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%.

--------------------

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?

After you submit your comment, please view and evaluate the feedback to your response that is automatically provided on the screen.

Also, please take a moment to submit a comment on someone else's comment.

E-mail me when people leave their comments –

You need to be a member of The Ethical Engineer to add comments!

Comments

  • 1.The world today needs more people to be attentive towards the environment. Oil plants such as these are very much encouraged in a country like ours where oil prices are hiking everyday and it will be a boost to the society overall. There is a overall growth opportunity of not only the concerned company but as well as the area surrounding this area. But these oil companies and the government should realize that all of us including them have a role to play in order to reduce the global problems in the world at the moment.The rise in the pollution levels in Trombay is not the ideal situation as we see not only harm to the environment but also to the people of the surrounding area as well. The government should keep a check on these factories and companies whether they are following the guidelines mentioned in the The Air (Prevention and Control of Pollution) Act- 1981 and The Water (Prevention and Control of Pollution) Act- 1974. There should be a periodic investigation and when such an area is seen to be near a residential area there should be extra efforts taken in order keep the safety and well being factors of the residents near by. If we are unable to control the air,water and soil pollution slowly the world will not be suitable for us to survive on. Proper disposal of waste and awareness is very important for a sustainable future.
    2. We see that the oil company in Trombay had a trickle down effect on the area. But it also has a negative impact as well which needs to be looked into. Thus as these factories are set up a certain amount of people can be employed both by the government as the factory. These people would be responsible for proper disposal of waste and sanitation. Oil in today's market has a huge demand and thus profits will not be a problem for such companies. So use of advanced technologies for the proper filtration and disposal of the wastes is very much a solution to the problems. Methods such as incineration , landfill , thermal treatment are very popular and effective nowadays.
    3.We live in a country where it is fairly easy to get away with all such things as there is high level of corruption and illiteracy in the society. Even if these powerful companies are caught they are able to escape due to their connections and economic superiority. The people are unaware and thus do not care to understand the ill effects of such harm to the environment. Firstly in order to succeed in our attempts we have make people aware of saving the environment and how it has negative effects to their health now and in the future. The government should find people who are willing to work sincerely and bring these company frauds in front of the people and not just let them get away in exchange for some money. They should think of the after effects of their decisions.
    4.The right things to do in this case is that the Oil company should be forced to take responsibility of the health problems of the residents in the area. There should be check on such further factories created in any part of the country. The government should be more aggressive in handling these matters and all such factories should only be allowed to function as when they put in the right infrastructure for the proper and safe way of disposal of waste from these factories. I am with the fact that such factories are very much needed for the growth of the are and nation but only when they keep us and mother nature safe.
  • With global trade and economic growth at risk, there is a more urgent need than ever to renew the architecture of international cooperation. Sustainable development is the most important aspect now.

    We simply do not have the gunpowder to deal with the kind of slowdown that current dynamics might lead us towards. What we need now is coordinated, concerted action to sustain growth and to tackle the great threats facing our world today.

    In this case study it shows that, how from removing of the black ooze that would damage the crops led to the rise of the pollution levels of Trombay extensively that resulted in unacceptable levels of salt, heavy metals and chemicals in drinking water, which 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. Some deaths was caused due to cancer. As the oil companies opened up in that area, it led to more and more pollution because of the drilling that was done which led to various problems starting from disturbing the composer of the soil to mixture of various chemicals like carbolic acid, caustic soda, ammonia bisulphate, zinc chromate, formaldehyde, asbestos, asphalt and phenols. These lead to different kind of pollution, hazards and deaths.

    The complexity of the global issues is far too big for any party to tackle alone. These large-scale problems require new kinds of partnership, cross-border collaboration and open innovation among the public and private sectors, NGOs, academia and other stakeholders. It is absolutely necessary if we want to scale up solutions with real impact. In fact, it’s easier than ever to share ideas and work together with people around the world.

