Environmental Hazards as a Consequence of Crude

¶ … Environmental Hazards as a Consequence of Crude Oil/Natural Gas Exploration, Transportation, Refining and Storage

Ever since crude oil was first successfully drilled in the U.S. In Titusville, Pennsylvania, in 1859, the demand for oil has only been increasing over the years in countries all over the world. (Camden, 1883) Crude oil, from which various petroleum products are obtained, is a naturally occurring hydrocarbon component found trapped in rocks below the earth. The word "petroleum" means "rock oil" or "oil from the earth." Natural gas is another form of hydrocarbon that is also found in nature. Both crude oil and natural gas have excellent combustibility and are good sources of energy. Crude oil is not used in the extracted form; but it is refined to obtained products such as gasoline, liquefied petroleum gas (LPG), naphtha, kerosene, gas-oil and fuel oil. Secondary products during the purification of crude oil are obtained are lubricants, asphalt, perfumes and insecticides. There are, approximately, more than 4,000 different petrochemical products obtained from refining of crude oil that have commercial value. Plastics, synthetic fibers, synthetic rubbers, detergents and chemical fertilizers are some of the consumer products that are generated from crude oil. The proven crude oil reserves in the world are estimated to be approximately 1,074,850 million barrels and the consumption is estimated to be approximately 76 million barrels per day. The graph below indicates that consumption has only been increasing over the years all over the world.

Evaluate the topic

This study investigates the environmental hazards that are the resultant of the explorations, transportation, refining and storage of crude oil and refined products in countries all over the world. This study provides a holistic view of the effects of the petroleum industry. It is important to note that the petroleum industry is one where geographical boundaries and limits are generally inconsequential for the industry as a whole. For example, petroleum exploration might occur in one region but the use of the product might occur in another. The United States (19.7 million barrels per day) and Japan (5.5 million barrels per day) are two of the largest users of petroleum products, but the countries in the Middle East and Russia are the major producers. As a result, the crude oil or refined products have to be shifted from one region to another based on the supply and demand of the product.

Source: U.S. Energy Information Agency, International Energy Annual Report. (Rodrigue, 2004)

Petroleum products are probably the most commercially and domestically used form of energy source today. As a commodity of great strategic importance, petroleum has tremendous international bargaining leverage. Railroads and pipelines were built and developed to help transport the crude oil from the areas of production to the refineries. From electricity generation to transportation, petroleum products play crucial roles in today's social infrastructure. It is however important to note that the industry is not without its problems. One of the main issues in this industry is the increased environmental impact as a result of the various processes. The potential for the occurrence of extremely hazardous conditions from processes and stages such as the transportation of oil by marine vessels and the storage of large quantities of oil ishigh.

Analyze scope and purpose of the project

Environmental issues are becoming increasingly important for the petroleum industry. The petroleum industry has the potential to impact the global economy on amajor scale. The three sharp spikes (early 70s, late 70s and 1991) in oil prices observed over time-period of this industry have indicated just how dependent the world economy is on petroleum products. It is easy to correlate these price increases to the recessions that occurred in the U.S. And many world economies during these times. Countries therefore, in addition to investing heavily in the scouring of new petroleum reserves, are also looking for new ways to optimize the processes in their refineries. Increasing storage capacities is a major concern and a potential endeavor. This implies that countries have to build refineries to process the crude oil, support tank farms to store the crude oil before it is processed. Lastly, they have to store the finished products as well as develop shipping and land transportation (rails and roadways) to transport the oil from the supply point to the demand point. Issues such as global warming, fresh water pollution and spills on the high seas are however, forcing countries to reevaluate their strategies when dealing with the environmental issues related to this industry.

This study provides an overview of the logistics needed for this industry to survive over time. It is beyond the scope of any one study to investigate and study the impact of every variable that can affect the environment with regards the petroleum industry completely. Major environmental hazards are also identified for every stage on this supply chain: from the extraction of the oil to the final consumption of the products. Concerns over environmental safety and preservation have introduced the ISO 14000 standard for industries to implement. It has been established to provide organizations with guidelines for conducting environmental impact assessment, environmental management and auditing according to a recognized standard, to maintain integrity of the immediate biological and ecological environment and the global environment as well.

