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. 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. Pdf organizations in the oil and gas industry often deal with a variety of logistic challenges. Excel at advanced materials management materials management challenges are common in oil and gas production. Value chain analysis along the petroleum supply chain. The oil and gas industry natural resource governance. However, a lot of integrated processes requiring huge investments along the whole value chain are involved before it reaches us. The us natural gas supply chain is inherently resilient as a result of its design, which incorporates rapid response capabilities with automatic response triggers. The chain will consist of different stages depending on whether the natural gas is transported in gaseous or liquid form. The natural gas chain is a set of stages through which gas passes, from being found in the field until it reaches the final consumer.
It is only from the synergies of the integrative approach from which the majors can gain a true and sustainable. Natural gas value chain of the osaka gas group 23 osaka gas group annual report 2015 osaka gas group annual report 2015 24 sales and services flexible use of lng carriers we o. Consequently, a service based model is likely to be part of a new model to reduce supplychain costs going forward, whether oil and gas prices are low, moderate, or. These organizations represent the major decisionmakers along the natural gas use value chain and is not meant as an exhaustive listing of organizations. Our goal is to raise the level of awareness around the oil supply. The different stages are exploration, production, storage and shipping, refining and marketing.
The concept of value chains is applied widely today in many industries. Creating the integrated value chain for downstream oil. The redundancy of components and the resiliency of the system design inhibit traditional chokepoints in the natural gas supply chain. This means that oil companies spend much time on analysis models of good exploration data. The methodology for the sectorwide analysis was derived. By michelle melton, annie hudson, and sarah ladislaw. The following describes each of the links that constitute the natural gas value chain. Natural gas, coal, coal coke, biofuels, and electricity. The main drivers in the energy sector and the value chain. 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 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.
May 23, 2017 natural gas value chain case study ihab ouaida may 20, 2017 total field development costs. The upstream sector involves the exploration for and extraction of petroleum crude oil and natural gas. From a supply chain point of view, the upstream has indeed the greatest. The regasified lng has a wide range of end users that spans across all sectors of the gas market from power generation and industrial processes to commercial and. Local content in the oil and gas sector world bank documents. Our advisors can help identify areas of risk throughout your global or domestic supply chain on a lane by lane or country by country basis. Pdf challenges in supply chain management in upstream. Overall, this paper seeks to introduce key activities, value drivers and risk factors of the petroleum industry. Lng and lpg distributionshipping value chain source processing products carried transport users natural gas wells oil wells lng lng ship lpgleg ammonia ships pipeline gas plant lng liquefaction 162o 10% of gas consumed as lng growing to 14% in 2025. The valueadded chain of lng consists of 1 upstream natural gas production and transportation, 2 liquefaction, 3 shipping, 4 regasification, 5 storage, transmission and distribution. Growth in the number of wells, horizontal drilling, a move toward multiwell pads and the deployment of 24.
Oil and gas production handbook an introduction to oil. Companies across the gas value chain are pushing traditional boundaries to innovation in the sector, supported by technological improvements, emerging geographies for both demand and supply, and a growing preference for lowcarbon energy sources. The following sections present a macro level analysis of the main factors and key actors which influence inve stments in the two value chains. The value chain for offshore oil and gas and the value chain for offshore wind are both part of the global market for energy. During production, crude oil is produced on both land and at sea. Whether the gas is obtained from a shale formation or another source, the natural gas supply chain is the same. Petroleum value chain mashudu sinthumule petroleum value chain. The document is organized by decisionmaker categories and includes an information text box on each type of. Wolfgang also continues his gas advocacy engagement, e. The paper starts with decribing how to model natural gas transportation and storage, and at the end we present a stochastic portfolio optimization model for the natural gas value chain in a. World production of oil and gas 1900 2100 2300 2500 2700 2900. Extractive industry basics the petroleum value chain.
