Oil: Resources Production Uses Impacts

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Effluent and waste discharges due to crude oil and natural gas production are also threats to existence of plants and animals due to their toxicity [ 38 ]. The management of environmental issues is among the most challenging aspect of crude oil and natural gas production. Some of these challenges include protecting the atmosphere, managing land sustainability, combating deforestation, combating desertification and drought, sustainable mountain development, sustainable agricultural and rural development, conservation of biological diversity, management of biotechnology, protecting and managing the ocean, protecting and managing fresh water, safer use of toxic chemicals, managing hazardous wastes, managing solid wastes and sewage, and managing radioactive wastes [ 39 ].

These high energy density and easily available fossil fuels have played important roles in some of the biggest industries like chemicals, transport, power, petrochemicals etc [ 41 ]. The availability of cheap, abundant energy lifts nations out of poverty and at such, energy security has become national priority for most nations. Crude oil and natural gas supply has become very important especially in the face of rising demand for energy for comfort and technological development. The total measure of economic effects of crude oil and natural gas production on the host nation or community especially for developing countries could be best described by the impacts: The direct impacts are measured as the jobs, labour income and value added to the oil and gas industry whereas indirect impacts are measured with the same yardstick but occurring across the supply chain due to crude oil and natural gas production activities.

Crude oil and natural gas production activities have been found to make enormous economic contributions that benefit both the host nations and the citizenry. Some of the ways through which crude oil and natural gas production contribute to the economy include. Oil and gas companies, involved in crude oil and natural gas production, pay billions of dollars in taxes to the government of their host countries every year. These funds help pay for important government services, such as education, health care and provide infrastructure that benefit the citizens of the country. Oil and Gas Royalties.

The amount is usually dependent on the volume of crude oil or natural gas produced. Employment and Job Creation. The oil and gas industry employs millions of people all over the world. These are usually high-paying jobs that make a great percentage of them live above the average income, spend within the community and pay taxes to the governments. The total change in value added generated by direct spending. GRP is conceptually the same type of measure as gross domestic product GDP , which is also a measure of value added and indicates the market value of goods and services, at purchaser prices, produced by all economic resources located in the country.

Crude oil and natural gas production have been found to increase the GRP of the states and in turn the GDP of the country. Local Expenditure on Goods and Services. The periodic injection of purchasing power through its local expenditure on goods and services by the oil and gas production industry is another way of contributing to the economy of the host country.

Payments to local contractors for goods and services and for direct purchases has the capacity to stimulate the economy and also exert secondary influences, through multiplier process on the level of output and employment in other related sections of the economy. Provision of Foreign Exchange Reserves. Since crude oil and natural gas are sold in international markets, producing countries has the potential to earn and save foreign exchange in reserves.

Contribution to Power Supply and Public Utilities.

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Natural gas could be used to power turbines for the generation of electricity. Associated gas is still being flared today in many oil fields in developing countries: In some cases, producing companies have supplied electricity to the host communities to aid development. Most oil and gas companies are quoted at the various stock exchange markets.

This makes it possible for citizens to invest in these stocks and enjoy the privilege of the innovation, growth and dividends associated with such investment. Crude oil and natural gas production is done either on land or on water. The area occupied for this purpose would have been used for the purpose of farming and fishing respectively.

In most communities where oil and gas production activities are being carried out, the traditional occupations of the people prior to oil and gas discovery are being abandoned. The country, in some cases, may even resort to total reliance on the production of oil and natural gas for economic growth leading to a mono product economy. Although a great deal of the expertise required to produce crude oil and natural gas is sourced from locations far from the field; in some cases overseas, the industry most of the times provides the host and surrounding communities with employment for unskilled and low skilled labour.

There are opportunities to learn from the best hands in the industry and get exposed to the most recent technologies on the various operations. In cases where the production of crude oil and natural gas is done in onshore locations, minor sub-contractors from the host and adjoining communities are usually given priority after pre-qualification.

