Print this pageForces Driving Environmental Management in Oil and Gas Companies
KIRKLAND, LISA-HENRI, M., and DIXON A. THOMPSON
Effective design, introduction and implementation of an environmental program in an oil and gas company requires an understanding of the forces driving that company's environmental actions. It is crucial that these driving forces, and their relative importance, be identified so that the environmental program can focus on addressing relevant issues.
Driving forces affecting the oil and gas industry include liability (criminal and civil), regulatory regimes (increasing regulation or self-regulation), industry standards, cost-effectiveness, financial requirements, accounting practices, corporate image, and requirements by partners.
Case studies from Western Canada indicate that liability and regulatory requirements are the main forces driving environmental management initiatives in petroleum companies. Financial requirements and accounting practices may increase in importance as financial institutions become more familiar with environmental management and as environmental accounting becomes part of General Accounting Principles.