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

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  • 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
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    References listed on IDEAS

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    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).
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    Cited by:

    1. Oz Sahin & Edoardo Bertone, 2022. "Sustainable Development of Energy, Water and Environment Systems (SDEWES)," Sustainability, MDPI, vol. 14(21), pages 1-4, October.
    2. 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.

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