Impact of Procurement on Service Quality of the Oil and Gas Industry: Case Study of TechnipFMC in Azerbaijan

Abstract

Oil and gas energy is very crucial to human life which has an enormous impact on the economies of both importer and exporter countries. Indeed, the oil and gas production sector not only contribute to the public life of the active market player countries, but also to the rest of the world. The revelation of hydrocarbons has made a huge difference in the world's industrial growth along with facilitating the transportation at both the national and international levels. Namely, the role of oil and gas energy can be evaluated as the facilitative factor in the daily life activities cooking, heating, electricity, transportation, and as such (Bastianoni et al., 2005). The oil and gas sector has been a big income stream for countries, which remarkably contributes to the GDP level and economic growth. For instance, over the past 30 years, the petroleum industry has added more than NOK 8000 billion to the Norwegian economy. In 2008, the oil and gas sector made up 27% of the country's total value which is three times more than the value made by soil industries and about 23% more than the value made by the country's primary sectors (Norwegian Petroleum Activities, 2022). The global oil and gas industry generates sufficient amount regarding money, taxation, and job opportunities; an estimated 7 million people are directly engaged in the oil and gas industry, and an extra 62 million or so jobs are also created by the industry (ILO Library, 2022). On the other hand, oil and gas production can be considered as a potential threat to the environment, people's health, and traditions regarding its side effects. Namely, pollution is the most common and serious side effect of exploration and production work in this context. Throughout drilling, manufacturing, modifying, and shipping, more than 900 different chemicals are released into the air, water, and soil. Considering the fact that oil and petroleum products, are commonly consumed all around world, the aforementioned environmental consequences appears as long lasting process by the inevitable costs in the long-term manner in terms of geographic, sociocultural, and fiscal factors.