IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i8p1420-d107985.html
   My bibliography  Save this article

DEMATEL-ANP Risk Assessment in Oil and Gas Construction Projects

Author

Listed:
  • Gholamreza Dehdasht

    (Department of Structure and Materials, Faculty of Civil Engineering, Universiti Teknologi Malaysia, Skudai 81310, Malaysia)

  • Rosli Mohamad Zin

    (Department of Structure and Materials, Faculty of Civil Engineering, Universiti Teknologi Malaysia, Skudai 81310, Malaysia)

  • M. Salim Ferwati

    (Department of Architecture and Urban Planning, College of Engineering, Qatar University, Doha 2713, Qatar)

  • Mu’azu Mohammed Abdullahi

    (Civil Engineering Department, Jubail University College, Royal Commission of Jubail and Yanbu, Jubail 31961, Saudi Arabia)

  • Ali Keyvanfar

    (Faculty of Built Environment, Universiti Teknologi Malaysia, Skudai 81310, Malaysia
    MIT-UTM MSCP Program, Institute Sultan Iskandar, Universiti Teknologi Malaysia, Skudai 81310, Malaysia
    Facultad de Arquitectura y Urbanismo, Universidad Tecnológica Equinoccial, Calle Rumipamba s/n y Bourgeois, Quito 170508, Ecuador
    School of Architecture and Urban Planning, Iran University of Science and Technology, Tehran 11369, Iran)

  • Ronald McCaffer

    (School of Architecture, Building and Civil Engineering, Loughborough University, Loughborough LE11 3TU, UK)

Abstract

Oil and gas construction projects are complex and risky because of their dynamic environment. Furthermore, rising global energy demand has increased the need for trustworthy risk assessment models for such projects that can provide adequate and precise policy planning. Traditional risk assessments in oil and gas construction projects do not consider the interrelationships of factors in the best-fit models. The Decision Making Trial and Evaluation Laboratory (DEMATEL) and Analytic Network Processes (ANP), called the DEMATEL-ANP approach, have been applied to other research disciplines to address this shortcoming. This method is able to construct a structural relationship among the different influence factors to visualize complex correlations. Thus, the purpose of this study is to showcase the DEMTAL-ANP risk assessment model to assess the overall risk factors of OGC projects. This study thus identifies the crucial risk criteria of such projects. Data were collected in 2016 through interviews with experts active in OGC projects in Iran. DEMATEL in this situation is used to determine the interdependencies’ relative strengths among the risks. The ANP method is applied to assess the relative importance of the risk factors and to determine the best strategy for implementation of a risk management program. The results presented in this study are a novel adaptation of the risk assessment methodology to OGC projects that determines the important risk factors that directly affect the project success, which in turn helps in formulation of policies for ensuring reliable energy supply planning.