Understanding the conditions that create the potential problems is the first step in any environmental safety program. This step can help companies better prepare themselves for problems that they are likely to face in the future and look for ways to reduce the occurrence of the issue. For example, Tank farms can undertake periodic structural inspections and soil testing to ensure that no leakage occurs from the oil tanks. In addition, the management of tank farms can also introduce safety measures such as using impregnable oil fabrics in the dikes and design better catch basins ('bund' or 'drip tray' in the U.K.) in case of catastrophic tank failures.

Alternative approaches to the problem

The world needs oil to drive its economy. Until a viable option is identified, the dependence on oil is only expected to grow and increase. Consequently, the problems that can potentially arise will also increase. For example, until countries in North America and Western Europe decrease the greenhouse gases created due to the increase in oil consumptions or countries like China and India reduce their pollution levels by better optimizing their coal-fired electricity generators, the issue of environmental damage is a reality that the rest of the world will have to face. Environmental pollution is becoming a major concern during the various process-stages of the petroleum industry; finding ways to reduce the pollution levels is as important part of this industry at all the different stages.

The processing and purification of crude oil is a complex and expensive procedure. The wear and tear on equipment is also great. Continuous maintenance has to be performed on the entire system to ensure that failures do not occur. There are additional internal factors. For instance, the microenvironment of the oil-producing regions and countries within those regions need to be critically analyzed if this industry has to be optimized. Countries like the Netherlands and Sweden are increasingly looking for sustainable development of their energy industry. Sustainable development of the petroleum industry is gaining tremendous importance in recent time. Simply defined, sustainable development is "a simple idea of ensuring, through new lifestyles, a better quality of life for everyone, now and for generations to come." (UNESCO, 2003) The important resources that are at the forefront of any sustainable development are forests, water, minerals, gems, wildlife, air and the land, oceans, seas, rivers and lakes. The best alternative is for the world to identify a new source of energy. Until that time, organizations in the petroleum and crude oil industry will have to employ better environmental strategies to ensure that any damage is minimized.

Specific tasks that will be undertaken in this study

The following specific tasks will be undertaken in this study:

The various stages of the petroleum industry will be identified from the drilling of the crude oil to the consumption of the oil at the end use

The potential of environmental damages at these stages and the extent of the damages that can be inflicted on the system will be assessed and discussed

The extent of safety measures that can be used to help reduce the extent of damages to the environment

Practical recommendations and suggestions that can ensure the safety of the environment

Success and monitoring required to access the project process

Formulating an environmental project pertaining to the petroleum industry is ambitious task. The petroleum industry is complex and intricate. It spans different continents and different governments. International laws and regulations governing the transportation of crude oil and petroleum products are strict. These laws are also imposed stringently. Local regulations in individual countries however, are more open to compromise. In this environment therefore, companies and business through legislatures like ISO 14000 can be encouraged to adopted better business ethics and social consciousness in the execution of their business.

Data gathering and Analysis

Overview of the issues of environmental protection

In recent times, the need to protect and save the environment is growing. Most scientists and climatologists working with data related to the climate and the weather believe that the earth's temperature is rising. This is often attributed to the depletion of the ozone layer and the increase in the greenhouse gases. Temperature-rises have resulted in rising sea levels. Many islands in the Pacific Ocean are in danger of being submerged. These changes will influence the lives of the average citizen. More money will have to be spent on healthcare and preventive medicine. Health Services will be burdened due to rising pollution levels, depletion of the ozone layer and contamination of fresh water, the oceans and the land. There will also be fewer resources and commodities available. The divide between the haves and have-nots will also increase. Great inventions in science and technology have been achieved due to man's constant desire to improve his living conditions and his quality of life.

