In this paper I will discuss certain fact about oil industries with certain statistical data; I will also mention the pros and cons of the industries and their responsibilities towards local and Canadian people, government, employees, oil companies and environmental committee. Then I will present the ethical issues by different perspective which is now oil industries are facing after that I will suggest different alternative with consequences of these issues.
Introduction
In Canada's crude oil, crude oil products, natural gas and gas products' production the biggest contributor is Alberta among the all provinces. (Harris, 2002) Alberta is considered as a third largest resource of crude oil in world's biggest resources list. In 2010, Alberta's production is 170.8 billion barrels which is about 21% of global production. In Alberta's oil production mostly meaning about 99% coming from oil sands (169.3 billion barrels) and the rest is coming from conventional crude oil. The oil sands distributed in 140,200 square kilometers in northern Alberta. (Alberta Energy)
Note- On Y bar=Millions of barrels oil equivalent (BOE/day)
Figure - Alberta crude oil and natural gas production in 2000. (Harris, 2002)
Figure 2 - World's Largest Oil Reserves in 2010. (Alberta Energy)
By seeing the above fact it seems that Alberta oil industries have big impact on Canada's economy and it helps local and as well as Canadian community to the greater extend. But beyond these benefits certain environmental issues, pollution issues, issues related water, safety and money brings the oil industries into controversies. So, now days these industries are in big ethical dilemma whether to continue production or stop it. Here in this paper I will discuss ethical problems and its solution.
Benefits of the oil industries
ï® Benefits to the local community and to the Canadians
Around 151,000 people are directly employed into the production units and approximately 450,000 new opportunities will be created in this sector within next 25 years. This will ultimately create vast opportunity for the job among the people. In this work force about 10% people are aboriginal. Also, local community can get cheaper oil, which is essential and beneficiary in today's modern and fast life. Eventually, job opportunity and cheaper routine daily products improves the quality of life here. (Alberta Energy)
ï® Benefits to the government of Alberta and Canada
Millions of dollars contracts are signed from private sectors to invest within oil industries to improve production size and quality, so it helps to grow manufacturing industries. In 2009-10 around 1.9 billion dollars revenue is generated from these industries and about 184 billion dollars revenues' expectation is from the royalty. In year 2009 the contract between oil sands and foreign companies is about 810 million dollars and it will reach up to 215 billion dollars in future, this will again decrease the level of unemployment. These huge investment or revenue can be utilized in other sectors development and it improves nation's economical condition. (Alberta Energy)
ï® Benefits to the economy of Alberta
It has highest economical growth in Canada. (Alberta Energy) The investment rate is almost double due to these industrial developments. Due to continuous money flow in Alberta per capita income of an Albertan is highest. The economic growth is about 115% than the overall country. The unemployment rate is only 4%, which is lowest in Canada. (Schroeder) Also, Albertans pay lowest tax in Canada and they have many tax benefits. (Alberta Energy)
Negative aspect of oil industries
In research paper Suzanne mentioned according to survey extraction of oil from oil sands require much more energy resource compare to traditional oil wells and consumption of these extra energy results into emission of more Greenhouse Gases. Deforestation leads to changes in climate, hydration cycle and which will lead to pollution and it affects human life, forest industries and fishery industries. (Godbout, 2007) Oil sands projects require huge amount of water. Canada's one third green house gases are emitted from Alberta only. Oil sands expansion causes deforestation in northern Alberta and it leads to habitat fragmentation and species loss. Also, housing prices are dramatically increases so it is difficult for new comers here to find proper housing facilities. Also, it is very difficult to provide social services; Health care services and education properly to highly increased population which is migrate here in search for job opportunities. (Alberta Energy)
Figure 3 - Greenhouse gas emissions contribution in Canada in 2009. (Alberta Energy)
Responsibilities of the oil industries
Alberta's oil industries have important position in Alberta's and as well as in Canada's economy. So, there should be some responsibilities of these industries towards local and Canadian citizens, government, workers, environmental committees and oil companies. According to my views I mentioned these responsibilities bellow.
The responsibilities towards local community includes to offer them job, to offer them good and healthy environment, to fulfill their basic needs, to give them opportunities to grow and to provide them oil and gas at a reasonable price. Same as for Canadians they should offer oil and gas at a reasonable cost, also they have to create more industry related job within and outside the province and for their convenience they should provide appropriate working environment.
