Tag Archives: energy services

How Technology Can Help Midstream Transportation Companies?

Technology and innovation are changing our world and the way we live. These shifts are affecting every single industry, and the energy industry is one of the most influenced branches of the global economy. Upstream, midstream, and downstream sectors all require digital transformation for efficient operations and cost reduction. For midstream transportation, digitization plays an even more crucial role, as a large chunk of costs are spent on oil and gas transportation.

 

Although many oil and gas companies take efforts to digitize pipelines, there is still a lot of work to really digitize midstream transport. Blockchain, data technology, tracking, and other innovations could drastically reduce transportation costs, and increase performance efficiency. Making the process of midstream transportation clear and transparent will help to better analyze and store data, define gaps, and drive results for energy companies. In particular, blockchain is believed to be the most promising and capable innovation to optimize and automate the midstream sector.

How blockchain and technology can help midstream transportation companies?

Infrastructure streamline

One particular thing about oil and gas midstream business is its incredibly complex infrastructure. Numerous spots in remote locations have different characteristics and specifications, which makes it complicated to manage. Advanced use of blockchain lets companies store and sort all the necessary infrastructure data in one place, which makes the process of midstream transportation management simpler and way more efficient.

Transportation tracking

Another crucial feature that could eliminate mistakes and costs in the oil and gas business is proper transportation tracking. Transparency of the energy supply chain lets companies see potential risks, discrepancies, inefficient operations, and performance gaps. This way, midstream companies can better understand how transportation looks like in real-time, and define better routes or methods for moving crude oil or natural liquid gas.

Equipment condition tracking

Tracking can also include monitoring of the pipeline’s climate. In terms of risk management, equipment condition control plays a critical role as a safety measurement. Oil and gas are not always transported through pipelines alone. Trucks, barges, rail, and the combination of modes require even more attention and monitoring.

Ultimately, blockchain and other innovations are much needed in the midstream sector, as well as in the oil and gas industry in general.

Midstream Transportation with PLS

Looking for oil and gas shipping services? Check out our energy transportation solutions!

4 Best Transportation Methods for Oil and Gas Shipping

It is hard to imagine our lives without fuel. Every day, we rely on the oil and gas industry to supply us with energy to keep multiple processes running. In order to provide us with necessary materials like oil and gas, companies must ensure they transport it in a convenient and reliable way. Choosing the right transportation mode and a robust strategy is crucial for efficient oil and gas shipping.

The role of transportation in the oil and gas industry

Transportation is an essential part of the oil and gas industry. However, due to the hazardous nature of transported products, it can be complicated. Crude oil, natural gas, and oversized drilling equipment all require special handling and increased safety regulations. Therefore, cargo security, delivery speed, and proper transportation equipment play a significant role in the oil and gas supply chain.

To ensure successful delivery, energy companies use various modes of transportation. Sometimes, it can be challenging to choose the proper mode.

Here are some of the most popular ways of transporting crude oil and gas across the world:

Trucks

The easiest and most utilized form of transportation in the oil and gas industry is trucking. With on-the-road transportation, you can schedule shipments at any time and move them at any place. This advantage makes trucking way more beneficial than other transportation modes. Also, it moves smaller amounts of oil, meaning that the extent of damage in case of cracks or leaks is relatively small.

Additionally, there are various types of trucks that can perfectly suit the needs of the industry.

  • Flatbeds are open trailers that are commonly used for oil and gas equipment shipping because they let you move loads of any size and shape. Rigs, pipes, and drilling equipment are usually oversized and overweight, which makes it hard to move via any other transportation method except a specialized truck.
  • Hotshots are trailers connected to a pick-up truck that is made for moving small and urgent shipments. Whenever you need to quickly transport a piece of equipment to a remote site, hotshot is a perfect option.
  • Oil tankers are special cylindrical containers connected to trucks. Tankers are adjusted to moving liquids, and they are good for moving oil as well. Although you cannot ship a large volume of oil through the truck, the vehicle can take it to any destination you need.

Pipelines

This transportation method suggests that oil is gathered and then transported directly to the site or plant via a pipeline network. Despite pipeline shipping being a hot topic of discussions between industry experts, it is a fast and reliable way to distribute oil. New technology helps advance the safety of this mode, and pipelines have sensors for monitoring important indicators like temperature, pressure, etc.