The earth is also evolving and undergoing changes. These changes are subtle and not noticeable over typical time spans. The movement of glaciers, for example, occurs at a few centimeters or less in a day. Records show that glaciers, which were almost intact for hundreds of years, are retreating faster since the mid-1800s. This rate of retreat is accelerating with each passing year (Wright, 2002). Darwinian Theory states that plants and animals undergo changes and mutations -- we are constantly evolving. Man's influence has, however, impacted the habitats and the living condition of many plants and animals. Many times, the extinction of a species is attributed to the effects of man's encroachment on the habitats of these lower forms of life. The clearing of forests, contamination of the rivers and lakes due to the run off of fertilizers used in agriculture and uncontrolled hunting for food and sport.

It is often assumed that to create new jobs, the environment will have to suffer. However, a study in Louisiana showed that environmentalist, industrialist and the government can work together to keep the environment safe from harm (DanishEPA, 2001) In many cases, industry also has a reason to develop and grow in an area if the right facilities to sustain growth are available. One of the greatest challenges in the present times is the ability to meet human needs without threatening the integrity of ecosystems, which are the basis of human survival. Environmental protection and species conservation are important issues if humans have to survive.

It is predicted that the total oil reserve available today is between 1,800 to 2,200 billion barrels. Approximately 900 billion barrels have already been consumed to this point. Using Hubbert's assumptions, global production will peak in next few years. (Deffeyes, 2001) Most of the oil will be extracted by 2060 and the world will have to look for new options to generate energy. These worldwide (petroleum) assumptions are based on the facts that after 1971, no new reserves of crude oil have been found. The necessity for drilling potential deposits in Alaska is struggling due to political problems. The oil meshed with sand on the shores of Canada also needs more research in extraction. New oil deposits discovered have also proved to be difficult to drill and commercially exploited without investing in new technology and refining methods. This in turn has forced explorations in regions where the ecology could be seriously affected by the exploration process.

The amount of petroleum resources a person consumes and the damages done in the process of manufacturing and obtaining these resources are key considerations in the analysis of population explosion. The U.S., for example, has a lower population than either China or India but uses more petroleum resources due to the higher purchasing capabilities and options available to its residents. In addition, other support systems required to maintain the higher quality of life have also to be factored into the resource utilization. (EIA.DOE.gov, 2002)

This study identifies the following aspect of the petroleum industry for environmental hazards

The drilling and production sector for crude oil

The transporting and piping of the products to the refineries

Refining and processing of the crude oil into marketable products

Warehousing of petroleum products -- finished and semi-finished

Transportation of finished products to the seller

Petroleum reserves and extraction of crude oil

The total oil reserve estimates have always been debated. Whether the true extents of all the oil reserves have been identified in the world and the resources that would be required to extract the oil exist are topics for continued discussions. The majority of the current reserves are located in politically unstable countries -- making the well and drilling rigs susceptible to terrorist attacks. As seen during the Gulf war, many of the oil fields were set ablaze and millions of barrels of crude oil were released into the river and the ocean. The estimated world oil resources (extracted from a more comprehensive table is as shown below. As seen from the table above roughly two thirds of all the oil reserves are in areas where political and social instability is high (many of the countries in the OPEC are located in and around the Middle East)

Region and Country

Proved Reserves

Reserve Growth

Undiscovered

OPEC

Non-OPEC

Extract) Note: Resources include crude oil (including lease condensates) and natural gas plant liquids.

Source: U.S. Geological Survey, World Petroleum Assessment 2000, web site http://greenwood.cr.usgs.gov/energy/WorldEnergy/DDS-60.

The equipment and expertise required are constantly becoming more sophisticated. These advances are primarily applied in locating and identifying oil reserves. Often, the oil reserves are located in inhospitable area of severe climatic conditions. For example, the Middle East is a desert; the oil reserves in Russia, which are located in regions of artic climatic conditions. The current political wrangling in the United States is over achieving oil sufficiency for decades by drilling in the Arctic Tundra. The drilling rigs, platforms and cranes are also subject to severe climatic stain and stress. In addition, crude oil, when drilled, also contains highly corrosive compounds such as sulfur, nitrogen, and heavy metals. (Vincent, 2002)

The world is constantly looking for new oil reserves. New technology and innovations in the petroleum industry has opened the industry to a whole new range of oil deposits. For example, the "tar sands" of Alberta, Canada has moved Canada from the 20th ranking country in oil reserves to second. The difficulty of extracting the oil will however hamper the production operations for a long time. (Lavelle, 2003) Environmental concerns and cost of operations have hampered production processes in the newly discovered oil fields. The infrastructure, such as, pipeline, holding tanks and transportation modes are also difficult to set up.

