Supply Chain for a Petroleum Industry Refinery Downstream-dissertation Ac

Supply Chain of Petroleum IndustryIssues & Practices (Refinery Downstream) A Dissertation

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CONTENTS

Chapters

Particulars Ex ecuti ve Summ ary

Chapter 1

Chapter 2 Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7 Chapter 8 Chapter 9 Chapter10

Introduction 1.1 Introduction 1.2 Problem Statement Statement Review of Literature Research Methodology 3.1 objective 3.2 Scope of research 3.3 Sources of data Supply Chain in Petroleum Industry 4.1 Background 4.2 Issues & Practices Issues & Practices 5.1 Supply Chain as a whole and Refinery Downstream Storage, Pipelines & IT Factors 6.1 Pipeline Logistics 6.2 Tanker Storage 6.3 Information Technology & it’s Role A Company Analysis 7.1 Exxon Mobil Recommendations Conclusion References

Pg No.





















Executive Summary This Dissertation report on the topic “Challenges in the supply chain in a petroleum industryissues & practices (refinery downstream)” is a thorough discussion on the basic supply chain

issues & practices in a petroleum industry refinery downstream. The suppl y chain in the following departments has been discussed. 

Pipeline logistics



Refinery (downstream)



Tanker storage issues

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Basic Supply Chain

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Information Technology

Various issues regarding the supply chain have been pointed out that includes Market demand, forecasting, scheduling, tanker storage issues, pipeline issues, various factor involving supply chain in a petroleum refinery downstream. Various IT factor that have contributed to the development of supply chain in this sector.





















CHAPTER 1: INTRODUCTION

1.1 Introduction

The petroleum industry is involved in a global supply chain that includes national, international transport, commands inventory visibility, control, handling, import export facilitation and information technology. The process of economic liberalization in India began in 1991, when India had a default on its loans and request of 241.8 billion bail-out of the IMF. It was the effect of runoff culmination of the cold war era marked by the 1991 collapse of the Soviet Union with India the main trading partner. The rescue was carried out on the condition that the government launched new reforms, thus opening the way to India the emergence as a free market economy. There has been an increase inc rease in the global trade of petroleum p etroleum products after the elimination of trade restrictions. LPG, naphtha, kerosene, Diesel and gasoline are the main petroleum products which are widely marketed. Because of the increase in competition in the world the refineries are working on the reduction of costs. Installed refining potential is more than the demand in many man y countries. India is also exposed to international competition due d ue to the opening of the economy. In order to withstand competition from other multinational enterprises Indian refineries must concentrate on the reduction of costs. To maximize the effectiveness of the system, all elements of the supply chain must be analyzed. Supply chain management in the oil industry contains various challenges specifically in the area of logistics which are not present in most other industries. These logistical challenges are a major influence on the cost of oil o il and its subsidiaries. However the opportunities for cost savings in the area of logistics still exists. Petrochemical giant organization undertaking a "swap" practice which registered organization millions of dollars. The objective of this document docume nt is to shed light on the challenges relating to the supply chain and the possibilities of the oil industry and on swap practices which have long been employed by the petroleum industry of the giants of the world as BASF, BP, Honeywell still have long been ignored in the management of the operations literature. When a region of the client clie nt has a request for a quantity qua ntity of petroleum product it is in general possible to meet the demand by using a number of equivalent products. Many factors influence the proportions of products components that are combined co mbined to form a supply chain optimal decision. These factors include the season of the year, the available slots of equivalent products





















through the manufacture of products necessary for the construction of drilling platforms offshore platforms and a host of facilities, often very unwelcoming u nwelcoming some parts of the planet. It is continued by the production, transport and refining until the products are consumed by the people who have need of fuel and lubricants to keep their trucks and cars running. It certainly includes the products and services doors to operating systems by these organizations, which represent the fields of oil and natural gas services to businesses. The various challenges of the industry are supplier ensuring effectiveness setting appropriate targets for the stock Requesting supply conditions, technology technolog y Type and location of facilities. Using different strategies in supply chain and which require customizing logistics network, product updates, pipeline customization and also forming partnerships to improve the supply chain. The industry has a classical model of implementation techniques technique s of management of the procurement process. In a supply chain a company is related to its upstream suppliers and downstream distributors as materials, information and capital flows through the supply chain. The purpose of this research is to examine the role of supply chain management in the oil and gas industry and deals with several related issues





















