Case Studies

Which is more important - Environmental Concern or Economic Growth?

Posted by WMM1942 on August 13, 2020 at 8:47am

Sudipta Majumdar, Ph.D.
Amity Business School
Amity University Kolkata

Mr. Amit Mathur paid a farmer 10,000 INR to get permission to drill for oil on a farm in Trombay (Maharashtra, India) and promised to remove the black ooze that would damage the crops. Mr. Mathur was lucky as he found large oil reserves in that area. Big oil companies immediately acquired the surrounding land and Trombay became one of the major petroleum producing regions of India. In a span of a few years, it had started distributing 12 billion barrels of oil and 113 billion cubic feet of natural gas mined in Trombay. This helped companies gain high profits. It also helped in the industrial development of the surrounding area as well as the state (Maharashtra).

But it has raised the pollution levels of Trombay extensively. The oil refineries at Trombay dumped tons of waste containing potentially toxic and heavy metals like carbon and organic chemicals into water for many years. The water in the surrounding areas of Trombay was contaminated by the toxic wastes. The towns near Trombay were also affected as the industrial wastes were dumped off in old wells in the adjoining areas. The off-shore drilling sites dumped the wastes into nearby canal water. People of Trombay had to face serious water pollution problems. Out of the 54 water wells, 50 contained heavy metal deposits.

Much of the pollution associated with oil and gas production was because of the salt and the drilled out mud. In Trombay, the petroleum reserves were found in salt domes and to pull the oil or gas from there, one has to drill the salt out of these domes. When a well is drilled, thousands of litres of brine (salt water) come to the surface. This is then pumped into disposal wells that have been drilled into porous rocks. Drilling mud, another major source of pollution was used to lubricate the drilling bits and flush the drill cuttings to the surface. The mud is a mixture of viscous clay, weighing agents, and chemicals used in different proportions. Weighing agents and heavy metals such as barium, chromium, arsenic, lead, titanium and zinc were added to solidify the rock and prevent it from collapsing. The chemicals used were carbolic acid, caustic soda, ammonia bisulphate, zinc chromate, formaldehyde, asbestos, asphalt and phenols. One third of the drilling mud was forced into rock formations, while the rest of the mud was recycled. The underground water supplies were polluted by the salt, heavy metals and chemicals disposed of by the petroleum industry.

In Trombay, environmentalists found unacceptable levels of salt, heavy metals and chemicals in drinking water. It was two to three times more than what was found in the drinking water of rural farms and small towns throughout the southern part of Mumbai. As a result, many people living in Trombay suffered serious health problems. Many died of cardio pulmonary arrest and with liver cancer. In a nationwide survey conducted on death caused by cancer, the centre for oil and gas production in the state ranked in the top 5%.

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As you read and analyze this case study, your reflective comments are requested on all of the following:

  • Who are the stakeholders, and how are they impacted both positively and negatively?
  • What knowledge and skills are needed to implement sophisticated, appropriate, and workable solutions to the complex global problems facing the world today?
  • What interdisciplinary perspectives would help identify innovative and non-obvious solutions?
  • What insights can you articulate, based on your culture and other cultures with which you are familiar, to help understand your worldview and enable greater civic engagement?
  • What is your position on the right thing(s) to do?

