Our current dependency on the oil and gas (O&G) industry for economic development and social activities necessitates research into the sustainability of the industry's supply chains. At present, studies on sustainable supply chain management (SSCM) practices in the industry do not include firm-internal factors that affect the sustainability strategies employed by different functional areas of its supply chains. Our study aims to address this gap by identifying the relevant internal factors and exploring their relationship with SSCM strategies. Specifically, we discuss the commitment to and preparedness for sustainable practices of companies that operate in upstream and downstream O&G supply chain. We study the impact of these factors on their sustainability strategies of four key supply chain functions: supplier management, production management, product stewardship and logistics management. The analyses of data collected through a survey among 81 companies show that management preparedness may enhance sustainable supply chain strategies in the O&G industry more than commitment does. Among the preparedness measures, management of supply chain operational risks is found to be vital to the sustainability of all supply chain functions except for production management practices. The findings also highlight the central importance of supplier and logistics management to the achievement of sustainable O&G supply chains. Companies must also develop an organizational culture that encourages, for example, team collaboration and proactive behaviour to finding innovative sustainability solutions in order to translate commitment to sustainable practices into actions that can produce actual difference to their SSCM practices.
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This paper empirically explores the relationship between the external factors within the oil and gas (O&G) industry business environment and supply chain sustainability goals to understand the factors that could drive or hinder its adoption of sustainable supply chain management (SSCM) practices. It examines the relationships between six external factors (political stability, economic stability, stakeholder pressure, competition, energy transition and regulations) and sustainability goals through multiple regression analysis, using survey data from companies that operate in the O&G industry. Data analyses reveal that there are two types of sustainability goals namely strategic goals (SGO), which are conditional for long term survival, and functional goals (FGO), which are closely related to the companies' operational processes. The analyses also show that stakeholder pressure and economic stability are the most influential factors that could affect the goals. While competition within the O&G industry has a positive effect on the FGO, competition from the broader energy industry results in a negative effect on the SGO. The influence of energy transition relates to a higher focus on SGO. The results are useful in designing SSCM strategy that could help the O&G industry address the pressure from the external factors for more sustainable supply chain practices to achieve its sustainability goals.
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Purpose – The purpose of this paper is to assess the sustainability reporting practices of oil and gas (O&G) companies and the integration of sustainability in the management of their supply chain. Design/methodology/approach – A content analysis of sustainability report of 30 companies was conducted based on the Pacific Sustainability Index that contains 21 topics on social and environmental reporting. An analysis was also conducted on supply chain management (SCM) topics related to supplier management, product stewardship and logistics management. Findings – There is inconsistency in the sustainability reporting practices among the O&G companies studied. While 63 percent of the companies expressed higher environmental intent compared to social intent, their reporting of environmental performance is lagging behind social performance reporting. There is also a lack of supply chain indicators in the sustainability reporting guidelines. This affects the companies ability to report their supply chain practices objectively. Practical implications – The findings of this study can be used as a guideline to improve the sustainability reporting practices and to identify relevant supply chain indicators that can be incorporated in a sustainability reporting index. Originality/value – There is a lack of research on sustainability reporting practices in the O&G industry context, especially in terms of SCM. Previous studies focussed on companies in specific countries and/or do not incorporate all sustainability dimensions, namely, economic, environmental and social factor. We think that this is the first comprehensive study on the sustainability reporting practices and the integration of sustainability in SCM in the O&G industry.
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This paper proposes a framework for understanding the contextual factors of sustainable supply chain management (SSCM) practices in the O&G industry. It is based on a literature review of studies related to SSCM of O&G topics. The review reveals that there is a lack of SSCM research specific to the industry. Present studies focus on individual stages of its supply chain and do not consider all dimensions of sustainable development, namely economic, environmental and social factors. In addition, existing frameworks lack important contextual aspects of the industry's business and organizational environment. To address these gaps, our research develops an overarching framework operationalizing the internal and external contextual factors of the O&G industry environment that can influence the outcome of its SSCM practices. The proposed framework is useful as a tool in the formulation and implementation of SSCM strategy that enables alignment of a company's internal capabilities with its external environment.
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Summary Project objectives This study fits into a larger research project on logistics collaboration and outsourcing decisions. The final objective of this larger project is to analyze the logistics collaboration decision in more detail to identify thresholds in these decisions. To reach the overall objectives, the first step is to get a clearer picture on the chemical and logistics service providers industry, sectors of our study, and on logistics collaboration in these sectors. The results of this first phase are presented in this report. Project Approach The study consists of two parts: literature review and five case studies within the chemical industry. The literature covers three topics: logistics collaboration, logistics outsourcing and purchasing of logistics services. The five case studies are used to refine the theoretical findings of the literature review. Conclusions Main observations during the case studies can be summarized as follows: Most analyzed collaborative relationships between shippers and logistics service providers in the chemical industry are still focused on operational execution of logistics activities with a short term horizon. Supply management design and control are often retained by the shippers. Despite the time and cost intensive character of a logistics service buying process, shippers tendering on a very regular basis. The decision to start a new tender project should more often be based on an integral approach that includes all tender related costs. A lower frequency of tendering could create more stability in supply chains. Beside, it will give both, shippers and LSPs, the possibility to improve the quality of the remaining projects. Price is still a dominating decision criterion in selecting a LSP. This is not an issue as long as the comparison of costs is based on an integral approach, and when shippers balance the cost criterion within their total set of criteria for sourcing logistics services. At the shippers' side there is an increased awareness of the need of more solid collaboration with logistics service providers. Nevertheless, in many cases this increased awareness does not actually result in the required actions to establish more intensive collaboration. Over the last years the logistics service providers industry was characterized by low profit margins, strong fragmentation and price competition. Nowadays, the market for LSPs is changing, because of an increasing demand for logistics services. To benefit from this situation a more pro-active role of the service providers is required in building stronger relationships with their customers. They should pay more attention on mid and long term possibilities in a collaborative relation, in stead of only be focused on running the daily operation.