Oil exploration and distribution channels can cost billions of dollars to develop for an environment friendly process to be implemented. The main marine pollution as a result of the oil industry occurs as a result of waste from land-based sources such as refineries, river run offs and ground water contamination and from the transportation activities of the crude oil and refined products being undertaken. (Associated-Press and Reuters, 2001) The trepidation that incidents such as this could occur more often has many environmentalist and lobbyist working hard to prevent "unsafe" and "unreliable drilling operations all over the world.

Refining of crude petroleum

Crude oil is not used in its pure form and has to be distilled to obtain the more commonly used petroleum products. The initial refinery processes designed were simple. The current refinery process is complex. A simplified version of this process is shown below. The refining process is a continuous manufacturing process; and, as a rule, refineries operate 24/7, 365 days of the year. The only time a process is shut down is when the system and the equipment require maintenance or repairs.

The heavier gas oils are less preferred when compared to the lighter oil that is distilled at lower temperatures. The crude oil is first separated into basic "fractions" that are later further distilled to obtain a wide rage of products within the basic fraction.

Different fractions distill at different temperatures in the distillation column and are classified as follows:

Lighter products -- liquid petroleum gases (LPG), naphtha and straight run gasoline

Middle distillates -- jet fuel, kerosene, home heating oil and diesel fuel

Heaviest products (residuum or residual fuel oil)

The first lighter products have the most demand in the consumer market. The technology to obtain lighter fuels from the heavy distillates has been in use for a long time. Adding a catalyst, treating the heavy oil to high temperatures or changing molecularities of the heavy residue is often used to obtain as much of the lighter fuels as possible from the residue. Refineries, realizing the higher demand for the lighter fuels, constantly mix and match the processes to maximize the extraction of the most profitable component of the crude oil.

All the crude oil used in the refining process is not the same. Every batch of crude oil will differ. For the purpose of sale, crude oils are classified based on density and sulfur content. The presence of heavy metal contaminants and heavier hydrocarbons also affect the quality of the crude oil. Less dense crude oil has higher contents of the lighter products. As a result, they are more valuable. Heavier crude produces higher quantities of residuum. They are considered as a lower grade for commercial distillation. Higher sulfur content is also not a desired element in the crude oil. Some of the premium crude oils benchmarked are: West Texas Intermediate and Nigeria's Bonny Light. The historical benchmark crude Saudi Arabia's Arabian Light has a high residuum making the refinery process more expensive as repeat runs of the distillation process have to be undertaken. (EIA.com, 2003) In addition, lower the grade of crude oil (more sulfur, heavy metals) the more the environmental pollution during the process of refinement and distillate extraction.

The refining process also creates the potential for tremendous environmental hazards. For example, "liquid hydrofluoric acid turns to hydrogen fluoride gas under temperature and pressure conditions found in refineries, if exposed to the air." (Rotella and Rabin, 1988) An explosion at the Mobil Oil Corp. refinery in Torrance created suitable conditions for the creation of hydrogen fluoride gas that if release had the potential to affect the entire Los Angeles County. A release of hydrogen fluoride gas in 1984 at the Union Carbide plant in Bhopal, India, killed approximately 2,000 people in the vicinity.

The quality of the crude oil is a determinant in the design of the refining process. Even the highest-grade crude oil has approximately 33% of residuum. It requires secondary downstream distillation processes to maximize generation of the lighter distillates. It is estimated that 25% of all the crude oil refineries in the world are located in the United States. The U.S. also has the largest number downstream capacity in the world. The fine act of balancing the cost of maintenance, at the same time ensuring that the industry is equipped with structures and equipment that can perform the necessary tasks and generate the desired output, is critical. Refinery locations are considered hazardous and high-risk. They are generally developed in areas where real estate is cheap and the access to a port and/or waterways is convenient.

