Next Article in Journal
Measuring Network-Based Public Transit Performance Using Fuzzy Measures and Fuzzy Integrals
Previous Article in Journal
Tourism Pressure at the Regional Level in the Context of Sustainable Development in Romania
Article Menu
Issue 5 (May) cover image

Export Article

Open AccessArticle
Sustainability 2017, 9(5), 696; doi:10.3390/su9050696

Risk Assessment of China’s Overseas Oil Refining Investment Using a Fuzzy-Grey Comprehensive Evaluation Method

1
School of Business Administration, China University of Petroleum (Beijing), Beijing 102249, China
2
Energy Systems Research Center, The University of Texas at Arlington, Arlington, TX 76019, USA
3
Department of Agricultural, Food and Resource Economics, Rutgers, The State University of New Jersey, New Brunswick, NJ 08901, USA
4
Chongqing CISDI Engineering Consulting Co., Ltd., Chongqing 400010, China
*
Author to whom correspondence should be addressed.
Academic Editor: Tomonobu Senjyu
Received: 3 February 2017 / Revised: 25 April 2017 / Accepted: 25 April 2017 / Published: 28 April 2017
(This article belongs to the Section Energy Sustainability)
View Full-Text   |   Download PDF [1033 KB, uploaded 28 April 2017]   |  

Abstract

Following the “going out” strategy, Chinese oil and gas companies have been widely involved in investing and operating business abroad to mitigate the increasing energy imbalance between supply and demand. Overseas oil investment, characterized by high risks and high returns, plays a significant role in ensuring energy security and strengthening global competitiveness in China. However, compared with overseas upstream projects, the downstream oil refining investment is still in the preliminary development stage, with limited experience for references, which further increases the risk surrounding such multibillion-dollar ventures. Hence, it is significant to assess the investment risks so as to help investors be fully aware of them and then make optimal investment decisions. To this end, this paper successfully identifies the main risk factors, including the local investment environment risk, technical risk, organization management risk, health, safety and environment (HSE) and social responsibility risk, and economic risk. Then, a qualitative-quantitative comprehensive risk evaluation method, combining the fuzzy mathematics and the grey system theory, is proposed and applied to analyze the investment risks of one Chinese overseas oil refining project as a case study. The assessment results are basically in accordance with the practical conditions, which validate the reliability and reasonability of the proposed risk assessment model in regard to the overseas oil refining project. The findings of this research provide the theoretical foundation and practical methodology of the risk analysis for future investment in oil refining areas. View Full-Text
Keywords: overseas oil refining project; risk assessment; fuzzy-grey comprehensive evaluation; analytical hierarchy process overseas oil refining project; risk assessment; fuzzy-grey comprehensive evaluation; analytical hierarchy process
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

Scifeed alert for new publications

Never miss any articles matching your research from any publisher
  • Get alerts for new papers matching your research
  • Find out the new papers from selected authors
  • Updated daily for 49'000+ journals and 6000+ publishers
  • Define your Scifeed now

SciFeed Share & Cite This Article

MDPI and ACS Style

Li, H.; Dong, K.; Jiang, H.; Sun, R.; Guo, X.; Fan, Y. Risk Assessment of China’s Overseas Oil Refining Investment Using a Fuzzy-Grey Comprehensive Evaluation Method. Sustainability 2017, 9, 696.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top