The Standards in India has evolved in the past several years. These are being formulated for each industry with time. With the increased Industrialization and availability of high-end technology, the production of oil and natural gas has increased tremendously. Oil and natural gas industry is critical for development as it provides the raw materials for a number of industries namely, chemical, refining and pharmaceutical Industry. Several standards in India have been defined for oil and natural gas Industry; which have been pivotal in evolving this industry on the whole.
API or American Petroleum Institute is the biggest trade organization for oil and natural gas industry in United States. Headquartered in Washington with Jack Gerard as its president, API represents more than four hundred companies. Indian industries also employ these codes and standards making them a critical part of Standards in India. Oil and natural gas companies should follow the API codes and standards. Following are the arguments which prove the same:
Cogeneration – Cogeneration is the process where surplus energy produced in one process can as output can be used as an input for a different process. For example, thermal energy produced on melting of some metal could be used to create surplus electrical power. Thus, cogeneration also increases cost-effectiveness and promotes sustainable development. On following API codes and standards, oil and natural gas companies can ensure that they have the correct mechanisms to stimulate cogeneration in their production operations. This mechanism has been common to various standards in India across multiple industries.
Compliance with legislative and regulatory bodies – There are a number of rules and regulations affirming to refinement, production, storage and distribution of oil and natural gas. API helps its member companies by providing tools and methodologies which comply with regulatory and legislative requirements. The basic philosophy behind this is the fact that technical standards codes and certifications produced by API are uncontroversial. These have world-wide acceptance and help companies follow these rules with ease.
Safeguarding health and safety – A majority of people working as assistants or manual laborers in oil and natural gas industry are prone to thousands of toxics daily. These might have dire effect on their health and life-longevity. API takes care of this issue as well. It has formulated a detailed framework ensuring that health and safety of people working in industries is not compromised. This is an investment in human resource and also increases the quality of life standards for the working class.
Apart from framing rules and guidebooks, API also actively supports the cause of protection against climatic changes. Oil and natural gas industries are the driving wheels of any economy; their operations should be in-sync with the standards accepted world-wide. Following the standards and codes formulated by API is a way of investing in the future of a sustainable global economy and thus, API has been an important part of Standards in India now.