Best practices in oil and gas supply chain and procurement. A study of sustainability in the oil and gas supply chain. I choose to purchase your training course because its a whole package for the oil value chain and is very detailed. The concept of value chain analysis is therefore useful in several ways such as. Oil production includes drilling, extraction, and recovery of oil from underground. If a reservoir contains both oil and gas, the gas it contains is called associated gas. Global gas market introduction supply and demand balance opportunities for africa natural gas. The value provided by the customer is extracted along the supply chain by integrating and streamlining processes. Our goal is to raise the level of awareness around the natural gas supply chain among key stakeholders in order to facilitate positive working relationships and more informed decision making.
Natural gas accumulation types associated and nonassociated gas sweet and sour natural gas natural gas industry value chain various products of raw gas natural gas supply. Overview the first step in the oil supply chain is production. Sources of revenue in the value chain acquisition costs crude oil and natural gas sales. Industrial internet of things iiot impact on the oil. Whether they are emerging players developing the oil and gas sector based on newly discovered resources, or longestablished companies managing mature and complex oil and gas. Lng value chain value propositions golng main page. Lng value chain domestic gas value chain domestic market introduction domestic use of gas natural gas power generation. They operate storage terminals and distribution facilities throughout the country. The primary way to describe the quality of oil is in terms of its sweetness and heaviness.
Domestic gas value chain domestic market introduction domestic use of gas. Introduction an introduction to natural gas deposits is to geologists. Oil and gas trends 2019 building growth strategies on shifting sands. The main drivers in the energy sector and the value chain. World production of oil and gas 1900 2100 2300 2500 2700 2900 3100 3300 3500 60000 65000 70000 75000 80000 85000. A study of shale gas production and its supply chain by yuwen yang bachelor of engineering, beihang university, beijing, 20.
They must operate more efficiently than ever while maintaining high safety and environmental protection standards. The four gas courses explore different types of gas processing, transportation, storage, and markets, including ngl, lng, pipelines, and load balancing. Is blockchains future in oil and gas transformative or transient. Value chain analysis of the natural gas industry alboran. The palm oil global value chain center for international.
This course provides a nontechnical introduction to the basic concepts of. During production, crude oil is produced on both land and at sea. Crude oil, a fossil fuel, is the most widely used energy source in the world, accounting for 31 percent of. In 2014 equinor realized that the end had come for handling technical requirements as text in word documents and publishing them as pdf files. With a compelling value proposition, many oil and gas companies. Today, there are a number that are registered with the department of energy. Production ep, gas and power, oil products, chemicals, and other industry segments. Pdf organizations in the oil and gas industry often deal with a variety of logistic challenges. The value chain analysis, as popularized by porter 1985, investigates the. National oil companies nocs in resourcerich countries should take a holistic approach to the management of activities across the oil and gas value chain. The following sections present a macro level analysis of the main factors and key actors which influence inve stments in the two value chains. Capgemini developed the downstream integrated value chain optimization divco framework as an industry specific strategy and solution methodology capable of integrating the entire downstream oil value chain into one.
We believe that a fully integrated supply chain has the power to drive real value for energy businesses revolutionizing the industry, creating new solutions and savings. Difficulty optimising throughout supply chain why oil and gas customers partner with schneider electric. The final two courses cover important aspects of the oil and gas value chain. Value chain in oil and gas sector penplusbytes february.
The oil and gas industry is undergoing a fundamental change, which is unlikely to reverse if and when oil prices increase. Understanding natural gas and lng options developed by funded by contributing partners ghana ministry of petroleum. It appears as a significant risk with a high impact on the national economy. The terms upstream, midstream and downstream are often used to refer to the major sectors or. The background was the increasing cost level in the oil and gas industry, were some of the cost was related to enormous number of requirements distributed out in the value chain as part of contracts. The dutch banks involved in the dba identified the following types of financing they provide to.