Pipeline transportation has its disadvantages. Firstly, it limits areas and destinations you can ship to because the pipeline infrastructure is not developed enough. Additionally, pipelines move enormous amounts of oil, so when an accident happens, the damage is very serious and it’s often hard to liquidate the consequences.

Ocean

Ships are a slow, inexpensive, reliable way to move extremely large volumes of fuel. Ocean transportation has one big advantage over other shipping methods, which is that you can transport materials globally. Despite longer transit, it is the most efficient mode for moving oil across the world. Essentially, ocean shipping is mostly used as a part of a large intermodal strategy.

Rail

Rail was a primary way to move oil for more than 150 years. Rail transportation makes oil containers less prone to damage compared to other shipping modes. This method doesn’t have enough flexibility to move oil at any point. But, when combined with other modes, rail can be extremely beneficial for a fairly fast and cost-effective way to move oil long distance.

Oil and gas transportation with PLS

Regardless of the shipping method you choose, it is essential to find a reliable transportation provider. At PLS, we have more than 27 years of experience and providing logistics services for oil and gas companies across North America. We can help you enhance your transportation strategy with our customized solutions, 45,000 carrier network, and a variety of modes.

Learn more about our oil and gas shipping services!

The 3 Main Oil and Gas Trends In 2019

Over the last few years, the oil and gas industry has faced numerous shifts and fluctuations, along with extreme price volatility. Technology, new energy policies, and trade agreements continue to affect the industry. The industry should expect to see even more transformation in 2019 and beyond. We have collected some valuable insights from the energy industry forecast and highlighted the main oil and gas trends in 2019 and beyond.  

Natural gas demand will increase

In fact, natural gas consumption is growing almost 3 times faster than oil consumption. Lately, companies have been promoting natural gas as a suitable and less polluting alternative. For now, natural gas accounts for 25 percent of the overall energy consumption. Also, experts forecast a 1 percent market growth until 2050.

The shift towards renewable energy sources

Many industries have experienced a huge shift because of sustainable and environmental movements. Oil and gas are considered one of the most harmful industries, however, the green shift has made its impact here too. One of the major oil and gas trends is switching to renewable energy sources. International Energy Agency (IEA) states that the renewable energy industry is anticipated to increase 13 percent until 2021, while the overall global demand for low carbon energy sources has jumped 85 percent. Large energy companies seek partners who will help them adjust to the industry shift and implement sustainable practices.

Technology impact

Innovations are making a substantial impact on the energy sector. In the oil and gas industry, digitalization works in the form of processes optimization, secured payments, advanced analytics, operational efficiency, and sales. According to Worldwide Oil and Gas 2018 Predictions, nearly 75 percent of oil and gas companies will deploy at least one innovation. Ultimately, big data, cloud services, IoT (Internet of Things) and software will drive efficient solutions into the energy sector over the next few years.

Bottom line

Presumably, innovations and sustainable fuel are not the only game-changers in the industry. Traditional factors, like OPEC output, oil supply and demand, changes in energy policy, and workforce challenges are making the largest impact on the industry. However, the oil and gas sector is surely going to adapt to the changing economic environment.

PLS Logistics provides efficient supply chain solutions to oil and gas companies. Learn more about our Oil and Gas services and get a free quote now!

How Oil And Gas Companies Can Save On Logistics

Just like every other industry, oil and gas supply chains are changing. However, these changes do not necessarily mean that energy supply chains are getting simpler. Despite all of the new technologies and advanced practices entering the sector, oil and gas companies still struggle with optimizing logistics and saving on transportation costs. The complex nature of oil and gas supply chains makes it difficult to manage processes, especially to maintain an efficient budget.

However, even such a complicated machine as an oil and gas supply chain is manageable when using the right solutions. Here at PLS Logistics, we have more than 27 years of experience in managing oil and gas supply chains, as well as logistics for many other heavy industrial areas. PLS has a few tips and tricks that can help you save costs on transportation within your supply chain.

How can oil and gas companies save on transportation?