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The European Union is striving for a high penetration of renewable energy production in the future energy grid. Currently, the EU energy directive is aiming for 20% renewable energy production in the year 2020. In future plans the EU strives for approximately 80% renewable energy production by the year 2050. However, high penetration of wind and solar PV energy production, both centrally and de-centrally, can possibly destabilize the electricity grid. The gas grid and the flexibility of gas, which can be transformed in both electricity and heat at different levels of scale, can help integrate and balance intermittent renewable production. One possible method of assisting the electricity grid in achieving and maintaining balance is by pre-balancing local decentralized energy grids. Adopting flexible gas based decentralized energy production can help integrate intermittent renewable electricity production, short lived by-products (e.g. heat) and at the same time minimize transport of energy carriers and fuel sources. Hence, decentralized energy grids can possibly improve the overall efficiency and sustainability of the energy distribution system. The flexibility aforementioned, can potentially give gas a pivotal role in future decentralized energy grids as load balancer. However, there are a lot of potentially variables which effect a successful integration of renewable intermittent production and load balancing within decentralized energy systems. The flexibility of gas in general opens up multiple fuel sources e.g., natural gas, biogas, syngas etc. and multiple possibilities of energy transformation pathways e.g. combined heat and power, fuel cells, high efficiency boilers etc. Intermittent renewable production is already increasing exponentially on the decentralized level where load balancing is still lacking.
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This article explores the applicability of smart grid concepts to the Dutch gas network by reflecting on the experience of the electricity sector.
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The authors present the study design and main findings of a quasi-experimental evaluation of the learning efficacy of the Serious Game (SG) 'Hazard Recognition' (HR). The SG-HR is a playable, two-level demonstration version for training supervisors who work at oil and gas drilling sites. The game has been developed with a view to developing a full-blown, game-based training environment for operational safety in the oil and gas industry. One of the many barriers to upscaling and implementing a game for training is the questioned learning efficacy of the game. The authors therefore conducted a study into the game's learning efficacy and the factors that contribute to it. The authors used a Framework for Comparative Evaluation (FCE) of SG, and combined it with the Kowalski model for Hazard Detection and the Noel Burch competence model. Four experimental game sessions were held, two involving 60 professionals working in the oil and gas industry, and two with engineering students and consultants. Relevant constructs were operationalized and data were gathered using pre and post-game questionnaires. The authors conclude that the SG-HR improves players' skills and knowledge on hazard detection and assessment, and it facilitates significant learning efficacy in this topic. The FCE proved very helpful for setting up the evaluation and selecting the constructs.
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In order to gain a more mature share in the future energy supply, green gas supply chains face some interesting challenges. In this thesis green gas supply chains, based on codigestion of cow manure and maize, are considered. The produced biogas is upgraded to natural gas quality and injected into the existing distribution gas grid and thus replacing natural gas. Literature research showed that relatively much attention has been paid up to now to elements of such supply chains. Research into digestion technology, agricultural aspects of (energy) crops and logistics of biomass are examples of this. This knowledge is indispensable, but how this knowledge should be combined to help understand how future green gas systems may look like, remains a white spot in the current knowledge. This thesis is an effort to fill this gap. A practical but sound way of modeling green gassupply chains was developed, taking costs and sustainability criteria into account. The way such supply chains can deal with season dependent gas demand was also investigated. This research was further expanded into a geographical model to simulate several degrees of natural gas replacement by green gas. Finally, ways to optimize green gas supply chains in terms of energy efficiency and greenhouse gas reduction were explored.
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In this article, we assess the potential of alternative land use systems using non-drainage peatland species which could eventually phase out or partly replace oil palm plantations on undrainable peatlands. We have used the ecosystem services approach to analyse what scenarios using drainage-free peatland species could be suitable alternatives for oil palm cultivation on peat and how these scenarios compare to oil palm plantations in terms of selected ecosystem services. Our results indicate that alternative paludiculture systems will provide more direct and indirect ecosystem services than oil palm plantations on peat. We also found that stakeholders were aware of issues with growing oil palm on peat, and that there was a general intention for sustainable use of peatlands amongst several groups of stakeholders. Replacing oil palm with alternative systems such as paludiculture in Malaysia is not yet realistic. The most important impediments are a lack of knowledge on potential of non-drainage peatland species and its associated value chains, as well as the technical difficulty for smallholders to implement such a system. We recommend starting experimental plantings with paludiculture systems to further test species performance, life cycle analysis, growth, intercropping limitations and possibilities, yields and improvements in the value chain.
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