Natural gas value chain, opportunities, and challenges lebanon. The concept of value chain analysis as a generic business management. Pdf optimization models for the natural gas value chain. A study of sustainability in the oil and gas supply chain. Nov 28, 2009 overall, this paper seeks to introduce key activities, value drivers and risk factors of the petroleum industry. Addressing the challenges along the shale gas supply chain. Companies in the oil and gas supply chain have gone from boom to bust in the past two years. Five strategies to transform the oil and gas supply chain. Oil value chain fuels and products transporting and trading oil and gas developing and extracting oil and gas finding oil and gas investing international oil and source. This is a draft version of chapter 1 of the study on national oil companies and value creation, undertaken by the oil, gas and mining policy division of the world bank. The midstream part of the value chain is often defined as gas plants, lng production and. To many oil and gas professionals the natural gas value chain is foremost a.
For example, take inventory control in the natural gas business. Midstream activities refer to the refining, transportation by pipelines, rail, tankers, storage and wholesale marketing of. 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. Pdf supply chain innovations in the oil and gas industry. The oil and gas value chain starts with discovering fields and ends with providing products to end consumers. Stemming from that analysis, we considered the waxing and waning of. The terms upstream, midstream and downstream are often used to refer to the major sectors or operational components of the petroleum industry. Learn more bsis supply chain risk exposure evaluation network screen is a geographic intelligence solution that provides indepth country. Gvc offers a wide range of services to meet the ever growing needs of our clients. Value chain analysis of the natural gas industry alboran. Investment opportunities in nigeria oil and gas value chain free download as powerpoint presentation. It is important for companies to understand the contribution that each step in a production and supply process makes to the final value of the product in the market place.
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. Crude oil, a fossil fuel, is the most widely used energy source in the world, accounting for 31 percent of. The regasified lng has a wide range of end users that spans across all sectors of the gas market from power generation and industrial processes to commercial and domestic application for heating and cooking. Natural gas value chain case study ihab ouaida may 20, 2017 total field development costs. From transactional services to expert witness and analytical support, we provide a service tailored to our clients personal requirements through all aspects of the oil, gas and lng value chain. The supplychain in the oil and gas industry is global and involving international trade system. We, ooo kuliginskoe limited liability company as a reseller company and a representative to a major refinery in russian federation that is confirm and certify to meet to the international standard specifications to supply petroleum products such as virgin d6 fuel oil, d2 diesel oil, aviation kerosene jet fuel 54 and mazut m100 all of russian origin.
For it to be the fuel that can go into a car or converted into plastics, it must go through a. Production ep, gas and power, oil products, chemicals, and other industry segments. Lng and lpg distributionshipping value chain source processing products carried transport users natural gas wells oil wells lng lng ship lpgleg ammonia ships pipeline gas plant lng liquefaction 162o 10% of gas consumed as lng growing to 14% in 2025 from 240 to 450 mt pa lng fleet 365 lng vessels in fleet. 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. Here are five strategies oilfield service and equipment companies are exploring to adjust to the changing environment. Our analysis of local content centers on the concept of sector links. Weve built resiliency and rapid response capabilities into our supply chain to prevent incidents and to ensure that, if events occur, they. Learn more bsis supply chain risk exposure evaluation network screen is a geographic intelligence solution that provides in. Download the report 2015 oil and gas reality check deloitte.
Weve built resiliency and rapid response capabilities into our supply chain to prevent incidents and to. The oil and natural gas value chains complex web of activity is often thought of in three segments. 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. Refining what comes out of the ground is not often a form of petroleum that can be used right away. Appendix a activities at each stage of the oil and gas value chain.
Natural gas can be produced either on its own or alongside oil production. Customers natural gas value chain union fenosa gas. Oil production includes drilling, extraction, and recovery of oil from underground. The value proposition of gvc hinges on wolfgangs indepth and uptodate knowledge of and experience in the changed european and global gas markets along the entire value chain. Oil and gas are generated from a source rock, organic matter buried in the depths of the earth. Advice on the opportunity to set up an action plan for the. Investment opportunities in nigeria oil and gas value chain.
The environmental concerns in exploration is also crucial. Overview the first step in the oil supply chain is production. The courses follow the oil value chain or the gas value chain, so learners can gain a complete understanding of the industry in an organized manner. Here are five strategies oil field service and equipment companies are exploring to adjust to the changing environment. Our goal is to raise the level of awareness around the oil. The supply chain in the oil and gas industry is global and involving international trade system.
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