Abstract:

Oil and natural gas, as one of the most important sources of energy for many commercial and residential users throughout the world, has a huge and complex supply chain. Most of the UAE’s reserves (95 percent of the nation’s oil reserves and about 94 percent of its gas reserves) are in Abu Dhabi, both offshore and onshore (UAE interact, 2015).The need for a long-term sustainable energy supply is becoming increasingly apparent due to the rising marginal cost of natural gas supply, the primary backbone of the UAE domestic energy system (Sgouridis et al, 2015 In Press). Therefore, the focus of this research is to provide a methodology that simultaneously considers risks and their inter-relatedness to arrive at a more prudent decision in selecting the option to manage risks in the oil and gas industry in Abu Dhabi, UAE. Through this research, we will offer a new solution methodology for minimizing the impact of different forms of risk resident in a gas supply chain. The objective of this study is to propose different strategies that can be employed to mitigate risks in oil and gas supply chains.As there exists limited study which has studied the risk in gas supply chains the proposed research aims to fill in the gap in the available academic literature and also provide a comprehensive methodology to understand the risks and develop suitable strategies to mitigate them.