Deregulation of the state petroleum industries in many countries is also forcing many of the industries to optimize their existing resources in an effort to generate higher profits. This has resulted in refineries not spending the necessary resources to ensure the environmental protection of the site. For example, many refinery sites become highly contaminated sites and little can be done at the final stages to clean up these sites. (Shimek, 2003) The heavy metals and solid waste removed from lower grade crude oil are also often stored within the refinery site before they can be safely disposed. Cities and towns supporting refineries also have to support higher levels of trained firefighters and hospital workers to ensure that the required personnel are available in case of "freak" leaks of contaminates into the ground water or the air.

Storage of crude oil and finished product

The constant and cyclic demand for finished products has encouraged organizations and governments around the world to look for means to store these products in large quantities in reserves that can be called upon at any time. In addition, the refinery process (continuous manufacturing) requires that refineries also store large quantities of crude oil. Few refineries have been built in the recent years, putting excessive strain on old and already overstrained equipment. This has resulted in tank farms having to stock up more product than necessary to compensate for surges in the demand. Tanks used for storage of liquids are generally of two categories: Aboveground Storage Tanks (AST) and Underground Storage Tanks (UST.) These tanks need to be inspected, repaired and tested prior to usage. In the U.S. For example, The Department of Environmental Protection (DEP) and the Environmental Protection agency along with the American Petroleum Institute (API) determine the guideline by which tank farms have to be managed. In the U.K, the Department for Environment, Food and Rural Affairs is entrusted with overseeing the needs of the petroleum industry's effects on the environment. (DEFRA, 2004)

The figure presented previously captures the movement of the oil from the refineries and the tank farms to the various locations and points of use. In most tank farms and terminals, inventory varies widely due to many factors (shipping delays, high demands, low refining capabilities, etc.) Time is needed to verify line-ups, contaminations, and reworks (transferring slop to another tank). Decreasing this time reduces the variation in inventory. It can help in providing tools required for short-term planning, contamination checking, operator guidance, movement sequencing, and tracking. Most of the oil and gas industry players are big business and multinationals like British Petroleum, Chevron and Exxon-Mobil. In order to attain market penetration, the oil and gas industry has sought to achieve economies to scale and standardized working operations. (MRO-Software, 2003) The attitude of "not in my backyard" among the residents of an area has hindered the development of new refineries.

Fear of leaks and ground water contamination and the resulting decontamination of waters sources resulted in the creation of extensive and detailed guidelines by which these tanks have to be maintained. This is to prevent any failures. Studies indicate that some of the major problems that large aboveground storage tanks are settlement problems. Often, this is the result of the tank being located in areas with poor drainage. Water, when not allowed to drain away from the tank, can be corrosive; mechanical failures throughout the tank structure can result. Two of the main problems that above ground tanks face due to standing water and improper drainage are; underside water-corrosion of the tank floor and erosion of the tank foundation. Catastrophic failures (which do on occasion occur) were however, the result of "some external event, an operational failure, a foundation failure, a structural failure, and/or a material failure." (Worsham, 2002) Different tanks require different types of inspection. For example, tanks storing corrosive materials such as sulfuric acid or hydrochloric acid may require different inspections; stainless steel tank inspections will differ from fiberglass tank inspections.

Many of the problems in Tank farms are similar to that of refineries. In many cases, the tank farms might be located on the refinery site itself.

