The Importance of Oil And Gas Law As A Distinct Subject

Question: Describe the legal aspect of oil and gas industry? Answer: Introduction There different types of legislation are applicable in the industry of oil and gas. The international commercial arbitration is playing a significant role in the gas and oil industry. On the other hand, the gas and oil industry includes many risky, complex and expensive operations which exist for a long period. In order to engage various parties in these operations, special contracts have an individual role to play in the gas and oil industry. The complexity of the operations creates many types of disputes in the management of the gas and oil industry. On the other hand, there are various kinds of disputes identified in the gas and oil industry such as claims relating to quantity and quality of goods, expert determination, claims over authority, equipment related claims, insurance issue, and international marine. Most of the parties of oil and gas industry prefer the agreed dispute resolution (ADR) process rather than lead it to national courts. Moreover, the international arbitratio n includes some phases such as the economy, easy enforcement, neutrality, and speediness. So, it is more preferable to litigation. In addition, arbitration is considered confidential, affordable and non-adversarial for parties and they make a resolution of their disputes (Born, 2009). Impact of substantive rules of international law on oil and gas industry With the help of agreement of the parties, the legal structure and guidelines of relevant law to the elements of international oil and gas industrys disputes. According to the Art.28 (1) of the arbitration act, the disputes in accordance including rules of law by the events as appropriate to the elements of the disputes (Case Law, 2015). The designation of law or any legal system should be either concluded or expressed by the parties in oil and gas industry. The practical rules of global rule are very effective to state the issue of oil and gas industry. The determination of international law is very important in order to utilize the substantive rules in the disputes of gas and oil industry. With the help of hierarchy recourses, the law should be conducted, and the national law will apply encompasses all of the rules of that law. Apart from that, the parties of the oil and gas industry can select or become the arbiters, and they will decide to apply the non-national, intercontinental and international practical rules or the standard value of international law of oil and gas industry (Zedalis, 2012). All above mentioned reference are very important for applicable substantive rules of the international law. It is very significant to notify that the Russian parties rarely use the chosen applicable law instead of the legal system. On the other hand, the lawyers for the oil and gas industry are playing a significant role in this section. Most of the lawyers recommend against the references to the sets of substantive rules of the international law. Apart from that, the general principals of international law are mainly conducted by the arbiters and judges to avoid the difficulties of internal disputes of the oil and gas industry (Oshionebo, 2007). On the basis of general principals of law, the parties of oil and gas industry lead towards the construction of a system and they are looking for the de-nationalize applicable law. The international law is applicable in the case of contract analogy; in addition, the principals of law should not be used when the parties are expressly agreed about the identification of disputes. Moreover, that kind of agreement cannot be prevented to apply, and it was proved by the certain awards of arbitral. The limitation of internationalization could be found in the public order of the forum states court or the essential norms; the foreign decision would be recognized and enforced by either judicial or arbitral in order to resolve the disputes in the gas and oil industry (Karataeva, 2014). The key principals of contract formation in international commercial transactions in the oil and gas sector In order to focus on the cross-border sale of goods, the legal aspects of international commercial transactions are playing a significant role. The contracts for the international sale of goods was introduced in 1988, and the United Nations Convention reviewed it with 73 countries had approved it. Furthermore, the formation of the contracts for the international deal of possessions and a comprehensive legal code of international law were managed through the establishment of the conversation(Galante, 2013). In addition, the legal obligation of buyer and seller also resolved with the help of that conversation. Moreover, the principals of international commercial transaction determine the breach of contract and other contract related aspects. On the other hand, a landmark is presented by the contracts for the international sale of goods in the procedure of global fusion of law. However, it is predictable that over 75% of all international sales transactions are potentially controlled by the agreements for the international auctions of properties. Apart from that, the most significant sets of rules are considered by the UNIDROIT principals on the international commercial contracts. In addition, the parties of the oil and gas industry who follow the international contract can choose to preside over their agreement. Both the contracts for the international sale of goods (CISG) and UNIDROIT contract principals have their individual role to play in the international commercial transaction and international trade. A particular emphasis is identified with the international law and arbitration practice. (Best of the oil gas law colloquium, 2013) Talking about the key international law principals and trends, both influence the legal aspects of oil and gas industry. According to the principals of international law, the contract includes some effective factors such as licenses, permits, authorization and temporary permits which are required by rules and regulation of the gas and oil industry. The license is very important in order to trend goods. The license reflects the approval of government along with permission. The license should be preserved carefully (Palazzo Almada and Parente, 2013). On the other hand, the permits are playing a significant role in the oil and gas industry. According to the applicable law, the permit is required to run the business smoothly without any legal problems. So, the