The Environmental Strategic Analysis of Oil & Gas Industries in the Kurdistan Region Using PESTLE, SWOT and FDEMATEL

Document Type: Original Research Paper


School of Environment, College of Engineering. University of Tehran, P.O.Box 14155-6135, Tehran, Iran


The need for oil and natural gas as a major source of energy is vital. On the one hand, it has affected the political and economic equations at the international, regional and national level. On the other hand, it has had negative effects on sociocultural, legal, and environmental aspects as well as on the physical and mental health of human beings. Therefore, the need to provide an environmental policy that addresses the various dimensions of the oil and gas industry will be necessary. The present paper aims to set up a conceptual model of environmental policy for sustainable development in the oil and gas industries of the Kurdistan Region through the use of these 6 components: political, economic, sociocultural, technological, legal and environmental. It will also be using the techniques of PESTLE, SWOT, SPACE, FANP, FDEMATEL, and simulation with the VENSIM software. The results show the weights of the criteria respectively are Political; 1.59, Economic; 0.78, Sociocultural; 0.00, Legal; -0.99, Technological; -0.61 and Environmental; -0.70. So that all components are important, but that political and economic factors have a significant influence on environmental policies and oil and gas industries. Sociocultural components have a neutral role and the technological, legal and environmental components are impressible. Finally, fifteen strategies for the formulation of an effective environmental policy in the oil and gas industry were presented.


Alessi, S. (2000). Designing educational support in system-dynamics-based interactive learning environments. Simulation & Gaming., 31(2), 178-196.

Al-Saleem, K. I. (2015). The Legal Framework for the Sustainable Development of Iraqi Oil and Gas. Dissertation, University of Portsmouth

Aresti, M. L. (2016). Oil and Gas Revenue Sharing in Iraq. REVENUE SHARING CASE STUDY. Natural Resource Governance Institute.


BellemaIhua, U. Abiodun, O. O., Nnanna Eloji, K. and Ajayi, C. (2011). Entrepreneurial implications of Nigeria's oil industry local content policy: Perceptions from the Niger Delta region. Journal of Enterprising Communities: People and Places in the Global Economy., 5(3), 223-241.

Bianco, V., Scarpa, F. and Tagliafico, L. A. (2014). Analysis and future outlook of natural gas consumption in the Italian residential sector. Energy Conversion and Management., 87, 754-764.

Chapman, D. P. (2009). Security forces of the Kurdistan regional government. CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES WASHINGTON DC.

Chauhan, A. and Saini, R. P. (2014). A review on integrated renewable energy system based power generation for stand-alone applications: configurations, storage options, sizing methodologies and control. Renewable and Sustainable Energy Reviews., 38, 99-120.

Cohen, S. (2014). Understanding environmental policy. (New York: Columbia University Press)

Dargin, J. (2009). Securing the peace: The battle over ethnicity and energy in modern Iraq. Oil, Gas & Energy Law Journal (OGEL)., 7(1).

Deloitte. (2018). Kurdistan Regional Government of Iraq Oil production, export, consumption and revenue for the period 1 January 2017 to 30 June 2017.  

Duarte, C., Ettkin, L. P., Helms, M. M. and Anderson, M. S. (2006). The challenge of Venezuela: a SWOT analysis. Competitiveness Review: An International Business Journal., 16(3/4), 233-247.

Eckerberg, K. (2009). Environmental policy integration in practice: Shaping institutions for learning. (London: Earthscan)

El Fadel, M., Rachid, G., El-Samra, R., Boutros, G. B. and Hashisho, J. (2013). Knowledge management mapping and gap analysis in renewable energy: Towards a sustainable framework in developing countries. Renewable and sustainable energy reviews., 20, 576-584.

Erickson, S. L. and King, B. J. (1999). Fundamentals of environmental management. (New York: John Wiley & Sons)

Fontela, E. and Gabus, A. (1976). Current perceptions of the world problematique. World Modeling: A Dialogue. (Amsterdam/Oxford: North-Holland Publishing Company)

Forrester, J. W. (1997). Industrial dynamics. Journal of the Operational Research Society., 48(10), 1037-1041.