1.2 Problem Statement

With the increasing pace of global integration it is necessary that the supply chain of the oil industry to compete in terms of its capacity in relation to the global and regional markets and have to be competitive and efficient. This study focuses on the various logistical and supply chain issues of downstream oil industry including various aspects of the conservation and the oil pipelines etc and general practices in the industry. Improving the quality of the logistics and transport systems and at the same time reduce costs improves with the use of information technology providing solutions in the sector of the supply chain.























CHAPTER 2: REVIEW OF LITERATURE

There is a large literature coverage in the depth of the technical and economic aspects of the Petroleum jelly. However an integrative supply chain perspective pe rspective is not common in the industry or the research work. The literature is a lot lo t more of the global supply chain Perspective. As in other industries the typical approach was a Silo type study as a different user without a unified approach. Most of the peer-reviewed publications focus on only one of the aspects of the Supply Chain. The process optimization and logistics planning, in particular p articular the literature on the application of the operations research and optimization techniques to further development of processes is large. In addition, some of the books book s published with the general economic treatment of o f the refining business. In detail to the most important problems in the supply chain, chain, inventory planning, logistics networks planning, process equipment design, crude oil product yield optimization. The supply concept of the petroleum industry is gradually in a customer-oriented approach. The references to this holistic perspective are usually in the work of the consultants and they are in many cases on the analogies with other industries in which more advanced supply chain paradigms have been adopted. Most of the works on refinery supply chain simulation in the literature address only a part of the supply chain such as crude oil transport logistics with discrete simulation and optimal control (Cheng and Duran 2004) 2 004) simulation-based short-term scheduling of crude oil from the opening to the refinery tanks and a nd distillation (Chryssolouris 2005) agent-crude oil procurement (Julka 2002).





















CHAPTER 3: RESEARCH METHODOLOGY

3.1 objective of the study

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To identify the issues in the supply chain of petroleum industry -

The supply chain in the petroleum industry has over the years have overcome many challenges. Issues and challenges will be discussed.

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Pipeline logistics

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refinery (downstream)

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Tanker storage issues

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Usage of Information Technology

To identify several industry practices in the supply chain industry-

Different steps & strategies used by the organization for their supply chain development. -

Specific supply chain practices of organization (CASE)





















3.2 Scope of Research

The aim of this thesis is to investigate supply chain management in the oil industry and look at options to improve the supply chain in the oil industry. The study will help the petroleum organization to understand the need to establish a good chain of supply, since that will be beneficial to the industry that the gaps are closed. This study shows the ways to strategize the weaknesses in the supply chain. It will be beneficial for the final product of the company and ensure proper operation. The study shall cover the scenario post liberalization of the oil industry. Petroleum Sector has a single business process when it comes to different factors that determine the components logistics and how to coordinate co ordinate to carry out effectively the logistics functions. In order to reorganize the oil companies and restore the flow of operations to strengthen the cross-regional integration of the supply chain to optimize the operation of the supply chain information systems using the to establish the new system of evaluation of the performance of the supply chain and so on.

3.3 Sources of Data     

Research articles White papers Blog pages Internet Reference books Various research papers have been used as will be seen in the references.





