Transportation of crude oil and finished products

This section deals with all the problems and hazards that can occur in the transportation of the product. Transportation of oil by sea was done as far back as 1878. The capacities of tankers and super tankers have increased. It is estimated that approximately 62% (100 million tons of oil) of all international transportation of oil is done by marine tankers. The shipping routes have been well established from the Middle East to Europe, the U.S. And Japan. Cost and shipping infrastructure is essential for oil transportation. In 1999, the world's commercial tanker fleet capacity was 280 million deadweight tons. At any given time, there are approximately 4,000 tankers used for petroleum shipping worldwide. (Rodrigue, 2004) The cost of oil on a tanker varies based on size, area of origin, destination and availability. Tankers are also sometime used for temporary storage of petroleum. Logistics and strategic planning play an important role in transportation of the oil. A decrease of marine oil tankers due to more stringent environmental regulations -- that older tankers could not satisfy -- increased shipping rates and lowered inventory levels maintained in the crude oil production regions. This has also helped increase the cost of crude oil.

Transportation of crude oil and finished products can also cause tremendous damage to the local economy if the tankers carrying the products ground or are damaged close to shore. (Earth-Sci, 2004)

Used Oil

While all the above problems appear prior to the consumption of crude oil products, the major problem of contamination generally occurs during and after the products is used. Burning of fossil fuels create by products that are damaging to the environment. In addition use of oil for lubricants and coolants also impact the environment. In the U.S. For example, the ERP defines that was refined from crude oil or any synthetic oil. And, that as a result of use has collected impurities such as "dirt, metal scrapings, water or chemicals, can get mixed in with the oil, so that in time, the oil no longer performs well." (EPA, Used Oil Management Program, 2004) By virtue of high heat and other operating conditions that the oil goes through the chemical composition of the oil can also change making the safe disposal of the product important and critical. For example, used oils from automobile engine could contain toxins such as lead, chromium, cadmium, naphthalene and chlorinated hydrocarbons created from combustions in the internal combustion engine. Often, used oil can be recycled. This reduces (though does not eliminate) the necessity for virgin crude oil for the products being manufactured.

Burning used oil without processing it releases the contaminants in the air and disposing of used oil in storm drains can seriously impact the ground water. Improper disposal of used oil can be damaging. For example, in Australia, approximately "500 million liters of virgin lubricating oil are sold annually" and "up to 100 million liters of the used product go "missing" each year." (Kemp, 2004) The author of the article Dr. Kemp stated that when put into perspective, the "Exxon Valdez spill -- one of the greatest environmental tragedies in history -- was relatively small compared to the amount of used oil being inappropriately disposed in Australia." Governments, in many of the developed countries around the world, are implementing "collection" programs where the used oil can be safely disposed off.

Discussion and evaluation of the study

Evaluation of the information

From the discussion above it is clear that while human dependency of oil is tremendous, man has to also ensure that proper safeguards are taken throughout movement of the oil from start to final use and disposal. There is no doubt that the petroleum industry can be the cause of numerous and complex problems. Our dependence on petroleum products however, does not appear to abate even as the problems associated with its use continue to rise. The rate of consumption of this non-renewable source indicates that the crude oil as a product might not be available forever. The problem that its (over) use has created however will last for many generations to come. The Exxon Valdez incident in 1989 impacted the delicate food chain that supports Prince William Sound's commercial fishing industry. In addition, the oil spill also took place in a region where "ten million migratory shore birds and waterfowl, hundreds of sea otters, dozens of other species, such as harbor porpoises and sea lions, and several varieties of whales" were in serious harms way. (EPA, Exxon Valdez, 2004)

Oil spills are generally the result of accidents on tankers, oilrigs and in refineries and storage facilities. Human error (the Exxon Valdez was an avoidable human error (DEFRA, 2004) While the contamination could be from any source, the final results are the same. It is estimated that many of the toxic residue as a result of the oil spill will compromise any of the regions for the next 100-200 years and any degrading of the oil will occur slowly and gradually.

Different petroleum companies, and the countries in which these companies are located, may not see the immediate need for maintenance. These entities might have a tendency to let the equipment; machinery and the structures go for extended periods of time without proper maintenance. This is observed in the poor condition of the drilling structures and machinery in the Nigerian oil extraction industry. Many ships and oil tankers used by some of the third world nations have poor service and maintenance records. And they pose a serious threat to the environment if a disaster does occur. The U.S. And European Union laws now require every new tanker to feature a double hull. This feature is also being encouraged in many of the "rogue" shipping countries. Many of the more developed countries around the world are also becoming more stringent with their policies and measures when dealing with ships and ship owners that have "flags of convenience."

