Sample Management Essays on Leadership in healthcare


The oil and gas industry is vital to the American economy, and it impacts the average American household. The sector is facing the possibility of digital transformation, especially with the availability of the ingenious invention of artificial intelligence (AI). Besides, the sector faces issues of workforce diversity and ethics.

The Use of AI in the Oil and Gas Industry

Artificial intelligence is a collection of various technologies, such as machine learning, ML, natural language processing, and robotics, that enable machines to learn and act on data to improve decision making (Ali). The oil and gas industry has mainly adopted the AI technologies of data science and machine learning. ML enables computer systems to sense, learn, and interpret data. The data is used to perform experiments based on predictive data to make discoveries of various patterns based on several data inputs (Ali). Machine language allows oil and gas production firms to monitor complex internal operations and respond rapidly to concerns. Data science uses a network of neurons to extract relevant information and understanding from data (Ali). Data science is applied in the field of oil and gas production to analyze the complex and numerous data in the field to help companies discover new oil and gas exploration opportunities and maximize their use of the existing exploration and production infrastructure (Raghothamarao). In January 2009, British Petroleum (BP) invested in the Belmont Technology Sandy, a cloud-based geoscience AI platform. Sandy is known for its ability to interpret and analyze geological, historical, and geophysical data to produce unique knowledge graphs (Raghothamarao). This has massively bolstered British Petroleum’s production and performance in the oil and gas industry.

The advantages posed by the use of AI in the oil industry are numerous. AI offers an opportunity to transform the oil and gas sector digitally. Besides, AI offers an opportunity for well-informed decision making within the field. One of the disadvantages posed by AI is its ability to transform and disrupt the relationship between workers and machines in the sector. The successful use of AI is also estimated to lead to several jobs being made obsolete (Aoun 26), with the industry putting more emphasis on hiring employees with the requisite computer skills, leading to massive retrenchments.

Role of Diversity in the Oil and Gas Industry

Diversity is concerned with the balanced and equitable representation of both genders in the oil and gas industry (Williams et al. 440). According to Catalyst, a non-profit organization that agitates for gender diversity in the modern workplace, women are greatly under-represented in the senior management positions of the industry (The Advocates for Human Rights 6). Oil and gas production companies are violating the international standards for multinational firms that are aimed at promoting workforce diversity (“United Nations Economic Commission for Europe.” 27). This perspective points to a massive problem that needs to be fixed not only in the oil and gas industry but the entire mining and extractive sector.

Diversity provides a larger pool of talent for recruitment in the sector. The oil and gas industry has been plagued by a limited supply of workers over the years (Mitchell et al. 67). For example, during the drilling for oil in the Permian Basin in the U.S., massive labor shortages led to over 2,000 wells being untapped within the required timeline (“United Nations Economic Commission for Europe.” 42). This challenge can be fixed by recruiting and retaining qualified women in various oil and gas companies. Besides, the sector currently has an aging workforce, and therefore, needs qualified workers to replace them. Diversity in the sector has been taunted to not only boost company profits but has also been recognized as a force for economic growth (Pearl-Martinez et. al.4). According to research by McKinsey Global Institute, 25 percent of companies that rank in the top 25 for gender diversity are 15 percent more likely to make higher financial returns compared to the industry’s median (The Advocates for Human Rights 11). The incorporation of women at the senior executive levels has been proven to increase financial success.

Role of Ethics in the Oil and Gas Industry

Ethics is fundamental in the oil and gas industry, as it ensures legal compliance and affects a company’s share value. Disregard of ethics by oil and gas companies exposes the companies to unwanted risks (Rogers et al. 45). Disregard of ethics mostly involves the breaking of legal requirements and procedures (Fadul 19). This disregard exposes the company to numerous litigations, which are expensive, and payment of damages if found guilty. Depending on the number and value of damages to be paid, a company may become insolvent. Besides, the disregard of ethics leads to a company’s reputation and image being damaged (Werner, Inkpen, and Moffett 304). A good example is the unethical practices by Shell in Nigeria, which led to massive injustice and environmental degradation of the Ogoni People (Cameroon and Stanley 24). The company’s image was damaged irreparably due to their unethical actions. Unethical practices reduce a company’s share capital value (Van den Hove et al. 5). An example is the Macondo disaster, which significantly put at risk British Petroleum’s corporate entity and hugely devalued the company’s share value.


The oil and gas industry is a major sector in the American economy responsible for the generation of billions of dollars in revenue apart from employing many Americans. The industry is grappling with the effects of digitalization and its disruptive impacts. AI offers massive digital technology that can help revolutionize the sector though it will leave noticeable disruptions in its wake such as massive retrenchments and further shrinking of the middle class. The sector also needs to promote workplace diversity and compliance with the sectors’ ethical directives among its numerous companies.




Works Cited

Ali, Umar. “Application of Artificial Intelligence in Oil and Gas Industry: Exploring Its Impact.” Offshore Technology | Oil and Gas News and Market Analysis, 15 May 2019,

Aoun, Joseph. “Views from the C-Suite: What Employers Want, In Their Own Words.” Robot-Proof: Higher Education in the Age of Artificial Intelligence, Cambridge, MA London The MIT Press, 2017, pp. 23–43.

Cameron, Peter D., and Michael C. Stanley. Oil, Gas, and Mining: A Sourcebook for Understanding the Extractive Industries. The World Bank, 2017.,

Fadul, Javier. “Business Ethics, Corporate Social Responsibility, and Firm Value in the Oil and Gas Industry.” (2004),

Mitchell, John, Valérie Marcel, and Beth Mitchell. What Next for the Oil and Gas Industry? London: Chatham House, 2012,

Pearl-Martinez, Rebecca, and Jennie C. Stephens. “Toward a Gender Diverse Workforce in the Renewable Energy Transition.” Sustainability: Science, Practice and Policy 12.1 (2016): 8-15,

Raghothamarao, Vinodkumar. “Machine Learning, AI Pump New Energy into Oil and Gas Industry.” Analytics,

Rogers, Violet C., et al. “Ethical and Environmental Disclosures: An Analysis of the Oil and Gas Industry.” Journal of International Energy Policy (JIEP) 1.2 (2012): 43-50,

The Advocates for Human Rights. Promoting Gender Diversity and Inclusion in the Oil, Gas and Mining Extractive Industries, January 2019,

Van den Hove, Sybille, Marc Le Menestrel, and Henri-Claude De Bettignies. “The Oil Industry and Climate Change: Strategies and Ethical Dilemmas.” Climate Policy 2.1 (2002): 3-18,

Werner, Steve, Andrew C. Inkpen, and Michael H. Moffett. Managing Human Resources in the Oil & Gas Industry, 2016.

Williams, Christine L., Kristine Kilanski, and Chandra Muller. “Corporate Diversity Programs and Gender Inequality in the Oil and Gas Industry.” Work and Occupations 41.4 (2014): 440-476,