An integrative framework for sustainable supply chain management practices in the oil and gas industry

Figures & data

Figure 1. Conceptual framework development process.

Table 1. List of literature related to SSCM of O&G.

Focus area	Author	Total
Sustainable/green SCM of O&G	Lakhal, H'Mida, and Islam (2007), Midttun et al. (2007), Lakhal, Khan, and Islam (2009), and Deng and Liu (2011)	4
O&G is part of researched area	Min and Galle (2001), Zhu, Sarkis, and Lai (2007b), Matos and Hall (2007), Hartman, Rubin, and Dhanda (2007), Zhu, Sarkis, and Lai (2008b), and Zutshi, Creed, and Sohal (2009)	6

Figure 2. Oil and gas supply chain and its industry segments (Kilponen 2010).

Table 2. Distinguishing characteristics of the O&G supply chain (adapted from: IBM 2005).

Characteristic	Description
Long product life cycles	Stable and static product mix
Non-perishable products	Costly inventory holding, but costs are recoverable; downstream companies are not affected by aging and stock rotation issues
Less volatile demand	Demand may vary among petroleum companies, but market demand is more stable; demand does not change based on product innovation and consumer tastes
Less product to track	Stable and static product mix
Few methods of viable transport	Products are flammable, with a large distance between supply sources and consumer markets
Commodity-based and fungible inventory	Competitors can trade with each other; associated financial markets for both crude and refined products play a large part in how supply chains are managed, and these markets can be exceptionally volatile
Discontinuous supply chains	Inventory is often traded or resold several times before it is consumed (it can move in and out of companies’ systems several times, which can increase transaction volume but not necessarily increase or reduce actual inventory)
Process-based and non-discrete inventory	Inventory is not packaged and cannot be separately identified
Reversed production flow	Inventory starts as few products (crudes) and creates many products that can be combined – an end product can be created in many different ways
Legal and environmental regulations	Mandate minimum inventories, raise antitrust concerns, require unique reporting, and emphasize safety and quality of the end product
Inflexible assets	Inherent processing complexities of a refinery only permits narrow ranges of capacity changes; difficult and risky production stopping and restarting
Transportation costs and low relative value	By limiting the number of locations, products can be shipped cost-effectively

Table 3. Summary of SSCM of O&G papers found through literature search.

		TBL dimension			Supply chain stage (SCS)
Author	Year	*ECO	ENV	SOC	E&P	R&P	LOG	T&R	No focus on any SCS
Min and Galle	2001	•	•		x	x
Zhu, Sarkis, and Lai	2007b	•	•						x
Hartman, Rubin, and Dhanda	2007			•					x
Lakhal, H'Mida, and Islam^1	2007		•			x	x
Midttun et al.^1	2007		•	•	x
Matos and Hall	2007	•	•	•	x
Zhu, Sarkis, and Lai	2008b	•	•						x
Zutshi, Creed, and Sohal	2009	•		•					x
Lakhal, Khan, and Islam^1	2009	•	•		x
Deng and Liu.^1	2011		•						x

*ECO: economic, ENV: environment; SOC: social, E&P: exploration & production, R&P: refining & processing, LOG: logistics, T&R: trading & retail

¹ Papers specific to the O&G supply chain.

Figure 3. Conceptual framework of SSCM in the O&G industry.

Table 4. Organization-related factors of SSCM.

Factor	Item	Authors
Commitment	Top management commitment	Zhu, Sarkis, and Lai (2008a), Faisal (2010), Hussain (2011), Wittstruck and Teuterberg (2012), and Walker and Jones (2012)
	Culture	Carter and Rogers (2008), Pagell and Wu (2009)
	Transparency	Carter and Rogers (2008), Pagell and Wu (2009), and Wolf (2011)
Risk management	Risk management	Seuring and Muller (2008b), Carter and Rogers (2008), Hussain (2011), Wolf (2011), and Walker and Jones (2012)
Cross-functional integration	Strategic alignment	Carter and Rogers (2008), Faisal (2010), Hussain (2011), and Walker and Jones (2012)
	Internal integration	Pagell and Wu (2009), and Walker and Jones (2012)
	Cross-functional cooperation	Zhu, Sarkis, and Lai (2008a) and Wolf (2011)
Performance management	Performance measurement/ Performance measurement and reward system linked to sustainability	Pagell and Wu (2009), Wolf (2011), and Walker and Jones (2012)
	Metrics to quantify sustainability benefits in an SC	Faisal (2010) and Wolf (2011)

Table 5. Supply chain function-related factors.

Factor	Construct	Authors
Supplier management	Cooperation with suppliers	Zhu, Sarkis, and Lai (2008a), Pagell and Wu (2009), Halldórsson, Kotzab, and Skjøtt-Larsen (2009), Faisal (2010), Hussain (2011), Colicchia et al. (2011), and Wittstruck and Teuterberg (2012)
	Supplier certification of environmental and/or social standards	Zhu, Sarkis, and Lai (2008a), Seuring and Muller (2008a), Seuring and Muller (2008b), Pagell and Wu (2009), Halldórsson, Kotzab, and Skjøtt-Larsen (2009), and Colicchia et al. (2011)
	Supplier selection, including environmental & social criteria	Seuring and Muller (2008a), Pagell and Wu (2009), Halldórsson, Kotzab, and Skjøtt-Larsen (2009), Colicchia et al. (2011), and Wolf (2011)
	Information sharing	Halldórsson, Kotzab, and Skjøtt-Larsen (2009), Faisal (2010), and Hussain (2011)
	Supplier audit	Zhu, Sarkis, and Lai (2008a), and Seuring and Muller (2008a)
	Supplier integration & development	Seuring and Muller (2008a), and Pagell and Wu (2009),
	Continuity	Pagell and Wu (2009) and Wolf (2011)
Logistics management	Consolidation of shipments	Halldórsson, Kotzab, and Skjøtt-Larsen (2009) and Colicchia et al. (2011)
	Choice of environmentally friendly types of transport
	Respecting driving and resting time rules
	Choice of environmentally friendly distribution channel
	Reuse of transport packaging materials
	Carrier selection
Production management	3R of material, component parts	Zhu, Sarkis, and Lai (2008a), Halldórsson, Kotzab, and Skjøtt-Larsen (2009), and Colicchia et al. (2011)
	Reduce consumption of energy/ material	Zhu, Sarkis, and Lai (2008a) and Colicchia et al. (2011)
	Avoid/reduce use of hazardous products and/or their manufacturing process	Zhu, Sarkis, and Lai (2008a) and Halldórsson, Kotzab, and Skjøtt-Larsen (2009)
	Elimination of waste & overuse of resources in production	Halldórsson, Kotzab, and Skjøtt-Larsen (2009) and Colicchia et al. (2011)
	Eco-efficient production	Halldórsson, Kotzab, and Skjøtt-Larsen (2009) and Colicchia et al. (2011)
	Environmental management system/standards	Zhu, Sarkis, and Lai (2008a) and Hussain (2011)
Product stewardship	Total-life cycle	Seuring and Muller (2008a) and Pagell and Wu (2009)

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