Thesis (MBA)--Stellenbosch University, 2012. / With the advent of shale gas exploration in the Karoo region, the purpose of this study was to investigate the possible socio-economic impacts of shale gas development on the town of Beaufort West in the Karoo. A qualitative study method was used to establish possible socio economic impacts by reviewing literature with regard to existing shale gas development as well as a case study from the United States of America (USA). A desktop study of Beaufort West was carried out to establish current socio economic trends in the town. Semi-structured interviews were conducted with key stakeholders to establish their concerns and opinion regarding the possibility of shale gas exploration and production in the area of Beaufort West in the Karoo. The results of the study concluded that the concerns of the key stakeholders were definitely relevant as their livelihood would be threatened if there was any possibility of contamination of their water sources. Other possible socio economic impacts included infrastructure concerns with regard to road maintenance, tourism declining and the threat of noise and air pollution. The study recommends that if the shale gas development process were to go ahead, the South African government would need to ensure that best practices are incorporated by all gas drilling companies. A team of qualified and trained regulators should monitor well pads and hydraulic fracturing methods as well as volumes of water used and the disposal of waste water. The regulations existing in the country should be revised to incorporate the stringent standards of other countries that have strict monitoring policies in place. In order to protect the people of the Karoo and the heritage of South Africa, the government must ensure that gas companies are held liable for any kind of environmental or socio economic impact.

published_or_final_version / Environmental Management / Master / Master of Science in Environmental Management

The increasing commercial and social pressure for business leaders to act in a socially responsible manner is undermined by the lack of standards in Corporate Social Responsibility (CSR) legislation, auditing, indexing, and reporting. Moreover, CSR research is fragmentary and often missing empirical corroboration. It lacks synthesis, uses CSR concepts and terms ambiguously, and is inconsistent in the identification of CSR practices, its formulation and institutionalisation. This study addresses these gaps and discontinuities by first synthesising a range of theories into an explanatory framework. This framework provides the pre-understanding for the collection and analysis of qualitative data drawn from the UK oil and gas industry. The findings highlight the heterogeneous and dynamic nature of CSR operationalisation. The analysis emphasises the dependence of CSR strategy formulation on business leaders’ personal beliefs and biases. These beliefs are tempered by balancing shareholders’ interests and stakeholders’ expectations, and are affected by the global (in the case of corporations) or the local (in the case of corporate subsidiaries and small-medium size enterprises) contexts. These appear to be the main factors influencing leaders’ CSR decisions. The findings also demonstrate a number of challenges that business leaders face when reconciling personal, organisational, industry, global, and societal values and ethical beliefs; and balancing traditional organisational goals, such as profit maximisation, with increased stakeholder empowerment in granting social legitimacy. In addition, the exploration of CSR institutionalisation reveals different approaches in corporate subsidiaries, which fluctuate between the CSR practices of corporate headquarters and those of SMEs. The analysis of these findings results in a proposed hybrid model of CSR Institutionalisation in the oil and gas industry, with a breakdown of identified factors affecting corporate, SMEs’, and subsidiaries’ leaders’ CSR decisions. This thesis contributes to the literature by proposing a number of concepts, including: CSR Nexus and CSR Dynamics models as conceptual syntheses of the theoretical framework; an empirically corroborated CSR Operationalisation model within the studied organisations suggesting a nonconformance with extant CSR research; an observed matrix of business leaders’ CSR Motivations highlighting their diversity in corporations, SMEs, and corporate subsidiaries. Finally, a conceptual CSR Convergence model is proposed, which outlines a comprehensive approach to CSR education and implementation. In a weak and ambiguous CSR regulation and legislation environment, this study endeavours to bridge the gap between CSR research, business organisations, and stakeholders by contributing to the enhancement of CSR understanding, education, and implementation.

