Simulation-Based Optimized Weighting TODIM Decision-Making Approach for National Oil Company Global Benchmarking

Abstract

The oil and gas industry has played a dominant role in developed and developing economies. In particular, the rise of national oil companies (NOCs) in recent decades has led to significant changes in this industry. With the control of most of the world's oil reserves, NOCs sit at the epicenter of the country's economy and impact other political and social spheres. Moreover, the performance of NOCs affects the global oil and gas markets. To evaluate this performance, this study implements a global-scale multicriteria ranking process. The considered criteria include production, operational efficiency, financial performance, and home country attributes. To achieve this goal, a novel simulation-based integrated approach was presented in this study. This approach uses the best-worst method and its nonlinear model to determine the optimal weights of the criteria. In the next stage, a simulation-based TODIM method was applied to rank the NOCs. The simulation results found threshold values of the loss attenuation coefficient, where the rank of the alternatives is disturbed. This finding helped to group NOCs based on rank and response to the psychological behavior of decision makers.