Preventing regional social and environmental conflicts during oil pipeline construction projects

Andrey Novoselov (), Irina Novoselova (), Ruslan Aliev () and Аndrey Avramenko ()
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Andrey Novoselov: Plekhanov Russian University of Economics, Russian Federation
Irina Novoselova: Moscow State Institute of International Relations, Russian Federation
Ruslan Aliev: Moscow State Institute of International Relations, Russian Federation
Аndrey Avramenko: Moscow State Institute of International Relations, Russian Federation

Entrepreneurship and Sustainability Issues, 2019, vol. 7, issue 1, 773-785

Abstract: The problem of constructing field pipelines from the oilfield to the main pipeline or an oil loading terminal is considered. Cost estimates for routes of field pipelines take into account the pipeline construction and operation costs, environmental accident pollution risks, compensations to local residents, and costs of compensatory projects to accommodate local interests. This helps to ensure that conflicts are avoided in the process of economic development of northern territories. A specific feature in evaluating the total costs is the use of fuzzy numbers. The authors' adaptation of the Shimbel-Otterman method is substantiated for choosing an optimum field pipeline route, whose adaptation involves the application of fuzzy cost estimates for individual segment options of the pipeline route. The proposed approach to the analysis of the resulting solution relies on the use of a confidence level function, which helps the decision-maker to identify the most viable field pipeline route option. A detailed algorithm for solving the problem is laid out, with a numerical example to prove the operational quality of the proposed method.

Keywords: pollution damage; environment; conflict; compensations to population; field pipeline; route; fuzzy estimate; confidence level; minimization of total costs (search for similar items in EconPapers)
JEL-codes: Q01 Q32 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ssi:jouesi:v:7:y:2019:i:1:p:773-785

DOI: 10.9770/jesi.2019.7.1(55)

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