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Comments

  • thejustifies June 26, 2024 at 11:00pm
    The case I reviewed was titled ‘Which is more important-Environmental Concern or
    Economic Growth’ by Dr. Sudipta Majumdar. It followed Mr. Amit Mathur as he paid for
    permission to drill for on in a farm in Maharashtra, India. He promised that there would be
    no environmental harm, but that was a lie. As Mr. Amit, a direct stakeholder, increased his
    profits and fame, the land of Maharashtra, an indirect stakeholder, was plummeting to the
    ground from the invasive techniques of the oil drill and the aftermath that followed. Some
    knowledge and skills needed to tackle this dispute would include environmental science,
    communication, critical thinking skills, and Petroleum engineering. Some interdisciplinary
    perspectives would include business management and government regulations to find
    nonobvious solutions for problems that may arise such as one corporation suing the other
    and overstepping boundaries against government agencies. To create greater civic
    engagement one can, articulate be to allow benefits and cheaper oil to the people whose
    homes are being disrupted and almost destroyed. Think the right thing to do is to
    implement environmental changes to the land of India and help the people rejuvenate their
    homes back to peak health while still being aware of the oil drills that are still in the area
  • HibberJabber27 June 26, 2024 at 10:42pm
    The positivity impacted stakeholder is Mr. Amit Mathur. He profited from discovering oil reserves and possibly received compensation from larger oil companies. Oil companies are also a positively impacted stakeholder. Oil companies gained profits from the oil and gas extraction which boosted industrial development. Negatively impacted stakeholders are the people of Trombay. The people of Trombay experienced severe health problems due to the polluted water and experienced environmental degradation. Knowledge and skills needed to come up with solutions are public health and enviromental science and enginnering. They will help you understand the impact of drilling for oil and help address health risks associated with enviromental pollution. Interdisplinary perspectives to help come up with non-obvious solutions are economics and ethics. These will help you anaylze the cost-benefit of industrial activities and the impact on the environment. Ethics guides decision-making processes to ensure actions are morally correct. Cultural insight would be community engagement. Involving local communities into decision-making to make sure the community's concerns and wants can be addressed. This makes it more inclusive. My position on the right thing to do would be to implement a clean up in order to keep pollution reaching the soil and water sources. I would also provide healthcare to those who are affected by the pollution caused by the oil companies.
    • thejustifies > HibberJabber27 June 26, 2024 at 11:01pm
      I agree! There defiantly should be compensation for those who were heavily affected.
  • Bob1234 June 26, 2024 at 6:51pm
    Economic Growth vs Economic Concern
    The story of Maharashtra, India is a good example of corporate greed. Yes, the economic growth of the area was boosted because of the discovery of oil. The growth does not fix the negatives from the water pollution. Future economic growth is spared at the expense of the present. This causes great economic concern.
    The stakeholders in this situation are the oil companies and the local people. The oil companies and the local economy were positively impacted. The companies received money and business growth. The local economy received industry development and more jobs. The local residents and environment were negatively impacted. The oil contamination caused health issues for the residents. The environment was destroyed from the pollution.
    The appropriate knowledge and skills are required to provide safe solutions to the city. These skills include environmental science, engineering, and public health. Environmental scientists understand the ecological impacts and methods to reduce pollution. Engineers can develop ways to minimize waste. Lastly, public health is important to reduce health impacts.
    Perspectives from unique fields of knowledge would greatly improve the living conditions. These fields include environmental engineering and economics. Environmental engineers can innovate methods to reduce industrial pollution and waste. Economics can perform budgets to accommodate sustainable practices.
    To correct this economic mistake immediate actions must be taken. The local government should implement regulations to control industrial waste and provide medical support to affected residents. Also, long-term strategies should be put in place. These include investing in research to clean up the pollution and promote sustainable practices. Lastly, the oil companies must take responsibility for environmental and health impacts because of their operation. This includes cleanup operations and developing sustainable methods of oil extraction.
  • aarkhatr May 30, 2024 at 12:51pm
    A significant tension exists between environmental sustainability and economic growth, as the Trombay case study demonstrates. Significant economic benefits resulted from the discovery and development of Trombay's oil deposits, including large profits for the oil industry and the growth of Maharashtra's industrial sector. However, there were significant human and environmental costs associated with this economic boom. Heavy metals and hazardous chemicals were introduced into local water supplies by the oil drilling and refining processes, causing pollution and serious health problems for the surrounding population, including high incidences of liver cancer and cardiopulmonary arrest. The detrimental effects on public health and the environment emphasize how important it is to balance economic aspirations and environmental obligations.

    The government, oil firms, local farmers, and inhabitants are all stakeholders in this situation. The state and the oil firms profited financially, while the local populace suffered grave health and environmental effects. Multidisciplinary techniques are necessary to solve such complicated challenges effectively. To evaluate and reduce the impacts of pollution, environmental scientists and public health specialists must work together. Engineers can innovate safer drilling and waste disposal technologies, while legal and policy experts must develop and enforce regulations that protect the environment without stifling economic growth.

