Finding Values in the Oil and Gas Supply Chain Model
CSC's Chuck Poirier & Oracle's O. Oscar Torres
You don’t need us to tell you that these are difficult times for supply chains in the oil and gas industry. We are probably in for a year or more of turbulence, during which companies will struggle to navigate the troubled waters. But there are solutions that can ease the pain and complexity. These solutions can add revenue, cut costs, and increase profits during these challenging circumstances.
One aspect of that possibility will come from a renewed focus on the end-to-end logistics that occur from beginning suppliers to delivery of petroleum products to consumers. The leaders are looking to find any value in the oil and gas industry supply chain model that have been missed — particularly in transportation and warehousing.
This paper is designed to briefly explore a contemporary approach to a fairly well known and stable business practice, which is the packaging, loading, storing and transferring of goods across an extended supply chain model, and to determine if there are values that have not been found.
Value Chain of the Oil and Gas Industry Opportunities
For those enterprises in the oil and gas industry, the supply chain model starts with raw materials such as copper and steel, drilling equipment, mudding, and specialized tools. It extends through manufacture of products necessary to construct drilling rigs, off-shore platforms and a host of facilities in often very inhospitable parts of the planet. It continues through production, transport, and refining until the products are consumed by the people who need fuel and lubricants to keep their trucks and autos running. It certainly includes the products and services brought to the operating systems by those companies representing the oil and gas field services businesses.
Along the way, we see ample opportunity to use the circumstances of difficult economic conditions to drive an organization to find current solutions that help the top (revenues) and bottom (costs/profits) lines of the financial statements.
Download Finding the Hidden Values Remaining in the Oil and Gas Supply Chain (PDF, 189 KB).