Oil Extraction in Russia - Assignment Example

Oil Extraction in Russia Oil Extraction in Russia Executive Summary Russia ranks among the major world oil producers with utilization of oil dating back to more than five thousands ago. However, the most notable commercial production in Russia is in the early 19th century with produced oil commodity in Russia amounting to three thousands five hundred tons in 1825. Further improvement s ensured doubling the output in the mid 19th century with the 20th century marking Russia as the world’s major oil producer with almost half of the oil produced coming from the country. The commodity has played a significant role in the human life as it serves as a driver to many activities across the world. The introduction of automobiles led to increased commercial production of oil over various sections across the world. Various issues pertaining to political, social as well as economic issues continue to emerge in Russia over oil production (Solodyankina and Koeppel, 2009, pg. 114). Challenges associated with oil production had since the past been attributed to environmental pollution with initial considerations attributed to environmental negligence. Despite improvements of the production means, challenges still mar oil production with environmental pollution a significant area of concern. These issues relate to hydrocarbon emissions, green house gases as well as oil spills among others. Focusing on sustainability measures that will address the challenges is essential as it will serve in benefiting the Russian community and the world in general. Key words: green house gas, hydrocarbons, oil spills, petroleum and pollution. Petroleum utilization dates back to over five thousand years ago taking a no-refined form with heating the major use of the product. The realization that oil is essential for heating purposes led to its use in the automobile industry prompting increased production across Russia in the early 19th century. The 19th century characterized the realization of industrial oil production in Russia with the impact of the industrial making oil production increase significantly. Upon extraction, a number of processes that still follows to date would ensure to enhance separating the various petroleum components found in oil. The final products would then be sold mostly on commercial basis to various countries and across Russia (Dyker, et al, 2006, pg. 37). Russia oil production in the 20th century that almost resulted from Apsheron Peninsula almost accounted to half of the world’s total oil production despite current productions declining. Significant changes and improvements have ensured to enhance increasing oil production while also addressing the challenges associated with oil production in Russia and the world in general. Occurring as a natural product in the earth’s crust, oil is extracted through drilling and eventually pumping the liquid substance that then undergoes subsequent processes to enhance separation of the liquid extracted oil into specific petroleum products. Although from the 19th century through the 20th century had characterized significant oil production in number of barrels per day, the trend is changing in the 21st century with the commodity production taking a sharp decline. Although Oil production in Russia has hit some challenges owing to a consideration that the product is non-renewable, significant developments have ensured effective measures in producing the liquid (Goldsworthy and Zakharova, 2010, pg. 34). These developments relate to effective production methods that minimizes waste and spillage of oil products during extraction. With effective production means on place, all the extracted oil is effectively utilized f the intended purpose mostly for trade both locally and internationally. Oil has by far impacted the business trends across the Russian economy ensuring the country holds economic strength as a result of sale proceeds realized from sale of oil products. It is important to note that petroleum products sale throughout the world accounts to the most sale proceeds in any other traded product. Engaging in the production of petroleum products is therefore an important and beneficial economic activity. Through time, Russia has seen the emergence of multi-billionaire individuals who has benefited through petroleum products investment (Cappuyns and Kessen, 2012, pg. 149). Consequently, these individuals enhance investment in other business activities across Russia leading to creation of employment and economic empowerment among Russians. It is equally important to note that other than the importance of petroleum products in human life, the value of oil products increases owing to the fact that the resource is scarce in the world. Although all regions in the world possess specific amounts of oil deposits, majority of countries fail to possess these natural sources therefore making the commodity more precious. Consequent extraction of oil also leads to depletion with concern over sustainability of the product in future already raised. Although extraction of the product has ensured provision of employment for locals and other global persons, it has detrimental factors to the social life of Russians in areas where production occurs. The negative social implication relates to displacements upon realization of new oil deposits with environmental impacts of oil extraction evidenced globally (Schwartz, 2012). The issue has attracted a global concern with the green house gas, oil spills and carbon dioxide gases release to the air polluting the air. Declines in oil production over the past six years are evidenced through significant shortages in the North Seas a major example of the declining oil production in Russia. The graph below is a representation of the extraction of oil decline since 1999. Source: (https://www.google.com/search?q=graphs+of+oil+extraction+rates+in+Russia&tbm=isch&tbo=u&source=univ&sa=X&ei=9RgtVZHdMu7e7AaYhIDgDg&ved=0CB0QsAQ&biw=1280&bih=809#imgrc=nDN6jhGYI3DVVM%253A%3BEmZddQ0nS8EI9M%3Bhttp%253A%252F%252Fblogs-images.forbes.com%252Fmarkadomanis%252Ffiles%252F2012%252F05%252FRussian-Oil-Production-2010-20121.png%3Bhttp%253A%252F%252Fwww.forbes.com%252Fsites%252Fmarkadomanis%252F2012%252F05%252F20%252Fis-russian-oil-production-plummeting%252F%3B711%3B371) The same is equally evidenced by the decline in revenue generated from sales proceeds of petroleum products in Russia as evidenced below. Developing a concept to understand how oil drilling occurs is essential in enhancing an understanding of the resulting environmental impact with specific areas leading to challenges pointed. Drilling rings are used by oil companies to ensure pumping the liquid crude oil that is found spreading throughout open spaces. The process therefore means that relocating or extending the drillers is effected once a particular area of exploration is emptied. Once the crude oil is