Oil and Gas Supply Chain: Analysing Stakeholder Sustainability Risk Perception

Abstract

AbstractRecent developments on a worldwide scale have highlighted the continued importance of the oil and gas supply chain, despite the growing demand for a more diverse energy portfolio, especially in many developing countries. This study investigates the sustainability risks present within the oil and gas supply chain by analysing the subjective risk perceptions of internal stakeholders. In the context of this study, sustainability risk factors are identified across the three pillars of sustainability (environmental, social, and economic). A quantitative research survey design of oil and gas industry stakeholders was undertaken, specifically identifying top management, middle management, supervisors, and operations to assess any variation in sustainability-related risk perception. Failure mode and effect analysis (FMEA) and partial least squares structural equation modelling (PLS-SEM) were used to determine the relative importance of the selected risks. The results indicate that stakeholder risk perception significantly impacted sustainability risk management within the oil and gas sectors. It also shows that socioeconomic risk variables were considered more severe and frequent than environmental risk factors as the most significant for internal stakeholders in the oil and gas industries within the study context.