Internal processes analysis

Before implementing any new strategies and solutions, you have to analyze your current processes and define errors. It may be difficult to adequately access operational efficiency within the company on your own, so it may be beneficial to hire an external analyst to make an accurate assessment. It is critical to figure out any waste spends and inefficiencies in the supply chain to proceed with setting up new cost-effective approaches.

Use a Transportation Management System

The transportation management system (TMS) is an automated tool to manage and streamline shipments. The TMS lets you increase visibility into your supply chain processes. It lets you gain transparency and valuable insights, and rethink internal processes in the supply chain. Additionally, an advanced TMS lets companies define gaps, capture negative spending tendencies, and track new savings opportunities. A TMS keeps all of the data together in one place, to simplify the analysis and interpret information. Supply chain transparency is extremely important to oil and gas companies. A TMS lets you track key metrics, see inconsistencies between rates and final bills, and compare data reports. It has the capability to drive savings through load optimization, freight consolidation, eliminating back hauls, and decrease extra miles.

Analytics and strategic planning

The truth about supply chain optimization is that it is mostly based on well-organized, planned operations. After a thorough analysis and usage of a TMS, your team will be capable of forecasting new approaches and eliminating unnecessary processes. The more your planning is based on accurate data interpretation, the more efficient it will be in practice.

Bottom line

To sum it up, oil and gas companies have possibilities to drive substantial cost savings within their supply chain. When using a robust TMS in combination with the proper analysis, you figure out new efficient approaches that enhance productivity and mitigate unnecessary costs.

Learn more about our Oil and Gas logistics services!

How Oil and Gas Companies Can Benefit from 3PL

Unlike any other industry, oil and gas supply chains are incredibly complex. Supplying every operation with heavy equipment, rigs, pipes, and hazardous materials requires extreme organization and strategy. Transporting such materials in such large volume demands using multiple modes, high capacity, special vehicles, and strict regulatory compliance. Therefore, there are many benefits of using a 3PL for oil and gas companies.

outsourcing oil and gas

So, oil and gas supply chains cannot survive any delays, disruptions or poor management. Every mistake and missed deadline can cost a company thousands of dollars. the mismanagement of such global processes can cause worldwide issues because the entire world is highly dependent on energy supplies.

Read How to Optimize Your Oil and Gas Supply Chain

Handling logistics for oil and gas companies by yourself is an expensive and inefficient approach, which often lacks visibility. Since transportation is a large branch of the energy business, it requires tons of time, efforts and enormous responsibility. Just one rig site may involve equipment from 80 different carriers. Also, most of the drilling sites are located in inaccessible areas, it’s hard to imagine the volume of responsibility and costs involved in the process.

That’s why many companies apply customized shipping solutions to their supply chains by outsourcing logistics operations to third-party logistics providers, or 3PLs. Outsourcing offers many benefits to energy companies:

Customized solutions

Finding the right transportation mode and providing necessary equipment is crucial for on-time delivery. 3PLs partner with a wide range of experienced carriers and have a variety of options to offer for your shipping needs. Flatbed trucking, casing and tubing deliveries, rig site delivery, combining transportation modes, warehousing, freight management, and hotshot services – all of these options fall under 3PLs expertise.

Read Do I Need Logistics Help for Mining, Oil & Gas Operations?

Safety

Unlike many other industries, safety is a top priority for the oil and gas sector due to its specific nature. Cutting costs on safety compliance is unacceptable, and 3PLs consider this factor while managing your supply chain. Logistics experts will provide assistance with regulatory compliance and ensure the transportation runs smoothly.

Technology and visibility

Due to its complexity and time-sensitivity, oil and gas logistics operations require increased visibility. Multiple processes mean lots of data that needs to be stored and systematized efficiently. 3PLs leverage advanced transportation management systems (TMS), which give complete visibility into the supply chain and reports at all times.

Read Transportation Management in the Oil & Gas Industry

When choosing a 3PL for oil and gas logistics solutions, consider the experience they have in your sector. While technology and a variety of carriers are important, understanding the specifics of oil and gas industry challenges is a key feature to look for.

Learn more about Oil and Gas shipping services! 

How Digitization Impacts Oil and Gas Industry

It is hard to imagine how the oil and gas industry operates with all its complex, critical processes involved. And it’s even harder to think of all the challenges it faces in the modern, ever-changing world. The oil and gas sector is experiencing major shifts and transformations, and it’s all because of digitization.

