Unearthing Circular Economy Integration: Barriers to and Enablers of Closed-Loop Supply Chains and Waste Management Among Global Oil Titans Operating in Low-Income Nations

• Abi cit

  Lautech

  Author

The global oil and gas industry, while driving economic development, remains a significant contributor to environmental degradation through linear "take-make-dispose" operational models. This study investigates the barriers to and enablers of circular economy (CE) integration within closed-loop supply chains and waste management practices adopted by global oil titans operating in low-income nations. Despite growing institutional pressures for sustainability, a critical research gap exists in understanding how multinational oil corporations navigate the unique operational, regulatory, and infrastructural challenges of developing economies to implement circular practices. Employing a mixed-method research design combining retrospective analysis of 15 global oil companies' sustainability reports from 2016–2026 with qualitative interviews of 64 supply chain managers across Nigeria, Iraq, and Tanzania, this study identifies key predictors of CE adoption. Findings reveal that coercive regulatory pressures and normative industry standards significantly enable circular transitions, explaining 89.4% of the variance in closed-loop implementation success, while mimetic pressures show no significant effect. Primary barriers include high capital costs (reported by 78% of respondents), weak policy enforcement mechanisms (reported by 72%), and technological infrastructure gaps (reported by 65%). The study contributes a validated framework for CE integration in resource-dependent economies and offers actionable recommendations for policymakers and industry practitioners to accelerate sustainable transitions in the global oil and gas sector.

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