Report on Oil and Gas Industries

LOGISTICS AND OPERATIONS FOR OIL AND GAS

Oil and gas industries
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Table of Contents
Introduction................................................................................................................................2
Importance of digital technology...............................................................................................3
Digital labour.............................................................................................................................3
Role of digital technology..........................................................................................................4
ERP SYSTEM............................................................................................................................5
Issues and challenges of logistics and operations......................................................................7
Issues related to human behaviour.............................................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11

Oil and gas industries
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Introduction
Logistics are mainly those organisations that are engaged in complex operations.
These organisations try to establish good flow of activities from the starting point to the end
(Schönsleben, 2016).Oil and gas industries falls in the major segments and their contribution
in the GDP is quite high. Government also pays high attention to this sector. These provide
raw material in the terms of petroleum and castor oil to many factories such as, chemical
industries, fertilizers industries and so on, because of this overall turnover of this sector was
quit high (Samimi and Zarinabadi, 2011.).
Still there many problems that oil and gas industries have to face. Some of these
issues are – problem in identifying which place is better for extraction, amount of extraction
that can be done from particular place by keeping in mind element of environment safety.
Government also had made some rules and regulation to protect the employees
working in this segment. As, they have to perform many hazardous task so, special health
care benefits are provided to them. Apart from this, oil and gas industries are divided into
three major segments they are – upstream, midstream, downstream industries.

Oil and gas industries
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Figure 1 oil and gas plant
Fig: 1 heavy machinery’s are used in oil and gas industries. These plants are very
heavy and complex. Although it’s not easy to detect any defects if, occur in any part but with
the help of ditigal technology, it becomes easy to detect and rectify the faults within the
machinery.
Gazprom is the largest producer of oil and gas in the world. It falls in private sector
with its head office in Moscow. Company has contributed more than 17% in total gas
production all over the world (Stern,and Rogers,2013).New logistics scheme are also adopted
by the organisation because of which they able to ship 12 million tonnes of oil. Whereas,
maximum capability of the organisation to ship 15 million tons. In this report discussion will
be carried on EPR system, logistics and operations, adoption of digital technologies which
will further help to increase profitability of oil and gas organisation.