CHAPTER 4: SUPPLY CHAIN IN PETROLEUM INDUSTRY

4.1 Background PETROLEUM INDUSTRY & IT’S SUPPLY CHAINS BACKGROUND:

The oil industry plays an important role in the economic development of the country. co untry. Petroleum Industry is very active. As well as other chemicals organization o rganization supply chain can account for up to 70% of the total cost. Business processes are highly evolved to divide. Chemical C hemical supply chains are typically non-linear non -linear in nature. Supply Chain optimization op timization in a strategic and operational level is an opportunity to create value chemical organization and a possible source of competitive advantage. The supply chain backs Refinery. The crude oil is manufactured consumer product in which the specialty is the refineries and petrochemicals organization. Processes - forecast production and the management of the logistics of delivering the subsidiaries of crude to customers around the globe. Petroleum Finished products in India PRODUCT

% PRODUCTION

USE

LPG

9

NAPHTHA

11

PETROL (MS) KEROSENE (SKO) DIESEL (HSD)

8 8 40

COOKING & TRANSPORTATION FERTILIZER & PETROCHEMICALS TRANSPORTATION COOKING & LIGHTING TRANSPORTATION,





















Goals of a successful supply chain in a petroleum industry

Reduction for purchase of materials -

maximizing potential of production and meet the demand for sales numbers Respond quickly to market opportunities through the purchase of production shortfalls in other players aim of each of the production produ ction units would be to maximize the performance and its margin acquisition, purchase raw materials and not the best b est yields at lower cost

Strategies in practice:

- The programming - When and in what order raw material should reach production plant - At the time and in what sequence or modes to run the equipment - That the orders to comply with the dates and what to promise - Demand planning : For demand forecasting and demand of the final numbers based on requirements of the supply chain - Unified planning: the planning of the complete supply chain of the customer, depending on the demand - Planning : number of the distribution: Generate operational plans of distribution -Production Planning : Generate operational plans for production. These modules are supported by various stimuli that facilitate planning activities that include:

Supply Chain database (SCD) Geographic Information System (GIS)











































technical organization of the flow of goods and services in the value chain, ch ain, from the supplier to the customer. Strategic issues for the oil industry:

- Globalization - Fundamental changes in demand, trade flows and - Demography - Change of capital investment and restructuring patterns - The new competition from India and China - Energy Management and Sustainability - Growth in demand for long-term energy energ y and geopolitics means - Shares Alternative Power - Regulatory Compliance - Portfolio Management - M & A - the main vehicle ve hicle for the growth of certain segments (organization of average avera ge size -) - The new groups of buyers emerge (India, China, East) innovation - New models and business processes (skills, knowledge Management, collaboration, value added services) - Advanced IT technologies to support innovation - Performance and Increase Margin





















2. Optimize the supply and distribution of products

- Optimization of Distribution Causes for Production 3. Decreased GAP between the Plan and the actual

- Modeling Management / Component Molecular - Application System Planning and Programming April . Larger unit performance and improve reliability - Advanced Process Control and optimization Performance Monitoring 4. Real-time visibility in refinery operations

- Viewing Refinery - Analysis of production performance Trend - Integrating the Supply Chain

Traditionally each operation within the supply chain (both inside and outside the refinery) was administered and “optimized" in isolation. • The largest organization of oil has begun to realize the great benefits ben efits to be had by the

integration of the supply chain and improving the entire company.





















TYPICAL SUPPLY CHAIN WORK PROCESS:





















algorithm. Supply the refinery chain is complex with multiple entities, distributed, heterogeneous and operates their functions based on certain policies. The main products obtained from the activity a ctivity of a refinery are: liquefied petroleum Gas, naphtha, gasoline, kerosene, diesel, fuel oil, lubricating oil, asphalt, and petroleum coke. Most of these products are used in all the days of applications (transport, heating, etc.) In addition, petroleum products are also used in the petrochemical industry for the production Rubber, nylon, plastic and other types t ypes of subsidiaries. Challenges and opportunities in the supply chain

In many geographical areas, the increased demand for fuel is low. However, trade in goods has increased due to the potential lack of refining in the main areas of consumption. This creates a pressure on margins in regions with a deficit, because the finished products begin Arising from regions with a surplus (as with the essence of Europe imports to the United States). on the other hand, this creates new markets in other countries for local refiners and opportunities to increase the efficiency of the overall supply chain. Quality problems are particularly stringent than the new fuel specifications require a more complex and costly investments in new processing equipment. These Investments do not always provide an attractive return, but are in many cases required to keep operating refinery,