To work appropriately according to rules and regulation is the most important responsibility of the industries towards government. Other responsibility includes increasing gross domestic product (GDP) of the country, attracting the foreign investors and increasing the export by this way they can improve the economy and revenue of the province and country.
They should provide good working environment to the workers, also they have to offer good and competitive wages and benefits to the employees. They should also take care of workers health and their family.
There are some responsibilities of the industries towards environmental committee also, such as to preserve the ecosystem, they should have to do proper west management, they should use latest antipollution technologies for production, they should use more recyclable material, they should develop new oil extraction technologies which are more safe.
Maintaining the production, improving the performance of the company, increasing the profit of the company by any way, maintaining the good quality of the product are the main responsibility of the industries toward the oil companies. And to come out from the controversies is the biggest obligation of the industries towards the investor companies.
Defining the ethical issues in this case
In oil industries manufacturing case there so many different perspectives like government, local community, environment committee and oil industries them self. According to their point of view we can define ethical issue differently.
From the people's perspective
Oil industries responsibility is to provide good job opportunity to the people across the country. To fulfill this these industries creates lots of job opportunity on project side and also provides them good compatible wages according to statistical figures above mentioned in the essay. Also, these statistics shows that these industries will create number of opportunities for jobs in future to employ more number of people. In this situation the oil industries are like 'honey comb' for people.
But on the other hand it is responsibility of industries also to take care of people's health. Due to industrial pollution the exposure of toxic particles to local people increases which causes severe respiratory diseases, lung cancer and cardiovascular diseases. In water the level of vanadium, mercury and arsenic dramatically increase which causes cancer. Also, in fish the level of arsenic find out due to water pollution and again high diet of fish leads to colon cancer. (Timoney, 2009) Moreover, due to unexpected rush of people toward Alberta in search of job the social services like health care, education etc. are insufficient to fulfill needs. So, in this way this industrial project stands against the people. So, At this point people are confused weather it is good or bad for them.
From the Environmental committee's perspective
Here, in case of environmental committee's perspective their position is only ageist this project because they have only concern with environmental safety and this project is totally against the nature.
In greenhouse gases (GHGs) emission the oil sands covers one third part of the total Canada's GHGs. It is largest growing source for GHGs and in future it is expected to grow subsequently. (Best) According to Alex's research from thirteen research and review papers about GHGs emission by oil sand projects, the production of synthetic crude oil from surface mining process emits much more higher amount of GHGs compare to conventional crude oil production. (Charpentier, 2009) In northern boreal forest there is about 170 square kilometers lake established which made up of mining waste disposal. (Nikiforuk, 2011) Also, according to data mentioned previously there are so many negative pollution effects on wildlife, ecosystem, natural habitat and human health. Moreover, ExxonMobil, Shell, BP, Sinopec, Petro China, Total and Chevron total seven world's largest companies are planning to invest more 180 billion dollars in this project within next 20 years and their target is to reach 3 million barrels per day production from 1.6 million barrels production. (Nikiforuk, 2011) This will lead to increase the intensity of the problems. These all things against environmental safety, so environmental committee want to stop these industries in benefit of nature.
From The Government perspective
For government of the Canada the oil sand project is like a gold mine. According to the data mentioned above it creates number of job opportunities and creates a huge amount of revenue by oil and gas export. It attracts the global investors into the project; seven companies want to invest more than 180 million dollars is the proof of this fact. It is one of the biggest income source for government of Canada and as well as Alberta.
But beyond this government should look after each and every thing of people and nature. Water consumption in this project is very high. According May Wu to Around 5.2 liter water required for 1 liter oil production. So, it is 5.2 times more required than production. Oil sands production require daily about 8.3 million barrels of fresh water. (Wu, 2009) It is wastage of lots of water. Every day 600 million cubic feet natural gas is used in daily production but this much gas is sufficient for 3 million Canadian homes. (Best) So, again it is wastage of natural resource. Government cannot afford these high amounts of natural resources wastage. Moreover, 70% of oil produced from oil sand is exported to USA it is not utilized in Canada. It raise a question that why Canadians have to suffer on benefit of other nation?
So, here government is also in confusion that which side is more important local safety or nation's economy?
From the oil industries perspective
Oil industries main goal is to generate revenue anyhow. Their goal is to increase daily production by utilizing the maximum resources available. If they increase production then only foreign investors attracted toward them and invest their. To maintain harmony of nature is also come into their responsibility but there main goal is to make huge profit by increasing production which harms the nature. So, to achieve their main goal they are neglecting the small responsibility.
