IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i10p5882-d814276.html
   My bibliography  Save this article

An Evaluation of the Petroleum Investment Environment in African Oil-Producing Countries Based on Combination Weighting and Uncertainty Measure Theory

Author

Listed:
  • Hujun He

    (School of Earth Science and Resources, Chang’an University, Xi’an 710054, China
    Key Laboratory of Western Mineral Resources and Geological Engineering, Ministry of Education, Xi’an 710054, China)

  • Wei Li

    (School of Earth Science and Resources, Chang’an University, Xi’an 710054, China)

  • Rui Xing

    (School of Earth Science and Resources, Chang’an University, Xi’an 710054, China)

  • Yichen Zhao

    (School of Earth Science and Resources, Chang’an University, Xi’an 710054, China)

Abstract

Recognizing that the evaluation of the overseas petroleum investment environment is affected by many uncertain factors and that there are problems with current evaluation methods, this paper proposes a mathematical evaluation model of an overseas oil resources investment environment, based on a combination of the weighting and uncertainty measure theory. Combining international investment environment theory with the characteristics of the petroleum industry, this paper establishes an evaluation index system for the overseas petroleum investment environment and the linear uncertainty measure function of each index. Using the subjective weight obtained using an analytic hierarchy process together with the objective weight obtained using the entropy weight method, the optimal weight of each evaluation index was obtained using minimum relative information entropy. A multi-index evaluation matrix of the top 12 oil-producing countries in Africa was calculated. Finally, the credible degree recognition criterion was used to judge the order and level of the oil investment environment. This model provides an effective method for the evaluation of the overseas petroleum investment environment. The results show that Nigeria and Angola have the best investment climate, followed by Algeria, Egypt, and Libya. In general, Africa is an important strategic partner of China and is rich in oil resources. Although Africa’s oil industry is fraught with complex challenges and headwinds, challenges also present opportunities.

Suggested Citation

  • Hujun He & Wei Li & Rui Xing & Yichen Zhao, 2022. "An Evaluation of the Petroleum Investment Environment in African Oil-Producing Countries Based on Combination Weighting and Uncertainty Measure Theory," Sustainability, MDPI, vol. 14(10), pages 1-13, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:10:p:5882-:d:814276
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/10/5882/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/10/5882/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hujun He & Yumei Yan & Cuixia Qu & Yue Fan, 2014. "Study and Application on Stability Classification of Tunnel Surrounding Rock Based on Uncertainty Measure Theory," Mathematical Problems in Engineering, Hindawi, vol. 2014, pages 1-5, October.
    2. Kong, Qunxi & Guo, Rui & Wang, Yang & Sui, Xiuping & Zhou, Shimin, 2020. "Home-country environment and firms’ outward foreign direct investment decision: Evidence from Chinese firms," Economic Modelling, Elsevier, vol. 85(C), pages 390-399.
    3. Odgaard, Ole & Delman, Jørgen, 2014. "China׳s energy security and its challenges towards 2035," Energy Policy, Elsevier, vol. 71(C), pages 107-117.
    4. Feng, George & Mu, Xianzhong, 2010. "Cultural challenges to Chinese oil companies in Africa and their strategies," Energy Policy, Elsevier, vol. 38(11), pages 7250-7256, November.
    5. Zhao, Yong & Shi, Xunpeng & Song, Feng, 2020. "Has Chinese outward foreign direct investment in energy enhanced China's energy security?," Energy Policy, Elsevier, vol. 146(C).
    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. Hujun He & Yichen Zhao & Hongxu Tian & Wei Li, 2022. "Risk Evaluation of Overseas Mining Investment Based on a Support Vector Machine," Sustainability, MDPI, vol. 15(1), pages 1-14, December.
    2. Oz Sahin & Edoardo Bertone, 2022. "Sustainable Development of Energy, Water and Environment Systems (SDEWES)," Sustainability, MDPI, vol. 14(21), pages 1-4, October.