In all, the communities benefit from employment, provision of infrastructure in the form of corporate social responsibility from the companies , award of scholarships, shopping from employees of the company etc. Environmental impacts that occur during production of crude oil and natural gas would mostly occur from long-term habitat change within the oil and gas field, production activities including facility component maintenance or replacement , waste management e.

These activities could potentially impact on the resources as explained below: The main sources of noise during the production of crude oil and natural gas would include compressor and pumping stations, producing wells including occasional flaring , and vehicle traffic. Compressor stations produce noise levels between 64 and 86 dBA at the station to between 58 and 75 dBA at about 1 mile 1. The primary impacts from noise would be localized disturbance to wildlife, recreationists, and residents.

Noise associated with cavitation is a major concern for landowners, livestock, and wildlife [ 47 ]. The primary emission sources during the production of crude oil and natural gas would include compressor and pumping station operations, vehicle traffic, production well operations, separation of oil and gas phases, and on-site storage of crude oil. Emissions would include volatile organic compound VOCs , nitrogen oxides, sulfur dioxide, carbon monoxide, benzene, toluene, ethylbenzene, xylenes, polycyclic aromatic hydrocarbons PAHs , hydrogen sulfide, particulates, ozone, and methane [ 48 ].

Venting or flaring of natural gas methane may occur during oil production, well testing, oil and gas processing, cavitation, well leaks, and pipeline maintenance operations. Methane is a major greenhouse gas. Air pollution during oil and gas production may cause health effects and reduce visibility. Production of crude oil and natural gas could also impact on the cultural resources by unauthorized collection of artifacts and the alteration of visual image [ 49 ].

The presence of the aboveground structures alters the associated landscape component of the cultural resources. Damage to localities caused through off-highway vehicle OHV and the potential for indirect impacts e. The adverse impacts to ecological resources during production of crude oil and natural gas could occur from: The presence of production wells, ancillary facilities and access road reduces the habitat quality, disturbs the biota and thus affects ecological resources [ 51 ].

The presence of an oil or gas field could also interfere with migratory and other behaviors of some wildlife. Discharge of produced water inappropriately onto soil or into surface water bodies can result in salinity levels too high to sustain plant growth. Wildlife is always prone to contact with petroleum-based products and other contaminants in reserve pits and water management facilities [ 52 ].

They can become entrapped in the oil and drown, ingest toxic quantities of oil by preening birds or licking their fur mammals ; or succumb to cold stress if the oil damages the insulation provided by feathers or fur. In locations where naturally occurring radioactive material NORM -bearing produced water and solid wastes are generated, mismanagement of these wastes can result in radiological contamination of soils or surface water bodies [ 53 ].

Hazardous Materials and Waste Management. Industrial wastes are generated during routine operations lubricating oils, hydraulic fluids, coolants, solvents, and cleaning agents. These wastes are typically placed in containers, characterized, labeled and possibly stored briefly before being transported by a licensed hauler to an appropriate permitted off-site disposal facility as a standard practice [ 54 ].

Impacts could result if these wastes were not properly handled and were released to the environment. Environmental contamination could occur from accidental spills of herbicides or, more significantly, oil. Chemicals in open pits used to store wastes may pose a threat to wildlife and livestock. Sand separated from produced water must be properly disposed as it is often contaminated with oil, trace amounts of metals, or other naturally occurring constituents. Production could also cause accumulation of large volumes of scale and sludge wastes inside pipelines and storage vessels [ 56 ]. These wastes may be transported to offsite disposal facilities.

Produced water can become a significant waste stream during the production of crude oil and natural gas. Regulations govern the disposal of this waste stream; the majority of it is disposed by underground injection either in disposal wells or, in mature producing fields, in enhanced oil recovery wells i.

In some locations, produced water may carry NORM to the surface. Possible impacts to public health and safety during production include accidental injury or death to workers and, to a lesser extent, the public e. Health impacts could result from water contamination, dust and other air emissions, noise, soil contamination, and stress e.

Oil: Resources, production, uses, impacts

Potential fires and explosions would cause safety hazards. Cavitation could ignite grass fires. Increased or reckless driving by oil or gas workers would also create safety hazards. In addition, health and safety issues include working in potential weather extremes and possible contact with natural hazards, such as uneven terrain and dangerous plants, animals, or insects [ 57 ]. Although it is possible for farmers or fisher men to carry out activities around the well locations, restrictions would always exist.