Este estudo analisa a indústria de gás natural de modo a contribuir para o melhor entendimento acerca das políticas tarifárias da atividade de transporte de gás natural conduzidas pelo governo sob a ótica de um programa de expansão da malha de gasodutos e de fortalecimento da indústria de gás natural no país. A adoção de mecanismos que possibilitem a separação e abertura das parcelas que compõem o preço de venda do gás natural visa a proporcionar uma maior modicidade tarifária, reduzindo os subsídios cruzados entre os Estados (regiões produtoras frente a distantes centros consumidores) e ampliando a eficiência econômica na utilização da malha de gasodutos do sistema de transporte. A partir do auxílio das teorias e modelos tarifários empregados nas indústrias de infraestrutura de rede, a pesquisa analisa a evolução da regulação tarifária associada à Parcela de Produto (Parcela Variável) e à Parcela de Transporte (Parcela Fixa) na formação do preço de venda do gás natural de origem nacional entre a Petrobras e as concessionárias estaduais de distribuição de gás canalizado. A análise dos resultados permite observar que a introdução de mudanças na sistemática de formação do preço de venda do gás natural provoca um retrocesso em relação à transparência na estrutura tarifária e na comercialização do gás natural. A atual política tarifária e os descontos (aproximadamente 32%) praticados pela Petrobras nos preços de venda para as distribuidoras das regiões Nordeste e Sudeste provocam alterações significativas não apenas na competitividade do gás natural frente aos demais combustíveis, mas também dentro do próprio mercado de gás natural. Os consumidores de gás natural nacional não detêm a informação acerca do quanto pagam no custo de serviço de transporte, diferente dos consumidores de gás natural de origem boliviana que se deparam com regras contratuais claras de reajustes dos componentes de cada parcela. Assim, averigua-se que essas mudanças penalizam principalmente os estados com maior produção de gás natural (Rio de Janeiro, Espírito Santo, Bahia e Sergipe), uma vez que o Fator Distância não se encontra claramente definido na nova fórmula de preços do gás nacional. Ainda, conclui-se que o marco regulatório da indústria de gás natural define de maneira clara a formação da tarifa de transporte para os novos gasodutos, enquanto a ANP ainda estuda maneiras de incluir na regulamentação a transparência tarifária na malha de gasodutos existentes. / This study analyzes the natural gas industry in order to contribute to a better understanding of the pricing policies of the activity of the natural gas transmission conducted by the government from the perspective of a program to expand the pipeline network and strengthen the natural gas industry in the country. The adoption of mechanisms that allow the separation and opening of the parcels that make up the selling price of natural gas is intended to provide greater low tariffs, reducing cross-subsidies between states (producing regions across the distant consuming centers) and increasing economic efficiency the use of the gas pipeline of the transportation system. From the aid of tariff models and theories employed in the network infrastructure industries, the research analyzes the evolution of tariff regulation associated with the portion of product (Variable Parcel) and Parcel Transportation (Fixed Parcel) in the formation of the selling price of domestic natural gas rise between Petrobras and the state distribution utilities of gas. The analysis allows us to observe that the introduction of systematic changes in the training of the sales price of natural gas causes a regression in relation to transparency in pricing structure and marketing of natural gas. The current pricing policy and (approximately 32 %) discounts offered by Petrobras in selling prices to distributors in the Northeast and Southeast regions cause significant changes not only the competitiveness of natural gas compared to other fuels , but also within the gas market itself natural. Consumers of domestic natural gas does not hold the information about how much they pay the cost of shipping service, different consumers of natural gas from Bolivian origin faced with clear rules of contractual adjustments of the components of each plot. Thus, it ascertains that these changes mainly penalize states with higher natural gas production (Rio de Janeiro, Espírito Santo, Bahia and Sergipe), since the distance factor is not clearly defined in the new pricing formula of the national gas. Still, it is concluded that the regulatory framework of the natural gas industry defines clearly the formation of the transport charge for new pipelines, while the ANP is also considering ways to include the tariff transparency in the regulatory network of existing pipelines.