    There is a need for sustainable techniques that are consistent with cultural norms because India's longstanding appreciation for nature contrasts dramatically with the industrial activity in Trombay. Analyzing the perspectives of societies with robust environmental regulations might yield significant insights. In the end, the best course of action is severe environmental restrictions being enforced, prompt environmental damage restoration, and health interventions for impacted residents. The long-term health of ecosystems and societies depends on balancing environmental sustainability and economic growth, which is also morally required.
  • rod93171 April 14, 2024 at 5:39pm
    The positively impacted stakeholder was Mr. Amit Mathur, who only had to pay 10,000 INR to discover later the absorbed amount of oil and gas available in these reservoirs. The other oil companies that later found these reservoirs also gained a positive impact from this rare find. The stakeholders who were impacted negatively were the people;e of Trombay. Sadly, these people were born in a hotspot for greedy oil companies and suffered the consequences of health issues and some deaths. The environment was also negatively impacted, as now this area is no longer as livable as it used to be. The farmer who sold the land was also positively and negatively impacted, positive because of the money gained, but harmful because of these oil companies' environmental and societal consequences.
    Some knowledge that should have been addressed prior to this is that there are ways to drill around these salt domes underground to not contaminate the area. Even though those ways may have been less efficient and cost these companies more time and money, more attention should have been paid to the negative impact that this production had.
    More geologists and environmentalists should've been a part of the exploration part of these wells being drilled.
    I believe there was a better way to go about discovering these reservoirs. While new and successful exploration as big as this one is rare, it is sometimes not as necessary. Most likely, a healthy amount of oil could've been extracted with other techniques while keeping the environment and living conditions still adequate. While environmental and societal impacts are inevitable regarding Oil and Gas, they can also be plausible. I believe there is always a healthy give and take. because of the demand for oil and gas, it is necessary, but at the same time, there needs to be an ethical balance between what is needed and what is suitable for our environment.
  • rwbyrne April 4, 2024 at 11:05pm
    The stakeholders involved in the oil drilling in Trombay, Maharashtra, India, experienced both positive and negative impacts stemming from the exploration and extraction activities. Amit Mathur started the drilling process by paying a farmer 10,000 INR for permission to drill on his farm in Trombay. His venture proved successful as large oil reserves were discovered in the area, leading to significant profits for both Mathur and later big oil companies that bought surrounding land. Trombay quickly appeared as a major petroleum-producing region of India, extracting large quantities of oil and natural gas, boosting economic development in Maharashtra. However, these gains came at a cost, particularly for local farmers and residents of Trombay. The pollution resulting from oil drilling operations had negative effects on the environment and human health. Farmers faced the contamination of agricultural lands and water sources, jeopardizing their livelihoods and crop yields. Residents of Trombay suffered from serious water pollution issues due to toxic waste dumping from oil refineries and drilling sites. The contaminated water led to health problems such as cardio-pulmonary arrest and liver cancer, causing significant loss of life, and diminishing the quality of life for many in the community. Environmentalists also played a role as stakeholders, advocating for pollution mitigation measures and raising awareness about the environmental and health impacts of oil drilling activities. In addressing the complex global problems facing the world today, a diverse set of knowledge and skills is needed. This includes scientific understanding of environmental processes, engineering ability in sustainable resource management, policy and governance acumen to enact regulations and enforcement mechanisms, economic analysis to assess the costs and benefits of interventions, and stakeholder engagement skills to foster collaboration and consensus-building among diverse stakeholders. Interdisciplinary perspectives such as ecological economics, environmental justice, systems thinking, public health, and community participation can provide innovative solutions to environmental challenges like those faced in Trombay. Cultural insights also play a crucial role in promoting civic engagement, fostering collective responsibility for environmental stewardship, respecting Indigenous knowledge, encouraging environmental ethics, and supporting cultural diversity in environmental decision-making processes. Ultimately, addressing environmental pollution in Trombay and similar contexts requires prioritizing environmental health, adopting sustainable practices, ensuring social justice, promoting corporate accountability, and empowering community engagement to achieve lasting positive change.
  • dshresth April 4, 2024 at 10:32pm
    The situation in Trombay,Maharastra which involves an oil drilling has a complex interaction of interests and impacts among different stakeholders. On one hand discovery of oil brings economic benefits to oil companies and improves the economy while on the other hand it also poses significant environmental and health risks on the population.

