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SUPPLY CHAIN IN OIL AND GAS SECTOR

NITIN BIGHANE NITIE

----- OIL AND GAS SUPPLY CHAIN CHALLENGE -----Manage and oversee the supply chains in an effective manner in order to reduce cost as well as to enhance and guarantee efficient operations.

Types of shipments made vary widely from gloves to pipes, valves, cranes, chemicals, cement, steel, and drilling rigs Immense array of supplies to be moved daily and frequently in large quantities domestically, globally, onshore and offshore A drilling contractor is required and as many as 45 or more different services are required to drill and complete each well Reliability of suppliers is must so as to reduce need of inventory of raw material, quality inspection systems, rework, and
other not-value adding activities, thus resulting in a lean production.

The supply-chain in tubular goods is important as delays in the arrival of pipes, casing, tubing, and other accessories, can
result in extensive rig downtime and consequently high operating costs.

SUPPLY CHAIN LINK IN OIL AND GAS INDUSTRY


Exploration Production Refining Marketing Consumer

CONFIGURATION QUESTIONS


what product-service bundle to produce
what portions of the bundle to produce in house and what portion to purchase from others facility capacity location of facilities

COORDINATION
ensuring supplier effectiveness in cost, timeliness and quality
setting appropriate targets for inventory, capacity, and
lead time

monitoring demand and supply conditions communicating market and performance results to customers
and suppliers.

type of technology to adapt


handling communications between suppliers and customers standards expected of customers and suppliers

STRATEGIES FOR SUPPLY-CHAIN COORDINATION


Relationship Management: integrate its decisions with those made within its chain of customers and suppliers The Uniform Commercial Code (UCC): delivery obligations for the seller of goods when no place of delivery has been agreed upon Segment Customer based on need: Different approaches for meeting different requirements Customized Logistics Network: Delivering right quantity at right time

Watching Market Signals and Plan accordingly: Planning based in demand forecasting
Partnerships To Enhance Supply-Chains: involved in a global supply-chain that involves domestic and international transportation, value-chain strategic warehouse management, order and inventory visibility and control, materials handling, import/export facilitation, and information technology thus the shipper and the oil company are jointly and mutually involved. Strategic Sourcing: suppliers who have consistently demonstrated superior performance deserve a favourable status Supply-Chain Wide Technology Strategy: Information readily shared back and forth

Oil and Gas contribute to 58 % of worlds energy source Its important to do this reliably, effectively and efficiently

Source: http://prosaamya.com/website/oil-gas.html http://www.barrelstrength.com/2012/09/page/2/ http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&ved=0CFEQFjAD&url=http%3A%2F%2Fwww.cluteonline.com%2Fjournals%2Findex.php%2FJBER%2Farticle%2Fdownload%2F2552%2F2598&ei=pWLUd64Naa27QayrIHIDg&usg=AFQjCNGgMa4qmojSSRTB5MXGGOH7RL7A_g&sig2=u-kV6RuNChrpKH89T6u2BQ&bvm=bv.50165853,d.ZGU&cad=rja

THANK YOU

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