Impact of Public Health on Oil Production Operation Expenditure – Case Study: Covid-19 Era Expenses in Nigeria Oil & Gas Industry

2021 ◽  
Author(s):  
Jerry Obaro Ugolo
Keyword(s):  
Public Health ◽  
Online Survey ◽  
Oil And Gas ◽  
Supply And Demand ◽  
Health And Safety ◽  
Secondary Data ◽  
Oil Price ◽  
Production Operation ◽  
Gas Industry ◽  
Operational Expenditure

Abstract Oil price is primarily determined by global supply and demand forces as well as governments policies and action or inaction of institutions like OPEC. However, in recent times, it has become evident that public health is a vital factor influencing demand and in turn oil price. In US, oil price reached a negative value for the first time in history by April 2020. Personnel and public health have been shown to have profound effect on operational expenditure (OPEX) of organizations, this in turn affecting the profitability of such organizations. Extra measures involving cost, had to be taken by organizations all over the world to ensure health and safety of their personnel in their sites. In Nigeria, effect of covid-19 measures for companies were, shut in of production, declaration of force majeure on ongoing contracts, slashing of costs, suspension on evaluation of future projects, profile assets for sale, remote/tele working, etc. Huge costs were also incurred as a part of corporate social responsibility for host communities/states where they operate. The consequential outcome is that there are reports of lower than planned profitability and liquidity positions. This paper examines action taken during this covid crisis and their impact on the financial status of their organizations. Using a quantitative and descriptive research design, an online survey has been used to gather information from respondents from different oil and gas companies of cost incurred by them. Secondary data was also obtained from quarterly reports of some companies of the oil majors to show their profitability comparing Q1-Q4 of 2019 and 2020. The paper also appraises action and inaction by corporate/government bodies to stimulate economic growth and help its personnel/citizenry. An attempt is also made to glean experience and lessons from organization that lived through the periods being examined.

Application of LEAN Supply Chain Management as a Panacea to Sustainable Future Profitability in the Nigerian Oil and Gas Industry

2021 ◽  
Author(s):  
Obaro Jerry Ugolo
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Online Survey ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Oil Price ◽  
Annual Reports ◽  
Gas Industry ◽  
Chain Management ◽  
Lean Supply Chain

Abstract The Nigeria oil and gas industry is a highly capital intensive market. with possibility of high profit or great losses. Oil price trends over the last 3 decades shows cyclical and relatively high volatility. This is due to geopolitical and economic factors including dollar value, governments and organizations (like OPEC's actions), that influence global supply and demand. In 2020, due to the COVID-19 crises, public health became a key factor influencing oil price (due to its severe adverse impact on demand). Studies have shown that even an increase in production volumes will not be able to bring about profitability in the industry. Clearly, management of costs including a lean supply chain that ensures that material/services for production are available at the right price and time is critical for the profitability of future oil and gas supply. Oil producing firms require an optimum supply level of material and services to competitively deliver its end-product. This paper discusses the effect of LEAN supply chain management on the profitability of oil & gas firms in Nigeria. It also appraises the relationship between lean processes and operational efficiency of oil and gas producing companies. Using quantitative and descriptive research design methods, an online survey has been used to gather information from respondents from different oil and gas companies. Secondary data was also obtained from annual reports of relevant companies to show their crude oil production levels vis-à-vis profitability over a five-year period. Based on analysis of information received from the research conducted, it has been recommended that better supply related collaboration between the organizations in the industry is necessary for sustained profitability. Companies need to link upstream and downstream flows of products, services and information to help reduce costs, wastages and ensure profitability. In, line with this, steps have been proferred to establish lean processes for organization. The researcher concludes that established industry-wide lean supply chain management processes and practices and collaboration e critical to competiveness and sustainable profitability in the oil and gas industry.

