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Contextual factors of sustainable supply chain management practices in the oil and gas industry

Wan Ahmad , Wan Nurul Karimah (2016) Contextual factors of sustainable supply chain management practices in the oil and gas industry. PhD thesis, Delft University of Technology.

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Abstract

Modern society is built upon the use of energy to satisfy our needs for transport, light, heat and power. Energy is so fundamental to our lives, without which disruptions in economic activities and reduction in quality of life could occur. Traditional sources of energy include, among others, human and animal labour, biomass from wood stocks, oil kerosene, windmill and watermill (Fouquet, 2010). The period of the nineteenth century saw the inventions of new energy technologies such as electric dynamo, steam engine and internal combustion engine that allow us to exploit energy sources more efficiently, especially from fossil fuels (Fouquet, 2010, Smil, 2005). Fossil fuels became the world’s major source of energy approximately around the 1890s, mainly from coal, which was then gradually replaced by crude oil and natural gas as primary energy by the 1970s (Smil, 2005). Advances in exploration, refining and transportation technologies of oil and gas (O&G) enabled rapid development of these sources to fulfill our growing demand for energy. BP projected that global consumption of energy will grow by 37% between 2013 and 2035. The O&G industry is estimated to account for approximately 55% of the total energy sources in that period (BP, 2015). Crude oil has high energy density and easy to be transported, while natural gas has low sulphur content compared to other fossil fuels (Smil, 2005). These advantages are among the factors that contribute towards the prevalence of O&G especially in transportation, heating and electricity generation. Concerns regarding future availability of conventional O&G and increased competition to access existing reserves have led to oil transition in the industry where greater focus is put on the development of unconventional O&G (Farrell and Brandt, 2006, Wolf, 2009). This has unlocked reserves located in unconventional locations such as deep water and the arctic, as well as from unconventional sources like shale and tar sands (Farrell and Brandt, 2006, Ziegler et al., 2009). However, O&G exploitation comes at great expense to the environment as well as public health and safety. Exploration, production, transportation and conversion of O&G can cause negative impacts to the environment such as water pollution, biodiversity degradation, and emissions of greenhouse gases (GHG). This can affect societal wellbeing, especially to host communities due to, for example, exposure to the release of toxic substance and gases, displacement of traditional community structure and loss of provisions for local communities that depend on nature for their livelihood.

Item Type: Thesis (PhD)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Depositing User: Mr. Mohammad Shaifulrip Ithnin
Date Deposited: 13 Aug 2018 03:27
Last Modified: 13 Aug 2018 03:27
URI: http://eprints.uthm.edu.my/id/eprint/10276
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