    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. Xiaoxiao Hu & Ling He & Qi Cui, 2021. "How Do International Conflicts Impact China’s Energy Security and Economic Growth? A Case Study of the US Economic Sanctions on Iran," Sustainability, MDPI, vol. 13(12), pages 1-21, June.
    2. Zijie Yang & Dong Huang & Yuqing Zhao & Wenqian Wang, 2022. "A Bibliometric Review of Energy Related International Investment Based on an Evolutionary Perspective," Energies, MDPI, vol. 15(9), pages 1-21, May.
    3. Kong, Zhaoyang & Lu, Xi & Jiang, Qingzhe & Dong, Xiucheng & Liu, Guixian & Elbot, Noah & Zhang, Zhonghua & Chen, Shi, 2019. "Assessment of import risks for natural gas and its implication for optimal importing strategies: A case study of China," Energy Policy, Elsevier, vol. 127(C), pages 11-18.
    4. Peng, Dan & Ji, Y. & Kong, Qunxi, 2023. "OFDI and firms' sustainable productive capacity: Evidence from Chinese industrial firms," International Review of Economics & Finance, Elsevier, vol. 83(C), pages 641-652.
    5. Xing Zhou & Quan Guo & Ming Zhang, 2021. "Impacts of OFDI on Host Country Energy Consumption and Home Country Energy Efficiency Based on a Belt and Road Perspective," Energies, MDPI, vol. 14(21), pages 1-25, November.
    6. Huiying Zhang & Yikang Liu, 2022. "Do Foreign Direct Investment and Migration Influence the Sustainable Development of Outward Foreign Direct Investment? From the Perspective of Intellectual Property Rights Protection," Sustainability, MDPI, vol. 14(9), pages 1-18, April.
    7. Shao, Yanmin & Qiao, Han & Wang, Shouyang, 2017. "What determines China's crude oil importing trade patterns? Empirical evidences from 55 countries between 1992 and 2015," Energy Policy, Elsevier, vol. 109(C), pages 854-862.
    8. Li, Sisi & Khan, Sufyan Ullah & Yao, Yao & Chen, George S. & Zhang, Lin & Salim, Ruhul & Huo, Jiaying, 2022. "Estimating the long-run crude oil demand function of China: Some new evidence and policy options," Energy Policy, Elsevier, vol. 170(C).
    9. Tang, Erzi & Peng, Chong, 2017. "A macro- and microeconomic analysis of coal production in China," Resources Policy, Elsevier, vol. 51(C), pages 234-242.
    10. Kong, Qunxi & Shen, Chenrong & Chen, Afei & Peng, Dan & Wong, Zoey, 2021. "How demand scale affect services exports? Evidence from financial development perspective," Research in International Business and Finance, Elsevier, vol. 58(C).
    11. Salim, Ruhul & Yao, Yao & Chen, George S., 2017. "Does human capital matter for energy consumption in China?," Energy Economics, Elsevier, vol. 67(C), pages 49-59.
    12. Zhu, Bo & Deng, Yuanyue & Hu, Xin, 2023. "Global energy security: Do internal and external risk spillovers matter? A multilayer network method," Energy Economics, Elsevier, vol. 126(C).
    13. Kong, Qunxi & Shen, Chenrong & Li, Rongrong & Wong, Zoey, 2021. "High-speed railway opening and urban green productivity in the post-COVID-19: Evidence from green finance," Global Finance Journal, Elsevier, vol. 49(C).
    14. Ming Zhang & Qing Xia & Wenwen Wang & Min Zhou, 2014. "Study on temporal and spatial evolution of China’s oil supply and consumption," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 72(2), pages 809-825, June.
    15. Kong, Qunxi & Shen, Chenrong & Sun, Wei & Shao, Wei, 2021. "KIBS Import Technological Complexity and Manufacturing Value Chain Upgrading from a Financial Constraint Perspective," Finance Research Letters, Elsevier, vol. 41(C).
    16. Tong Sheng & Bingquan Fang & Xiaoqian Lu & Xingheng Shi & Chaohai Shen & Xiaolan Zhou, 2022. "The Relationship between Corporate Social Responsibility, Global Investment, and Equity Incentives," Sustainability, MDPI, vol. 14(23), pages 1-27, December.
    17. Nana Geng & Yong Zhang & Yixiang Sun & Yunjian Jiang & Dandan Chen, 2015. "Forecasting China’s Annual Biofuel Production Using an Improved Grey Model," Energies, MDPI, vol. 8(10), pages 1-20, October.
    18. Xianhui Mao & Ankui Hu & Rui Zhao & Fei Wang & Mengkun Wu, 2023. "Evaluation and Application of Surrounding Rock Stability Based on an Improved Fuzzy Comprehensive Evaluation Method," Mathematics, MDPI, vol. 11(14), pages 1-19, July.
    19. Lin Liang & Lei Jin & Gurpreet Singh Selopal & Federico Rosei, 2023. "Peace Engineering in Practice: China’s Energy Diplomacy Strategy and Its Global Implications," Sustainability, MDPI, vol. 15(2), pages 1-17, January.
    20. Kimiagari, Salman & Mahbobi, Mohammad & Toolsee, Tushika, 2023. "Attracting and retaining FDI: Africa gas and oil sector," Resources Policy, Elsevier, vol. 80(C).

    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:14:y:2022:i:10:p:5882-:d:814276. 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.