international commercial transactions and key international law principals influence the rules and regulation of the oil and gas sector. International law and environmental impact of the oil exploration and exploitation Due to the oil exploration, the environment is very much polluted and damaged. According to the international law, the oil and gas industry puts extra attention on the oil exploration. The dangerous toxic acid is produced by the oil exploration, and it is mixed in the nearby water. The physical damage occurred for both animals and human due to the toxic acid. The water is being polluted which used in the cropland. In order to sustain the crops are required for the human. Due to the effect of toxic acid, the crops carry various types of disease such as hepatitis A, diarrhea, lead poisoning, polyomavirus infection, etc(Best of the oil gas law colloquium, 2013). On the other hand, the chemical components in the liquid organic wastages create an organic mixture which polluted the water of ponds and river. The water of the river is used as the drinking water in many areas. Regarding oil exploration and drilling the recourses of that drinking water is being polluted. As a result, the human is affected, and they suffer from different diseases(Smith, 2013). Apart from that, the oil exploration leads the soil pollution also. Many oil companies drill the rain forest in order to extend their business and increase the environment pollution. Due to the water pollution fishes are dying, and many people have to face financial problems which deal with it. The deforestation is one of the significant causes of the environment pollution(Makuch and Pereira, 2012). A wide range of forest had been cut off by the oil companies to expand their business. On the other hand, the wood is used for the roads, fuel, construction, and furniture. Moreover, the effect of oil pollution on the human society is very significant matter. In order to control the environmental pollution, the World Health Organization and international law implement some effective rules and regulation. According to the applicable law, the oil companies needs to clean all underground tunnels, chambers and drains to organic wastages removal. The workers should pay more attention to the environment issues. They should work more sincerely and put wastages at proper places and take protection from those infective organic wastages in order to maintain their physical condition. So, the oil exploration and exploitation influence the environmental pollution but the international law prevents the pollution through various ways(Makuch and Pereira, 2012). The importance of oil and gas law as a distinct subject The gas and oil law should be introduced in different types of business school, universities and law schools. The students should be aware of the importance of oil and gas law. Many types of research proved that the law is a significant subject which increases the human knowledge about the rules and regulation(Kubasek and Silverman, 2008). Apart from that, the students should know the oil and gas industry because it is related to the environment and their personal lives. We all knew the impact of oil and gas exploration, production and distribution on the environment. We should protect our environment with the help of oil and gas law. If students are aware of the oil and gas law, then they can prevent the pollution by implementing that law. On the other hand, the fuel is one of our daily requirements for life. Oil and gas industry produces the fuel and provides it to us. During the production process, packaging process and distribution process the environment is polluted by the oil a nd gas industry. Most of the employees do not obey the rules and regulations of the oil and gas industry and spread organic wastages in everywhere. The students can implement the oil and gas law, and they should report it to the authority of the oil and gas industry(Park, 2013). Apart from that, the teacher can also expand their knowledge circle through the oil and gas law. First of all, teacher and professors must understand the theories of oil and gas industry. After the complete training, they should start teaching the students, and they should take a test on this important subject(Oil and gas industry to use Nasas training space, 2012). The authority of education system should include the oil and gas law as a significant subject in their annual syllabus. In addition, the oil and gas law should be a compulsory subject for the students of the institution. Moreover, the oil and gas law should be introduced through practical and commercial context. Many young people are working in the oil and gas industry who do not know the law of oil and gas. The management should be aware them about the significance of the oil and law which helps them to improve their performance, knowledge and responsibility. In terms of a fresh candidate who wants to join the oil and gas industry, the management should provide a practical lesson to them. However, the oil and gas law can become a useful subject of the nation(Burnett and Williams, 2012). Conclusion The oil and gas industry includes some relevant international law which determines the rules and regulation. On the other hand, the international commercial arbitration is more preferable rather than litigation. The actual reason is that, the parties of the oil and gas industry wants to resolve the disputes with the help of applicable law. They do not want to visit the commercial court of the state. As a result, the arbitration is the most favorite disputes resolving method of the oil and gas industry. References Best of the oil gas law colloquium. (2013). Mechanicsburg, Pa. (5080 Ritter Rd., Mechanicsburg 17055-6903): Pennsylvania Bar Institute. Born, G. (2009). International commercial arbitration. Austin [Tex]: Wolters Kluwer Law Business. Burnett, S. and Williams, D. (2012). The role of knowledge transfer in technological innovation: an oil and gas industry perspective. Knowledge Management Research Practice, 12(2), pp.133-144. Case Law. (2015). Computer Law Review International, 16(4). Galante, E. (2013). Application of Explosives in the Oil Industry. OGCE, 1(2), p.16. Karataeva, E. (2014). Can the Caspian Sea Survive its Own Oil? Environmental Regulation of the Offshore Oil and Gas Industry in the Caspian Sea. The International Journal of Marine and Coastal Law, 29(3), pp.415-456. Kubasek, N. and Silverman, G. (2008). Environmental law. 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