Value chain and policy analysis of fossil fuel trade. Under this value chain study package 1 fossil fuel use was examined for electricity generation coal, oil and gas, the use of refined fossil fuels in transportation gasoline, diesel etc. Oil and gas companies face a challenging environment today. This energy source is what fuels cars, provides electricity to heat homes and. Companies in the industry develop conventional and unconventional oil and gas reserves. The oil, gas and mining policy division of the world bank is undertaking a study on nocs and value creation, and this draft version of chapter 1 of the study has been published to. The concept of value chain analysis is therefore useful in several ways such as identifying constraints and opportunities in the oil and gas industry. The oil and gas found in the ground come in different grades or qualities.
Along its supply chain, oil passes through different legal frameworks as it moves from one country to another. A study of shale gas production and its supply chain yuwen yang, m. The role of the oga supply chain team is to promote and strengthen the supply chain and exports and focus on developing a strong and competitive uk based oil and gas sector. The petroleum supply chain is extremely inflexible and complicated. Oil and gas value chain solutions confidential property of schneider electric page 10.
Pdf supply chain innovations in the oil and gas industry. Extractive industry basics the petroleum value chain. These parts of the value chain are usually referred to as. Our goal is to raise the level of awareness around the oil. Until recently, there were very few nonrefining wholesalers supplying petrol and diesel in south africa. It includes the selling and distribution of processed natural gas and the products derived from petroleum crude oil such as liquified petroleum gas lpg, gasoline or petrol, jet fuel, diesel oil, other fuel oils, petroleum asphalt and petroleum coke. A study of sustainability in the oil and gas supply chain by tijiani abubakar a thesis submitted in partial fulfilment for the requirements for the degree of. Implications for economic growth and social and environmental sustainability. Supplychain management in the oil industry e3s web of. Four areas of consideration can help shape the discussion and lead key players to.
Eys experience across the oil and gas value chain and key alliances with leading technology firms best position ey to help companies make these changes. The value chain for offshore oil and gas and the value chain for offshore wind are both part of the global market for energy. Furthermore, these three represent the chronology of critical oil and gas activities. Significantly, it is key to follow the steps in the value chain. These steps involves decision making, the legal and regulatory framework, licensing and contracting among others. 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 this important form of energy grows by 50% in. The oil and gas industry is divided into three components or sectors. Is blockchains future in oil and gas transformative or. The report examines the distribution of value across the oil and gas value chain, the existing governance model between lead firms and suppliers, the geographic distribution of production and trade flows, and the institutional structure of the oil and gas value chain. And gas industry wrote about the role of supplychain management in the oil.
Note that these three sectors also correspond to the three major categories of activities of the oil and gas industry value chain. Companies need to embrace these changes and decide which approach to follow and which market to play in. The environmental concerns in exploration is also crucial. Interest is maintained throughout each session by use of a. Weve built redundancy and resiliency into our supply chain in order to prevent incidents and ensure that if events occur, they produce the. We enable clients to create efficiencies now while transforming for longterm growth in a. The first part covers the exploration, production and transportation of crude oil and gas to the point of transformation into final products i.
Global energy markets trade programme 49 pipeline economics costs associated with pipeline construction depend on. As a result of the survey, the members had greater knowledge of the wider fiscal base of the industry. The oil course covers, crude transportation and storage. Creating the integrated value chain for downstream oil. Funded by understanding natural gas and lng options. The supplychain in the oil and gas industry is global and involving international trade system. The oil and gas industry natural resource governance.
Pwc was commissioned by the trade association oil and gas, uk to undertake a total tax contribution survey of its members which includes not only the oil and gas producers, but also the supply chain for the upstream oil and gas industry in the uk. The supply chain in the oil and gas industry is global and involving international trade system. Accelerations in shale oil and gas production have been due to advancements in horizontal drilling and hydraulic fracturing technologies. In the oil and gas industry, with its global reach, complexity, and diverse regulations, simplifying and improving the paperwork and processes of global product movement is a business imperative.