Suggested Citation

  • Gholamreza Dehdasht & Rosli Mohamad Zin & M. Salim Ferwati & Mu’azu Mohammed Abdullahi & Ali Keyvanfar & Ronald McCaffer, 2017. "DEMATEL-ANP Risk Assessment in Oil and Gas Construction Projects," Sustainability, MDPI, vol. 9(8), pages 1-24, August.
  • Handle: RePEc:gam:jsusta:v:9:y:2017:i:8:p:1420-:d:107985
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/8/1420/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/9/8/1420/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. J. H. M. Tah & V. Carr, 2000. "A proposal for construction project risk assessment using fuzzy logic," Construction Management and Economics, Taylor & Francis Journals, vol. 18(4), pages 491-500.
    2. Venkatesh Mani & Catarina Delgado & Benjamin T. Hazen & Purvishkumar Patel, 2017. "Mitigating Supply Chain Risk via Sustainability Using Big Data Analytics: Evidence from the Manufacturing Supply Chain," Sustainability, MDPI, vol. 9(4), pages 1-21, April.
    3. Xiong Zheng & Fangchao Xu & Lipan Feng, 2017. "Analysis of Driving Factors for Extended Producer Responsibility by Using Interpretative Structure Modelling (ISM) and Analytic Network Process (ANP)," Sustainability, MDPI, vol. 9(4), pages 1-17, March.
    4. Sadeghi, Mehdi & Shavvalpour, Saeed, 2006. "Energy risk management and value at risk modeling," Energy Policy, Elsevier, vol. 34(18), pages 3367-3373, December.
    5. Ying-Chyi Chou & Chia-Han Yang & Ching-Hua Lu & Van Thac Dang & Pei-An Yang, 2017. "Building Criteria for Evaluating Green Project Management: An Integrated Approach of DEMATEL and ANP," Sustainability, MDPI, vol. 9(5), pages 1-17, May.
    6. Chemweno, Peter & Pintelon, Liliane & Van Horenbeek, Adriaan & Muchiri, Peter, 2015. "Development of a risk assessment selection methodology for asset maintenance decision making: An analytic network process (ANP) approach," International Journal of Production Economics, Elsevier, vol. 170(PB), pages 663-676.
    7. Shou Qing Wang & Mohammed Fadhil Dulaimi & Muhammad Yousuf Aguria, 2004. "Risk management framework for construction projects in developing countries," Construction Management and Economics, Taylor & Francis Journals, vol. 22(3), pages 237-252.
    8. Bacon, Robert W & Besant-Jones, John E, 1998. "Estimating construction costs and schedules: Experience with power generation projects in developing countries," Energy Policy, Elsevier, vol. 26(4), pages 317-333, March.
    9. Greening, Lorna A. & Bernow, Steve, 2004. "Design of coordinated energy and environmental policies: use of multi-criteria decision-making," Energy Policy, Elsevier, vol. 32(6), pages 721-735, April.
    10. Kone, Aylin Cigdem & Buke, Tayfun, 2007. "An Analytical Network Process (ANP) evaluation of alternative fuels for electricity generation in Turkey," Energy Policy, Elsevier, vol. 35(10), pages 5220-5228, October.
    11. Aven, T. & Vinnem, J.E. & Wiencke, H.S., 2007. "A decision framework for risk management, with application to the offshore oil and gas industry," Reliability Engineering and System Safety, Elsevier, vol. 92(4), pages 433-448.
    12. Wen-Chin Chen & Hui-Pin Chang & Kuan-Ming Lin & Neng-Hao Kan, 2015. "An Efficient Model for NPD Performance Evaluation Using DEMATEL and Fuzzy ANP—Applied to the TFT-LCD Touch Panel Industry in Taiwan," Energies, MDPI, vol. 8(10), pages 1-31, October.
    13. Zhao, Xu & Luo, Dongkun & Xia, Liangyu, 2012. "Modelling optimal production rate with contract effects for international oil development projects," Energy, Elsevier, vol. 45(1), pages 662-668.
    14. Jayaraman, Raja & Colapinto, Cinzia & Torre, Davide La & Malik, Tufail, 2015. "Multi-criteria model for sustainable development using goal programming applied to the United Arab Emirates," Energy Policy, Elsevier, vol. 87(C), pages 447-454.
    15. Yusuf, Yahaya Y. & Gunasekaran, Angappa & Musa, Ahmed & Dauda, Mohammed & El-Berishy, Nagham M. & Cang, Shuang, 2014. "A relational study of supply chain agility, competitiveness and business performance in the oil and gas industry," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 531-543.
    16. de Maere d’Aertrycke, Gauthier & Ehrenmann, Andreas & Smeers, Yves, 2017. "Investment with incomplete markets for risk: The need for long-term contracts," Energy Policy, Elsevier, vol. 105(C), pages 571-583.
    17. Hong, Jingke & Shen, Qiping & Xue, Fan, 2016. "A multi-regional structural path analysis of the energy supply chain in China's construction industry," Energy Policy, Elsevier, vol. 92(C), pages 56-68.
