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This study has been conducted to shed significant amount of light upon the impacts of carbon
along with other poisonous gas liberation in the atmosphere. In this study major petroleum service
provider such as BHP Billiton has been taken under consideration. The change necessary to
amended with respect to different theories such as disruptive innovation policies, incremental
innovation, and breakthrough innovation along with game changing innovation has been taken
under consideration. The pollution discharge norms undertaken by the government of UK has been
taken under consideration in this study. The important changes as per the requirements of the
government have been indicated in the study.
Table of Contents
Introduction ..................................................................................................................................... 4
Description of the threats to business ............................................................................................. 4
Explaining Innovation Theory and Summarizing types of innovation ........................................... 7
Description of disruptive innovations in order to address a threat to business ............................. 11
Early adopters ................................................................................................................... 11
Innovation leading to reduction of greenhouse gases ....................................................... 11
Deployment to wider market and associated benefits from growth ................................. 16
Conclusion .................................................................................................................................... 17
References ..................................................................................................................................... 18
Appendices .................................................................................................................................... 21
Appendix 1: Carbon Emission in BHP Billiton ............................................................................ 21
Appendix 2: Carbon emission....................................................................................................... 22
Appendix – 3: CO2 sources .......................................................................................................... 22
Appendix – 4: Contribution of petroleum industry....................................................................... 23
Introduction
Air pollution causing compounds such as carbon dioxide, methane and other toxic compounds is
characterised with offering negative impacts in the environment. In petroleum industry, liberation
of harmful gases such as carbon dioxide, methane, CFCs and other gases takes place, affecting the
condition of the environment. In such cases, proper innovation strategy is the pathway to success,
preventing damage to the environment. Disruptive innovation process plays an important role in
offering important changes to be adopted by the petroleum service provider such as BHP Billiton
in petroleum operational processes. Through innovation and application of sustainable practises,
it is possible to achieve efficiency in operations ensuring minimum amount of damages to the
environment.
The primary aspects of the study effectively deal with analysis of innovation policies to be
applicable by the petroleum service provider for environment management.
Climate change
Climate change has a close relationship with the petroleum companies as it has been observed that
about 70% of greenhouse gas emissions occur due to fossil fuel production. In context to BHP
Billiton, climate change in the country has been affecting the manufacturing process of the
company. The reason behind this is that in the year 2016, the company has been marked under the
highest carbon polluter globally. Approx. 0.52% of carbon found to be released by the Billiton
(theguardian.com, 2018). Hence, this news led to lowering of the brand image in the UK affecting
their CSR activities. The reports showed that BHP Billiton alleged with the claim that they do not
dodge their legal and moral responsibilities in terms of paying climate change loss. This impacted
the growth of the business in the year 2017.
Climate change in the year 2017 in the UK observed to be mostly due to which the company had
to face the problem. BHP Billiton has to cancel their agreements with Escondida industrial assets
in Chile. They have been forced by the public to shut down their operation in the year 2017 due to
which the company faced a huge loss of 45% in sales (bhp.com, 2018). Along with this, it has been
perceived that on 24 March 2017, a 44-day strike has been conducted by the employees of the
BHP Billiton in terms of lack of safety for the workers due to climate change (bhp.com, 2018).
However, this frequent burden on the company raised a grand challenge of losing customers and
hampering CSR activities. (Refer to Appendix 1)
The change in climate such as extreme humidity can cause damage to the product or even explode
the barrels of the oil in excessive heat (bhp.com, 2018). Hence, this can pose a great challenge to
the company's productivity.
Practical examples on changes in carbon emission
Quarters Carbon liberation
Q1 (2014) 130.6
Q2 92.5
Q3 87.1
Q4 120.4
Q1 (2015) 125.3
Q2 89.8
Q3 81.6
Q4 116.0
Q1 (2016) 116.3
Q2 85.4
Q3 75.9
Q4 107.0
Q1 (2017) 114.6
Q2 78.4
Q3 74.1
Q4 107.6
Table 1: Change in the amount of greenhouse gases
(Source: carbonbrief.org, 2018)
In period of extravagant way of life combined with requests from the buyers, car specialist co-
ops specialist co-ops. Petroleum service providers makes utilization of various concoction mixes
or crude materials. This outcomes in huge measure of freedom of ozone depleting substances
into the climate as CO2, methane, CFCs, Sulfur-Di-Oxide, etc into the environment.
Q1 (2014) Q2 Q3 Q4 Q1 (2015) Q2 Q3 Q4
Q1 (2016) Q2 Q3 Q4 Q1 (2017) Q2 Q3 Q4
130.6
125.3
120.4
116.3
114.6
116
107.6
107
92.5
89.8
87.1
85.4
81.6
78.4
75.9
74.1
1
The rate of carbon discharge in UK has expanded fundamentally from about 123.20 in the year
2010 to about 124.40 in the year 2017, uncovering risk on nature. In the ongoing years to offer
insurance to the earth, the two temperatures just as carbon discharge has been brought down by
3% by limiting certain car generation line ups (lse.ac.uk, 2018) (Refer to Appendix – 4).
