The social factors in this industry are include culture, demography, religion, income distribution, ideological views, migration, ageing population and population growth rate (Verma, 2011). The social tendency can influence significantly on how the company operates and the demand for the products in this industry. For example, there are increasing awareness on more friendly fuels such as natural gas and reducing in the usage of “dirty” fossil fuels such as coal, oil sands, and shale gas. Besides, the cost of labour will increase due to less-willing and smaller workforce caused by the ageing population (Bargorett & Williams, 2014). Different management strategies are used such as hiring older workers to accommodate to these current social trends.
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For example, geographical position, fauna and flora, land form, rock structure and climate affect the activities in this industry. The value chain from exploration, extraction, refining, producing to final use of petroleum are emitting harmful gases that affect the people, plants, animals, air, water and soil negatively. Besides, exploration, processing, and transportation of oil and natural gas have the major impact to the environment such as groundwater contamination, disturbance of ecosystems and land, waste management, gas emissions, excessive water and energy usage, spills and so on (Haseeb, 2017). Therefore, an Environmental Quality Act, 1974 has been implemented in Malaysia to restrict the wastes discharge and control the production emissions of oil and gas into the environment. Next, companies in oil and gas industry may need to look into another area when examine the influence of environmental factors which is the environmental disaster. This is because it is an unpredictable event that potentially incur high damage costs on any given business including oil and gas industry. However, there are few reports of natural disasters in Malaysia (Chiemelie, …show more content…
The legal factors affect and control the oil and gas industry activities such as exploitation, exploration, and the commercialization of oil and gas products. This industry has faced highly advanced business laws in the Malaysian legal system, patent right law, work regulation and protection, consumer protection and other bylaws to safeguard the business operations. Government has showed concern in the labours of the oil and gas businesses by assisting the personal health of workers working in oil exploration, drilling, distribution, and disposal (Haseeb, 2017). Besides, the company’s assets need to be protected legally by the quality lawyer. This can ensure all the company’s assets are well protected and in the form of trademarks, copyrights, trademarks and so on under legal system in Malaysia (Chiemelie,
For example, geographical position, fauna and flora, land form, rock structure and climate affect the activities in this industry. The value chain from exploration, extraction, refining, producing to final use of petroleum are emitting harmful gases that affect the people, plants, animals, air, water and soil negatively. Besides, exploration, processing, and transportation of oil and natural gas have the major impact to the environment such as groundwater contamination, disturbance of ecosystems and land, waste management, gas emissions, excessive water and energy usage, spills and so on (Haseeb, 2017). Therefore, an Environmental Quality Act, 1974 has been implemented in Malaysia to restrict the wastes discharge and control the production emissions of oil and gas into the environment. Next, companies in oil and gas industry may need to look into another area when examine the influence of environmental factors which is the environmental disaster. This is because it is an unpredictable event that potentially incur high damage costs on any given business including oil and gas industry. However, there are few reports of natural disasters in Malaysia (Chiemelie, …show more content…
The legal factors affect and control the oil and gas industry activities such as exploitation, exploration, and the commercialization of oil and gas products. This industry has faced highly advanced business laws in the Malaysian legal system, patent right law, work regulation and protection, consumer protection and other bylaws to safeguard the business operations. Government has showed concern in the labours of the oil and gas businesses by assisting the personal health of workers working in oil exploration, drilling, distribution, and disposal (Haseeb, 2017). Besides, the company’s assets need to be protected legally by the quality lawyer. This can ensure all the company’s assets are well protected and in the form of trademarks, copyrights, trademarks and so on under legal system in Malaysia (Chiemelie,