    Having a sustainable development, conservation of natural resources, having a prerequisite knowledge about different things are very important to solve the different globally arising problems.
  • On the night of December 2, 1984, chemical, methyl isocyanate (MIC) spilt out from Union Carbide India Ltd’s (UCIL’s) pesticide factory turned the city of Bhopal into a colossal gas chamber. It was India's first major industrial disaster. At least 30 tonnes of methyl isocyanate gas killed more than 15,000 people and affected over 600,000 workers. Bhopal gas tragedy is known as world's worst industrial disaster.
    Impact of methyl isocyanate leak
    Doctors were not aware of proper treatment methods the incident. Methyl isocyanate gas leak killed more than 15,000 people and affected over 600,000 workers. The stillbirth rate and the neonatal mortality rate increased by up to 300% and 200% respectively.  The gas leak impact trees and animals too. Within a couple of days, trees in the nearby area became barren. Bloated animal carcasses had to be disposed of. People ran on the streets, vomiting and dying. The city ran out of cremation grounds.
    Govt's response to Bhopal tragedy
    Until then, the Indian government had never dealt with a disaster like this. Legal proceedings between India, UCC and the US began right after the catastrophe. The government passed the Bhopal Gas Leak Act in March 1985, which allowed it to act as the legal representative for victims. While the UCC initially offered a $5 million relief fund to India, the government turned down the offer and demanded $3.3 billion. Eventually, an out-of-court settlement was reached in February 1989, Union Carbide agreed to pay $470 million for damages caused. The Supreme Court of India also laid down guidelines for the money—the family of the dead were to be given Rs 100,000-300,000. In June 2010, seven former employees of UCIL, who were all Indian nationals, were convicted of causing death by negligence and sentenced to two years of imprisonment. However, they were later released on bail.
    Lessons Learned
    The events in Bhopal revealed that expanding industrialization in developing countries without concurrent evolution in safety regulations could have catastrophic consequences. The disaster demonstrated that seemingly local problems of industrial hazards and toxic contamination are often tied to global market dynamic. Local governments clearly cannot allow industrial facilities to be situated within urban areas, regardless of the evolution of land use over time. Industry and government need to bring proper financial support to local communities so they can provide medical and other necessary services to reduce morbidity, mortality and material loss in the case of industrial accidents.Public health infrastructure was very weak in Bhopal in 1984. Tap water was available for only a few hours a day and was of very poor quality. With no functioning sewage system, untreated human waste was dumped into two nearby lakes, one a source of drinking water. The city had four major hospitals but there was a shortage of physicians and hospital beds. There was also no mass casualty emergency response system in place in the city .Existing public health infrastructure needs to be taken into account when hazardous industries choose sites for manufacturing plants. Future management of industrial development requires that appropriate resources be devoted to advance planning before any disaster occurs. Communities that do not possess infrastructure and technical expertise to respond adequately to such industrial accidents should not be chosen as sites for hazardous industry.
  • Crude oil , is one natural resource we humans can't get over of , because it a conglomerate of different fuels to us like diesel , petrol , kerosene etc . The greed of the governments and oil companies is the sole reason behind this unethical oil drilling . The development of economy of a nation is of a vital importance but it should not be based on the irreversible destruction to the ecosystem . India is already known for the pollution and depletion of it's freshwater resources and such ignorance to environmental concerns plays a significant role in completely damaging the ecosystem of a place. These negligence results in bio-magnification of such heavy metals and barrens the land because of the disposal of salt . In order for sustainable development it is very important to invest in Research & Development because there are many alternate natural resources which have not been utilized to their full potential . Research and experiments have already taken place in the development of artificial crude oil and they have been successful . As, these ideas are the key towards sustainable economic and environmental development .
  • Just like every coin has two sides, it is often these days that the economic growth of any region comes with a price, which is apparently the environment. We as human wants to squeeze every drop of the resource without even thinking twice about the possible long term outcome. However it would not be a wise decision to value one more than other. In-fact both should go side by side. This is all about sustainable development. In these time no region could grow economically without industrial development. However we would also need to protect our environment because this is the only planet we have. The people of Trombay were really enjoy the privilage of having a great natural resource which had the potential to change there lives. But due to mismanagement they ruined their environment. 50 out of 54 wells that were found to be containing heavy metal deposits is the clear sign of the severity of the contamination of the area. People are paying for the negligence by acquiring serious health issues like cardiac pulmonary arrest and liver cancer. The death by cancer in the area is also in top 5% which is alarming. According to me, development should not be at the cost of health and environment. not doing industrial development just in order to save environment is also not a wise option. Thus we should focus more on sustainable development. Putting one ahead of another will be foolishness. All stakeholders including local government, residents as well as the oil companies should take responsibility to save the environment at the same time continuing the economic growth.
  • The stakeholders in this case are the oil companies, the original landowner and the government. Here, the landowner and the government has been impacted negatively while the oil company has been impacted positively. More than knowledge and skills, it is law, or rather implementation of law that is important to create a balance of distribution of benefits to all the stakeholders. Here, the government is somewhat impacted negatively since its subjects are suffering and it wields its power from its subject, it is duty bound to ensure that they can live with dignity. And since it is the government which also has the power, it it is supposed to enact and enforce laws which place limitations on the oil companies as to how they can buy a land more valuable than it is, how they can use it for large scale industrial process and hold companies responsible for the side effects their activities create on the rest of the people of the city.
    In my opinion, an interdisciplinary understanding of law, finance, ethic, environment is required to deal with such issues. While it is difficult to come up with non-obvious solutions, an interdisciplinary approach gives the problem solver a broader view of the subject from different sides to see the bigger picture and come up with a solution which covers every aspect of the issue and takes into account every stakeholder.
    In my opinion, the right thing to do is a subjective answer. However, most people should agree that the right balance has to be struck between economic growth, environmental protection and financial compensation. Sustainability is the key word. The solution has to be such that it is environmentally and financially sustainable.
  • The stake holders of this case study are the big oil refineries and power plants. Since big oil companies flooded the most desired land for oil in India, the benefited from the pop ups of these refineries and power plants. They gained high profits and it also helped the industrial development of the surrounding areas of Maharashtra and the state. Although their positive effect is a very great gain for their economy, there was many more negative effects from these refineries. For example, the destruction of environments due to accidents in the refineries and power plants has raised pollution levels of Trombay extensively. The refineries dumped toxic and heavy metals into the water of the surrounding areas, and in old wells near the towns of Trombay.
    I believe that you must be aware of the issues that our world is faced with today. Being educated on the events that go on allows for people to make appropriate solutions. Engineers should call out a problem when they see one and redirect the project into the right direction. They should ensure that the project has the necessary resources to complete it, such as proper funding of the project to ensure the highest quality of all the work.
    Some interdisciplinary perspectives that I believe would help weigh out your options would be to make a list of pros and cons to prevent any flaws that could occur while the project is in motion. It is good to consider all the effects that could happen, good or bad, and find ways to improve or prevent destruction. Consider hiring very profound ethical engineers that are dedicated to their job and would highlight the flaws in the project and take into consideration the environmental damage along with any damage that may occur to human atmospheres.
    From my insights, I would believe that people should consider the long-term effects and how their flaws could detrimentally impact something bigger than the picture they are portraying. In this specific case, I believe that Maharashtra was blinded by the profits that they received from the petroleum mining, that they overlooked that lasting effects that took place on the surrounding areas. Because of their inconsideration many people in trombay died and in fact, “In a nationwide survey conducted on death caused by cancer, the center for oil and gas production in the state ranked in the top 5%.” Therefore, I believe that the initial process and planning of bringing these companies to profitable lands is the most important part and should be carefully analyzed.
    I believe that once they found the flaw in the mining process, they should have shut the whole project down. There had to be different ways of preventing these spills and polluted leaks, that shutting it down and reevaluating could have had a positive effect for Trombay.
  • Economic growth and environmental protection are not at odds. They're opposite sides of the same coin if you're looking at longer-term prosperity. ~Henry Paulson