Nimrod XV230—reflections on leadership, culture and priorities

2017 ◽  
Vol 57 (2) ◽  
pp. 374
Author(s):  
Martin Anderson
Keyword(s):  
Oil And Gas ◽  
Health And Safety ◽  
Oil And Gas Industry ◽  
Royal Air Force ◽  
Gas Industry ◽  
Leadership Culture ◽  
Key Issues ◽  
The Uk ◽  
Organisational Factors ◽  
Independent Inquiry

On 2 September 2006 a reconnaissance aircraft Royal Air Force Nimrod XV230 suffered a catastrophic mid-air fire on a mission over Afghanistan, leading to the total loss of the aircraft and the death of all 14 service personnel. This paper summarises key issues from an independent inquiry and challenges the oil and gas industry to reflect on these. The author, a Chartered specialist in human and organisational factors, contributed to The Nimrod Review as a Specialist Inspector with the UK Health and Safety Executive.

Managing integrity of operating FPSOs

2017 ◽  
Vol 57 (2) ◽  
pp. 589
Author(s):  
Astrid Barros
Keyword(s):  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Oil Price ◽  
Significant Drop ◽  
Global Response ◽  
Gas Industry ◽  
Floating Structures ◽  
Business As Usual ◽  
The Way

The last few years have been challenging ones for the oil and gas industry with a significant drop in oil price. At the same time ageing facilities and a more dynamic market have been driving the need for becoming more efficient in the way we do our business, i.e. business as usual is not enough anymore. It is not only about individual efforts, the global response to the need for becoming more efficient has driven an increase in collaborative initiatives among the industry which we will all benefit from. A few of these initiatives have significantly improved the way we manage offshore floating structures engineering at Woodside.

scholarly journals The State of Occupational Health and Safety Management Frameworks (OHSMF) and Occupational Injuries and Accidents in the Ghanaian Oil and Gas Industry: Assessing the Mediating Role of Safety Knowledge

2020 ◽  
Vol 2020 ◽  
pp. 1-14
Author(s):  
Suxia Liu ◽  
Edmund Nana Kwame Nkrumah ◽  
Linda Serwah Akoto ◽  
Emmanuel Gyabeng ◽  
Erasmus Nkrumah
Keyword(s):  
Occupational Health ◽  
Oil And Gas ◽  
Safety Management ◽  
Occupational Injuries ◽  
Health And Safety ◽  
Occupational Health And Safety ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Workplace Accidents ◽  
Safety Knowledge

Background. The study examines the mediation effect of safety knowledge in causal the relationship between Occupational Health and Safety Management Frameworks (OHSMF) and occupational injuries and workplace accidents in the Ghanaian Oil and Gas Industry. The study explores different dimensions of occupational health and safety management systems, workplace accidents, and occupational injuries. The study adopted a cross-sectional survey design. A total of 699 respondents through a convenience and purposive sampling technique were selected in three government-owned oil and gas organizations for the study. Correlation, multiple regression analysis, and bootstrapping methods were used for data analysis. The findings of both the regression and correlation analysis indicated that there is a moderately strong negative and significant relationship between Occupational Health and Safety Management Frameworks (OHSMF) and workplace accidents and occupational injuries. Safety knowledge significantly mediates the causal relationship between OHSMF and workplace accidents and injuries. Safety training was found to be a significant predictor of safety knowledge, work-related injuries, and workplace accidents. The negative relationship between OHSMF and workplace accidents and injuries shows that the existing OHSMF are either ineffective or lack the acceptable safety standards to control hazard exposures in the industry. Management must invest in frequent safety training and orientations to improve safety knowledge among workers. The study further recommends government and industry players to extend serious attention towards the promotion and improvement of occupational health and safety management systems in Ghana.

scholarly journals Do Oil and Gas Risk Factors Matter in the Malaysian Oil and Gas Industry? A Fama-MacBeth Two Stage Panel Regression Approach

Energies ◽  
2020 ◽  
Vol 13 (5) ◽  
pp. 1154 ◽  
Author(s):  
Mohmmad Enamul Hoque ◽  
Soo Wah Low ◽  
Mohd Azlan Shah Zaidi
Keyword(s):  
Risk Factors ◽  
Exchange Rate ◽  
Risk Premium ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Oil Price ◽  
Panel Regression ◽  
Gas Industry ◽  
Systematic Risk Factors ◽  
Gas Price

