Supply chain in oil and gas industry pdf

Whether upstream, midstream, or downstream, oil and gas businesses can add improvements in their supply chains, turning logistics into a competitive advantage. The upstream sector involves the exploration for and extraction of. The petroleum supply chain consists of all those activities related to the petroleum industry, from the recovery of raw materials to the distribution of the finished. The upstream process includes the exploration, forecas ting, production, and logistics.

The oil and gas industry play a critical role in driving the global. The overall aim is to develop an empirical model of sustainable supply chain characteristics that improves resource utilisation, profit maximization and competitiveness in the oil and gas industry. To do business with shell, wmbes must understand how the oil and gas supply chain works. Five strategies to transform the oil and gas supply chain. Pdf supply chain innovations in the oil and gas industry. Pdf supply chain management in the petroleum industry contains various challenges, specifically in the logistics area, that are not present in most other industries. Operations are changing at every link in the supply chain, as companies adopt new and emerging technologies, digitize their enterprises, and streamline processes. Supply chain market intelligence is key to any industry, and more so for the dynamic oil and gas industry. The outbound supply chain the supply chain associated with taking away the oil and gas produced by the field.

The oil industry is one of the few truly global industries. In the former, the total acquisition cost for a particular equipment or service is arrived at by taking into account the design cost. Industry feedback on good and bad practice will be incorporated into oguks guidelines for implementing the new supply chain principles, which will be published in q2 2019. Goods and services we source from local suppliers include. To conclude, the supply chain of the oil and gas industry is a complex and a highly technical sector that generates enough revenue for the government and seeks to bring development and improve living standards. Challenges and opportunities raed hussain department of quantitative. Over the past 24 months, companies in the oil and gas supply chain have gone from boom to bust. Apply to analyst, business analyst, purchaser and more. Oil production includes drilling, extraction, and recovery of oil from underground. This provides access to the vital business information that supports better decisions, increasing productivity and helping to meet demand more precisely and costeffectively.

We encourage, influence and promote the uks oil and gas industry to achieve mer uk and to increase total value added tva. Supply chain analyst oil gas industry jobs, employment. The main trend in the oil and gas industry to watch for in 2019, is the oil and gas supply. Given its size, i will exclude gas altogether and only mention the petrochemical leg of the supply chain in the industry overview, however not. The oil and gas industry needs supply chain contractors and an efficient relationship with thirdparty providers in order to deliver the desired outcomes, meet budget specifications, and create a safe working environment for employees and operations. Supplier diversity manager debra stewart tells you everything you need to know. The group provides the full range of logistics services across the supply chain to customers in the energy sector, from express document, and oiltolab shipment, resupply to. Suppliers are critical to our success as a business. Here are five strategies oil field service and equipment companies are exploring to adjust to the changing environment.

Proppant manufacturers arent the only companies in the oil and gas industry that can benefit by taking a fresh look at gaps in their supply chains. During production, crude oil is produced on both land and at sea. Pdf supply chain management in the petroleum industry. The oil and natural gas supply chains can be complicated and sometimes obscure systems to many who rely on their products and services. The oil and gas industry is involved in a global supplychain that includes domestic and international transportation, ordering and inventory visibility and control, materials handling, importexport facilitation and information technology. Companies in the oil and gas supply chain have gone from boom to bust in the past two years. Optimal supply chain management in oil, gas and power. Pdf supplychain management in the oil industry researchgate. Larger than just one company, or even one industry, it is a fullscale. Furthermore, we have also found in exxonmobil the predominant silos culture of the industry in the organization of the different parts of the supply chain, even if a progressive shift towards an integrative supply chain perspective is occurring. Pdf supplychain management issues in the oil and gas.

The petroleum industry traditionally had prices decided by the government of india. A typical oil supply chain begins with the crude oil producer, next, the oil moves to the refiner, the transporter, the retailer and finally to the gas pump where a customer receives the product. In a supplychain, a company is linked to its upstream. A direct focus will be placed on the company phillips 66. Pdf challenges in supply chain management in upstream. Strategic supply chain and procurement best practices in. A study of sustainability in the oil and gas supply chain. Reimagining supplychain collaboration in a lowoilprice. However, to date, these technologies have been primarily focused on improving time to first oil and improving the effectiveness of hydrocarbon extraction, rather than above ground operational performance and endtoend integration. The oil and gas industry is involved in a global supply chain that includes domestic and international transportation, ordering and inventory visibility and control, materials handling, import.

