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

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.