    Rapid industrialisation and urbanisation are inevitable to bring in some economic growth in a country but not by keeping environmental issues at stake. Sustainability of the environmental resources for the future generations are to be kept in mind. Noticeably, environmental quality is being compromised for the goals of mass employment generation and poverty reduction.
    The above case story depicts a similar kind of a dilemma so as to choose between the environmental aspects or to choose the economic growth blissfully ignoring the environmental consequences. However, the man-made changes and natural exploitation for economic growth are the major contributors to climate change and its effects. This is due to the underlying thought that development policies promote economic well being, while environmental policies have been seen to be restricting it. In this context of oil reserves in Trombay, Maharashtra neglecting of environmental principles is a key reason why natural hazards end up causing a significant number of avoidable casualties.

    Development remains the greatest pursuit as well as a challenge, faced by humanity. However, despite the unprecedented economic and social progress that has been made over the last century, poverty, famine and environmental degradation still persist on a global scale. In this scenario Environmental Kuznets Curve (EKC) hypothesis can be applicable wherein which helps the richer countries to improve the environmental quality after degradation of it. The economic development of any particular region should be the prime concern for it’s overall holistic development, as the region of Trombay is now richer it can now take up measures to clean up the environmental mess it has caused. But the damage should have been controlled at a basic level or else these irreversible changes can lead to changes in the earth’s life-supporting systems, which we can eventually see. Research shows that meaningful public participation in decision-making in a variety of environmental and natural resources management contexts will, in the long run, build greater trust among various stakeholders and reduce conflict. We need to strengthen participatory processes such as public hearings in the environmental and ground water clearance process which is heavily contaminated. Ecological economists are arguing increasingly that countries should consider developing and reporting measures of human well-being other than gross domestic product (GDP) that better account for environmental and social costs of resource use. The idea of sustainable development cannot be mere rhetoric; it must be accompanied by transparent, participatory mechanisms that allow for meaningful discussion of the development paths that make growth truly sustainable.

