engleski

GOVERNANCE IN THE OIL AND GAS INDUSTRY: PAST APPROACHES, NEW CHALLENGES

The oil and gas industry plays a crucial role in driving the global economy. Processes and systems involved in producing and distributing oil and gas are very complex, capitalintensive and require state-of-the-art technology. Predicting the future of the industry can be a rather dicey undertaking given the myriad of variables that affect the industry environment. Regardless of their position in the value chain, there is one common and essential element for all players in the sector. This element refers to the establishment and implementation of a governance framework that can help overcome certain obstacles and yield many benefits in order to achieve sustainable development as one of the preconditions for the development of today’s society. In the light of the recent economic and financial crisis, governments across the globe are adopting measures designed to improve systems of corporate governance, especially the elements of risk management and compliance. Without proper governance, companies can face great challenges both internal and external to the organization. For example, attracting investment may be very difficult if investors are not convinced that there are adequate controls, checks and balances that a governance framework can provide in place. Additionally, the lack of governance can lead to inefficiencies, such as operational issues, in the system, and one must also bear in mind the various effects on sustainability, social responsibility and the society as a whole. However, with a carefully crafted and successfully implemented governance framework, many of these problems can be reversed. The aim of this paper is to provide the reader with information on how companies in the oil and gas industry approach corporate governance and to present and critically assess some of the main challenges that lie ahead.

Corporate governance; oil and gas industry; sustainable development

Izdana je i knjiga sažetaka konferencije u tiskanom izdanju. (ISBN 978-953-57413-5-0, A CIP catalogue record for this book is available in the Online Catalogue of the National and University. Radovi s konferencije zastupljeni su u sljedećim bazama podataka: EconBiz, EBSCOhost, ProQuest.