Tag Archives: oil and gas logistics

Oil and Gas Safety: 3 Practices for Safe Transportation

The oil and gas industry essentially involves exploring, utilizing and transporting hazardous materials. Therefore, oil and gas safety compliance and risk management are crucial in such a complex sector. Unfortunately, disruptions and breakdowns in oil and gas supply chain lead to devastating consequences, that apart from an environmental disaster often causes numerous injuries and death cases.

Risk management in the oil and gas industry has to be handled properly. However, it doesn’t always work the right way. Sometimes, companies may underestimate the importance of safety measures while exploring and transporting crude oil and gas. It is critical to regularly check if your operations are in compliance with safety guides.

3 Practices for Oil and Gas Risk Management

Risk management strategy

In the oil and gas industry, preventing an issue is much more important than solving the consequences. That’s why proper project analysis and forecast of all dangerous situations is essential for the risk management strategy. Potential issues can occur on every stage of the process. So, it is important to outline all the possible scenarios before the execution begins.

Operational safety control

Unfortunately, the majority of accidents in the oil and gas industry are the result of human error. The first step to ensure safety compliance is developing a proper safety culture. Often, company leaders dismiss small signs that later might lead to an unwanted outcome. Also, make sure that employees that are responsible for operations and safety measures are doing it on practice, not just in their paperwork reports. Companies certainly should pay close attention to any changes in the system or processes.

Proper communication and analysis

In industries like oil and gas, it always seems like the disaster occurs randomly and with no possibility to be predicted. However, after some time of analysis, many minor warnings of danger come to the surface. Despite these factors were known, there was no proper communication or the importance of them was just underestimated. Make sure to structure the efficient communication strategy within the company and with all the parties involved to diminish the risks.

Ultimately, regular control and accurate planning can reduce the risk rate to a very low level. It’s better to be safe than sorry, especially in the oil and gas industry, where being sorry costs a very high price.

Oil and Gas Shipping with PLS Logistics

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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!