The industry has continued its efforts in cost reduction and increased efficiency, but was Limited so far by certain attributes of the operations of supply chain downstream: 1. Limited flexibility as (for example) the raw materials lead times are long (usually a cargo of crude oil will take several weeks to arrive at the th e refinery) and the planning process p rocess extends over several months. 2. The integration of the supply suppl y chain of supply of crude oil marketing at the pump is still missing after a longstanding silos approach. Generally, optimization tasks (typically using linear programming tools) are oriented programming around the refinery as an island. 3 . Purchasing decisions of actions are rarely based on a global optimization of the supply chain,





















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Sharing products and streams is possible for these refineries, where there is a demand d emand for a product on the market in another refinery, while the product may be provided by another refinery. Similarly, if a product is considered in a refinery that can be moved to another place where there is a demand.

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Advanced products can be manufactured in a unit and can be supplied to all markets. Advanced products normally require high investments, which is not possible with all the refineries.

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A refinery group of refineries can handle very ver y well logistical problems

Logistical difficulties problem increases with variables such as the limitation of the distillation





















Problems of internal logistics

Internal logistics generally deals with issues of transportation, value additions, and storage of finished products. In the case of domestic refinery logistics deals with the delivery d elivery of crude oil from tanks in the tank farm, pipeline transportation to the distillation columns, distillation, transfer of refined various reservoirs flows, mixture to produce final products, and storage tanks for marketing. Selection process, product variety, site selection and potential products storage facilities are important to consider in the design phase of o f a refinery; technology for many processes are available. Choice of technology is very ver y important because the availability of crude oil and an d product demand has a strong impact on the processing of crude oil. Refinery site is important logistics far is concerned.





















- New acquisitions, buyouts, and divestitures take place in this important sector. The above changes create a need for refiners to reformulate their strategy more than ever. In a refinery, the supply chain is very v ery important because it is an industry intensive movement of equipment. Crude oil markets Shipping crude oil Unloading port operations:





















Operations; it is instrumentation and automation intensive option that significantly reduces the requirement produced tanks and stocks of products made by the refinery.























CHAPTER 5: ISSUES & PRACTICES

5.1 Supply Chain as a whole w hole























themselves against the risk of rising costs, and in some cases against a gainst shortages of products and services. The rise of the NOCs























The operators are working hard to fill this skills gap by encouraging the graduates and experienced engineers in other sectors to enter the industry but it is a problem which cannot be solved in the short term. One way that the industry has helped to mitigate this problem of work is by combining resourc























issues which may affect the various stages of development developmen t the production and distribution and the resilience that is inherent in our whole nation of the energy infrastructure. Motor Vehicle and rail transport of petroleum products























pressure and non-pressure tank cars can be heated cooled heat insulated and protected against fire as a function of their service and the products being transported. Iron all tank cars have high- or o r low-liquid or steam valves of loading or unloading u nloading and hatch entries for cleaning. They are also fitted with devices intended to prevent the increase in internal











































































































































































































































































































































































































































































































































































































boilers, combustion. Burning of industrial gases, such as acetylene, treatment, welding, cutting, cutting, and heat treatment to be used. LPG and LNG properties of the combustion appear in the table.

Type gas

LNG LPG (propane) LPG (butane)

Burnable range (% gas in air) 4.5-14 2.1-9.6

Vapour pressure (psig at 21 °C) 1.47 132

Normal Weight init. boiling (pounds/gal) point (°C)

BTU per

Specific gravity (Air = 1)

