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MULTI DIMENSION IMPACT ACCOUNTING File: MDIA-p3-02-The-PEOPLE-Dimension-150420.odp Peter Burgess (c) All rights reserved MDIA PROCESS Oil and Gas

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Page 1: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

File: MDIA-p3-02-The-PEOPLE-Dimension-150420.odp Peter Burgess (c) All rights reserved

MDIAPROCESS

Oil and Gas

Page 2: Mdia p3-02-process-oil-and-gas-150420

A PEOPLE CENTRIC PURPOSE

The real PURPOSE of all economic activity is to enable an improved Qualityof Life and Standard of Living➔ More MONEY and more STUFF has been the proxy for a better quality of life and standard of living.

➔ This has been one of the drivers of the Western style consumer economy.

MULTI DIMENSION IMPACT ACCOUNTING

File: MDIA-Framework-002-150406.odp Peter Burgess (c) All rights reserved

Page 3: Mdia p3-02-process-oil-and-gas-150420

BUSINESS PURPOSE

Most often BUSINESS PURPOSE is seen as maximizing business profit for the benefit of the owners. ➔ There are advantages to this perspective.

➔ Efficiency is encouraged as well as innovation. ➔ More production is enabled and shortages avoided.

➔ There are also disadvantages. ➔ Efficiency means more production for less labor. ➔ Less labor is a negative for employees and society as a

whole. ➔ More profit may be derived by ignoring workplace safety

and environmental issues

MULTI DIMENSION IMPACT ACCOUNTING

Page 4: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

DEEPWATER OIL RIG

Page 5: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

DEEPWATER OIL RIG

Page 6: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

OILFIELD SERVICES

Page 7: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

OIL EXPLORATION

Page 8: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

OIL DRILLING RIGS

Page 9: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

VERY LARGE OIL TANKERS

Page 10: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

TANK FARM

Page 11: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

OIL PIPELINES

Page 12: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

OIL REFINING

Page 13: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

OIL TERMINALS

Page 14: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

OIL TERMINALS

Page 15: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

OIL TERMINALS

Page 16: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

OIL TRAIN

Page 17: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

SunSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PROCESS

TANKER CAR

Page 18: Mdia p3-02-process-oil-and-gas-150420

PEOPLE CENTRIC EFFICIENCY

(1) There is a good Quality of Life and high Standard of Living;

and

(2) There is a minimum of degradation of the natural Capital

MULTI DIMENSION IMPACT ACCOUNTING

Page 19: Mdia p3-02-process-oil-and-gas-150420

There are:

➔ People at the Bottom of the Pyramid;

➔ An increasingly large and affluent middle class of business people, professionals and employees; and

➔ A very small but rich and powerful elite with substantial ownership interests.

MULTI DIMENSION IMPACT ACCOUNTING

File: MDIA-Framework-002-150406.odp Peter Burgess (c) All rights reserved

Page 20: Mdia p3-02-process-oil-and-gas-150420

There are:

➔ People who do jobs to earn income;

➔ People who earn their income from investments; and

➔ People who cannot work and do not have income.

MULTI DIMENSION IMPACT ACCOUNTING

File: MDIA-Framework-002-150406.odp Peter Burgess (c) All rights reserved

Page 21: Mdia p3-02-process-oil-and-gas-150420

In the end, everything is about PEOPLE➔ PEOPLE make decisions about Capital

➔ PEOPLE make Government Policy

➔ PEOPLE run things

➔ PEOPLE buy products and use them

➔ PEOPLE are at of center of family and society

➔ PEOPLE are discovering knowledge

MULTI DIMENSION IMPACT ACCOUNTING

File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved

Page 22: Mdia p3-02-process-oil-and-gas-150420

In the end, everything is about PEOPLE➔ PEOPLE make decisions about Capital➔ What matters, where to invest➔ PEOPLE make Government Policy➔ Legislation➔ Rules and regulations➔ Government priorities➔ PEOPLE run things➔ They are C level managers➔ They are middle managers➔ They are workers and junior staff➔ PEOPLE buy products and use them➔ Products (goods and services) are the source of much Quality of Life➔ PEOPLE are at of center of family and society➔ PEOPLE are discovering knowledge

MULTI DIMENSION IMPACT ACCOUNTING

File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved

Page 23: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

ACTIVITIES OF AN INDIVIDUAL

Input ofHumanCapital:

Time, Effort,Skill, Ability, Knowledge

ImprovesSociety

ImprovesMBSS

Pro GoodActivities

Buy and UsePRODUCTS

e.g. Food, EnergyShelter, Transport

Pro MoneyActivities

e.g. Paid Work

Non-ImpactRecreation

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

ImprovesQoL andHumanCapital

WASTELiquidGasesSolids

NaturalCapital

Depleted

MaybeimprovesFC in HC

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

INPUTS ACTIVITIES BADImpact

State-EOPState-BOP

GOODImpact

Use ofMBSS

Use ofNaturalCapital

Use of Solar

Page 24: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

Job-Money Work

Housing

Time

Skills

Income

Recreation

Education

ProGood Work

Energy

PLUS opportunities

Improvessociety

FoodClothes

ResourceDepletion

EnvironmentalDegradation

BOP EOPThe Individual

Sun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PERSONALASSETS

Energy

Health

Enjoyment

Skills

Experience

Family

Shelter

Friends

Money

Stuff

QUALITYOF LIFE

Sun

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

PERSONALASSETS

Energy

Health

Enjoyment

Skills

Experience

Family

Shelter

Friends

Money

Stuff

QUALITYOF LIFE

PRODUCTSuse MBSS

PRODUCTSImpact NC

PRODUCTSUse

MBSS

PRODUCTSimprove QOL

Health

Energy

Page 25: Mdia p3-02-process-oil-and-gas-150420

People … Human Capital … STATE➔ Quality of life is a function of:➔ The Individual➔ What has happened in the past➔ What are the possibilities for the future➔ What is happening right now➔ Quality of life is a function of many things:➔ Genetics➔ Personality traits➔ The family environment➔ The broader circle of friends and community➔ Knowledge from education➔ Knowledge from experience➔ Personal wellness➔ Access to food and water➔ Access to shelter➔ Access to goods and services➔ Security➔ Financial wealth➔ Job opportunities and income

MULTI DIMENSION IMPACT ACCOUNTING

Page 26: Mdia p3-02-process-oil-and-gas-150420

People … Human Capital … FLOW➔ Basic needs are: ➔ Food➔ Water➔ Shelter➔ Basic stuff➔ A better quality of life requires:➔ Access to health services➔ Access to education➔ Funds to pay for things➔ Wealth or income from a job to provide funds ➔ Security➔ Access to spiritual support➔ A strong family➔ A circle of friends➔ A community that enhances QoL➔ The critical constraints are:➔ Time … only n hours per year➔ Health / energy / capacity of the individual

MULTI DIMENSION IMPACT ACCOUNTING

Page 27: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

Sun

ISSUES IN FOODSUPPLY CHAIN

Use of Pesticides

Use of Land

The IMPACT of FOOD

Use of Water

Use of Fertilizers

Air Pollution

Use of Growth Hormonesand Antibiotics

Use of Energy

Use of Equipment

Laborworkplace conditions

Use Energyfor cooking

Get nutrition for another day

Sun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

Buy Food

Food storage

Prepare FoodEat Food

Page 28: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

Sun

The IMPACT of WATER

Use Water

Survive for another day

Sun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

Get Water

WATER isincredibly

VALUABLE

Page 29: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

Sun

LAND USE

Sustainable agricultureWater purification

About LAND USE

Wetlands

Intensive monoculture

Coastal mangrove

Urban infrastructure

Roads, Parking Lots

There is a limited amount of landThere are multiple possible uses

Money Profit

Land is a factorin improving

human capital, producing goods

and services, locating MBSS,and providingvery criticalecosystemservices

Suburban sprawl

Housing

Tropical forestHabitat

Industrial operations

Sun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

Page 30: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

Sun

WATER USE

Food productionuses water

Beverage productionuses water

About WATER USE

Water is essential to LIFENothing is more important

Household wateruse essential

Industrial processesuse water

Rainfall and freshwater are abundant

in some placesbut not everywhere

Household wastealso pollutes

Waste water pollutionfrom processesa critical issue

Important forall processes to

treat water beforedischarge

Water is abundant,but most has toomuch dissolved

salts to be potable

Sun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun

Page 31: Mdia p3-02-process-oil-and-gas-150420

MULTI DIMENSION IMPACT ACCOUNTING

Sun

EMISSIONS

SO2 … acid rain

CO2-Greenhouse Gas

About ATMOSPHERIC POLLUTION

Air pollution has many forms, all of which are more or less detrimental to people and planet

Particulates

MH4-Methane-GHG

Some emissionshave a direct

impact on health

Nitrous oxides

Freon-ozone layerdamage

Some emissionsare greenhouse

gases that causeglobal warming

The atmosphere is not an infinite free

dump for undesirableand toxic emissions

All emissionshave a costSun

BOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun SunSun

EOP

FinancialCapital

HumanCapital

Man BuiltStructures& Systems

NaturalCapital

Sun