... but also those they are competitively priced. Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufactures, warehouses and stores, so that merchandise is produced and distributed at the right quantities, to the right locations and at the right time, in order to minimize system wide costs while satisfying service level requirements. For the oil and gas industry with its high levels of risk, the Chartered Institute of Purchasing & Supply (CIPS) is providing training to improve the efficiency and effectiveness of purchasing and supply. OPITO, the focal point for skills, learning and development in the oil and gas industry, undertook a labour market survey of the industry which identified a sector wide skills shortage. Oil & Gas UK then undertook a supply chain specialist for the oil and gas industry. The responsibility of an organization, the impact of its decisions and activities on society and the environment, resulting in transparent and ethical behavior which: Contributes to sustainable development, health and well-being of society. Takes into account the expectations of stakeholders; Upholds the law in force and is in line with the international standards of behavior; It integrated into the organization as a whole and implemented in its relationships. All types of organizations, whether businesses, non-governmental organizations or public institutions, operate within a chain in order to...
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...sustainability programmes, many oil companies have invested in local transportation networks or built schools. They provide jobs and by sourcing supplies locally help to develop the local economy. The global oil industry has a responsibility to the countries in which it operates to manage its operations in as sustainable way as possible. A purchasing manager might want to consider whether the supplier behaves responsibly, for example, adhering to ethical standards or sourcing raw materials in an ethical way. For example, Shell is working with its existing suppliers to implement the Shell Supplier Principles. These set out the minimum standards which Shell suppliers need to meet. These include using energy and natural resources as efficiently as possible to minimise impact on the environment and covering health and safety issues. Efficiency Other aspects of sustainable business include managing waste effectively and reducing the company’s carbon footprint. This can be improved by choosing suppliers who also take their responsibilities towards environmental impact seriously. For example, Marks & Spencer made £70 million of efficiency savings during 2010/11. Alongside reductions in waste and packaging and increased energy efficiency, the company is working with suppliers to reduce carbon emissions in the supply chain by improving efficiency of deliveries. Roles and skills Although engineering and technical roles are crucial in the oil and gas industry, oil companies also require...
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...Procurement in Oil and Gas Industry in Developing Countries A Case of AGIP Nigeria Name Course Professor Date Abstract This is a thesis about procurement process in the oil and gas industry in Nigeria with specific stress on AGIP Nigerian AGIP Energy and Natural Resource.” The report starts with an introduction to the country Nigeria itself. It develops with the research on the oil and gas sector in the country and then focuses on the AGIP and its operations. Thus the first section comprises the Introduction, the background of the problem the research objectives, literature review regarding the procurement process and the company AGIP. The second section is about the research methodology, the data analysis and presentation of results leading to limitations and recommendations and a conclusion. A qualitative research design has been used to do the research. These research methods have been used by every researcher in a way or other and quality data has been accumulated to help these researchers to prove their viewpoint either statistically (quantitative) or by subjective analysis of earlier researches or direct observations of the subjects (qualitatively). The data sources used for the literature review for this study are primarily the secondary sources particularly from books, journals, articles published in various scientific periodicals and / or newspapers along with the information gathered from the internet itself using its websites. The study manoeuvres at two levels:...
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...Group’s (Shell) ability to be more competitive with other integrated oil majors in the global supply chain. Shell’s goal is to be “the world’s most competitive and innovative energy company” (Shell 2013). First, the macro-processes involved in the supply chain of Shell are introduced. Forecasting techniques were researched to see how these can be applied to demand management in Shell. Third, business process integration was investigated to improve the supply chain in Shell. Finally, operations and production strategy was synthesized to respond to the changing demands in the modern global environment. Discussion The Macro-processes Involved in the Supply Chain of Shell Company Chosen and the Reason. The company I chose for this assignment is Shell. The key reason is I work for Shell. I have access to global supply chain managers who will help with this assignment. I contribute to the planning operations in the global supply chain. My contribution is the production of petroleum liquids for refinery processing. Gas produced is sold directly to customers as fuel. I believe a lot was learned during the review and analysis of Shell’s global supply chain. Shell’s Problem. Shell uses a global scorecard to monitor its yearly success. Figure 1 shows the scorecard for 2012. As a global energy company, Shell did not perform well in delivering the oil and gas required to fuel its refineries or supply raw gas to its customers. As a result, their total shareholder return (TSR)...