Why digitization matters to oil and gas?

The Internet of Things (IoT), artificial intelligence, blockchain, and big data are all terms that are prevalent among many industries, and the energy industry is no exception. More and more companies are seeking innovative, data-driven solutions for production efficiency and workforce stimulation. Technology today is the main efficiency booster in oil and gas, which can reduce costs and escalate decision making. Although it is not clear enough for some businesses how exactly digitization transforms into financial profit, the right application of technology can take the company’s performance to an entirely new level.

How digitization benefits oil and gas companies?

Digitization opens a vast variety of benefits for oil and gas companies.

  • Improving the performance of oil and gas assets and equipment. With the help of connected devices like IoT (Internet of Things), remote condition monitoring of well-site equipment is possible. Sensor technology lets companies track and gather data about equipment usage and maintenance. This data analysis, consequently, gives the potential to define waste operations and optimize production. Reviewing equipment can also mitigate its failure, and therefore contribute to better safety and health conditions for site workers.
  • Faster decision making. The energy industry is very complex and requires useful, well-thought decisions to be made on a daily basis. In such a huge industry, it’s hard to make accurate predictions and choices. Big data analysis is believed to be a key solution for decision making in the oil and gas industry. The concept behind this technology is simply gathering large volumes of data, sorting it properly and making an advanced analysis. Conclusions give companies invaluable insights, lets experts make decent forecasts and defines gaps in business models.
  • Reducing costs. All the technologies mentioned above can significantly cut your operational costs. As the usage of IoT and big data lets companies detect gaps and anomalies in the production, the elimination or reformation of waste processes will lead to cost savings. Also, innovations bring improved efficiency, which results in more profit.
  • Attracting the workforce. Recruiting is one of the most underestimated benefits of digitization. Oil and gas companies constantly struggle to attract young, tech-savvy talents to the industry, and digitization is a very promising solution for the issue. The 2018 Global Energy Talent Index (GETI) report stated that opportunities for remote and flexible jobs are in-demand for young employees and 48 percent of respondents referred it as an attractive feature of job in the oil and gas sector. Apart from the flexibility and new workplaces, digitization can offer employees possibilities for growth and development.

Final thoughts

Digitization is believed to transform the oil and gas industry in many ways. It can impact every stage of production, boost efficiency, reduce costs and make the sector more attractive for a young and talented workforce. Oil and gas companies should pay more attention to technology-enabled solutions in order to develop their brand image and improve performance.

If you need help with the transportation of oil and gas equipment, assets or materials, check our Oil and Gas Services page or contact us now!

Oil and Gas Companies: Expand Freight Networks Now

oil-gas-freight-shippingTransportation plays a critical role in the economics of oil and gas development, and vice versa.  The need to ship Shale Gas creates a high demand for motor freight.

Today, many oil and gas industry suppliers lean heavily on the same set of core carriers.  For obvious reasons, shippers trust carriers that have been reliable in the past.  However, as the industry grows into new geographic regions, this strategy leaves companies short on capacity in an already historic year of capacity shortages.

This is where freight brokers can provide assistance.  Transportation requirements in the oil and gas industry can be unique and complex.  Stricter safety standards and the need for specialized equipment limit the number of qualified carriers, making it harder for suppliers to quickly and economically get freight to project sites.

PLS Logistics has extensive experience in the oil and gas sector. Full-service flatbed trucking and specialized equipment transportation of equipment and materials to rig locations, storage yards and job sites both on and off-highway is our Energy Service team’s specialty. We can transport any Oilfield equipment or supplies, including a casing, tubing, and line pipe as well as production equipment, tanks or exploration, and development equipment. Our team of experts can handle large over-dimensional shipments requiring permitting and escort service as well as Hot Shot services needing to be expedited to a location.

Benefits of working with PLS include:

  • Dedicated industry experts who constantly monitor and analyze industry trends
  • Capacity when and where you need it
  • Saving time by letting someone else take care of your transportation needs
  • No stressing over tricky first/last mile shipping
  • Saving money with better rate shopping and backhaul pricing

Learn more about Oil and Gas shipping services!