Work

Optimizing the crude oil trade network: Balancing cost and environmental impact

Year: 2025

Type: article

Abstract: The global crude oil trade network, a cornerstone of energy supply chains, suffers from structural inefficiencies that amplify environmental damage and geopolitical risks. This study aims to (1) develop an optimization model reconciling logistical costs with CO 2 emissions, (2) quantify energy savings from route restructuring, and (3) assess how geopolitical disruptions reshape trade patterns. Using network theory—Minimum Spanning Tree and Shortest Path algorithms—we reconfigure the 2018 crude oil network (178 countries, UN Comtrade data) by prioritizing proximity, volume, and emission constraints. Results reveal stark contrasts: the optimized network reduces total energy consumption by 81 % for importers and 85 % for exporters, achieved through streamlined routes and redistributed trade flows. Geopolitical shifts, including post-Ukraine war sanctions and U.S.-China competition, are shown to dynamically reshape trade patterns, favoring regionalized supply chains over traditional hubs. Environmental assessments highlight maritime transport as a critical emission source, underscoring the dual benefit of route optimization in curbing both economic costs and carbon footprints. The study underscores the necessity of integrating environmental metrics into trade policy frameworks. By decoupling logistical optimization from emission analysis, it offers a scalable model for balancing energy security with sustainability. Policymakers are urged to adopt adaptive strategies that mitigate geopolitical risks while advancing decarbonization goals, particularly amid escalating global tensions and climate imperatives. This research bridges structural and behavioral dynamics in oil trade networks, providing a roadmap for resilient, low-carbon energy systems in an era of unprecedented geopolitical and ecological challenges. • Optimized crude trade cuts energy use by 81–85 % for importers and exporters. • Including CO 2 emissions in trade models drastically reduces shipping carbon footprints. • Post-Ukraine war sanctions shift crude oil trade toward regional supply chains. • Maritime route optimization is crucial for lowering transportation emissions. • Policy must integrate environmental costs for sustainable energy security.

Source: Energy Strategy Reviews

DOI: 10.1016/j.esr.2025.101900

Authors: Najmeh Sajedianfard, Rouhollah Shahnazi

Institutions: University of Isfahan, Shiraz University

Language: English

Topic: Global Energy Security and Policy

Subfield: General Energy

Field: Energy

Domain: Physical Sciences

SDGs: Climate action, Industry, innovation and infrastructure, Affordable and clean energy

Open Access status: gold

Estimated APC paid: $4,180