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...Study on sales channel of Total S.A in sub-Sahara Africa Name University Affiliation 1.1 Introduction and Background Total S.A is a French multinational oil and gas company whose headquarters is in Tour Total, Courbevoie near Paris in France. Total S.A was one of the major six world oil companies when the French prime minister rejected the idea of a partnership with Royal Dutch Shell. He instead favored the idea of forming an independent French oil company because petroleum was considered as a very important in the case of new war with German (Total.com, 2015). It was formed in 1924 after World War I and was initially called French Petroleum Company (CPF). Initially, this company was a taken as a private sector company (Total.com, 2015). In the 1930s, Total S.A engaged in the oil exploration and production mainly in Middle East countries and after World War II, it diversified its exploration to Canada, Venezuela, and Africa as it pursued energy sources in France. In 1980, Total Petroleum North American wing controlled about 50% CPF it bought the refining and marketing assets of Vickers Petroleum. This action enabled it to have the capacity of transportation and networking over 350 service stations in 20 states. Between the years 1985 -2003, Total CPF rebranded itself to boost the popularity of its gasoline brand. The name of this company changed to “Total” when it became a public company as it was listed on New York Stock Exchange. In the early 1990s, the foreign ownership...
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...Statoil is one of the largest global integrated oil companies. There are three major areas in Statoil: Upstream, Midstream, & Downstream. Each major area has a strategic fit in Statoil. Upstream by far is the most important area of the business. Upstream is responsible for the exploration and production of oil & natural gas worldwide with an exceptionally strong portfolio in exploration and production. The role of Midstream is to apply commercial and functional excellence to enable the success of Upstream & Downstream assets. Statoil does this by providing safe and reliable midstream infrastructure and services, commercializing our equity gas resource base, and maximizing the value of our equity gas, crude oil, natural gas liquids, and refined products. Downstream manages the refining, sales and marketing of fuels, lubricants, additives and chemicals to retail, commercial and industrial customers through its Manufacturing, Products, Lubricants, and its StatCHEM joint venture with Phillips 66. As integrated oil company, I believe risk factors in the supply chain can impact both Upstream and Downstream. These risks can be either internal or external. Statoil supply chain consists of several different activities that transform natural resources into a refined product that is deviled to the end customer. Any disruptions in either Upstream or Downstream Supply Chain will results in reduced revenues, decreased market shares, inflated cost, and damaged business reputations. There are...
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...SWOTT Analysis Paper- Honda-Fuel Falon Padron BUS/475 April 29, 2015 Yamil Guevara SWOTT Analysis Paper-Honda-Fuel The following documentation will analyze external, internal, and supply chain analysis that has been proposed for our new Gasoline, and gas station division manufactures by Honda Motors. A SWOTT tables has been added which represent the company’s strength, weakness, opportunity, threat, and trends. Relevant forces and trends will also be discussed in the following document. |SWOTT Analysis | |Strength |Weakness | |- Cater to a variety of vehicles. |Product Range. | |- New innovating signature Fuel. |Similar Competition. | |-Affordable gas price’s. |No Promotion advancements. | |- On site customer service. |Product accessibility. | |Opportunity |Threats ...
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...Executive Summary 3 2. Overview of the UK Oil and Gas Industry 4 2.1 Discussion on the current state of the industry 4 3. UK Oil and Gas Industry Leadership Outlook 5 3.1 Current Leadership Issues and Practices 5 4. Current Global and National Crises Issues 8 4.1 Issues and Impact on the Industry and Practices 8 5. Future Leadership Outlook 10 5.1 Leadership Aims for the Future 10 5.2 Leadership practice: Challenges, Impacts and Recommendations 10 Works Cited 13 1. Executive Summary This report is focused on the current leadership and development in the United Kingdom’s (UK) Oil and Gas industry. The first section highlights and describes the current external and internal environment, along with the challenges posed to the industry. The second section describes the issues faced by the industry in the short-term and long-term process and the measures taken by leaders to curb these issues and minimize the potential of risks and high costs to the industry. The third section gives an analysis of the global issues and problems posed to the UK oil and gas industry, their effects and practices undertaken to resolves these issues. The last section gives an analysis of the future outlook of the industry and its leadership capabilities. It also focuses on recommendations for the leaders to face the challenges that will shape its future protocol and practices within the industry. 2. Overview of the UK Oil and Gas Industry 2.1 Discussion on the current state...
