Weve built redundancy and resiliency into our supply chain in order to prevent incidents and ensure that if events occur, they produce the. The oil and gas value chain instructorled and online. Supplychain management issues in the oil and gas industry. With a compelling value proposition, many oil and gas companies may look to explore, invest in, and collaborate with partners on. Refining what comes out of the ground is not often a form of petroleum that can be used right away. The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Jul 28, 2016 in this seminar, decherts shane debeer and navpreet atwal examine the basics of the oil and gas extraction industry from a legal perspective, including exploration and production in the us and. The different stages are exploration, production, storage and shipping, refining and marketing. Overall, this paper seeks to introduce key activities, value drivers and risk factors of the petroleum industry.
The supplychain in the oil and gas industry is global and involving international trade system. In addition, the study reflects the challenges that oil companies that are integrated all the way to the retail end of the supply chain face. From a supply chain point of view, the upstream has indeed the greatest. Pdf organizations in the oil and gas industry often deal with a variety of logistic challenges. Extractive industry basics the petroleum value chain. Petroleum industryrelated scope 3 emission sources. The council, whose membership comprises ministers, officials and key industry players, will provide the leadership needed to drive implementation of this strategy. Breakthrough innovation and growth explores the impact that innovation has on growth and examines how leading companies are making innovation work for their organisations. Integrated oil companies, such as shell, have not been not been operated as integrated supply chains so far. As such, it represents a path toward combating the resource curse, raising standards of living, and helping achieve political and social stability. Oil and gas companies are confronting a turning point, one that requires strong decisions about their strategies for surviving and thriving in uncertain times.
Unlocking the supply chain for lng project success2. 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. An animation describing the full lng value chain of production, liquefaction, transportation, and regasification. Nbtc itu training on building iot solutions for eapplications session 2b. The industry consolidation has exacerbated this complexity of technology infrastructures across the globe as multiple, often incompatible instances of erp packages and legacy systems creating the integrated value chain for downstream oil 3 energy, utilities and chemicals the way we see it. In framing the issues in this paper, it is worth defining value chain, oil and gas market sectors, and engineering, procurement and construction epc. To an extent, im referring to oil and gas refining, but its much broader and deeper than that. For 39% of the oil and gas executives we interviewed. When you fill up your car with gasoline or pay your natural gas heating bill, you are the final link in a long chain of businesses that make it possible for us to enjoy these clean, convenient and economical forms of energy. Iot trend gartner hype cycle for emerging technologies. Is blockchains future in oil and gas transformative or transient. The environmental concerns in exploration is also crucial. The concept of value chain analysis is therefore useful in several ways such as identifying constraints and opportunities in the oil and gas industry. We support you in developing and executing initiatives that achieve your strategic objectives to deliver value to your stakeholders.
The results can support the oil and gas industry across the uae to build resilience in the value chain designmethodologyapproach the research design consists of a. This reader covers basic information about oil and gas and the industry that extracts them. Production ep, gas and power, oil products, chemicals, and other industry segments. There is often no accurate history of the transactions. This environment requires organizations to reshape their enterprises and transform the mark. 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. However, a lot of integrated processes requiring huge investments along the whole value chain are involved before it reaches us. The oil and gas industry natural resource governance. The oil and gas industry overview and trends nrgi reader april 2015 this reader is intended for use in conjunction with the natural resource charter. 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. The terms upstream, midstream and downstream are often used to refer to the major sectors or operational components of the petroleum industry. These steps involves decision making, the legal and regulatory framework, licensing and contracting among others. Oil and gas companies need to acquire rights to access land to prospect for, explore, appraise, and then produce oil and gas. The value chain for offshore oil and gas and the value chain for offshore wind are both part of the global market for energy.
The petrochemical value chain is immense and truly a source of wonderment. It does so based on the notion of an industry value chain or value system. Sources of revenue in the value chain acquisition costs crude oil and natural gas sales. This oneday workshop provides an introduction to all aspects of the oil and gas supply chain, from exploration and development of hydrocarbon resources to supplying endusers. Understanding land provenance and reported value can be difficult and multiple records of conflicting ownership and value can exist within independent silos of data. Strategic planning for the oil and gas industry edinburgh business school 11 module 1 the oil and gas industry. We all enjoy the benefits of natural gas in one way or the other, directly or indirectly, without questioning how the btu of natural gas is made available to us. In the industry, oil wells are considered part of the upstream supply chain. Although the three standard valuation approaches income, market and asset are applicable for companies in the oil and gas industry, each segment within the industry value chain has its own unique operations and characteristics, making certain approaches and methodologies for the valuation of these businesses more appropriate than others. The oil course covers, crude transportation and storage. This the petroleum sector value chain is intended as a contribution to the study on national oil companies and value creation launched in march 2008 by the oil, gas, and mining policy division of the world bank.