Spills are however, not the only problem. Different legislation and policies over the years have only created more confusion and chaos with respect to the environment. Lead, for instance, was used as an anti-knock agent since 1926. (Hart, 2004) By the 1970s, lead was identified as a carcinogenic compound; as a result it was removed from the petroleum products. The next compound to be added was methyl tertiary butyl ether (MTBE) in the U.S., until it was identified that MTBE did not degrade and was absorbed in the ground water. Changes in policy with regards to methyl tertiary butyl ether (MTBE) may also affect the petroleum industry. New York and Connecticut detected MTBE in the ground water. As a result, these states have mandated that by the end of 2003, MTBE, which makes up about 11% of a gallon of reformulated gasoline (RFG), will be replaced would be replaced by fuel ethanol. The phasing out period of MTBE and introduction of ethanol fuel will involve many adjustments. Ethanol fuels are more costly and complicated to manufacture when compared to the MTBE fuel. The discovery of various compounds that make petroleum products "better" are not always environmentally safe is slowly being realized by activist all over the world.

Oil leakage from tank farms is also a major problem. Large welded aboveground storage tanks are also designed using the maximum plate length of structural steel for the tank floor, shell and the tank roof. This ensures that there are less areas of welded sections that can be more susceptible to failure that a continuous floor plate. The tanks also need to be properly vented to ensure that pressure build up or vacuum build up does not occur while the tank is in operation. Both these situations can cause the tank to fail catastrophically. This results in extensive damage to both life and property. In addition, change in service (putting different products into the tank when compared to the design conditions can also cause failure.)

In the U.S., for example, tanks storing petroleum products have to be inspected for structural soundness once every ten years. Minor maintenance tasks like external tank painting and regarding of the soil the dike may be undertaken when the tank is in operation. Major repairs involve fixing broken seals and pontoons on the floating roofs. It is extremely risky to perform any maintenance operations when the tank is filled with gasoline or diesel; both are highly volatile. They have a low flash and fire point. It is clear therefore that any organization that maintains storage tanks on its facilities needs to create a schedule for inspection, maintenance and repairs of these tanks to ensure that they are reliable and operating in the manner desired. Document review is also important prior to any maintenance project undertaking.

It is clear that refineries perform a valuable service in converting the crude oil to the desired products. Many refineries are now using advanced instruments, systems, and integrated automation and information solutions for operation. Use of new technology has helped reduce the bottlenecks that many of the refineries had experienced in the past due to breakdowns and problems that routine preventative maintenance could have solved. Capacity utilization continues to grow but not at the same pace as when the identifying of process constraints was initially done. The refinery process is punishing on all the equipment and structures. As a result, maintenance is important for the organization.

High oil cost also encourages energy conservation. It serves as a social and economic incentive to monitor use of the product. Understanding the need for conservation and environmental protection is best learnt when the product is scarce and the demand is very high. Global warming and depletion of the ozone layer is also becoming a great concern. Increased used of fossil fuels (petroleum, coal, natural gas) create greenhouse gases that can seriously damage the environment. These factors may encourage governments to intentionally maintain relatively high prices for petroleum products in the country. If the price of oil drops, the cost of energy generation will also correspondingly drop. This may also result in the current power generation companies not being able to generate profits from the business.

Environmental consciousness and depleting reserves of crude oil have forced development of "alternative" fuels. Methanol (an alcohol produced from natural gas, coal, or biomass) and ethanol (an alcohol produced from biomass) are two alternative fuels identified. Various other alternatives are in different stages of development -- compressed natural gas, electricity, propane, liquefied natural gas, fuel cells, hydrogen, and solar energy are some of the forerunners.

Emissions from vehicles are the single largest contributor to air pollution. In addition, the balance of the ecosystem has also affected the regions of production and distribution. As a result, a number of agencies are seriously involved in identifying problems and working at solutions to resolve these problems. While it is argued that the impact of petroleum is bad, the use has helped spur on occupations that may have otherwise not existed. R & D. For developing alternative sources of providing transportation energy is also becoming a major sector as the increasing cost of gasoline may seriously impact the economy 20-30 years from now.