-162 -46

3.5-4 4.24

1,050 2,500

9.2-10 1.52

1.9-8.5

17

-9

4.81

3,200

2.0

LNGs that apply to all of the safety risk of chemical reaction, the temperature and pressure are associated with the flame retardant. A serious risk of the LNGs (cans and tank containers) and the ignition source of contacts with the unexpected release. Release the valve failure, the container or the container of the overflow to occur for a variety of reasons, gas heaters to reduce the pressure in the vents. The GPL liquid-phase liquid propane, butane and extended 16 times using a liquid high coefficient of expansion in the water, the temperature 11 times with the same high level. This property of the container when filling the free space to the left of the gas-phase, gas-ph ase, you need to need to be investigated. The appropriate amount of filling and that it is based on the number of variables, including the nature of the temperature of the gas filling the time and ambient temperature, size, type (isolated or non-isolated), and location of the container (up or down) the earth. The code and regulations, and the filling gas density under the name of the family or a similar gas is known to be allowed to establish the amount. Fill density weight, specifies the absolute value as a function of temperature is still that it is modified. Volume of a liquid can be expressed. The LPG under pressure in a liquid container must be filled with a 85% maximum capacity 40 degrees (C at higher temperatures. LNG is at a lower temperature, because it is stored in the container LNG, 95% of the 90% that is filled with liquid. In all of the containers is usually above the normal atmospheric temperature Liquid temperature-related pressure to lead provided with the device. These valves, the pressure inside of the atmosphere you cannot reduce the fluid in the normal boiling point temperature is always on. Compressed, liquefied pure hydrocarbon noncorrosive gas steel and most copper alloy. However, a serious problem of corrosion sulfur compounds, impurities, and the gas is when there are. However, the dilution steam in the air, its density is essentially the same as with the air in the





















6.2 Tanker Storage

Steel tank of oil and chemical, to save the use of the USA this is the epitome of our efforts in other countries. Talk about the experience of the oil social change for the better in the discovery of how the earliest date. In addition, environmental awareness and public safety issues, and many of the more recent times, to save the energy security, you will need convincing. For more information on the Industrial Age oil, with the details. Oil energy source of the organization, but you want to save the most effective means. In the more distant past, wooden barrel storage vessel. However, soon enough, oil producers, suppliers, and more reliable, longterm, large-scale of the potential of a solution is required to realize that. The 1800 S of the last few decades, between the wooden barrels, not rivet steel tank liquid chemical products to replace the oil stores. It is ground and underground has been used, whether or not these rivet tank storage standards may be required by some barrel and beyond. Tank Standardization

In the early 1900S performance test and the construction of the United States Code and burning flammable liquid, and standards have been developed to. The goal of the tank and standard tank owner, manufacturer, fire department, and the insurance company of the country. The production and use of the tank of o f the shares of some of the organizations and an d safety issues to deal with the start. - After steel tank (STI Institute. Midwest tank and boiler Manufacturer's Association was established in 1916. For the same amount of time in between the --UL (Underwriters Laboratories) is a third-party test Laboratory atmospheric steel tank of the first safety standards. Storage Tank to the growth of industry standard, another important UL that preceded the developments. 1904, the National Committee of the Fire Insurance Company, nbfu, 30, the title is, and that is covered in the rules and requirements for the construction and installation of the system, to save 250 gallons of liquid, or normal temperature in the non-combustible gas, that are recommended and the committee consulting engineers" To a final of the nbfu code and standard is responsible for and the National Fire Protection Association (NFPA), modify, the storage system, the standard code to specify NFPA 30L, 1913. Now NFPA 30 or 1957 as the first had been exposed flammable and combustible liquids code, the document that you know. Increased use of petroleum products to immediately install the tank hydrocarbon production,





















the groups that are widely respected in many countries, there are some important storage tank system is the development of standards and guidelines. Urbanization and Industrialization

Automotive industry began to grow as the distribution of the mass oil dealers to enable it to adapt. This is the first service station in the construction of a minimal amount of storage tank must be potential - LED is lit. For safety reasons, aesthetic purposes, most of the fuel tank is installed underground, un derground, especially in public retail service station. This is, as a business owner, real estate, and other, more productive, you may want to use. Burial of the leakage of fuel usts, a potential vehicle accident or other damage to alleviate any concerns about. Advent of Welding

