Managing geopolitical risks: the global oil and gas industry plays a winning game

Q2 Business, Management and Accounting

Journal of Business Strategy Pub Date : 2023-06-28 DOI:10.1108/jbs-04-2023-0081

Jonas Gamso, Andrew C. Inkpen, K. Ramaswamy

{"title":"Managing geopolitical risks: the global oil and gas industry plays a winning game","authors":"Jonas Gamso, Andrew C. Inkpen, K. Ramaswamy","doi":"10.1108/jbs-04-2023-0081","DOIUrl":null,"url":null,"abstract":"\nPurpose\nGeopolitical risks associated with the return of great power politics and growing nationalism have generated new challenges for foreign investors across industries. Oil and gas companies are well acquainted with such risks and have developed strategies to manage them. This paper reviews five of these strategies: divorcing ownership control from operating control in designing collaborative ventures; proactively managing stakeholder relationships; ensuring transparency and communication; diversifying risks while proactively positioning for emerging opportunities; and deliberately planning for exit should such an eventuality arise. Firms outside of oil and gas can draw on these strategies as they navigate the emerging geopolitical context.\n\n\nDesign/methodology/approach\nThis paper reviews five strategies that oil and gas companies can use to manage geopolitical risk: divorcing ownership control from operating control in designing collaborative ventures; proactively managing stakeholder relationships; ensuring transparency and communication; diversifying risks while proactively positioning for emerging opportunities; and deliberately planning for exit should such an eventuality arise.\n\n\nFindings\nThis study identifies several strategies that oil and gas companies have used to manage geopolitical risks. These tools will be increasingly important in the shifting global political landscape.\n\n\nOriginality/value\nDrawing on the experiences of oil and gas companies, this study has identified several strategies that companies can use to shield themselves from the risks that are currently emanating from geopolitics. While these best practices originate in the experiences of oil and gas firms, the ability to deftly manage geopolitical risks is becoming an important prerequisite for companies across industries.\n","PeriodicalId":55881,"journal":{"name":"Journal of Business Strategy","volume":" ","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2023-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Business Strategy","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/jbs-04-2023-0081","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"Business, Management and Accounting","Score":null,"Total":0}

引用次数: 0

Abstract

Purpose Geopolitical risks associated with the return of great power politics and growing nationalism have generated new challenges for foreign investors across industries. Oil and gas companies are well acquainted with such risks and have developed strategies to manage them. This paper reviews five of these strategies: divorcing ownership control from operating control in designing collaborative ventures; proactively managing stakeholder relationships; ensuring transparency and communication; diversifying risks while proactively positioning for emerging opportunities; and deliberately planning for exit should such an eventuality arise. Firms outside of oil and gas can draw on these strategies as they navigate the emerging geopolitical context. Design/methodology/approach This paper reviews five strategies that oil and gas companies can use to manage geopolitical risk: divorcing ownership control from operating control in designing collaborative ventures; proactively managing stakeholder relationships; ensuring transparency and communication; diversifying risks while proactively positioning for emerging opportunities; and deliberately planning for exit should such an eventuality arise. Findings This study identifies several strategies that oil and gas companies have used to manage geopolitical risks. These tools will be increasingly important in the shifting global political landscape. Originality/value Drawing on the experiences of oil and gas companies, this study has identified several strategies that companies can use to shield themselves from the risks that are currently emanating from geopolitics. While these best practices originate in the experiences of oil and gas firms, the ability to deftly manage geopolitical risks is becoming an important prerequisite for companies across industries.

查看原文本刊更多论文

管理地缘政治风险：全球石油和天然气行业玩赢游戏

目的与大国政治的回归和日益增长的民族主义相关的地缘政治风险给各行业的外国投资者带来了新的挑战。石油和天然气公司非常熟悉这些风险，并制定了管理这些风险的战略。本文回顾了其中的五个策略：在设计合作企业时，将所有权控制与经营控制分离；积极管理利益相关者关系；确保透明度和沟通；分散风险，同时积极定位新出现的机会；并在出现这种情况时有意识地计划退出。石油和天然气以外的公司在应对新兴的地缘政治环境时可以借鉴这些战略。设计/方法论/方法本文回顾了石油和天然气公司可以用来管理地缘政治风险的五种策略：在设计合作企业时，将所有权控制与运营控制分离；积极管理利益相关者关系；确保透明度和沟通；分散风险，同时积极定位新出现的机会；并在出现这种情况时有意识地计划退出。发现这项研究确定了石油和天然气公司用于管理地缘政治风险的几种策略。在不断变化的全球政治格局中，这些工具将变得越来越重要。独创性/价值本研究借鉴了石油和天然气公司的经验，确定了公司可以用来保护自己免受当前地缘政治风险的几种策略。虽然这些最佳实践源于石油和天然气公司的经验，但熟练管理地缘政治风险的能力正成为跨行业公司的重要先决条件。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Journal of Business Strategy Business, Management and Accounting-Management Information Systems

CiteScore

4.50

自引率

0.00%

发文量

期刊介绍： The Journal of Business Strategy publishes articles with a practical focus designed to help readers develop successful business strategies. Articles should say something new or different and may propose a unique perspective. They should not offer prescriptions to CEOs on how to manage, but rather be directed toward middle and senior managers at companies of all sizes and types, as well as consultants and academics who want to think about their businesses in new ways. Coverage: As one of the few journals dedicated to business strategy, JBS defines strategy in the broadest sense and thus covers topics as diverse as marketing strategy, innovation, developments in the global economy, mergers & acquisition integration and human resources. We have a penchant for substantive, provocative and well-written articles. We also like to break the mould and include articles on topics readers are unlikely to find in other business publications.