    The key stakeholders include the local farmers, residents of Trombay,oil companies and governmental bodies at every level of the state. Local farmers face the dual challenge of potential economic gains from selling the land and obtaining employment oppprtunities whereas they also face the adverse affects of infected water and health hazards. Financial profit is what oil companies stand for, but they also risk damaging their reputation and facing legal obligations due to environmental violations.
    Government authorities play an important role in balancing economic development with environmental protection and public health.Doing this needs a multidisciplinary approach consisting environmental science , engineering , public health, economics, and policy making. Effective solutions must include environmental imapct mitigation,health monitoring and regulatory policies to ensure responsible drilling practices.
    From an individual point of view, prioritizing substainable development that respects well-being of both the community and nature is paramount.Interdisciplinary collabration is necessary to address the wide varities of challenges posed by oil drilling, technological innovations, public health considerations and social prospectives.

    In terms of stakeholders the land owners, oil companies and local populations are in the center of discussion. While on one hand, the land owner got initially benifitted from selling the drilling rights, on the other hand he/she faces the long term impacts on water quality and community health .

    Recognizing these challenges require unconventional problem solving approaches namely desalination to mitigate the water contamination while generationg additional value form salt extraction. Using political momentum particularly through climate change advocacy we can elevate the issue to the forefront of policy agendas driving systemic change.

    In conclusion, addressing the complexities of oil drilling in Trombay demands a holistic strategy that encompasses diverse experties, promotes sustainability, favours the locals, empowers the stakeholders to partici[ate in decision making processes.Q
    • rwbyrne > dshresth April 4, 2024 at 11:11pm
      Your post dives deep into the complex world of oil drilling in Trombay, Maharashtra. You were able to find the main players involved, shedding light on their interests and challenges. Stressing the need for a team effort in finding practical solutions, you highlight the importance of sustainable development and out-of-the-box problem-solving. Your forward-thinking approach adds a refreshing perspective to the discussion, offering valuable insights into the various issues tied to oil drilling in Trombay. You rightly point out the crucial balance between making money and preserving the environment, stressing the need for everyone to work together on this. Ultimately, your analysis emphasizes the importance of securing the community's long-term well-being by taking proactive steps to protect the environment while promoting economic growth in the area.
  • cheyana April 4, 2024 at 10:09pm
    I believe the Stakeholders in this scenario are Mr. Amit Mathur, Local Farmers, The residents of Trombay and possibly even big oil companies. Mr. Amit benefited both positively and negatively. Positively because he gained financial wealth through the large oil reserves and selling the land. Negatively because he could be blamed for drilling activities in the area that are causing negative effects. Big Oil companies: Benefitted positively because of the acquired valuable land and resources, negatively because they may face scrutiny because of environmental effects being caused. Local Farmers: Benefited positively because of the payments they received and negatively because of the pollution that could affect them.

    For knowledge and skills, addressing global problems needs people who know a lot about different areas, can think critically, work well with others, lead effectively, use technology, and do things ethically and sustainably. It is important to understand how things are connected, work together with diverse groups, and focus on making the world better for everyone.

    For Interdisciplinary perspectives combining diverse ways of thinking about the environment, people's health, and money can help produce smart ideas for fixing the problems caused by oil drilling in Trombay. Using innovative technology, being fair to everyone, and making stronger rules can help make sure that the environment stays healthy while still allowing for economic growth. Everyone working together and thinking creatively is key to finding good solutions that protect nature and keep people safe.

    Based on the culture that I am most familiar with the insight that I have on this case leads me to believe that the environment trumps economic improvements. Seeing as I come from an environment where we are extremely connected to nature and harvest most of our resources from nature. We should strive for innovations that are safe for our environment. I believe that when it comes to the right things to do we should develop a very strict system in which we would not be harming the environment but will produce an innovative way to develop the economy.
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