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...2. Oil and gas sector This chapter begins with an overview of the oil and gas industry in Malaysia. Description of the value chain of the industry is given in section 2.2, followed by the industry’s economic performance in section 2.3. Section 2.4 focuses on the scope of the inquiry regarding issues in the oil and gas industry. 2.1 Oil and gas industry in Malaysia This section provides an overview of the oil and gas industry in Malaysia. 2.1.1 History Oil and gas production have been a mainstay of Malaysia’s growth since oil was first drilled in 1910 in Miri, Sarawak. The first oil well (known as The Grand Old Lady) which was discovered by Shell, started with a production of 83 barrels per day (bbls/d) and reached a maximum of 15,000 bbls/d in 1929. There were no other drilling activities elsewhere in Borneo or Peninsular Malaya until the 1950s. [1, 2, 3] Petroleum activities began increasing significantly in 1960s due to the discovery and development of offshore fields in Borneo. The late 1960s saw the beginning of offshore oil exploration in the east coast of Peninsular Malaysia. In the 1970s, some oil fields in Malaysia were producing 90,000 to 99,000 bbls/d. [2] In the early days, foreign oil companies dominated the oil and gas industry in Malaysia with Shell and Esso being the two major players. This was followed by several other foreign companies such as Conoco, Mobil, Aquitaine, Oceanic and Teiseki. The national company, Petronas came on to the scene in...
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...Oil and natural gas touch our lives in countless ways every day. Together, they supply more than 60 percent of our nation’s energy. They fuel our cars, heat our homes and cook our food. But did you know that oil and natural gas also help generate the electricity that powers our daily lives? Or that crude oil supplies the building blocks for everything from dent-resistant car fenders to soft drink bottles to camping equipment? Explore this section to learn more about oil and natural gas, how they are produced and how they become the products you count on. You'll also find useful tips on how to conserve energy and use oil and natural gas products in ways that protect you, your family and our environment. Wells to Consumer Interactive Diagram This interactive diagram that shows the journey of oil and natural gas from Exploration and Production to the final products that benefit consumers. Exploration and Production Access to oil and natural gas resources is critical to supplying the energy needs of American consumers, business and homeowners. Transporting Oil and Natural Gas Supply and demand are rarely concentrated in the same place. Transportation therefore is vital to ensuring the reliable and affordable flow of petroleum we all count on to fuel our cars, heat our homes and improve the quality of our lives. Fuels and Refining America's refiners are a strategic asset for the United States, and maintaining a viable domestic refining industry is critical to the nation's...
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...It seems like gas prices change on a daily basis for the better or for worse. I spent the week studying the gas prices in my area as I drove by different gas stations. It’s amazing how the prices can different from area to area, company to company, and even the same company but just a mile few miles apart. The simplest answer is supply and demand but what actually goes into the decision making part of what gas prices should be? Research shows that 50% of the price of gas is based on the price of crude oil. This is what is refined and turned into gasoline. (Energy: demand vs. supply) Companies have to purchase crude oil to make into gasoline. This cost of purchasing the oil and refining it is then passed down to the customer. As the demand for crude oil or gas goes down, so do the prices. This can happen during recessions or when people travel less. As the demand increases, prices can go up, like during the summer when consumers travel more. Location can also contribute to the price of gas. Some locations can tend to have lower prices because of competition. They’re considered perfect competitive firms because they have to have the best price for the customer to want to come in and purchase their gas. I usually use the Safeway gas pumps instead of going across the street to the Arco station because I can receive a discount but the price is usually always three to five cents less than the Arco station. As I continue to drive to work, I noticed only one gas station was within...
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...Demand And Supply Of Crude Oil 10/10/2009 Introduction Crude oil is a naturally occurring substance (i.e., “Fossil Fuel”, formed from organic remains over a period of millions of years) found in certain rock formations in the earth. It is a dark, sticky liquid which, scientifically speaking, is classified as a hydrocarbon. This means, it is a compound containing carbon and hydrogen, with or without non-metallic elements such as oxygen and sulfur. Crude oil is highly flammable and can be burned to create energy. Derivatives from crude oil make an excellent fuel. Uses Different types of oil that are obtained from crude oil are as mentioned below: 1. Ethane and other short-chain alkanes 2. Diesel fuel (petro diesel) 3. Fuel oils 4. Gasoline (Petrol) 5. Jet fuel 6. Kerosene 7. Liquefied petroleum gas (LPG) 8. Natural gas Certain types of resultant hydrocarbons when mixed with other non-hydrocarbons, create other products like: 1. Alkenes (olefins), which can be manufactured into plastics or other compounds. 2. Lubricants (produces light machine oils, motor oils, and greases, adding viscosity stabilizers as required). 3. Wax, used in the packaging of frozen foods, among others. 4. Sulfur or Sulfuric acid. These are useful industrial materials. Sulfuric acid is usually prepared as the acid precursor oleum, a byproduct of sulfur removal from fuels. 5. Bulk tar. 6. Asphalt 7. Petroleum coke, used...
