14
2 The Study Context
available reserves and water depth. O&G onshore rigs
1 differ according to reservoir
size and content. For instance, unconventional substances, such as very heavy crudes
and tar sands
2 may need heating and diluents to be extracted or are strip-mined or
extracted with steam (Devold, 2013).
Midstream O&G activity involves Natural Gas treatment, for instance, Liquefied
Natural Gas production (for more detail, see Hanson, Miller, & Oblad 1983). Natural
Gas treatment is supplied by (1) a container or tanker in liquid form, (2) regasification plants, which are facilities for energy recovery during the regasification phase
(Dispenza, Dispenza, La Rocca, & Panno, 2009) and (3) O&G transportation systems
via pipeline structures, and terrestrial and/or sea transportation.
Downstream activities in the O&G industry are the refining and distribution
phases. In this segment, the oil and condensates
3 are refined in offsite plants. After
the crude products are processed, their final products are stored and/or sent to distribution terminals. In the refining phase, oil crudes go through a fractional distillation
at different temperature ranges and are transformed into domestic gas; petrochemical
feedstock and products; car gasoline; jet fuel; kerosene for lighting and heating; diesel
fuels; lubricants, waxes and polishes; and asphalt for roads and roofing (Devold,
2013). After the refining process, numerous substances are warehoused in transitional
tanks, and once transformed into commercial products, are loaded onto terrestrial
and/or naval vehicles and distributed to industries and gas stations (Devold, 2013).
As illustrated, O&G activities within the three main production stages require
massive infrastructure and a large contingent of workers. As a result, the direct
impacts to nearby communities, and the host society as a whole, are unavoidable.
2.2 O&G Activities and Their Impact on Host
Environments and Societies
O&G activities have intense direct and indirect impacts on the environment and
communities and societies that host O&G operations. O&G Exploration and Production (E&P) activities create three types of social impacts. The direct impacts, where
E&P activities influence the lives of people who live near O&G operation; the indirect impacts, where O&G activities influence the natural environment, which in turn
1 Rigs are the main structures and equipment used in O&G wells. They include the engine house,
the engine, and the derrick among other drilling apparatus.
2 Tar Sand refers to the “dead” oil field (Sorrell, Miller, Bentley, & Speirs, 2010). “The term ‘tar
sand’ refers to a consolidated mixture of bitumen (commonly referred to as “tar”) and sand. Other
names used to describe tar sands include “oil sands” and “bituminous sands”-(…) After separation
of the bitumen from the sand, the bitumen may be upgraded to a synthetic crude oil suitable for
use as a feedstock for the production of materials such as liquid motor fuels, heating oil, and
petrochemicals” (Deffeyes, 2009, p. 167).
3 Condensates are found as an associated gas at oil wells or as Natural Gas Liquids, which are a
by-product of Natural Gas production. Condensates are usually found as gas in subterranean basins,
which condense to liquids at the surface (Remeljej & Hoadley, 2006).
2 The Study Context
available reserves and water depth. O&G onshore rigs
1 differ according to reservoir
size and content. For instance, unconventional substances, such as very heavy crudes
and tar sands
2 may need heating and diluents to be extracted or are strip-mined or
extracted with steam (Devold, 2013).
Midstream O&G activity involves Natural Gas treatment, for instance, Liquefied
Natural Gas production (for more detail, see Hanson, Miller, & Oblad 1983). Natural
Gas treatment is supplied by (1) a container or tanker in liquid form, (2) regasification plants, which are facilities for energy recovery during the regasification phase
(Dispenza, Dispenza, La Rocca, & Panno, 2009) and (3) O&G transportation systems
via pipeline structures, and terrestrial and/or sea transportation.
Downstream activities in the O&G industry are the refining and distribution
phases. In this segment, the oil and condensates
3 are refined in offsite plants. After
the crude products are processed, their final products are stored and/or sent to distribution terminals. In the refining phase, oil crudes go through a fractional distillation
at different temperature ranges and are transformed into domestic gas; petrochemical
feedstock and products; car gasoline; jet fuel; kerosene for lighting and heating; diesel
fuels; lubricants, waxes and polishes; and asphalt for roads and roofing (Devold,
2013). After the refining process, numerous substances are warehoused in transitional
tanks, and once transformed into commercial products, are loaded onto terrestrial
and/or naval vehicles and distributed to industries and gas stations (Devold, 2013).
As illustrated, O&G activities within the three main production stages require
massive infrastructure and a large contingent of workers. As a result, the direct
impacts to nearby communities, and the host society as a whole, are unavoidable.
2.2 O&G Activities and Their Impact on Host
Environments and Societies
O&G activities have intense direct and indirect impacts on the environment and
communities and societies that host O&G operations. O&G Exploration and Production (E&P) activities create three types of social impacts. The direct impacts, where
E&P activities influence the lives of people who live near O&G operation; the indirect impacts, where O&G activities influence the natural environment, which in turn
1 Rigs are the main structures and equipment used in O&G wells. They include the engine house,
the engine, and the derrick among other drilling apparatus.
2 Tar Sand refers to the “dead” oil field (Sorrell, Miller, Bentley, & Speirs, 2010). “The term ‘tar
sand’ refers to a consolidated mixture of bitumen (commonly referred to as “tar”) and sand. Other
names used to describe tar sands include “oil sands” and “bituminous sands”-(…) After separation
of the bitumen from the sand, the bitumen may be upgraded to a synthetic crude oil suitable for
use as a feedstock for the production of materials such as liquid motor fuels, heating oil, and
petrochemicals” (Deffeyes, 2009, p. 167).
3 Condensates are found as an associated gas at oil wells or as Natural Gas Liquids, which are a
by-product of Natural Gas production. Condensates are usually found as gas in subterranean basins,
which condense to liquids at the surface (Remeljej & Hoadley, 2006).