Institut Français Du Petrole - Health, Safety, the Environment, Ethics

full all chapter5 chapter6 chapter7 chapter8 chapter9

chapter4 chapter5 chapter6 chapter7 chapter8 chapter9

Transparency and Accountability

Policy, Legal and Contractual Framework

Sector Organization and Institutions

Fiscal Design and Administration

Revenue Management and Distribution

Sustainable Development

Institut Français Du Petrole Publications, Health, Safety, the Environment, Ethics ( Chapter 8) in Oil and Gas Exploration and Production: Reserves, Costs, Contracts ( Paris, France: Editions Technip, 2004)


The authors ( Bauquis and Chetrit) begin their discussion by remarking that the oil industry involves dangerous operations which may have an impact on the physical integrity of the people involved and on the environment, if they are not carried out properly. Hence, the significance of safety and environmental management systems.  

Bauquis and Chetrit argue that the best way oil companies to deal with such dangerous operations is to formulate a safety policy and make organisation arrangements for safety in order to reduce the risk of safety incidents occurrence.

They also argue that oil companies should strive to prevent or control environmental problems resulting from their activities, and set out clear environmental targets. This requires putting in place environmental management master plans to be implemented throughout the life of a petroleum project.

Finally, the authors also observe that there are also some ethical issues encountered in the oil industry, affecting the oil companies, host government, local communities and even oil companies’ employees. They note that the best approach to deal with ethical issues is to adhere to codes of conduct and to refrain from interfering from local political affairs. 

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