The resilience of energy supply chains: a multiple case study approach on oil and gas supply chains to Europe
Abstract
Purpose
The purpose of this paper is to enhance the understanding about how energy supply chains work to build resilience against exogenous security threats and thereafter what support mechanisms should be introduced or improved by the European Union.
Design/methodology/approach
Five case studies and data collection from multiple sources is used to understand what exogenous security threats could lead to the disruption of oil and gas flows to Europe, how energy companies, from a supply chain perspective, are working to manage these threats and finally, how the EU may coordinate the security of the energy sector in collaboration with supply chain companies.
Findings
Results show that today, oil and gas supply chains have in place a good combination of disruption strategies, including portfolio diversification, flexible contracts, transport capacity planning and safety stocks. The most relevant security threats the companies fear, include hijacking of vessels (sea piracy), but also terrorism, and wars. Finally, the study highlights that the European Union has built a comprehensive portfolio of strategies to deal with scarcity of oil and gas resources. However, these approaches are not often synchronized with supply chain strategies.
Practical implications
The paper provides guidance for supply chain managers dealing with critical suppliers located in conflict environments. The paper recommends that supply chain managers fine tune their strategies in coordination with governmental actions in foreign politics, dependence reduction and crisis management. This may be achieved by closer communication with governments and potentially through the creation of a pan-European sector alliance.
Originality/value
Previous research discusses the topic of supply chain resilience and supply chain risk management. However, none of these studies report on exogenous security threats and disruption strategies of oil and gas supply chains. At the same time, previous research lacks detailed studies describing the interaction between governments and energy supply chains.
Keywords
Acknowledgements
The research leading to these results has received funding from the European Union Seventh Framework Programme (FP7/2007-2013), FOCUS-project (www.focusproject.eu), under grant agreement no. 261633. This publication reflects only the author's views and the Union is not liable for any use that may be made of the information contained therein. Received 24 September 2012 Revised 7 January 2013 13 May 2013 30 August 2013 23 September 2013 Accepted 24 September 2013
Citation
Urciuoli, L., Mohanty, S., Hintsa, J. and Gerine Boekesteijn, E. (2014), "The resilience of energy supply chains: a multiple case study approach on oil and gas supply chains to Europe", Supply Chain Management, Vol. 19 No. 1, pp. 46-63. https://doi.org/10.1108/SCM-09-2012-0307
Publisher
:Emerald Group Publishing Limited
Copyright © 2014, Emerald Group Publishing Limited