Clean up of spills and contaminated sites

Just one quart of oil may pollute up to 150,000 gallons of water," reports the Air & Waste Management Association. (AWMA, 2000) Oil spills at sea and in rivers can move hundreds of miles on ocean currents and through wave motions. Although crude oil is toxic to marine life, it does break up and disperse over time heavy oil can sometimes sink in fresh water. In addition, when the oil spill occurs in very cold waters, depending on the grade, the oil can solidify and sink to the bottom from where it might seep upwards (depending on water temperature changes with seasons) over time. Natural seepage has occurred for thousands of years. The environment has been able to combat this natural seepage without excessive problems. Now however, the amount of oil spill is much higher and nature cannot manage the spill in a fashion that can eliminate the problems being faced. There are also some naturally occurring bacteria that can attack and digest the oil thereby removing the impurities from the water.

There are three ways in which an open oil spill on water is handled:

Burning: This has to be done immediately before the oil has had a chance to spread too much. "An effective way to remove oil from the surface of water is through controlled burning, called in situ burning. In situ burning can remove approximately 100 gallons square foot of surface area (per day) under ideal conditions." (Florida-DEP, 2004) The downside of burning is that it can release excessive heat and toxic gases. If the oil has spread extensively, it can create a wide burn area. Generally in situ burning is undertaken only if the winds are not strong and the smoke plume is not likely to impact any of the populated areas in the vicinity. In many cases, where the spills are lighter fuel oils, the evaporation of the oil could be more dangerous that if burning was undertaken.

Mechanical Cleanup: Booms are sometime placed around the tanker or boat from which the spill has occurred to contain the spill and to later collect the oil. Skimmers (boats that suck the oil from the surface of the water) are then commissioned within the booms. Skimmers are dependent on the weather and sea conditions, size and type of oil spill, vessel capacity and storage capacity and the skill of the individuals operating the devices. Often, sorbents or large sponges are used to make the process faster and cover larger areas. If the oil spill is closer to shore, in addition to the skimmers, vacuum trucks can be used to suck the oil from the water. In some heavy oil spills, the oil might solidify and the "rocks" and "floating oil solids" can be picked out from the water.

Chemical Dispersants and biological agents are used to chemically breakdown the oil in the water. These depend much on the conditions in which the spill occurs. In high seas, the ability of rescuers to disperse the chemical and ensure that the spill is not moved extensively can spell disaster. Emulsification Wave action can also mix the oil and water into a mousse-like substance, that can be manually scooped up.

Oil spills on land might require different remedies. The spill can take a longtime to get from the sources of the spill into the ground water or in rivers. Often, many land spills occur in remote areas and the region might be too inhospitable (Arctic cold, desert heat) to undertake a large scale cleaning operation. Growing certain varieties of plants in this region might help. "Plants improve hydrocarbon degradation rates in soil by providing compounds that improve growth or accelerate degradation to hydrocarbon-degrading microbes." (Robson et al., 2004) In many situations, turning the soil over repeatedly and exposing the oil to the atmosphere was found to be effective in breaking up the oil compounds and hastening the degeneration process.

Many government agencies all over the world are also introducing legislature that encourages petroleum companies to train their workers to spill issues and problems in the operation process to respond faster. The belief that a trained worker is less likely to make mistakes and consequently subject the company to less financial liabilities is slowly taking hold in the minds of the top management. Workers on oil wells and at the oil pumping sites have to be highly trained and have to understand the companies' policies explicitly. These workers are generally highly paid. Many follow turnaround schedules. They work long daily hours for short periods of time. The high salary is to compensate for the high risk and dangerous working conditions. Every business benefits from the regular and periodic addition of up-to-date equipment to help advance and keep their business competitive. The oil and gas industry is one such business that has to take this practice of constant improvement one higher step. It has to constantly use more sophisticated and complex equipment in order to locate and identify locales of oil reserves.