Tag Archives: oil and gas shipping

3 Main Challenges of Oil and Gas Industry

The oil and gas industry is extremely volatile by nature. It is involved with many other industries and processes, and often must adjust to the dynamic environment. At the same time, upstream, midstream, and downstream oil and gas appear to be extremely complex and require a high level of management and responsibility to function properly. This puts oil companies under the pressure of high-quality maintenance and being flexible at the same time. Apart from traditional obstacles like fluctuating oil prices that cause spikes and drops of demand, there are a few other significant challenges.

Oil and gas industry challenges

Reducing costs

In oil and gas, reducing costs means optimizing processes as much as possible. It is an extremely complicated mission to reduce production costs and still maintain proper quality levels. Therefore, constantly monitoring operational processes and defining gaps is crucial to keep costs down.

Visibility into operations

With such a complex supply chain, it is a huge challenge for oil and gas companies to stay updated on everything happening within the business. Lack of transparency into operations and processes often results in disruptions and overspending. The key to overcoming this obstacle is investing in innovative software with rich functionality and integration capability. Real-time updates and data storage lets you see a wholesome picture and easily monitor every separate operation.

Improve communication with service parties

Obviously, oil and gas companies could hardly operate without any parties involved. From vendors and suppliers to logistics providers and customers, clear communication is a must at every stage. Outline a strategy and make sure to clearly communicate it to your partners. Emphasizing your company’s updates and changing needs will help speed up processes and increase performance efficiency.

Oil and Gas Shipping with PLS

PLS is one of the country’s leading industrial-focused 3PL providers. We can handle your oil and gas supply chain with our dedicated team, skilled carriers and committed capacity. Learn more about our Oil and Gas Shipping services!

Midstream Oil and Gas: What Is It & How Does It Work?

There are three essential stages in the oil and gas production industry: upstream, midstream and downstream. To understand the role of midstream oil and gas, let’s take a look at every stage.

Upstream is referred to all of the processes and actions connected to finding, exploring, drilling and producing crude oil and natural gas. Obviously, midstream is an intermediate link between the first and the last grade of the oil industry. As a final link, downstream encompasses refining and selling end products of oil and gas segment.

What is midstream oil and gas?

Consequently, as a median link between upstream and downstream, midstream is responsible for storing and transporting oil and gas supplies to their end distributors. It includes all the processes, equipment and facilities needed to distribute the materials.

It may seem like the easiest process, but it is way more complex than many can imagine. Arranging storage and logistics of fuel materials requires following safety guidelines and complying with strict regulations. Shipping speed also plays a crucial role in the oil and gas supply chain, which makes midstream transport an important branch to manage.

How does midstream supply chain work?

Oil and gas supply chains are very complex. There are many different processes within the stage of midstream oil and gas. Usually, it consists of three main stages:

Storage

Storing oil and gas plays a huge role in balancing supply and demand of the materials across the country. It is a part of midstream to secure supplies in large oil tankers and to prepare materials for distribution.

Primary logistics

Once crude oil or natural gas is ready for transit, the logistics stage begins. Primarily, most of oil and gas is transferred with special pipelines that are built across the country. Highly secured and protected, oil is pushed with an extremely high pressure to reach the necessary destination. Midstream pipelines are the best way to move energy products safely and quickly.

Secondary logistics

Essentially, when the supplies arrive at the hub, the next step is the delivery to a final destination (warehouse, plant, or facility). There are several transportation modes like trucks, rail, and barge that assist midstream companies with this task. It is a critical stage of transportation and requires proper planning and execution.

Midstream Transport: Oil and Gas Shipping with PLS

PLS is one of the country’s leading industrial-focused 3PL providers. We can handle your oil and gas supply chain with our dedicated team, skilled carriers and committed capacity. Learn more about our Oil and Gas Shipping services!

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

Learn more about our Oil and Gas shipping services to ensure safe transportation!

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!