drilled and pumped, it undergoes a refining process that is mostly attributed to significant environmental challenges that relates to the following issues. First there is the issue of air pollution during the process of crude oil transformation into specific components (Mills, 2008, pg. 218). These toxins include a variety of green house gases that impact the global environment and pose a challenge to the future generation through destroying the health ecosystem of human beings. Increased emission of carbon dioxide gas during the process of burning gasoline serves as an environment polluter that in return serves in increasing the global warming. Again, there is the issue of oil spills that lead to great environmental damage. The oil spills mostly occur during drilling, use as well as transportation and considering the lack of microbes to effectively consume the oil molecules, the environment is greatly affected by the spills. Lastly, water pollution also results through illegal dumping and underground spills during drilling that affects the water table. With evidenced challenges already resulting from oil production in Russia and the global context, focusing on effective measures to enhance sustainability of the precious natural resource is important. It is important to note that Russia and other oil producing countries possess specific rules that guide the process of oil extraction and marketing. However, most of the rules relating to environmental pollution remain only on paper while players in the industry fail to adhere t them. It is attributed to the fact that the oil companies operating in the by super rich individuals or group of persons who use their financial powers to control the politics of a country. It will thus require adherence of the rule of law to the latter if environmental pollution associated with oil is to come to an end. There measures would focus on industrial, government rules as well as international policies (Schulman, 2011, pg. 152). It is better to observe and regulate the impact of environmental pollution while also ensure regulated extraction of oil to limit the concern of extinction of the product. Focusing on the recommendations below will ensure Russian oil business remains operational as it is a significant source of economic development that the country has relied on for over a century Forming effective legislations against illegal dumping of petroleum products through imposing heavy fines on offenders to serve as deterrence to the behavior Ensure minimization or complete spillage while transporting oil especially on pipelines through use of computerized systems that detect possible leakages Focus on other sources of energy that presents minimal or fail to emit green house gases that continuously lead to increased global warming concern Utilization of the solar form of energy is an effective replacement to ensure oil depletion does not occur since there lacks new major oil deposits among the major oil producers The international community should also embark on strict rules and regulations against oil producers who destroy the environment Minimize the use of leaded fuels on automobiles as it significantly increases carbon dioxide levels in the environment Focus on innovative ideas that will enhance development of electric reliant and solar reliant automobiles that in return will reduce the level of petroleum products spent globally Governments of oil producing nations also needs to formulate rules for governing the levels of production capacity and regions to enhance spare capacity Focusing on extraction sites with less heavy oils in terms of carbon dioxide concentration will also play a significant role in ensuring minimal carbon dioxide emission during the refining stage It is thus understandable that the oil business in Russia is an old trade that took a commercial approach in as early as the 19th century and continues to thrive to date. The business is mostly attributable to the level of economic development the country has achieved that far with revenue earned by the government enhancing in infrastructural development (Wiley,  2015). Individual revenue resulting from petroleum sales proceeds also serves in improving the economic status of the nation through investments in other fields. Considering the importance of oil in the automobile industry and other fields, it is essential to ensure effective utilization of the commodity since over exploitation of the reserves will lead to a global challenge. Despite the economic benefits and other benefits attributed to oil production, it is equally important to note that challenges of social and environmental destruction occur. While social challenges are easily addressed, it has proved challenging to address the environmental challenges. Although governments and the international community need to enforce measures to ensure that oil extracting and refining companies do not destroy the environment, the companies equally need to adhere to environment protection. The approach should serve as part of the business culture to enhance in creating a good image while also serving in ensuring sustainability. It is attributed to the fact that a good environment enhanced good business operations as everyone is at peace with structures and people. References Cappuyns, V., & Kessen, B,2012. Evaluation of the environmental impact of Brownfield remediation options: comparison of two life cycle assessment-based evaluation tools. Environmental Technology. doi:10.1080/09593330.2012.671854 Dyker, D. A., Brookings Institution, & Russian and CIS Programme (Royal Institute of International Affairs), 2006. Investment opportunities in Russia and the CIS. Washington, DC: Published by the Brookings Institution for the Royal Institute of International Affairs, London. Goldsworthy, B., & Zakharova, D, 2010. Evaluation of the oil fiscal regime in Russia and proposals for reform. Washington D.C.: International Monetary Fund. Mills, R. M, 2008. The myth of the oil crisis: Overcoming the challenges of depletion, geopolitics, and global warming. Westport, CT: Praeger. Schulman, B. L., Biasca, F. E., Johnson, H. E., & Dickenson, R. L, 2011. New routes -- Processes and uses -- For minimizing heavy fuel oil production. Schwartz, D. 2012, September 24). Russia, worlds worst oil polluter, now drilling in Arctic - World - CBC News. Retrieved from http://www.cbc.ca/news/world/russia-world-s-worst-oil-polluter-now-drilling-in-arctic-1.1281291 Solodyankina, S., & Koeppel, J, 2009. The environmental impact assessment process for oil and gas extraction projects in the Russian Federation: possibilities for improvement. Impact Assessment and Project Appraisal. doi:10.3152/146155109X430344 Wiley, J, 2015, January 2. What Is the Environmental Impact of Petroleum and Natural Gas? - For Dummies. Retrieved from http://www.dummies.com/how-to/content/what-is-the-environmental-impact-of-petroleum-and-.html Read More