Prioritization of reputation loss factor subject to pipeline explosion

Abstract

The impact of onshore oil and gas pipeline accident i.e., explosion varies depending on the pipeline location, transported product, proximity of residential areas and etc. Pipeline owner's reputation is threatened once an accident takes place, which influences stakeholders' perceptions consequently. This study focuses on prioritizing the importance of the reputation loss factors according to the experts' judgments. Twenty two reputation loss factors were identified from 10 major pipeline explosion post-accident case studies. Nine experts were interviewed to rate importance level of the reputation loss factors using 10-point Likert scale rating method. The significance difference was obtained by the implementation of statistical analysis. Relative Importance Index (RII) was used to identify the importance level of the factor and Analytical Hierarchy Process (AHP) method for prioritization process with the aid of Super Decisions software. Results show that all reputation loss factors are categorized within index number 4-10. The first factor with the highest importance value and priority vector corresponds to each stakeholder for both RII and AHP methods are similar, i.e., A2 "Services or sales progress disturbed", B1"Loss of customer confidence", D3 "Severity of accident" and C4 "CEO refuses to take responsibility". "Job application for positions reduced" is the least priority. Thus, understanding the importance of the reputation loss factors and identifying the priority of which factor to be taken care of are suggested to the pipeline operators in the post-accident responses. Hence, the reputation loss impact can be reduced and annual profit margin is secured. © 2015 Asian Network for Scientific Information.