Forrester, J. W. and Forrester, J. W. (1971). World dynamics (Vol. 59). (Cambridge, MA: Wright-Allen Press)

Fozer, D., Sziraky, F. Z., Racz, L., Nagy, T., Tarjani, A. J., Toth, A. J. and Mizsey, P. (2017). Life cycle, PESTLE and multi-criteria decision analysis of CCS process alternatives. Journal of Cleaner Production., 147, 75-85.

Fred, R. D. and Forest, R. D. (2016). Strategic Management: A Competitive Advantage Approach, Concepts and Cases. (England: Pearson)

Gray, C. W. (2012). Petro-capitalism in Iraqi Kurdistan: Leveraging Oil and Gas Firms in Post-War Iraq. Thesis, Claremont McKenna College

Griffin, R. W. (2013). Fundamentals of management. Cengage Learning. (Mason, Ohio: South-Western)

Gurbuz, T. (2013, March). A Modified Strategic Position and Action Evaluation (SPACE) Matrix Method. (Paper presented at the in Proceedings of the International MultiConference of Engineers and Computer Scientists, Vol. 2, Hong Kong)

Harris, J. M. and Roach, B. (2018). Environmental and Natural Resource Economics. New York: Routledge.,

Huseby, A. B. and Haavardsson, N. F. (2009). Multi-reservoir production optimization. European Journal of Operational Research., 199(1), 236-251.

Johnson, G., Scholes, K. and Whittington, R. (2008). Exploring corporate strategy: text & cases. (England, Pearson education)

KRG. Ministry of Natural resources.  (2013). Discoveries and development oilfields.

KRG. Ministry of Natural resources. (2013). Licenses and energy infrastructures in Kurdistan region.

KRSO and CSO. (2018). Kurdistan Region Statistics organization and Central Statistical Office.  Demographic survey Kurdistan Region of Iraq.

Kulkarni, V. and Ramachandra, T. V. (2006). Environmental management, Commonwealth of learning, Canada and Indian Institute of Science, (Bangalore. New Delhi: Capital Publishing)

Lin, R. J. (2013). Using fuzzy DEMATEL to evaluate the green supply chain management practices. Journal of Cleaner Production., 40, 32-39.

Melikoglu, M. (2014). Shale gas: Analysis of its role in the global energy market. Renewable and Sustainable Energy Reviews., 37, 460-468.

Önüt, S., Kara S. S. and Işik, E. (2009). Long term supplier selection using a combined fuzzy MCDM approach: A case study for a telecommunication company. Expert systems with applications., 36(2), 3887-3895.

Ovadia, J. S. (2013). The Nigerian “One Percent” and the management of national oil wealth through Nigerian content. Science & Society., 77(3), 315-341.

Rimos, S. A., Hoadley, F. A. and Brennan, D. J. (2014). “Determining the economic consequences of natural gas substitution”, Energy Conversion and Management., Vol. 85, pp. 709-717.

Rows, H., Mason, R. and Dickel, K. (1982). "Strategic Management and Business Policy: Methodological Approach, Reading Massachusetts", Addison-Wesley publishing co.

Shieh, J. I., Wu, H. H. and Huang, K. K. (2010). A DEMATEL method in identifying key success factors of hospital service quality. Knowledge-Based Systems., 23(3), 277-282.

Sovacool, B. K. (2016). Countering a corrupt oil boom: energy justice, natural resource funds, and São Tomé e Príncipe's Oil Revenue Management Law. Environmental Science & Policy., 55, 196-207.

U.S. Government Publications Office (Ed.). (2013). International Energy Outlook 2013: With Projections to 2040. Government Printing Office.

Wawryk, A. S. (2003). International environmental standards in the oil industry: improving the operations of transnational oil companies in emerging economies. Oil Gas Energy Law Intell., 1(1), 1-27.

Wu, W. W. (2012). Segmenting critical factors for successful knowledge management implementation using the fuzzy DEMATEL method. Applied Soft Computing., 12(1), 527-535. Wahab, B. A. (2015). Oil federalism in Iraq: resource curse, patronage networks and stability. Case Studies of Baghdad, Kurdistan and the Advent of ISIS. Dissertation, University of George Mason

Yüksel, İ. and Dagdeviren, M. (2007). Using the analytic network process (ANP) in a SWOT analysis–A case study for a textile firm. Information Sciences., 177(16), 3364-3382.