    18. Berends, Kees, 2007. "Engineering and construction projects for oil and gas processing facilities: Contracting, uncertainty and the economics of information," Energy Policy, Elsevier, vol. 35(8), pages 4260-4270, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ngan, Sue Lin & How, Bing Shen & Teng, Sin Yong & Leong, Wei Dong & Loy, Adrian Chun Minh & Yatim, Puan & Promentilla, Michael Angelo B. & Lam, Hon Loong, 2020. "A hybrid approach to prioritize risk mitigation strategies for biomass polygeneration systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 121(C).
    2. Wu, Yunna & Song, Zixin & Li, Lingwenying & Xu, Ruhang, 2018. "Risk management of public-private partnership charging infrastructure projects in China based on a three-dimension framework," Energy, Elsevier, vol. 165(PA), pages 1089-1101.
    3. Ahmed, Umair & Carpitella, Silvia & Certa, Antonella, 2021. "An integrated methodological approach for optimising complex systems subjected to predictive maintenance," Reliability Engineering and System Safety, Elsevier, vol. 216(C).
    4. Milena Lakicevic & Bojan Srdjevic, 2022. "An Approach to Developing the Multicriteria Optimal Forest Management Plan: The “Fruska Gora” National Park Case Study," Land, MDPI, vol. 11(10), pages 1-14, September.
    5. Iwona Gorzeń-Mitka & Monika Wieczorek-Kosmala, 2023. "Mapping the Energy Sector from a Risk Management Research Perspective: A Bibliometric and Scientific Approach," Energies, MDPI, vol. 16(4), pages 1-32, February.
    6. Foroogh Ghasemi & Mohammad Hossein Mahmoudi Sari & Vahidreza Yousefi & Reza Falsafi & Jolanta Tamošaitienė, 2018. "Project Portfolio Risk Identification and Analysis, Considering Project Risk Interactions and Using Bayesian Networks," Sustainability, MDPI, vol. 10(5), pages 1-23, May.
    7. Upreti, Naveen & Sunder, Raju Ganesh & Dalei, Narendra N. & Garg, Sandeep, 2018. "Challenges of India's power transmission system," Utilities Policy, Elsevier, vol. 55(C), pages 129-141.
    8. Rafael Lizarralde & Jaione Ganzarain & Mikel Zubizarreta, 2020. "Assessment and Selection of Technologies for the Sustainable Development of an R&D Center," Sustainability, MDPI, vol. 12(23), pages 1-23, December.
    9. Yuqi Zhang & Sungik Kang & Ja-Hoon Koo, 2021. "Perception Difference and Conflicts of Stakeholders in the Urban Regeneration Project: A Case Study of Nanluoguxiang," Sustainability, MDPI, vol. 13(5), pages 1-15, March.
    10. G.K. Koulinas & O.E. Demesouka & P.K. Marhavilas & A.P. Vavatsikos & D.E. Koulouriotis, 2019. "Risk Assessment Using Fuzzy TOPSIS and PRAT for Sustainable Engineering Projects," Sustainability, MDPI, vol. 11(3), pages 1-15, January.
    11. Mohammad Khalilzadeh & Laleh Katoueizadeh & Edmundas Kazimieras Zavadskas, 2020. "Risk identification and prioritization in banking projects of payment service provider companies: an empirical study," Frontiers of Business Research in China, Springer, vol. 14(1), pages 1-27, December.
    12. Balali, Amirhossein & Valipour, Alireza & Edwards, Rodger & Moehler, Robert, 2021. "Ranking effective risks on human resources threats in natural gas supply projects using ANP-COPRAS method: Case study of Shiraz," Reliability Engineering and System Safety, Elsevier, vol. 208(C).
    13. Moath Alrifaey & Tang Sai Hong & Eris Elianddy Supeni & Azizan As’arry & Chun Kit Ang, 2019. "Identification and Prioritization of Risk Factors in an Electrical Generator Based on the Hybrid FMEA Framework," Energies, MDPI, vol. 12(4), pages 1-22, February.
    14. Jelena M. Andrić & Jiayuan Wang & Ruoyu Zhong, 2019. "Identifying the Critical Risks in Railway Projects Based on Fuzzy and Sensitivity Analysis: A Case Study of Belt and Road Projects," Sustainability, MDPI, vol. 11(5), pages 1-18, March.
    15. Yuqi Zhang & Sungik Kang & Ja-Hoon Koo, 2019. "What Is the Critical Factor and Relationship of Urban Regeneration in a Historic District?: A Case of the Nanluoguxiang Area in Beijing, China," Sustainability, MDPI, vol. 11(23), pages 1-17, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anuja Shaktawat & Shelly Vadhera, 2021. "Risk management of hydropower projects for sustainable development: a review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(1), pages 45-76, January.
    2. repec:thr:techub:1005:y:2020:i:1:p:185-216 is not listed on IDEAS
    3. Moath Alrifaey & Tang Sai Hong & Eris Elianddy Supeni & Azizan As’arry & Chun Kit Ang, 2019. "Identification and Prioritization of Risk Factors in an Electrical Generator Based on the Hybrid FMEA Framework," Energies, MDPI, vol. 12(4), pages 1-22, February.