The Offshore Installation Manager (OIM) performs one of the most complex and critical roles within the UK offshore oil and gas industry. The OIM is responsible for the safety and well-being of all persons onboard and within 500m of the installation whilst operating within an isolated and hostile physical environment within the UK Continental Shelf . The persistence of major incidents in the industry highlights the importance of OIM competence in controlling emergencies, consequently the research aims to contribute to new knowledge by identifying the potential barriers that can prevent the effective competence assessment of an OIM in this situation. The research utilised Engeström's Expanded Activity Theory to establish the holistic socio-cultural environment within which the OIM operates during emergency response to establish the key documents relevant to the role and associated competence assessment. The documents were then analysed using a critical hermeneutic approach based on the work of Phillips and Brown (1993) to determine the potential barriers to effective competence assessment of the OIM in controlling emergencies. The research is interdisciplinary and aims to develop new knowledge within the domains of safety engineering and law. The output from the research will assist industry Duty Holders improve the competence assessment of their appointed OIMs and allow safety engineers to consider the probable competence of an OIM at a given point in time. The research has identified 8 potential barriers to the effective competence assessment of OIMs in controlling emergencies. These are associated with the multiple definitions of competence that exist; the predominance of competence assessment by observation; the lack of definitive competence requirements for trainers and assessors; the complexity in UK legislation and the interaction between UK Government departments; concerns associated with goal setting legislation when applied to competence assessment and the lack of statutory competence requirements for OIMs in controlling emergencies; the lack of ownership of OIM competence and competence assessment; and the lack of regulation and independent audit of the competence assessment process of OIMs in controlling emergencies.

In light of developing a nascent gas industry, present multiple challenges in restructuring, regulations and meeting infrastructure investments requirements. To identify an appropriate industry structure and provide suitable regulatory framework to attract adequate infrastructure investments are the requirement to maintain a viable nascent gas industry. The purpose of the study is to examine the conditions required for developing a viable nascent gas industry in Ghana. The study develops an analytical framework by combining the Structure-Conduct-Performance paradigm and the Transaction Cost Economics theory with stakeholder consultation in an integrated cash flow model, which identified inappropriate industry structure, ineffective regulation and high risk as challenges in the gas industry in Ghana. The current gas industry structure and regulatory framework in Ghana is identified as state control monopoly. To strengthen the analysis of the study alternative gas industry structural models were reviewed. The Single Buyer Model (SBM) is suggested as an initial stage structure for Ghana National Petroleum Corporation (GNPC) to commercialize upstream natural gas resources and ease transactions cost. However, the SBM is constrained by the Volta River Authority (VRA) and Electricity Company of Ghana (ECG) inefficiencies. The Multiple Buyer Model (MBM) is considered as a transitional structure to solve the existing hold-up and lock-in inefficiencies of Ghana National Petroleum Corporation-Ghana National Gas Company-Volta River Authority (GNPC-GNGC-VRA) firm structure. Enforcing open access regulations to essential infrastructure is required in the long run. Developing an integrated gas-to-power project in Ghana is a viable business. Nevertheless, non-associated gas production from the Sankofa Gas Project is risky and requires higher gas prices and alternative downstream consumers to be viable. The Gas Processing Plant and transmission pipeline tariffs are inappropriately set and requires regulations. Providing effective regulations and governance arrangements by establishing an independent regulator through a gas sector law are important in protecting the interest of various stakeholders in the nascent gas industry in Ghana.

