Environmental Challenges Confronting the Oil Industry

by Estrada, Javier; Tangen, Kristian; Bergesen, Helge Ole

• ISBN13: 9780471977131
• ISBN10: 0471977136
• Edition: 1st
• Format: Hardcover
• Copyright: 1998-06-29
• Publisher: Wiley

Summary

Since the late 1980s, when the current tide of environmental concern began to rise, every improvement made by the oil industry has been followed by new demands for further progress. New problems have been placed on top of the old ones; first smog in the inner cities and oil spills on the beaches, then acid rain and forest die back followed by major tank disasters and renewed attention to urban air quality and finally, climatic change. The purpose of this book is to investigate whether the oil industry is able to extend and renew its social legitimacy as it faces its toughest agenda in a century the challenges stemming from its impact on the environment and the consequent public questioning of its role in society. To find out whether and how the oil industry has responded to environmental issues in general and climatic change in particular, five indicators of change vision & image, R&D, investments, and government relations have been selected. These have been assumed to be expressions of an environmental strategy which can be identified as reactive, cautious or creative. The empirical analysis begins with case studies of the environmental response of five major oil companies: Shell, Exxon, BP, Amoco and Statoil. The next step is a case study of the refinery sector, which is the most environmentally sensitive part of the industry in many ways. In addition, a brief description of how three industry associations have tackled the same environmental issues is included. The main readership for this book will be policy makers, planners and researchers in the oil industry, and environmental consultants.

Author Biography

Javier Estrada is the author of Environmental Challenges Confronting the Oil Industry, published by Wiley. Kristian Tangen is the author of Environmental Challenges Confronting the Oil Industry, published by Wiley.

Table of Contents

Series Preface	viii
List of Abbreviations	x
Acknowledgements	xii
Introduction	1	(4)
PART I: ISSUES, BACKGROUND AND ANALYTICAL APPROACH	5	(64)
The Environmental Challenges	7	(18)
The emergence of the environment as a business variable	7	(9)
Environmental challenges at the company level	16	(7)
Environmental costs at the company level	23	(2)
Oil Company Characteristics	25	(19)
The zenith and decline of the oil Majors	25	(11)
Key characteristics of multinational oil companies	36	(8)
Analytical Framework	44	(25)
Environmental strategies: definition and context	44	(3)
Legitimacy	47	(5)
Regulatory framework	52	(5)
Market-place	57	(5)
Approaches to environmental strategy in oil companies	62	(7)
PART II: EMPIRICAL STUDIES	69	(114)
Shell	71	(26)
Company background	71	(2)
Environmental vision	73	(2)
Environmental management	75	(5)
Scenario planning	80	(4)
Research and development	84	(2)
Investments	86	(5)
Government and public relations	91	(4)
Shell: Environmental profile	95	(2)
Exxon	97	(13)
Company background	97	(2)
Environmental vision	99	(2)
Environmental management	101	(1)
Scenario planning	102	(1)
Research and development	103	(1)
Investments	104	(2)
Government and public relations	106	(2)
Exxon: Environmental profile	108	(2)
British Petroleum plc	110	(13)
Company background	110	(1)
Environmental vision	111	(1)
Environmental management	112	(3)
Scenario planning	115	(1)
Research and development	116	(1)
Investments	117	(1)
Government and public relations	118	(4)
BP: Environmental profile	122	(1)
Amoco	123	(15)
Company background	123	(1)
Environmental vision	124	(3)
Environmental management	127	(2)
Scenarios	129	(3)
Research and development	132	(1)
Investments	133	(2)
Government and public relations	135	(1)
Amoco: Environmental profile	136	(2)
Statoil	138	(14)
Company background	138	(1)
Environmental vision	139	(2)
Environmental management	141	(1)
Scenario planning	142	(2)
Research and development	144	(1)
Investments	145	(3)
Government and public relations	148	(1)
Statoil: Environmental profile	149	(3)
Environmental Strategies in the Refinery Sector	152	(15)
Why a case study of the refinery sector?	152	(1)
Company responses	152	(11)
Conclusions on refiners' environmental strategies	163	(4)
Oil Industry Lobby Organisations	167	(7)
American Petroleum Institute	167	(3)
The European Petroleum Industry Association	170	(2)
International Petroleum Industry Conservation Association	172	(2)
Conclusions	174	(9)
Environmental vision	174	(1)
Environmental management	175	(1)
Strategic planning	176	(1)
Business strategy	177	(1)
Government and public relations	178	(1)
Similarities and differences among the companies	179	(3)
Manageable or revolutionary?	182	(1)
Bibliography	183	(6)
Index	189