Creating the integrated value chain for downstream oil. Oil and gas slowing economic expansion is crimping demand growth for crude oil, although its likely to grow around 1. He is also sourcing and procurement lead for accenture s north america oil and gas practice. Api has created supply chain models for both oil and natural gas to communicate, in the simplest terms, how the industry works. Assessment, downstream petroleum, supply chain, challenges and prospects, ghana. The value of supplychain collaboration has been and continues to be proven, and the future holds the possibility of making major projects profitable, even at oil prices where that was previously thought. Oil refining and distribution represents the downstream piece of the oil value chain, where crude oil that has been located and extracted is refined i. The top oil and gas industry trends of 2019, were identified by globaldata researchers, and in their research they use data on online engagement, the number of mentions on twitter, and different expert analysis. Vision 2040 global scenarios for the oil and gas industry 5 how to read the study few areas of the economy are as volatile literally and figuratively as the oil and gas sector. This oil industry is strategic as the base of transportation and other essential activities of the economy of any country. From oil and gas extraction to crude oil and gas delivery, from the pipelines to the refinery. Best practices in oil and gas supply chain and procurement. The research will be exploring the downstream segment of the oil and gas industry.

You will become familiar with the various phases of the oil and gas value chain upstream, midstream and downstream the key industry players, the basics of oil and gas supply, demand and pricing and the challenges that the industry faces as demand for these important forms of energy grows by 50% in the next 25 years. Overview the first step in the oil supply chain is production. Pdf organizations in the oil and gas industry often deal with a variety of logistic challenges. And gas industry wrote about the role of supplychain management in the oil in dustry. The future of supply chain management in the downstream core. Our goal is to raise the level of awareness around the oil. Cem dogan is a managing director in accenture s resources operating group, with a focus in supply chain management.

The terms upstream, midstream and downstream are often used to refer to the major sectors or operational components of the petroleum industry. Here the challenges center around the fact that as traditional oilfields left. The oil and gas industry is one of the worlds most advanced user of technology. Supply chain solutions another supply chain solution that can help the oil and gas company in pricing negotiations is the use of the shouldcost model, and in addition, the total cost of ownership tco model.

Four areas of consideration can help shape the discussion and lead key players to. Thus, the industry offers a classic model for implementing supplychain management techniques. In oil and gas, a connected production environment breaks down geographical barriers, securely providing access to. The book is a resource for chief operating officers. By developing the local content, the sector could employ a lot of people to improve living standards in the along the supply chain. Opec continues to constrain supply even as overall production keeps rising, possibly ahead of. Introduction the petroleum industry plays an important role in the economic development of the country performance of its supply chain has become very important 2. After a decade of increasing costs and complexity, it is time for the oil and gas industry to reimagine the capital project supply chain.

Along its supply chain, oil passes through different legal frameworks as it moves from one country to another. Breakthrough innovation and growth explores the impact that innovation has on growth and examines how leading companies are making innovation work for their organisations. Effective supply chain market intelligence helps oil and gas companies deal with strategic supply chain challenges, such as constrained capacity, infrastructure and volatile markets. He has 27 years of consulting experiences in supply chain management, operations and business strategy. Download pdf version the path oil and gas travels from extraction to end consumer is in a state of transformation. Supplychain management in the oil industry e3s web of. Following the success of the 2019 conference, the 2nd annual oil and gas supply chain and procurement canada summit will feature a stellar lineup of over 30 leading industry speakers from the top canadian oil and gas companies. The oil and gas industry is involved in a global supplychain that includes domestic and international transportation, ordering and inventory visibility and control. We also work with local suppliers to build capability and meet the international standards required by the oil and gas industry. Challenges facing supply chain management in the oil.

Operational excellence in the oil and gas industry. The upstream sector of oil and gas industry is involved in a global supplychain that includes domestic and international transportation, ordering and inventory visibility and control, materials. We rely on suppliers to deliver key components of our operations. Is blockchains future in oil and gas transformative or transient. How oilfield services consolidation transforms the value chain. Progress in implementing the supply chain principles will be measured in the 2019 ogukdeloitte collaboration survey. Pdf supplychain management issues in the oil and gas industry. Introduction the oil and gas industry is one of the largest and most complex industries in the world today that touches on peoples everyday lives with services ranging from transportation, electricity, heating, lubricants and a host. Is blockchains future in oil and gas transformative or. Husain in his article supply chain management in the petroleum industry. Creating the integrated value chain for downstream oil 1 background energy, utilities and chemicals the way we see it figure 1. Planning and optimising of petroleum industry supply chain and.