Safety Management in Saudi Aramco Oil Company - Case Study Example

Safety Management in Saudi Aramco Oil Company Name Institution Instructor Date Safety Management in Saudi Aramco Oil Company Background of the Company Saudi Aramco Oil Company is a corporate entity that coordinates its global operations from its headquarters in Saudi Arabia. The company is known for its indulgence in manufacture and distribution of oil and other related products. Through its local and international engagements, the organization has managed to support the overall provision of energy solution, especially in a modernized global economy that is increasingly dependent on oil and oil products (Marcel, 2007). Its most important products include petroleum and liquefied petroleum gas (LPG). According to the Financial Times, the company is estimated to be worth in excess of USD 10 Trillion. This figure is impressive bearing in mind that the oil sector is highly volatile, competitive, and unpredictable. This reality contributes to the current view that Saudi Aramco Oil Company is the most valuable corporate entity in modern world. it is important to note that the current success and dominance in the market has emanated from the company’s ability and capacity to overcome numerous challenges that are evident in contemporary commercial setting (Marcel, 2007). It also arises from proper and strategic planning in critical areas that anchor its operations in the global economic landscape. The company is also known for its large reserves that contain petroleum and natural gas. Through its contingency planning, the company has effectively forestalled future challenges in terms of demand and availability of oil and other petroleum products. Saudi Aramco Oil Company is the leading entity in terms of daily activities that revolve around production and distribution of oil and petroleum products (Marcel, 2007). The origin of Saudi Aramco Oil Company is usually attributed to events that arose from deficiency of oil in world market during the First World War. The emergence of this organizational entity was also favoured by policies such as those that supported the alienation of American oil entities from the Mesopotamia region. The aforementioned policy declarations were embodied in the San Remo Petroleum Agreement, which was operationalized in 1920 (Marcel, 2007). However, it is important to note that the full operation of Saudi Aramco in Saudi Arabia was achieved after decades of political engagement between the United States and countries in the Gulf Region. The establishment of the company was an embodiment of international and regional interests that ranged from political to socio-economic interests. As earlier mentioned, the company’s interests include exploration, production, and refining of the end products. After completing the above areas of interest, the company is also involved in marketing and distribution of its products in the global market. Its operations suffice under strict surveillance and monitoring by the ministry of petroleum and mineral resources in consultation with the supreme council for petroleum and minerals (Marcel, 2007). The company has employed experts in diverse areas where it propagates its engagement. Its workforce plays an important role in actualizing the overall ideals and aspirations that characterize its presence in the market. Therefore, it is crucial that all employees work under safe industrial conditions in order to guarantee health and wellness. This reality necessitates an elaborate planning mechanism that anchors safety management with regard to Saudi Aramco Oil Company. Safety management should cover individual concerns and the wider environmental considerations within the company’s sphere of operation. This research undertaking seeks to analyse the overall area of safety management in Saudi Aramco Oil Company. It shall contextualize the inherent components of this function and look at ways of improving current and future realities within this area (Marcel, 2007). Safety in Saudi Aramco Oil Company As earlier mentioned, safety in the workplace is an important consideration because it contributes to productivity. Safety also guarantees the wellbeing of employees because it ensures retention of appropriate standards in terms of environment and apparatus used in executing various functions at the workplace. Therefore, there is need for a dynamic safety management regime that incorporates all aspects of the workplace (Nolan, 2010). The safety management system should gear towards creation and enactment of institutional frameworks that not only lay the basis for safety but also guarantee action towards its realization. Saudi Aramco Oil Company is very conscious of its role and mandate in regard to guaranteeing safety, security, and environmental sustainability. In fact, safety management is an integral function in its management because it has been identified as a potential trigger for success and productivity in modern corporate landscape (Nolan, 2010). In order to guarantee safety in the workplace, the company complies with local and international standards and legal provisions that seek to support retention of safety and environmental sustainability within the workplace. Compliance is enacted through adherence to best practices that have been identified and recommended by experts and regulators in the market. The company also takes part in the implementation of recommended safety management systems that are critical in enabling safety in the workplace (Nolan, 2010). The company also trains its staff on the essence and rationale for safety in the workplace. Through regular sensitization seminars, the corporation ensures that all its employees understand the recurrent need for safety and environmental sustainability. Such programmes tackle the core implications of safety on productivity and general health among employees. The company has also invested in modern technology that plays a pivotal role in propagation of safety (Nolan, 2010). All operations within the company are guided by the inherent desire for safety and health among employees. Safety management policies also institute diverse considerations in the area of environmental safety and sustainability. The company prepares for emergencies at the workplace by purchasing the necessary equipment and training employees on how to use them in the event of an emergency. Such training is meant to bolster preparedness and response to emergency situations. Saudi Aramco Oil Company also ensures that all its business partners are compliant with safety management standards that govern operations in the industry. This is achieved through rigorous vetting that is applicable before enactment of a partnership deal. This enables the company to retain its reputation as a leader in safety management in the oil industry (Nolan, 2010). Due to the nature of operations in the oil industry, safety management is very pertinent in regard to entities that operate its auspices. Through constant communication, the company ensures that its employees are appraised on the emerging issues that relate to their safety in the workplace. The most important aspect of safety management is the realization of the relevance of individual responsibility to safety in the workplace. Individuals should take serious safety measures because it affects them directly. In the absence of such deliberations, it is difficult for organizations to guarantee retention of safe working conditions in their premises. On the other hand, corporate entities should update on emerging challenges, issues, and opportunities in relation to safety management (Nolan, 2010). It is evident that safety management is very crucial in propagation of organizational functions within corporations. Devoid of safety management, employees are placed in dangerous circumstances that ultimately undermine their health and wellness (Jacoby, 2012). This was evident during a previous incident when a fire broke out in the refinery section of Saudi Aramco Oil Company. This emergency situation presented numerous challenges for the company but it gave them an opportunity to update their preparedness and ameliorate their safety management procedures (Jacoby, 2012). Proper safety management in the workplace also leads to employee satisfaction and willingness to undertake duties without supervision. They are always willing to pursue activities that ultimately contribute to the success of the organization. On the other hand, employees who operate in unsafe workplace conditions have difficulty finding the requisite satisfaction in performing duties and responsibilities at the workplace. Therefore, all corporations should foster adequate measures that guarantee proper safety management in the workplace (Jacoby, 2012). References Jacoby, D. (2012). Optimal Supply Chain Management in Oil, Gas and Power Generation. Newyork: PennWell Corporation. Marcel, V. (2007). Oil Titans: National Oil Companies in the Middle East. London: Brookings Institution Press. Nolan, D. (2010). Loss Prevention and Safety Control: Terms and Definitions. Los Angeles: CRC Press. Read More