    Moreover, environmental deterioration and climate change have started to show irrevocable damages to the developmental progress made so far. Thus, development goals must be pursued without breaching environment regulations. The transition to economic growth coupled with efficiency in natural resource use and its conservation can help India attain its goals of inclusive growth with sustainable development.
  • 1. The Stakeholders, in this case, are big oil companies who invested in the large oil reserves in the area discovered by Mr. Amir Mathur. These companies gained quite a rich land in Trombay and made the best of it, occasioning a successful profit. The state of Maharashtra also benefited from this success, it developed itself economically, and the district of Trombay underwent great gentrification. It also created jobs for the people, reducing unemployment in the small district of Tromba. However, the constant exploitation and the abuse of the city reserves caused a dangerous rise in pollution levels not only in the district but also in the surrounding towns. Due to this abnormal level of pollution, the companies will suffer expenses to reduce pollution. Moreover, their negligence costs several deaths of people from cardiopulmonary arrest and liver cancer. They will compensate for that, which will result in a huge loss of funds, and also negatively impact the companies reputation.
    2. Professional prospectors, environmentalists, geologists, and civic servants are crucial in an effective and durable solution against industries related problems. Companies must consider efficient planning involving environmental risks. Civilians should as well be involved actively in any setting up of industries in their towns or districts.
    3. The concern for the environmental consequences must be a priority for a stakeholder regarding the creation of an industry. Thorough investigations and prospects must be done in the area before any exploitation. Areas designed for the riddance of toxic materials such as oil mud, heavy metals, should be built, prepared, and monitored carefully before the launch of the industry. Furthermore, a strict budget must be established regarding various environmental damages caused by stakeholders.
    4. The main reason why these issues happened is often due to an unethical arrangement between the executives of the companies and the local authorities. In fact, corruption can be what drives stakeholders to take such high risks to make a profit. In some cultures that promote collectivism, people help each other frequently and often end up bribing to get what they need. It then becomes a common thing to do and authorities cannot efficiently fight against it.
    5. The right thing to in these situations is most of the time hard to decide. Economic development is essential to assure the safety and the emancipation of the people in a country thus means to achieve this goal are welcome. Nonetheless, it does not mean the abuse of natural resources and the endangerment of the environment. I think that the stakeholders should prioritize the conservation of the environment, public safety, and be actively supervised by local authorities. Petitions and manifestations are also a way for people to get involved.
  • As the title says, "which is more important - environmental concern or economic growth", it can be claimed that both are equally important, for the proper survival of living beings. Economic growth is required in order for us to prosper more, and environmental concern is needed because if there is no existence of the planet itself, then there would be no trace of lives as well, resulting to zero economic growth.
    There should always be a proper balance between these two aspects. As we get to see in the case study, that the step taken by Mr. Amit Mathur becomes one of the major reason for the industrial revolution of Trombay. It reaches to extreme success, making it one of the major petroleum producing region in India. Hence definitely other industries too would prefer to build up their branches in that region, which would therefore help in the economic growth of Trombay. And economic growth naturally means rise in the developmental status as well as rise in power. But the industries are so much indulged in the economic development of the region that they tend to dismiss the other major aspect, that is the environmental aspect. As the case study says, that with passing time the pollution level of Trombay has increased to such heights that health issues are naturally creeping up, resulting to deaths. Hence, it should be kept in mind that in order to bring economic prosperity, destroying the environment is not the only way. By blasting mountains in order to build hotels, destroying ponds and lakes to build residencies, destroying forests to build cities, we are so keen in achieving prosperity, that we forget the fact that these deeds of ours is the main cause behind global warming. Unintentionally we are destroying the planet, by violating the environment.
    •In order to maintain a proper balance between these two major aspects, the industries can hire environmentalists, who can help to understand how the industries should work so that the nature remains unharmed, and the economic development is maintained too.
    •More of natural gases and chemicals should be used rather than the toxic ones.
    •More attention should be paid to the environment. It is definitely acceptable for human beings to wish for economic growth. But destroying the environmental aspects in order to fulfill the human desires should not be prioritised.
    As it says, "when there is will, there is way". Hence if we want, we can surely come across ways to maintain a steady balance between economic growth and environmental stability, where we don't have to put one aspect at stake in order for the other aspect to develop.
This reply was deleted.