The final two courses cover important aspects of the oil and gas value chain. 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. Many oil and gas company leadership teams understand that digitization is more than an opportunity it is an imperative see exhibit 1. The oil industry in general is divided into two sections. Significantly, it is key to follow the steps in the value chain. Global big data in oil and gas market intelligence report. Oilfield services consolidation pdf download 507 kb. We encourage, influence and promote the uks oil and gas industry to achieve mer uk and to increase total value added tva.
Oil and gas trends 2019 building growth strategies on shifting sands. World production of oil and gas 1900 2100 2300 2500 2700 2900 3100 3300 3500 60000 65000 70000 75000 80000 85000. The oil and gas industry is involved in a global supply chain that consists of domestic and international transportation, value chain strategic warehouse management see figure 1, order and. The supply chain of the petroleum industry is therefore, extremely.
The following sections present a macro level analysis of the main factors and key actors which influence inve stments in the two value chains. Jul 15, 2015 the petrochemical value chain is immense and truly a source of wonderment. Oil and gas industry blockchain, the disruptive force of. The emphasis is on identifying opportunities and strategies for value creation within the industry, including infrastructure investment, physical supply chain operations and commercial trading activities. 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. Five strategies to transform the oil and gas supply chain. This publication is a working paper by the oil, gas and mining.
Upstream operations involve exploration and production works that will to discovery and mining of petroleum. The oil and gas industry needs to systemically evaluate, build, buy, partner, invest in, or incubate asaservice options to determine their place in the value chain and where to partner. How oilfield services consolidation transforms the value chain. This white paper examines the value that industry 4. The oil and gas industry is one of the worlds most advanced user of technology. Introduction the oil and gas industry encompasses a range of different activities and processes which jointly contribute to the transformation of. The value chain is a process in which a company adds value to its raw materials to produce products eventually sold to consumers.
Is blockchains future in oil and gas transformative or. 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. Value chain in oil and gas sector penplusbytes february. Porters value chain model and competitive advantage in. With a compelling value proposition, many oil and gas companies.
For it to be the fuel that can go into a car or converted into plastics, it must go through a. Getting to value with blockchain in oil and gas accenture. This model, alongside the strategic process model introduced in the core sp course. The upstream sector involves the exploration for and extraction of petroleum crude oil and natural gas. Gulf war, and is expected to grow to 118 million barrels per day by 2030. Creating the integrated value chain for downstream oil 1 background energy, utilities and chemicals the way we see it figure 1. The task leader of the study is silvana tordo lead energy economist, oil, gas and mining division of the world bank. Global big data in oil and gas market intelligence report in pdf offers growth prospects accenture, datawatch corporation and drillinginfo inc.
The entire chain is known as the petroleum industry. Title 1 1 timelines and actors in the oil and gas industry lifecycle 1. Mar 24, 2020 the value chain is a process in which a company adds value to its raw materials to produce products eventually sold to consumers. The course also introduces learners to economics and business risks and opportunities through the upstream value chain.
The study confirms the key findings in the value chain analysis literature, especially the issues around strategic value chain activities and their importance in conferring competitive advantage in the context of the oil industry. The ei value chain approach can be integrated into resourcerich countries development plans and poverty reduction strategies. The prices for crude oil, refined petroleum, and natural gas are more volatile than prices for about 95% of products sold by domestic producers. Four areas of consideration can help shape the discussion and lead key players to.
It also discusses some of the key policy decisions associated with the different stages of the value chain. Pdf supply chain innovations in the oil and gas industry. Pdf supply chain management in the petroleum industry. Nov 28, 2009 it does so based on the notion of an industry value chain or value system. Hildas extensive experience includes operational excellence, process transformation, procurement, change management and financial process redesign. The disruption in oil and gas upstream business by industry 4.
Value chain analysis along the petroleum supply chain. World production of oil and gas 1900 2100 2300 2500 2700 2900 3100. The supply chain represents all the steps required to get the. Companies in the industry develop conventional and unconventional oil and gas reserves. As oil and gas companies exploit digital for efficiency and growthwhat accenture calls leading in the newblockchain will be part of the essential technology mix they will use to create real value. Creating the integrated value chain for downstream oil. Such a digital transformation framework empowers traditional refinery managers to reinvent their operations. Value chain analysis of the natural gas industry alboran.