5000
3753 3910
4000
3000 2670
2000 1711
1083
1000
0
Total Home Export
2016 2017
● In comparison to others, as per the ideas of Caputo, Marzi and Pellegrini (2016)
breakthrough innovation requires through working knowledge of patented technology
which may not be in service within the company presently. The aftermath of application is
possible to be uncertain. (Refer to Appendix 2)
Early adopters
The main early adopters of technologies are applicable across small scale SMEs in UK dealing
mainly with petroleum related services. Small and middle sized business undertakings can use this
approach to control the emission rate of CO2 within appropriate boundaries. SMEs, owing to the
lack of modern technologies are liable to eliminate considerable amount of carbon emissions in
the atmosphere. Hence, it is important for SMEs to be initial adopters.
UK government has been spending approx £7.9 billion to minimize the carbon emission from the
country (theccc.org.uk, 2018).
492.7
500 469.9 459
449.7
419.1 402.5
400 378.9 366.9
300
200
100
0
2010 2011 2012 2013 2014 2015 2016 2017 (p)
In supplementary to this, different petroleum companies have also been focusing on reducing the
carbon emission during oiling production and extraction to reduce the percentage of carbon
emission in the country (Wilson, 2018, pp.125-135). BHP Billiton has established several
technologies to both control the carbon release and measure the amount of Carbon release.
AutoNaut
It is a kind of technology that helps to store the carbon in a vessel that can be utilized in future.
Autonaut is a 3.5-meter long wave propelled unmanned surface vessel that offers an autonomous
oceanic data gathering with the zero-carbon propulsion. It gathers the carbon gas in the vessel
automatically and converts it into hydrogen that can be further used by the company for different
purpose in production process.
BHP Billion can establish this disruptive technology to reduce the carbon emission at the time of
production process. This can also add in the increasing the productivity of the company.
Annual Carbon Emission calculator
This is the device through which the carbon can be measured during the process of both extraction
and production in the company. BHP Billiton can be recommended to use the annual carbon
emission calculator for measuring the carbon emission during their operation in the market. As
per the view of Coccia (2017, pp.12-16), there are different measurement options for measuring
carbon during production process. The steps through which the carbon emission can be measured
include the following:
Artificial gas detection technologies Possible to monitor and filter concentration of gases by not
equipped with sensors less than 12 % during petrochemical refining process.
Biodegradable plastic products and Effecting in lowering the amount of carbon emission and
Application of plastic polymers greenhouse gases by range of about 9 to 10% in
petrochemical industries. Lowering in costs of operation by
10 to 12%.
Application of renewable sources Effective in lowering the external emission of gasses by not
more than 14 to 15%.
Table 4: Application of innovative technologies
Defining emission
Carbon emits through different ways at the time of production process. During operation at wider
market perspectives, appropriate monitoring of work related surroundings related to carbon
emission is likely to help in controlling it. BHP Billiton can define their emission of carbon by
analyzing factors like usage of transportation also releases carbon, usage of technologies for oil
rigs also releases carbon. Hence, in that case, carbon releasing from offshore and onshore oil rigs
are mandatory to measure.
REDD+
This is another disruptive technology that can help in measuring the amount of carbon released
during the manufacturing process in BHP Billiton. From the study of Kaplan and Vakili (2015), it
can be understood that REDD+ gathers the overall information about the release of carbon in the
previous year. Accordingly, it measures the carbon emission presently while extracting offshore
oil rigs. After this, the technology leads to minus the present carbon emission from the previous
measured carbon emission. Through this, company can view carbon emission amount and compare
with previous amount of carbon emission. With the help of this BHP Billiton can measure and thus
control the carbon emission during their manufacturing process.
Conclusion
From the above study, it can be concluded that climate change creates a huge problem for the
petroleum industry. It leads to effects the business operation by creating a risk of accidents within
workplace. It has been found that BHP Billiton has the work of offshore and onshore extraction in
many geographical areas due to which the risk of accident due to climate change remains on them.
Apart from this, it has been observed that due to climate change, company has also been losing
their image and reputation. The CSR activities found to be impacting of BHP Billiton in the
country. On the other side, government policies and regulations has also been becoming an issue
for the company. BHP Billiton worked hard to meet the government CO2 emission norms and
develop many systems in order to reduce CO2 emission.
References
Journals
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carbonbrief.org 2018 Rate of carbon emissions in 2017 Available
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1890 [Accessed on 16 January 2019]
Wilson, C., 2018. Disruptive low-carbon innovations. Energy Research & Social Science, 37,
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Appendices
(Sources: https://www.bhp.com/-
/media/bhp/documents/investors/reports/2015/bhpbillitonclimatechangeporfolioanalysis2015.pdf
?)