But, due to their avoidance they have to face lots of criticisms by people, by NGOs, by other environmental organizations. So, now they are in trouble weather to continue production or stop it for good sake of nature's harmony?
Different alternatives to overcome the ethical issues
Figure out new oil resources from Canada other then Alberta especially from the northern regions where the human population is very less
Aware the local people and environmental committee about the benefits and economical impact on Canadian economy
Put limits on per year production, set a target and do production accordingly
Promote research through institutions for safe and pollution free alternatives
Assign a pollution control board separately and make special policies for these industries and also do campaigning to reduce pollution which is already done
Stop oil production and extraction from oil sand
Do not bother about any current situation and continue the production until the situation become worst
Identifying probable consequences of each alternative
1) Figure out new oil resources from Canada other then Alberta especially from the northern regions where the human population is very less
Finding new resources is very difficult task. If they find new resource or resources there is no guarantee that it is enough to fulfill current demand. Also, in northern region transportation is less developed so it will increase project cost. Oil extraction cost may be higher than northern Alberta and due to all these reasons the overall project cost may be goes much higher and it is not acceptable. Canada's northern region is very cold and it is not favorable for normal human life so finding workforce there is very difficult.
In positive side of this alternative is that if find proper another source where it affects environment less then Alberta and produce less pollution so, it will save Alberta from complete environmental disaster. Canada's economy will continue to boost up.
2) Aware the local people and environmental committee about the benefits and economical impact on Canadian economy
If people and environment committee understands the importance of benefits of industry then they have to face less criticism and they can continue production as it is, by this way industries can make more money and it helps Canadian economy a lot.
But continuation of production as such will destroy Alberta's habitats and ecosystem, Alberta will spoiled due to heavy pollution and these effects will not tolerated by local community and environment committee. And if people and environment committee will not support the industries the situation remains same.
3) Put limits on per year production, set a target and do production accordingly
Due to this step may be it is not sufficient for oil requirement. It will decrease Alberta's as well as Canada's economy. It will lead to unemployment of the workers from the plant.
But as a positive effect of the step the pollution will be controlled. It will help to reduce pollution effect on wildlife, local environment and human health up to some extent. The regular effects will remain as it is.
4) Promote research through institutions for safe and pollution free alternatives
For research of new pollution free and safe extraction process it will require lots of money investment and also time. Which can be utilized in nations other development work for better progress.
But, to solve environmental problem and provide better life to local community is the biggest responsibility of any government. So, invest money on people safety will gain the priority among the other works. And if research will find new alternatives then not only it will helps to control pollution but also the Canadian economy will again boost up.
5) Assign a pollution control board separately and make special policies for these industries and also do campaigning to reduce pollution which is already done
In response to new pollution control board all companies will not follow the instructions properly and the pollution problems will remain same. Creation of new control board may lead to conflict between the companies and also with the government also.
But, as a positive side this new board will take control of these oil industrial sectors. It may help to reduce pollution. The ecosystem of Alberta can be saved from more damage. It may provide better and healthy working environment for workers and may provide safe environment for local community. This step may satisfy the need of people and government by this way and the government's economy will again boost up. And by this way industries can raise voice against their criticism.
6) Stop oil production and extraction from oil sand
In this case it will help to prevent environmental problems and will give a chance to Alberta to overcome from these human health and pollution related problems completely.
But as a negative effect of this step the economy of Alberta and Canada fall down. Canada will have to find new alternatives to generate revenue and to maintain economy properly. Huge mass of people become unemployed and the countries unemployment ratio will increase suddenly. The huge resource of oil will remain unused. Canada has to depend on other countries for oil and gas.
7) Do not bother about any current situation and continue the production until the situation become worst
This alternative is worst among the all above situation. Here all merits and demerits of the industries will remain same and the intensity of ethical problems will increase as time passes.
Selecting a best alternative
The best alternative should fulfill all or most solutions of the ethical problems. By considering all the consequences of all alternatives alternative '5' is the best among the all because it will create less ethical and legal issues, it will help to maintain people's health good, the government's economy will remain same, it will provide great unionized industrial work's example to the world and in last it will face less criticism and it is safe and economical among the other alternatives.
Conclusion
Now days Canada's one time navigator project of Alberta oil sand is in ethical dilemma weather continue the production or stop it? Continuation of project without any precaution causes natural disaster in Alberta and to stop production is not affordable to Canadian economy. So, it is necessary to find an intermediate way for production by oil industries which will fulfill all the requirement of people, environmental committee and the government.
