Addressing the Trilemma of Challenges: The Need for More SC Strategic Collaborations in the UK Oil and Gas Sector

Adekunle Oke (), Oluyomi Abayomi Osobajo and Samantha Taylor
Additional contact information
Adekunle Oke: Leeds Business School, Leeds Beckett University, 507 Rose Bowl City Campus, Leeds LS1 3HL, UK
Oluyomi Abayomi Osobajo: Aberdeen Business School, Robert Gordon University, Garthdee Road, Aberdeen AB10 7QE, UK
Samantha Taylor: Aberdeen Business School, Robert Gordon University, Garthdee Road, Aberdeen AB10 7QE, UK

Sustainability, 2024, vol. 16, issue 2, 1-16

Abstract: This study conceptualises the extent of supply chain collaboration in the oil and gas (O&G) sector using the evidence from the literature and the primary data collected from supply chain practitioners across various companies in the UK O&G sector. The goal is to establish how the sector can address its traditional narrow and adversary relationships that undermine the sector’s ability to be resilient and competitive considering the volatility of global oil prices and the trilemma (i.e., energy transition, energy security, and energy diversification) of issues facing the sector. Using exploratory quantitative online surveys, data were collected from 82 supply chain practitioners across Tier 1, 2, and 3 companies in the UK O&G sector. The collected data were analysed thematically, providing deeper insights into supply chain collaboration, including its motivations and barriers in the UK O&G sector. The findings show that the pattern of collaboration in the O&G sector is transient, situational, and mostly influenced by the sector’s performance and global economic situations. The findings further show that the nature of the relationship in the O&G sector is mostly dependent on how it contributes to the performance of each business rather than the supply chain. This study argues that businesses in the oil and gas sector need to re-examine their relationships to enhance their competitiveness. It proposes that the sector should embrace strategic collaborations as the sector faces many disruptions, particularly from energy transition and the decommissioning of assets.

Keywords: oil and gas; collaboration; trust; information sharing; supply chain relationships; agency theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/16/2/570/pdf (application/pdf)
https://www.mdpi.com/2071-1050/16/2/570/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:16:y:2024:i:2:p:570-:d:1315814

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().