These sources are changing world energy marketswith large importers becoming net exporters. The oil and natural gas value chains complex web of activity is often thought of in three segments. While many entrepreneurial theories draw from customers problems and pain points, value can also be created via demand generation, which is about enabling people to identify with your brand, thus. 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 concept of value chain analysis as a generic business management tool was introduced by porter 1985. The chain will consist of different stages depending on whether the natural gas is transported in gaseous or liquid form. Aug 08, 2014 the outbound supply chain the supply chain associated with taking away the oil and gas produced by the field. In this paper we give an introduction to modelling the natural gas value chain including production, transportation, processing, contracts, and markets. Natural gas overview world natural gas demand expected to rise to 163 trillion cubic feet tcf by 2030 from 100 tcf in 20041 expected to remain a key fuel in power generation and industrial sector over next two decades less co 2 per unit energy produced massive reserves transition to natural gas economy. 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.
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. The natural gas value chain national gas company of. The primary challenge lays perhaps, in the impractical gas commitment contracts between the power and gas companies. 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.
Marketing sources of revenue local content and paticipation framework outline. The logistics chain, which incorporates the large, medium, and smallscale chains can be very complex. We call that chain of activities the natural gas value chain. 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. Edraw is used as a value chain software coming with readymade value chain templates that make it easy for anyone to create beautiful value chain. The supplychain in the oil and gas industry is global and involving international trade system. The upstream sector involves the exploration for and extraction of petroleum crude oil and natural gas. Extractive industry basics the petroleum value chain. And gas industry wrote about the role of supplychain management in the oil industry. The discussion of sections 3 physical value chain for natural gas, 4 financial value chain for natural gas, 5 economic liberalization principles, 6 fercs 2008 revised ruling on corporate separation of transmission companies has outlined how the us natural gas industry has developed under strong federal control and how a range of stimulus. This thesis is brought to you for free and open access by the supply chain.
Recommended citation huslig, kiley, the future of supply chain management in the downstream segment of the oil and gas industry. Oil and gas are generated from a source rock, organic matter buried in the depths of the earth. Study the oil and gas business from the perspective of the entire value chain. The environmental concerns in exploration is also crucial.
For example, take inventory control in the natural gas business. Our goal is to raise the level of awareness around the oil. Artisanal and smallscale mining asmprotected areas and critical ecosystems pace 256 9. The gui supports all common features of the command line tool in a comfortable way. The future of supply chain management in the downstream.
Weve built resiliency and rapid response capabilities into our supply chain to prevent incidents and to ensure that, if events occur, they. As a result, oilfield service and equipment ofse companies are seeing business evaporate. We have a long heritage in advising customers on project development, operational excellence. Investment opportunities in nigeria oil and gas value chain free download as powerpoint presentation. However, a lot of integrated processes requiring huge investments along the whole value chain are involved before it reaches us. Operators faced with crumbling crude prices have cut back sharply on supplychain spending. Our goal is to raise the level of awareness around the oil supply chain among key stakeholders in order to facilitate positive working relationships and more informed decision making. Distribution at low profit the economic rent, surplus profit, is mainly located in upstream phases, extraction. The value chain for offshore oil and gas and the value chain for offshore wind are both part of the global market for energy. Gas wells located in water, called offshore, present unique challenges not only in drilling the wells, but also in putting them into production. Pdf supply chain management in the petroleum industry.
Growth in the number of wells, horizontal drilling, a move toward multiwell pads and the deployment of 24. 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. Pdf supply chain innovations in the oil and gas industry. Wartsilas extensive expertise across the entire lng value chain enables it to bundle together solutions that provide efficient energy production from gas. Currently, supply chain innovations in the oil and ga s industry are absolutely necessary. It is easily accessible on the web and designed to make learning both challenging and enjoyable. Nigeria gas to power value chain systems economic evaluation. Completing the lng value chain the use of natural gas is already strong and will continue to increase. Five strategies to transform the oil and gas supply chain. By clicking on ok, i accept, you accept the use of cookies. Download pdf chain for free donate for pdf chain sourceforge pdf chain at. Nov 28, 2009 overall, this paper seeks to introduce key activities, value drivers and risk factors of the petroleum industry. Howard sutton ramkumar rajagopalanstrategic management sherif mohammed 1december 7, 2011. The research will be exploring the downstream segment of the oil and gas industry.
These organizations represent the major decisionmakers along the natural gas use value chain and is not meant as an exhaustive listing of organizations. Overall, this paper seeks to introduce key activities, value drivers and risk factors of the petroleum industry. Excel at advanced materials management materials management challenges are common in oil and gas production. Place these events in their correct order by numbering them properly. 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. Pdf supplychain management in the oil industry researchgate. Pdf the logistics network in the oil industry is highly inflexible, which arises from the. 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. Over the past 24 months, companies in the oil and gas supply chain have gone from boom to bust. Download our free value chain templates in software package to. The oil and gas industry is involved in a global supplychain that includes domestic and. 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 oil course covers, crude transportation and storage. Natural gas can be produced either on its own or alongside oil production.
