Chapter 2
The Study Context
In this chapter, I situate social investment within the broader O&G sector context.
In doing so I do not discuss the pros and/or cons of O&G production and consumption. Rather, this chapter intends to: (1) illustrate the impacts the industry has had
in contemporary society, and (2) portray how social investments are conceptualised
by the O&G industry. Consequently, to contextualise O&G social investment, this
chapter is divided into three main parts. The first introduces the O&G industry and its
main activities and project cycles, the second focusses on the impacts of O&G activities on host environments and societies, while the third part discusses international
banks and their impact on the O&G industry and social investment, respectively.
2.1 An Overview of the O&G Sector
O&G are non-renewable energy sources and have had their reserves heavily depleted
by excessive production demands. O&G has been crucial players in supplying modern
society with mainstream energy resources and primary feedstock for basic utilities. For example, O&G is used in the production of dyes, detergents, lubricants,
fertilisers, polyester, nylon, acrylates, polyethylene and solvents (Devold, 2013;
Szklo & Schaeffer, 2006).
Historically, the production and usage of oil and natural gas have been noted
since 1000 BC, when the oracle of Delphi was built (Deffeyes, 2009; Devold, 2013).
In 500 BC Chinese people used natural gas to boil water and in 1859 AD Edwin
Drake drilled the first successful oil well, the “Drake Well”, at only 75 feet deep
(Allan, 2009). Three years later, in September 1861, the same driller, under the socalled Empire Well flooded the market with an unprecedented 3000 barrels per day.
A month later, in October 1861 the “Phillips Well” initially produced 4000 barrels
per day (Deffeyes, 2009; Devold, 2013). Fossil fields have been more frequently
© Springer Nature Singapore Pte Ltd. 2021
R. Costa Camões Rabello, Understandings of Social Investment in the Oil and Gas Sector,
Approaches to Global Sustainability, Markets, and Governance,
https://doi.org/10.1007/978-981-33-6556-8_2
11
The Study Context
In this chapter, I situate social investment within the broader O&G sector context.
In doing so I do not discuss the pros and/or cons of O&G production and consumption. Rather, this chapter intends to: (1) illustrate the impacts the industry has had
in contemporary society, and (2) portray how social investments are conceptualised
by the O&G industry. Consequently, to contextualise O&G social investment, this
chapter is divided into three main parts. The first introduces the O&G industry and its
main activities and project cycles, the second focusses on the impacts of O&G activities on host environments and societies, while the third part discusses international
banks and their impact on the O&G industry and social investment, respectively.
2.1 An Overview of the O&G Sector
O&G are non-renewable energy sources and have had their reserves heavily depleted
by excessive production demands. O&G has been crucial players in supplying modern
society with mainstream energy resources and primary feedstock for basic utilities. For example, O&G is used in the production of dyes, detergents, lubricants,
fertilisers, polyester, nylon, acrylates, polyethylene and solvents (Devold, 2013;
Szklo & Schaeffer, 2006).
Historically, the production and usage of oil and natural gas have been noted
since 1000 BC, when the oracle of Delphi was built (Deffeyes, 2009; Devold, 2013).
In 500 BC Chinese people used natural gas to boil water and in 1859 AD Edwin
Drake drilled the first successful oil well, the “Drake Well”, at only 75 feet deep
(Allan, 2009). Three years later, in September 1861, the same driller, under the socalled Empire Well flooded the market with an unprecedented 3000 barrels per day.
A month later, in October 1861 the “Phillips Well” initially produced 4000 barrels
per day (Deffeyes, 2009; Devold, 2013). Fossil fields have been more frequently
© Springer Nature Singapore Pte Ltd. 2021
R. Costa Camões Rabello, Understandings of Social Investment in the Oil and Gas Sector,
Approaches to Global Sustainability, Markets, and Governance,
https://doi.org/10.1007/978-981-33-6556-8_2
11