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...and World’s Oil Suppliers [Draft] February 21, 2014 History of Petroleum The world petroleum means literally rock oil. It was thought to be a completely different oil than that which comes from vegetable sources such as the olive, but modern research has traced its origin to the lipids (oil) of planktonic (free floating) plants and animals which live in brackish water such as blue-green algaes and foraminifera. The brackishness is essential because aerobic bacteria does not live in brackish water. Aerobic bacteria would decompose all of the organic matter. In brackish water the organic matter of the planktonic plants and animals sinks to the bottom and is incorporated in clay sediments which ultimately become sedimentary rocks. This is the origin of the oil shales (www.sjsu.edu). Today, petroleum or crude oil, is the most traded commodity in the world. It is the most important commodity because of its common use in everyday life. The cars we drive today heavily depend on crude oil refined products such as gasoline and motor oil. The plastic products we use daily are created using by-products of crude oil. Crude oil is essential to our daily life, therefore making it a very highly demanded commodity. Unfortunately, because of the world’s dependency on oil, an increase in oil prices has huge effects on everything. Food prices dramatically increase when there is a shift in oil prices. Transportation costs for transporting food increases with higher oil prices, resulting...
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...putting on the supply and demand of Energy FIN/370 April 29, 2014 D'Andre Wright The focus that Exxon Mobil is putting on the supply and demand of Energy How the initiative affects costs and revenues of the supply chain. Now, the response occurs when the financial side of the “supply and demand and how products are manufactured and sold along with what the government takes in taxes” (Cohen, 2012, para. 2). For example, which was created by The United States Energy Information Administration’s; which gave the rundown of the projected to be an average cost “of a gallon of gas in December 2011, which was $3.27” (Cohen, 2012, para. 2). However, let’s look at the price of the unprocessed substances that are used to make the gasoline result, which partakes a crucial influence of the definitive gas cost (Cohen, 2012). Now, the unprocessed substance for gasoline is crude oil (Cohen, 2012). Nevertheless, the rate “of crude oil is set by global markets, where buyers and sellers consistently react to supply and demand factors” (Cohen, 2012, para.3). Now, this is when several individuals become chaotic. However, needless-to-say that many people thinks that the oil businesses, are manufacturing the whole entire oil; which “goes to their own refineries, and, therefore, can control gas prices by controlling the supply chain” (Cohen, 2012, para. 7). So, sorry to say ladies, and a gentleman that is not true. On-the-other-hand, for example, “The United States crude oil production in...
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...Natural Gas Markets in Asia, Europe and North America Analyzing the differences between the natural gas markets in these regions Introduction The advent of shale gas is reshaping the global energy market, challenging the existing investment assumptions of utilities and generating new opportunities. (Bain & Company, 2013) Unconventional gas has altered the North American energy landscape and now it’s shifting energy dynamics across the globe. (Bain & Company, 2013) In analyzing the differences between the natural gas markets in Asia, Europe and North America, each has a different market structure resulting from the degree of market maturity, the sources of supply, the dependence on imports and other geographical and political factors. (MIT, 2011) These regional markets set natural gas prices in different ways: 1. The U.S. has gas-on-gas competition and open access to pipeline transportation and manages risk through spot and derivatives markets. 2. The European market relies more heavily on long-term contracts with price terms based on a mix of competing fuels, e.g., fuel oil, and access to their pipeline is restricted; and 3. Asia uses crude oil as a benchmark for natural gas prices (News, n.d.) and favors long-term contracts; this structure has kept LNG prices in Europe and Asia high relative to other regions. (MIT, 2011) These market features, along with the availability of domestic natural gas resources and geopolitical interests, establish...
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