The presentation gives insight in the complexity of planning in the natural gas supply chain and how optimization can help decision makers in a natural gas company coordinate the different. 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. Foreign direct investment in upstream oil and gas projects creates opportunities for local economic development, particularly through linkages that fill gaps in. The terms upstream, midstream and downstream are often used to refer to the major sectors or operational components of the petroleum industry. Supply chain management, optimization, logistics, oil and gas.
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. World production of oil and gas 1900 2100 2300 2500 2700 2900. The concept of value chain analysis is therefore useful in several ways such as identifying constraints and opportunities in the oil and gas industry. Industry stakeholders commonly benefit from a systemic value network analysis because it identifies key areas in the value network. Creating the integrated value chain for downstream oil. The supply chain in the oil and gas industry is global and involving international trade system. The us natural gas supply chain is inherently resilient as a result of its design, which incorporates rapid response capabilities with automatic response triggers. A value proposition is about how you create value for customers.
Free value chain templates for word, powerpoint, pdf. Here the challenges center around the fact that as traditional oilfields left. The midstream part of the value chain is often defined as gas plants, lng production. The main drivers in the energy sector and the value chain. Edraws rich, intelligent and professionallydesigned value chain templates and examples will help you end up with a quality value chain diagram quicker. Dec 30, 2012 value chain petrol dieselfinal draft 1. The following describes each of the links that constitute the natural gas value chain. The future of supply chain management in the downstream core. Foreign direct investment in upstream oil and gas projects creates opportunities for local economic development, particularly through linkages that fill gaps in the energy value chain.
Customers natural gas value chain union fenosa gas. Natural gas production is gathered from landbased onshore wells via lowpressure, smalldiameter pipelines from numerous wells. Edraw can also convert all these templates into powerpoint, pdf or word templates. Oil and gas production handbook an introduction to oil. World production of oil and gas 1900 2100 2300 2500 2700 2900 3100 3300 3500 60000 65000 70000 75000 80000 85000 90000. It is, therefore, in the end users interest that this value chain is as cost efficient as possible. The outbound supply chain the supply chain associated with taking away the oil and gas produced by the field.
The value chain templates are easy to use and free. We will also look at how the value of natural gas is created and enhanced. Pdf organizations in the oil and gas industry often deal with a variety of logistic challenges. The redundancy of components and the resiliency of the system design inhibit traditional chokepoints in the natural gas supply chain. The final two courses cover important aspects of the oil and gas value chain. Analyze oil and gas management strategies of global organizations. 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 document is organized by decisionmaker categories and includes an information text box on each type of. 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. If you listed these stages one after the other, they look like a chain of activities that result in an important product. Value chain analysis of the natural gas industry alboran. Weve built resiliency and rapid response capabilities into our supply chain to prevent incidents and to.
Optimization models for the natural gas value chain. The upstream sector involves the exploration for and extraction of. 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. There are several means of optimising the lng logistics chain in order to reduce the cost of lng or gas at the final destination. Overview of the gas value chain is an online training course that looks at the upstream, midstream and downstream sectors and activities of the gas industry. Value chain analysis along the petroleum supply chain. You will learn about the formation of natural gas, how it is transported and stored and how it is marketed. 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. Energy value chain of the osaka gas group 19 osaka gas group annual report 2016 osaka gas group annual report 2016 20 from household demand for hot water and heating, to the industrial and commercial hvac and combustion system markets, we propose optimal solutions to. Cookies are data that are downloaded or stored on your computer or other device. 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.
Pdf optimization models for the natural gas value chain. The concept of value chains is applied widely today in many industries. To many oil and gas professionals the natural gas value chain is. Pdf chain is a graphical user interface for the pdf toolkit pdftk. The four gas courses explore different types of gas processing, transportation, storage, and markets, including ngl, lng, pipelines, and load balancing. Value chain petrol dieselfinal draft linkedin slideshare. We have strived to establish an lng value chain that encompasses procurement, production and sales. Lng value chain for value creation the tokyo gas group, since receiving the first cargo of lng to japan, in 1969, has been the nations leader in use of lng and a top company in natural gas. Investment opportunities in nigeria oil and gas value chain. At every stage of the asset lifecycle, our purpose is to safeguard life, property and the environment. Analysing the value chain for the petroleum industryprof. This gas can exist separately from oil in the formation free gas, or.
On their way, cap rocks can impede their progress and they accumulate in reservoir rocks. Natural gas value chain analysis and optimisation is a complex. Presidential report on the power sector reform 2010 as well as gas master plan gmp, 2008 vested much commitment to the gas sector towards electricity value chain viability. Select a free value chain template from the thousands of examples available in the edraw library and convert to pdf value chain template with one click. Our goal is to raise the level of awareness around the oil supply. Petroleum online is a comprehensive series of elearning courses that provide an indepth overview of each sector of the international oil and gas industry.
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