The research reported in this doctoral thesis involves constructing physiochemical models that reproduce the transport behaviour of aqueous chemical species present in environments relevant to the oil and gas industry to gain an improved insight into the local electrochemistry near the electroactive surface (uniform corrosion) or inside the pit (pitting corrosion). The first part of the project involved constructing physiochemical models with one dimensional geometry with aqueous chemical species and chemical and electrochemical processes observed in oxygen (O2) containing brine environments to determine the changes in the local electrolyte composition and the potential within an initiated pit for a variety of external physical and chemical conditions. It was determined that the bottom of the pit suffers greatly from the effects of iR drop (Ohmic drop) if the pit geometry is taken to be macroscopic. The model was extended to include additional aqueous chemical species in conjunction with the chemical and electrochemical processes observed in carbon dioxide (CO2) rich environment to investigate the effects of CO2 on the local electrolyte chemistry at the bottom of the pit. It was found that the proton reduction electrochemical process on its own was incapable of supplying the high currents experimentally measured in CO2 environments via the buffering effect. The second part of the project was to investigate the influence of different experimental conditions on the polarisation behaviour of near static carbon steels in CO2 saturated brine electrolyte via multiple electrochemical measurement techniques. The key observation from this study was the presence of two distinct mass transport limited regions on the cathodic polarisation curve at natural pH (3.775). From the physiochemical model fitted to the experimental cathodic curve, the first mass transport limited region, occurring at lower cathodic potentials, was identified to be the direct reduction of carbonic acid while the second wave, occurring at slightly higher cathodic potentials, was shown to be the direct reduction of aqueous carbon dioxide. Based on the polarisation scans under forced convection, the rate of the direct reduction of carbon dioxide was determined to be under neither potential nor mass transport control. The third part of the project involved extending the existing one dimensional models to include the precipitation of salt films (iron chloride – FeCl2(s) and iron carbonate – FeCO3(s)) in O2 and CO2 saturated brine electrolyte respectively along with the capability to track their respective thickness. Furthermore, the ability of the underlying metal to undergo a change in its state from active to passive is implemented in the model via a set of rules based on the Pourbaix diagram. It was determined that the precipitation of salt films is greatly influenced by the mass transport with no or minimal thickness observed under even natural convection conditions. Furthermore the successful precipitation of salt film was determined to be a precursor step to the metal attaining passivation.

Este estudo analisa a indústria de gás natural de modo a contribuir para o melhor entendimento acerca das políticas tarifárias da atividade de transporte de gás natural conduzidas pelo governo sob a ótica de um programa de expansão da malha de gasodutos e de fortalecimento da indústria de gás natural no país. A adoção de mecanismos que possibilitem a separação e abertura das parcelas que compõem o preço de venda do gás natural visa a proporcionar uma maior modicidade tarifária, reduzindo os subsídios cruzados entre os Estados (regiões produtoras frente a distantes centros consumidores) e ampliando a eficiência econômica na utilização da malha de gasodutos do sistema de transporte. A partir do auxílio das teorias e modelos tarifários empregados nas indústrias de infraestrutura de rede, a pesquisa analisa a evolução da regulação tarifária associada à Parcela de Produto (Parcela Variável) e à Parcela de Transporte (Parcela Fixa) na formação do preço de venda do gás natural de origem nacional entre a Petrobras e as concessionárias estaduais de distribuição de gás canalizado. A análise dos resultados permite observar que a introdução de mudanças na sistemática de formação do preço de venda do gás natural provoca um retrocesso em relação à transparência na estrutura tarifária e na comercialização do gás natural. A atual política tarifária e os descontos (aproximadamente 32%) praticados pela Petrobras nos preços de venda para as distribuidoras das regiões Nordeste e Sudeste provocam alterações significativas não apenas na competitividade do gás natural frente aos demais combustíveis, mas também dentro do próprio mercado de gás natural. Os consumidores de gás natural nacional não detêm a informação acerca do quanto pagam no custo de serviço de transporte, diferente dos consumidores de gás natural de origem boliviana que se deparam com regras contratuais claras de reajustes dos componentes de cada parcela. Assim, averigua-se que essas mudanças penalizam principalmente os estados com maior produção de gás natural (Rio de Janeiro, Espírito Santo, Bahia e Sergipe), uma vez que o Fator Distância não se encontra claramente definido na nova fórmula de preços do gás nacional. Ainda, conclui-se que o marco regulatório da indústria de gás natural define de maneira clara a formação da tarifa de transporte para os novos gasodutos, enquanto a ANP ainda estuda maneiras de incluir na regulamentação a transparência tarifária na malha de gasodutos existentes. / This study analyzes the natural gas industry in order to contribute to a better understanding of the pricing policies of the activity of the natural gas transmission conducted by the government from the perspective of a program to expand the pipeline network and strengthen the natural gas industry in the country. The adoption of mechanisms that allow the separation and opening of the parcels that make up the selling price of natural gas is intended to provide greater low tariffs, reducing cross-subsidies between states (producing regions across the distant consuming centers) and increasing economic efficiency the use of the gas pipeline of the transportation system. From the aid of tariff models and theories employed in the network infrastructure industries, the research analyzes the evolution of tariff regulation associated with the portion of product (Variable Parcel) and Parcel Transportation (Fixed Parcel) in the formation of the selling price of domestic natural gas rise between Petrobras and the state distribution utilities of gas. The analysis allows us to observe that the introduction of systematic changes in the training of the sales price of natural gas causes a regression in relation to transparency in pricing structure and marketing of natural gas. The current pricing policy and (approximately 32 %) discounts offered by Petrobras in selling prices to distributors in the Northeast and Southeast regions cause significant changes not only the competitiveness of natural gas compared to other fuels , but also within the gas market itself natural. Consumers of domestic natural gas does not hold the information about how much they pay the cost of shipping service, different consumers of natural gas from Bolivian origin faced with clear rules of contractual adjustments of the components of each plot. Thus, it ascertains that these changes mainly penalize states with higher natural gas production (Rio de Janeiro, Espírito Santo, Bahia and Sergipe), since the distance factor is not clearly defined in the new pricing formula of the national gas. Still, it is concluded that the regulatory framework of the natural gas industry defines clearly the formation of the transport charge for new pipelines, while the ANP is also considering ways to include the tariff transparency in the regulatory network of existing pipelines.