    4. Indre Siksnelyte & Edmundas Kazimieras Zavadskas & Dalia Streimikiene & Deepak Sharma, 2018. "An Overview of Multi-Criteria Decision-Making Methods in Dealing with Sustainable Energy Development Issues," Energies, MDPI, vol. 11(10), pages 1-21, October.
    5. Strantzali, Eleni & Aravossis, Konstantinos, 2016. "Decision making in renewable energy investments: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 885-898.
    6. John Malu Nzioki & Dr. Mary Nyawira Mwenda, 2021. "Enhancing Performance of the Building Construction Industry through Quantitative Risk Analysis and Risk Response: A Case of Exchequer Funded Building Construction Projects in Machakos County, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(3), pages 31-39, March.
    7. Rao Rao & Xingping Zhang & Zhiping Shi & Kaiyan Luo & Zhongfu Tan & Yifan Feng, 2014. "A Systematical Framework of Schedule Risk Management for Power Grid Engineering Projects’ Sustainable Development," Sustainability, MDPI, vol. 6(10), pages 1-30, October.
    8. Philip-Mark Spanidis & Christos Roumpos & Francis Pavloudakis, 2021. "A Fuzzy-AHP Methodology for Planning the Risk Management of Natural Hazards in Surface Mining Projects," Sustainability, MDPI, vol. 13(4), pages 1-23, February.
    9. Hui Li & Renjin Sun & Wei-Jen Lee & Kangyin Dong & Rui Guo, 2016. "Assessing Risk in Chinese Shale Gas Investments Abroad: Modelling and Policy Recommendations," Sustainability, MDPI, vol. 8(8), pages 1-17, July.
    10. Cunbin Li & Yunqi Liu & Shuke Li, 2016. "Risk Evaluation of Qinghai–Tibet Power Grid Interconnection Project for Sustainability," Sustainability, MDPI, vol. 8(1), pages 1-19, January.
    11. Wajiha Ansari & Muhammad Asim & Salman Manzoor, 2020. "A systematic frame work of schedule risk management for power grid engineering projects,sustainable development," Technium Social Sciences Journal, Technium Science, vol. 5(1), pages 185-216, March.
    12. James J. H. Liou & Perry C. Y. Liu & Huai-Wei Lo, 2020. "A Failure Mode Assessment Model Based on Neutrosophic Logic for Switched-Mode Power Supply Risk Analysis," Mathematics, MDPI, vol. 8(12), pages 1-19, December.
    13. Ahsan Nawaz & Xing Su & Qaiser Mohi Ud Din & Muhammad Irslan Khalid & Muhammad Bilal & Syyed Adnan Raheel Shah, 2020. "Identification of the H&S (Health and Safety Factors) Involved in Infrastructure Projects in Developing Countries-A Sequential Mixed Method Approach of OLMT-Project," IJERPH, MDPI, vol. 17(2), pages 1-18, January.
    14. Mayyas Alsalman & Vian Ahmed & Zied Bahroun & Sara Saboor, 2023. "An Economic Analysis of Solar Energy Generation Policies in the UAE," Energies, MDPI, vol. 16(7), pages 1-25, March.
    15. Ishizaka, Alessio & Siraj, Sajid & Nemery, Philippe, 2016. "Which energy mix for the UK (United Kingdom)? An evolutive descriptive mapping with the integrated GAIA (graphical analysis for interactive aid)–AHP (analytic hierarchy process) visualization tool," Energy, Elsevier, vol. 95(C), pages 602-611.
    16. Keppler, Jan Horst & Quemin, Simon & Saguan, Marcelo, 2022. "Why the sustainable provision of low-carbon electricity needs hybrid markets," Energy Policy, Elsevier, vol. 171(C).
    17. Leonardo de Assis Santos & Leonardo Marques, 2022. "Big data analytics for supply chain risk management: research opportunities at process crossroads," Post-Print hal-03766121, HAL.
    18. Sujan Piya & Ahm Shamsuzzoha & Mohammad Khadem & Nasr Al-Hinai, 2020. "Identification of Critical Factors and Their Interrelationships to Design Agile Supply Chain: Special Focus to Oil and Gas Industries," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(3), pages 263-281, September.
    19. Chen, Liming & Zhao, Yuanyuan & Xie, Rui & Su, Bin & Liu, Yue & Renfei, Xv, 2023. "Embodied energy intensity of global high energy consumption industries: A case study of the construction industry," Energy, Elsevier, vol. 277(C).
    20. Baudry, Gino & Delrue, Florian & Legrand, Jack & Pruvost, Jérémy & Vallée, Thomas, 2017. "The challenge of measuring biofuel sustainability: A stakeholder-driven approach applied to the French case," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 933-947.
    21. Tang, Miaohan & Hong, Jingke & Liu, Guiwen & Shen, Geoffrey Qiping, 2019. "Exploring energy flows embodied in China's economy from the regional and sectoral perspectives via combination of multi-regional input–output analysis and a complex network approach," Energy, Elsevier, vol. 170(C), pages 1191-1201.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:9:y:2017:i:8:p:1420-:d:107985. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.