Research on Improving Logistics Efficiency in the Iraqi Oil and Gas Industry

Abstract

Currently many international companies in Iraq struggle to implement successful oil and gas projects due to poor logistics. Although dramatic improvement is required, improvements in logistics are proceeding only very slowly. This research identifies the current logistics status in the Iraqi oil & gas industry and measures the relative efficiency of Iraq logistics in comparison with 157 countries using the two-stage DEA model:the first stage evaluates the efficiency of supply chain service delivery,and the second stage measures the national logistics efficiency to the local economy. The overall efficiency of national logistics is also measured. We then provide practical recommendations to improve logistics and the economy based on the results of efficiency score, return to scale (RTS), reference set and DEA projection value. We recommend that Iraq reengineersits customs processes, increase its investment on infrastructure, and improvesthe quality of its services by attracting global logistics service providers.