The existence of access roads creates a threat to paleontological resources during oil and gas production allowing for unauthorized collection of fossils. Although new jobs and businesses would be created and royalties and taxes paid to land owners and government, there is a potential negative impact on the value of properties located in the proximity of oil and gas field [ 58 ]. This effect increases as the number of wells increase. Soils and Geological Resources. The main impact from production would be the depletion of recoverable oil and gas reserves.

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Possible geological hazards earthquakes, landslides, and subsidence could be activated by oil and gas extraction activities [ 59 ]. Although it is rare, the injection of produced water in disposal wells could trigger localized seismic activity [ 60 ]. The impact of crude oil and natural gas production to transportation would be basically due to the daily vehicular movement of light trucks and cars used for surveillance and movement of materials. Heavy truck traffic would be limited to periodic visits to a well site for workovers and formation treatment.

During the life of a production well, the integrity of the well casing and cement will determine the potential for adverse impacts to groundwater [ 61 ].

If subsurface formations are not sealed off by the well casing and cement, aquifers can be impacted by other non-potable formation waters. Hydraulic fracturing fluids have the potential to contaminate groundwater drinking reservoirs [ 62 ]. Stimulation fluids may penetrate away from the fracture and into surrounding formation.

When stimulation ceases and production resumes, these chemicals may not be completely recovered and pumped back into the wellbore, and, if mobile, may be available to migrate through an aquifer. Most produced water is unfit for domestic or agricultural purposes e. If it is disposed of by release to the surface without treatment, it can cause soil and surface water contamination.

The majority of produced water is disposed via injection in disposal wells or enhanced recovery wells [ 63 ]. Although crude oil and natural gas have played great roles in transportation, electricity production, industrial power, military and medical applications; they are also raw materials for production of weapons of war, reasons behind some political unrest and human rights violations, and have caused environmental degradation and some human diseases [ 64 ]. The operations leading to the production of crude oil and natural gas could lead to the emission of some compounds that constitute risk to the environment and public health.

Some specific compounds associated with oil and gas production, their sources and potential effect on health are: This is a well-established carcinogen with specific links to leukemia as well as breast and urinary tract cancers [ 65 ]. Exposure to benzene reduces red and white blood cells production in the bone marrow, decreases auto-immune cell function T-cell and B-cells , and has been linked to sperm-head abnormalities and generalised chromosome aberrations [ 66 ]. Benzene is a commonly used petrochemical solvent in the production of crude oil and natural gas especially in fracking operations [ 67 ].

This compound combines with the oxides of nitrogen to form particulate matter which has been known to contribute to serious health problems including cancer of the lung and cardiopulmonary mortality [ 68 ]. Exposure of children to SO 2 even at lower levels over time has been found to cause asthma. Sulphur IV Oxide is released by combustion of crude oil and natural gas at the flare stack during production [ 69 ]. Oxides of Nitrogen NO x. NO x are involved in the formation of particulate matter and also contribute directly to thousands of hospitalisations, heart attacks and deaths annually [ 70 ].

Inhalation of NO x is associated with emphysema and bronchitis [ 71 ].

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Flaring is the chief source of NO x during the production of crude oil and natural gas. This compound is another carcinogen with known links to leukemia and rare nasopharyngeall cancers [ 72 ]. Studies have linked spontaneous abortions, congenital malformations, low birth weights, infertility and endometriosis to formaldehyde exposure [ 73 ]. It also contributes to ground-level ozone and is commonly used in fracking.

This is an entire class of toxic chemicals, linked together by their unique chemical structure and reactive properties. Many PAHs are known human carcinogens and genetic mutagens. In addition, there are particular prenatal health risks: Recent studies link exposure to early childhood depression. The main source of PAHs during production is spills. Crystalline silica is a known human carcinogen; breathing silica dust can lead to silicosis, a form of lung disease with no cure. Silica is commonly used, in huge amounts, during fracking operations.

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