. There is long time ago investment in the oil and gas infrastructure technology and supply to meet the demand needs of the system (Reck, 1984, Galvin, 1960, Mead et al., 1982, Lowe, 1986). On one side there is continuous processing towards meeting the needs of technical lifetime and on the other hand, manipulation of the latest energy fields along with the more effective manipulation of already existing fields is demanding more sophisticated technical modes (Peach and Starbuck, 2011). Going specifically, it has been an issue in the international and local industries to more effectively manipulate the ongoing and detected fields as there has been an increased competition in the market. Exchange rates and volatility of the oil prices has also been observed in the market since last few years. Skilled workforce is also not available to the organizations as there is old and already serving employees who do not have sufficient knowledge about the technical us and implementation of the software’s as well as techniques. It is challenging to educate the people and get them trained according to the new diverging requirements. Foreign expertise are not willing to serve as there is a difference of monetary values and certain issues related to host country movement (Rajgopal, 1999).

Non associated gas with limited reserves has created the deficiency to produce the gas reservoirs and meeting the demands at local and international level in order to receive the monetary level of the country. Most of the countries are supposed to be an importer of the gas as their demand is accumulative in a reckless mode, in outcome of the population growth. In this essence there is requirement of effective organizational models and strategic planning that not only consider needs for supply but also the needs for exporting energy to attain income from system based upon national welfare (Hanson, 2007). It too, consider eccentric system of energy supply like, renewable technologies of energy or measures related to energy efficiency, in effect to alternate sources of domestic energy stock. Next major challenge or the recent accidental form for the oil and gas industry is based upon the market. There are certain rules and regulations associated with the export and import of the oil and gas industry crude and final products. Those regions whose oil and gas resources are high and huge in nature are enjoying the benefits of revenue at international level through exporting their oil and gas to other countries like GCC countries. Energy markets have no end in the demand and supply all over the world. Regional market prices of those high exporting countries depend upon the eventual outcome of total supply and demand in addition to specific risk premium (Schallenberger, 1980).

Recent development s and growth strategies have put a large responsibility on the part of the countries involved in the supply and demand of the oil and gas. In case of the fast growth of the oil and gas industry would result in the transformation of the donor to the acceptor as that of United States of America case. Eventually, there has been a striking effect on the prices of energy reservoirs whilst going global for the surplus of oil and gas effect. There is a short and long term time span is designed for whole of the countries to tackle with the abrupt decrease in the oil and gas prices (Anonymous, 1942). It is resulted in the competitive nature of the supplier in oil and gas industry. Social accidents and security accidents faced by the oil and gas industry include the issues based upon the workers welfare. Major issues of the workers in oil and gas industries are based upon insufficient supply of the external candidates as the organizations have insufficient people available for the organization (Hanson, 1979). Compensation competiveness must be provided to the employees whereas it is absent in the oil and gas industry in some of the countries whilst the other are providing on a random development method (Cantonati and Lowe). Career opportunities are no sufficient to motivate employees for the career development and the most important factor that this study is aimed considering is related to working conditions and environmental issues.

Thesis Statement

“What is the impact of personal protective equipment evaluation on productivity of employees in oil and gas industry”

This study is aimed at arriving relationship of being the responsible for the safety measures and labour laws to meet the needs associated with employee’s motivation. Personal protective equipment can be used at the certain places of the organization but it is not mandatory nor are they in conformity with the organizational rules. All the oil and gas industry related organizations in the world wide system has been using certain rules and regulation to protect their employees along with the country level rules. Changing mode of the rules and the result of employee’s issues in various organizations there is an essence of system evaluation to adhere with the employee’s safety measures. All the key issues and rules as discussed in the terms and conditions of the organizations are not being followed up in the teams and organizations. So, there is a need of observing and calculation of the factors those must be kept in mind whilst going for the employee’s safety. Protection tools and safety measures must not be bound up to the theoretical level of the organizational documentation but it is the need of the hour to train the employees and get them assured of their role in the self-protection and organizational plans execution. Self-Protection would also be helpful for the employee and the organization as there would be minimal chances related to the issues in the international and national level.


Hypothesis is based upon the major research aims and critical questions those must be answered in this study context through mixed method usage.

Hypothesis 1

H0= Usage of personal protective equipment has positive effect on productivity

H1= Usage of personal protective equipment does not has positive effect on productivity

Hypothesis 2

H0= Personal Protection Evaluation has positive effect on profits of the company

H2= Personal Protection Evaluation does not has positive effect on productivity

Hypothesis 3

H0= Evaluation of the personal protection equipment has positive effect on preventing accidents and major losses

H3= Evaluation of the personal protection equipment does not has positive effect on preventing accidents and major losses

Hypothesis 4

H0= Evaluation of the personal protection equipment has positive effect on Employees safety protocol

H4= Evaluation of the personal protection equipment does not has positive effect on Employees safety protocol


This section has provided the fundamental rules and the background of the oil and gas industry evolution as well as challenges mainly faced by them in last few years. Next sections would enumerate the research and prolific methodologies adopted for this sort of studies.


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