Tag Archives: energy

How Oil and Gas Companies Can Benefit from 3PL Partnership

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.  

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. Transportation is a large branch of the energy business and requires tons of time, efforts and enormous responsibility. Just one rig site may involve equipment from 80 different carriers. Considering that 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.

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 a 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 supply chain and reports at all times.

Read Transportation Management in the Oil & Gas Industry

When choosing a 3PL for your 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.

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, every-changing world. The oil and gas sector is experiencing major shifts and transformations, and its 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 Energy Services page or contact us now!