Offshore petroleum exploration and production (E&P) activities are faced with both technical and environmental challenges. In spite of these challenges, offshore petroleum E&P are on the increase globally. These operations have not been accident free even with improved technology. Recent incidents like Montara blowout and Deepwater Horizon fire have more than ever before raised serious concerns about the safety of offshore oil and gas E&P. Key issues are the prevention of major hazards, emergency response and civil liability, and payment of compensation. These issues have greater implication when the impact is transboundary. There is a general consensus on the need to ensure safety of these operations globally. However, the international legal framework needed to achieve the objective is unresolved. Looking at the extant international instruments relating to marine pollution from offshore oil and gas activities, there is a clear absence of global treaty on safety of offshore operations, civil liability and compensation. While there is general consensus on the need for safety of offshore oil and gas operations globally, opinions are divided on the necessity for global treaties. This thesis looks at the extant international legal framework at both global and regional levels with a view to identifying gaps in provisions on safety, civil liability and compensation. The thesis finds that even in the post-Macondo era, there are no global treaties in relation to safety of offshore petroleum E&P to prevent accidental pollution, and to deal with issues of civil liability and compensation. Furthermore, most regional regimes have no specific provisions on accidental pollution from offshore operations and liability issues arising therefrom. The absence of provisions for civil liability, especially in cases of transboundary harm from offshore accidental pollution has created difficulty for affected nations and nationals. This thesis proffers suggestion for international regulation of offshore petroleum operations to prevent accidental pollution, improve emergency response and guarantee prompt settlement of liabilities and payment of compensation. Accordingly, an international legal framework involving three levels of legal regimes is recommended as an effective way of preventing accidental pollution from offshore petroleum operations to protect marine environment and also ensuring that liabilities that may arise in the event of a major hazard are adequately addressed.

This paper develops a framework that analyzes how mergers and acquisitions in Alberta’s oil and gas industry affect stock prices. In this experiment, a multivariate regression is applied to several industry-specific variables to determine if they have impacts on the abnormal stock returns of acquirers. The results show that abnormal returns 5 days prior to the public announcement of the transaction are, in fact, driven by several industry-specific variables. However, the returns immediately after the M & A announcements are similar to previous research done in other industries. Acquirers’ gains 2 days after the announcement are essentially unaffected by the transaction. After a 90-day period, the share performances of acquiring firms tend to beat the index by 7% on average, but this is not thoroughly explained by the variables in the regression analysis.