Sustainable Supply Chain Practices in the Oil and Gas Industry: A Case Study

Abstract

Sustainability reporting within the oil and gas (O&G) industry started back in the 1990s and has improved longitudinally since then. However, when reporting their sustainability-related practices and initiatives, O&G companies seldomly mention the term green supply chain management (GSCM). The study aims to investigate the development of GSCM practices in the O&G sector and to categorize how they are integrated with the sustainability practices reported by the industry. A multi-phase research approach was adopted consisting of a comprehensive literature review, followed by a single case study employed in an international oil and gas company. Primary data were collected by conducting 12 semi-structured interviews with senior members of an O&G company. Thematic analysis was employed to analyze the primary data from the interviews and to synthesize this work with the secondary data in order to answer the research question. The research identifies that the adoption of green purchasing practices is still in its infancy, whereas green production practices are more advanced compared to the current academic literature on the O&G industry. Additionally, new insights are obtained on how O&G companies are diversifying their business models and investing in the renewable energy business. The results of this work will enable O&G businesses to understand the latest developments in GSCM practices and how they are impacting the O&G sector. Practitioners will also be able to benchmark their current GSCM practices with the research findings and develop and formulate strategies to maximize the implementation of GSCM practices.