Logistics and Operations in Oil and Gas Industry

Running head: Logicistcs and operations
Logicistcs and Operations
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Logicistcs and operations1
Table of Contents
1.0 Introduction..........................................................................................................................3
2.0 Analysis................................................................................................................................3
2.1 A review of theoretical and practical aspects pertaining to the management of logistical
and operational activities in the oil and gas industry.............................................................3
2.2 Analyse both types of challenges.....................................................................................8
3.0 Conclusion..........................................................................................................................12
Reference list............................................................................................................................13

Logicistcs and operations2
1.0 Introduction
In the modern business, through the introduction of logistics and operation management,
the companies will definitely aim in indulging better and lion share of the market. In order to
maintain the development of the business it is highlighting the fact that in order to indulge the
improvement in the monitoring of logistical and operational activities in oil and gas industry,
the Shell Companies need to identify the factors that may harm the business operation. Not
only this, but the identification of the challenges that are coming on the way of business
operation is basically help the study to indulge in better policies that will not only increase
the rate of production but the overall level of security will also be maintained. The
significance of the study is lying in highlighting the impact of the supply chain management
for better development of resources.
2.0 Analysis
2.1 A review of theoretical and practical aspects pertaining to the management of
logistical and operational activities in the oil and gas industry
Supply chain management in normal industry and supply chain management in the oil
& petroleum industry are quite different from each other. The point of difference that is
unlike the normal goods in the market, the oil and petroleum products needs to be explored
from below the ground. One of the major steps that has been seen in the supply chain
management within the oil and petroleum industry is shown in the diagram below.
Figure 1: Process of Supply chain management in oil & petroleum industry
Explorati
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Producti
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Refining
Marketin
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Consum
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Logicistcs and operations3
(Source: created by author)
The above figure above is claiming the fact that before marketing the oil and
petroleum product, the companies will have to refine the oils. Involvement of high-tech
technologies in the oil production and refining actually makes the situation of supply chain
management within oil industry (Arvis et al. 2016). The technologies that are being used in
the supply chain management within the oil and petroleum industry. Tubes and tubular goods
are the most imported products that are being supplied to the industry on the daily basis.
Through the process of supply chain management within the oil industry is the process that
includes pipes, tubing, and casing are ordered, manufactured, transported, stored, prepared,
and then delivered to the website for installation into a well.
Most of the companies that are doing business in the oil and natural gas industry faces
turmoil in the development of filtration of oils and petroleum products. Some of the key
theories that has been taken by this industry is as follows (Mena et al. 2016). Through the
incorporation of these theories, the companies that are mainly dealing with the improvement
in the development of process of filtration and other process.
Vertical integration
The need of the companies dealing with the oil and petroleum sector in modern days
is being integrated. These developments includes the increase in demand of the customers,
globalisation of oil and natural gas business and to the most important, the use of information
technology in fascinating the change in the information that will definitely going to highlight
the incorporation of better level of business coherence (Bealt et al. 2016). Integration and
cohesiveness is going to improve the business in an efficient manner. Depletion of existing
oil mills and oil wells are one of the biggest challenges that has been faced by many
companies in the modern period. One of the important strategy that has been taken from the