Oil accounts for a large percentage of the worlds energy consumption, ranging from as low of 32% for Europe

and Asia, up to a high of 53% for the Middle East. It is also the raw material for many chemical products, including pharmaceuticals, solvents, fertilizers, pesticides, and plastics.

It is generally accepted that oil is formed mostly from the carbon rich remains of ancient planktons and animals after exposure to heat and pressure in the Earth's crust over hundreds of millions of years, reducing it to fossils. Over time, the decayed residue was covered by layers of mud and silt, sinking further down into the Earths crust and preserved there between hot and pressured layers, gradually transforming into oil reservoirs. The petroleum industry includes the global processes of exploration, extraction, refining, transporting, and marketing petroleum products.

In this paper, we move to explain to detail the molecular formation, extraction and refinery of crude oil; the current legal standing of the oil exploration and production in Ghana with focus on health and safety; and recommendations towards creating a safety culture in this young industry.

FORMATION OF HYDROCARBON
Oil and gas are recovered from deep below the earth's surface. The most popular theory is known as the Organic Theory. This theory states that oil and gas have biological origins. Small sea creatures from the days when the earth was mostly covered in water died and settled to the bottom of the ocean floor. Layer upon layer of silt, sand and clay built up on top of them over time. Through the process of decay, as well as ever increasing heat and pressure, the former sea creatures were converted to oil and gas. Over millions of years, continuous pressure actually compressed those layers of silt and clay into layers of rock. This is known as "reservoir rock".

The temperature under the earth's surface increases the deeper you go underground. At about 150 F, oil begins to form. Oil formation ceases at about 300 F. Oil formed at lower temperatures (i.e. closer to the surface) is called immature and is heavy. Oil formed deeper under the surface is called mature and is light. At temperatures above 300 F, oil is thermally cracked to produce light gases (i.e. natural gas). Since temperature increases with depth, natural gas wells are typically drilled much deeper than oil wells. This is probably the story of the origin of oil and gas .However; there is an interesting alternative theory. It is known as the Inorganic Theory and was developed by Mendeleev (he of the periodic table) in the early 1800's. He believed that petroleum came from deep within the earth, noting how petroleum seemed to be associated with large features of the earth like mountains and valleys rather than the finer scale sedimentary deposits. There are many today who believe in this theory, and there is some evidence to back them up.

OIL AND GAS VALUE CHAINS

From Wellhead to Gasoline Pump

Crude oil value chain includes: a. Exploration : Using technology to find new oil resources

b. Production: Moving oil to refineries and consumers with tankers, trucks and pipelines c. Processing: Converting crude oil into finished products

d. Transportation: Distributing and selling refined products

e. Refining and marketing: This is the final stage where the oil is refined and marketed

LEGAL AND REGULATORY

From contract risk management, to international boundary disputes, through production sharing agreements and mitigating the risk of international sanctions, the oil and gas industry is a complex legal and regulatory environment to operate in. Oil and gas law is a particularly complicated by regulations - oil regulations, gas regulations, natural gas regulations. This industry resource centre is the place to find best practice from the leading lawyers and practitioners in this field.

The purpose of oil and natural gas regulations is to establish the framework within which regulatory programs insure that protection of the environment, especially water, is given the highest consideration with respect to the development of oil and gas resources. While regulations are not the sole measure of regulatory effectiveness, they are an indicator of regulatory intent. They form the backbone of the regulatory program. Without regulations

there would be little if any control over processes with the potential to create environmental harm. Programmatic elements implemented in conjunction with regulatory language form the basis for an effective regulatory program. For example, New York's Department of Environmental Conservation (DEC) relies on statutory authority and regulation, but also utilizes an environmental review process, technical guidelines and special permit conditions to ensure safe and environmentally protective development of oil and gas resources
REGULATIONS: Ghana must put in place new regulatory structures to ensure proper health and safety rules to avoid any future disaster in the oil and gas industry. The Ministry of Energy must make sure that operators abide by these regulatory measures. The Piper Alpha disaster which occurred in the United Kingdom offshore killing 167 personnel in July 1988 as a result of poor health and safety regulatory measures and management by then must not be repeated in Ghana. It is on record that this disaster alone resulted a loss of about 1.3 billion for lost of property and compensations.

HEALTH SAFETY AND ENVIRONMENT (HSE)

Working in the oil and gas industry is very challenging. The nature of the product and the hostile locations in which it is found means that oil companies must place the highest emphasis and priority on health and safety. Yet despite this, there have been some high profile incidents in the oil and gas industry, such as the Piper Alpha

North Sea platform in 1988, and Deepwater Horizon in 2010. A key factor in improving health and safety is having the ability to report near-misses and to improve procedures to avoid them escalating into larger scenarios. Collaboration and information sharing must not be taken lightly if a pragmatic solution is needed to ensure the

highest level of health and safety in the oil and gas industry. This neednt just be within an oil company, but also collaborating with the rest of industry.

The key solutions which must be involved in ensuring health and safety must include tracking and follow up, managing incidents from inception to close and creating a robust workflow system which should include trends, history, actions and reports.