This study examines whether oil and gas risk factors are priced in the returns of Malaysian oil and gas stocks employing asset pricing model with improved version of Fama-MacBeth two-stage panel regression. The findings reveal that oil price risk, gas price risk, and exchange rate risk are priced factors in the returns of oil and gas stocks, alongside market-based risk factors. Oil price, gas price and exchange rate factors are found to be associated with positive risk premium implying that they are systematic risk factors in the Malaysian oil and gas industry. Investors demand compensation for exposure to changes in oil price, gas price and exchange rate, implying that the risk cannot be eliminated through diversification. The risk premium for common systematic risk factors such as market, book-to-market, and momentum factors are found to be negative. The results suggest that in the Malaysian oil and gas industry, momentum driven strategy produces negative returns and investors receive higher returns from investing in growth oriented oil and gas stocks. Our results offer implications for asset pricing and portfolio management.

scholarly journals Analyzing the Impact of Covid-19 on the Oil and Gas Industry: A Case Study of Petronas

2021 ◽  
Vol 4 (2) ◽  
pp. 26-33
Author(s):  
Daisy Mui Hung Kee ◽  
Nur Amira Liyana ◽  
Zhang LuXin ◽  
Nur Atikah ◽  
Ninie Alwanis ◽  
...  
Keyword(s):  
Questionnaire Survey ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Oil Price ◽  
Sharp Drop ◽  
Gas Industry ◽  
The World ◽  
The Impact

As a result of the Covid-19 epidemic, every industry in the world has been greatly affected. We took Malaysia's Petronas as an example to analyze how oil and gas industries were impacted by such a difficult international situation. This paper investigated how Covid-19 affected Petronas and how it responded to the sharp drop in oil price. In a questionnaire survey, we listed the problems that Petronas may face in this outbreak.

scholarly journals RISK ASSESSMENT IN OIL AND GAS PRODUCTION

Neft i gaz ◽  
2020 ◽  
Vol 1 (121) ◽  
pp. 95-107
Author(s):  
P.A. TANZHARYKOV ◽  
◽  
U.ZH. SARABEKOVA ◽  
A.E. TULEGEN ◽  
◽  
...  
Keyword(s):  
Occupational Safety ◽  
Oil And Gas ◽  
Raw Materials ◽  
Health And Safety ◽  
Gas Production ◽  
The State ◽  
Risk Indicators ◽  
Production Operation ◽  
Labor Protection ◽  
Oil And Gas Production

It is necessary to carry out work to analyze the harmful factors of accidents during the production, operation and transportation of raw materials in oil and gas fields and assess their compliance with the requirements of the standards of the Republic of Kazakhstan. The main goal of labor protection is to create safe working conditions for employees, as well as to prevent personnel from illnesses. In this regard, it is necessary to have a system of accounting, analysis and assessment of the state of labor protection, as well as management of labor protection. This article proposes ways to quickly assess the state of health and safety at work by calculating a number of occupational risk indicators based on information available in the modules for assessing occupational safety by industrial risk indicators. The efficiency of using the OSH management systems software proposed by the authors is based on a specific task from four main modules "Employees", "Events", "Equipment", "Ecology" and a number of submodules. In addition, this work uses matrix methods for assessing risks in the "Probability or Consequences of an Event" coordinate system, "Elmeri" system, "Fine Kinney" method, "Risks". Modern expert methods are compared and presented under the title "Five stages of assessment"

scholarly journals Health and safety in the offshore oil and gas industry

2013 ◽  
Vol 20 (65) ◽  
pp. 25-27
Author(s):  
Liz Mackie
Keyword(s):  
Occupational Health ◽  
Oil And Gas ◽  
Safety Information ◽  
Health And Safety ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
The Subject ◽  
Offshore Oil And Gas ◽  
Offshore Oil ◽  
Safety And Environment

Since the 'Piper Alpha' disaster in 1988 the system of regulating occupational health and safety in the offshore oil and gas industry has been the subject of radical reorganization. During vacation employment in the Safety and Environment Department of a North Sea oil producer during 1993 the difficulties that can arise in identifying a particular regulation or in obtaining a specific document were experienced at first hand. Standard bibliographic tools do not identify sources of health and safety information specific to the industry and it was felt that further guidance would be beneficial.

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