The production of steel tank in the early days to participate in the centre c entre of the rivet steel, the most common method in 1920 and 1930 and a number of steel companies in Arc Welding, highquality tank LED is turned on. Zinc-plated steel sheet used in the production of the tank, it was the second world war and if it is out of the zinc-plated products had never seen anything like that. Rare and recognize the UL black carbon steel, the use of the tank to be manufactured. Basic cylindrical design is not changed, and in the decades had been in the mid 1950s, an innovative, product surface has started. The STI ST I product line at the bottom of the heating oil tank to prevent water accumulation and claims to place. In this design, water and oil heater to evaporate, the writer, to lead. In 1956, the Midwest STI 56 standard, underground storage tanks along the top of the size of the opening and the location are in the design of a widely recognized method is issued. Underground storage tanks anti-corrosion protection of business-minded corrosion control is dependent on the development of the standard, especially in the United States. For the past 30 years the fuel tank and very steel tank fabricators of the expected and actual service life. Between 1960 and 1970, The Lost inventory issues underground steel tank to prevent corrosion that were the driving force. The ' 60s, the new material and the underground flammable new design and a flammable liquid tank. The first design is an innovative metal tank was not. The steel industry is the non-metallic tank; a major oil producer did not focus on it. As a result,





















Shop Fabricated Steel tank, Plastic Wrap or use the "baggies, corrosion protection design, d esign, thick glass fibre reinforced, tar epoxy paint coating with various forms of galvanic anodes are built. Many of the existing unprotected steel tank and the head of the internal lining, was moved by the current design, a complete bare steel to protect a system has been upgraded. Tanker Storage standards for class 1 refineries:

DIAMETE R (meters)

HEIGH T (meters)

NET CAPACIT Y (cubic meters)

TYPE OF ROO F

FLUID STORED

92 36 48 45.2

20 20 20 20

119596 18312 32555 36191

16 66

18 20

3718 59841

FR CRUDE FR PARAXYLENE FR ATF DOM LPG/POLYPROPELENE/PROPA E NE CR ORTHOXYLENE FR DIESEL

FLAS H POIN T/ CLAS S

<23/A <27/B <35/B <23/A <30/B <56/B

Environmental and Fire Safety Awareness

In the early 1970s, through the whole of the environment of strong concern over hazardous liquid for a secure storage and subway subwa y in the progress of technology LED is lit. Secondary containment tank design, a useful feature. Steel tank is steel wall or HDPE FRP of metal with a non-jacket, was built. Thick coated with urethane or FRP tanks tank s are popular anode. 250000 STI -p 3Cathodic Protection P rotection tanks are only in the United States, from the late 1960s installed. Currently, today is tank industry and innovative changes have occurred. The last decades, many of the new UST system technologies and trends have emerged. Tank manufacturers manu facturers and system designers UST enhancements in the underground tank system 22, the upgrade to the 1998 EPA were placed before the due date. Many of the Service Station operators ope rators from the U.S. federal government regulations, expiration date, or as a reason to sell the fuel supply facilities used to shut down. The owner of a tank, very ver y happy with the new design, to accept the subway, long-distance companies to storage use had





















special demand. Expensive, and UST-contaminated soil and water resources, including cleanUPS negative connotations about the tank, the owner of the underground tank system owners began considering the advantages and disadvantages. For many, the tank and choose Close. The vehicle fuel tank if necessary for them, they the y are close to the driver, the retail service station to be sent to. LEAK PREVENTION VS LEAK DETECTION VS LEAK CONTAINMENT:

Environmental protection in the oil industry's approach multi-faceted. Many Man y of the standards and protect the environment of the liquid and gaseous substances to address potential escape from being developed. The risk of a liquid to the reference range of the tank itself to escape API standards and regulations for preventing leaks, leak detection, leak containment. It is a useful leak prevention and better tank standards, annual changes that have occurred in order to understand leak detection and leak prevention and to distinguish between. In simple terms, the leak, the leak In the first place to prevent the occurrence occurrenc e has been designed for all of the processes. There is a leak Detection to search after the has been designed for all process or system and leakage suppression is the leak is included, and the liquid from contaminated groundwater or surface water so as to separate was designed to process or system. New tank construction oil industry's primary focus is on the main leak prevention is not detected or is suppressed or spill. spill. COMMON CAUSES OF LEAKS AND SPILLS:

The most common causes of leaks and spills in aboveground storage tanks are typically Classified in seven basic categories. These are: 1) Leaks due to corrosion: These type of risk of leaks virtually NIL tanks that is built for the first time, but is usually in the tank with the increased increa sed age. This type of leakage leak age is generally a slow Rate and quickly discovered that if the characteristic is less the total amount of emissions. However, the total amount of discharge do not leak detected immediately from the view, The view is not the Bottom Plate and tank is not equipped with the leak detection device or system as in the case of occur. 2) Leaks or spills due to operation: The risk of this type of drop d rop or leak is in general may ma y not Depend on the age of the tank although the penalty can be more severe if the tank is in poor condition. Examples include such events as congestion, leaks in piping links. 3) Spills or leaks due to failure of the tank: This type of leakage or leakage of hazards of























Rich property is damaged and important environment is damaged. 4) Improper maintenance or lack of maintenance: Lack of appropriate upholding can lead to leaks resulting from unnoticed corrosion or other harm. 5) Sabotage or vandalism: Spills and leakage may affect intentional attacks on the tank. The Risks of such events are usually mitigate by b y increased security actions rather than by Necessities in design or construction standards. 6) Poorly designed and/or maintained piping systems: Piping system part leaks are the larger source of leakage and spill when compared to all other categories. 7) Fire and explosion: fire or explosion is usually a bad design, improper operation, or due to any combination of the two. More often than fire or explosion, not to cause them to leak from the results of and spills, which is considered the fire or explosion ex plosion affected tank outflow of Add the contents of the result of the adjacent tank can be spread. Leaks and spills ground tank, piping and associated component is designed to prevent the number of industry-standard. This paper, the American Petroleum Institute's industry standards and recommended practices, the most important changes with respect to ground tank leak prevention, detection, and spill containment. These criteria are not static documents, but with continuous improvement in the industry to reflect the experience of the environment is leakage, spills and emissions through the fuel tank and the associated components, in order to protect them from new and improved technology to incorporate. 6.3Role of IT

Data Integration, the oil and gas industry, however, howev er, the oil and gas industry of the information of the hotbed of integration activities in the past five years. In a lot of ways, the oil and a nd gas industry data integration challenges in many man y other industries, as well as - Industrial quality Insight are combined to provide large, heterogeneous in that dataset. data set. The Oil Gas and Chemicals Business Group, the organization, o rganization, the Health Care and Life Sciences





















communications technical backup, and check the resources on the cover of all the areas of information technology and communication, and more. 

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Accounting systems Appraisal rig Data storage consultancy Document management systems Drilling communications Exploration rig Finance systems Geological and Geophysical systems Information Management systems Network security Project management Remote office setup Rig communications Satellite communications Seismic data storage Telephony Virtualizations consultancy WAN Acceleration WAN Optimizations. API's Electronic Business & Information Management and Technology Committees Co mmittees support a wide range of activities in the areas of electronic business, telecommunications, information technology security, data privacy and information technology applications for the oil and natural n atural





















development of the Benchmark Study Group between various surveys and research and to establish the project. Managing the innovation and technology challenge in oil and gas

As the operator of the service, the oil and gas sector of the organization o rganization of the existing and future oil, but many of the technologies and innovative challenges of development of potential to the maximum. They are on the technical side, the decision to allow you to work more in-depth water, to develop and field to extend the life of working in the water, the field of multiple remote and dangerous to work is a significant investment and it is necessary to do it. Each operator is required, assets, geographic location, according to the business goals. PA can be applied for the energy sector expertise, innovation, strategic response that is customized to both of these issues to business bu siness issues in order to implement the changes, and to understand the needs of the supply chain as a whole is defined in. Optimization and Technology Streamline management-technology roadmap for the entire portfolio development and human resources management expertise, an aging workforce, to provide the address. Increased global demand for energy, and a technical challenge is the asset maturity, when you are poor, the industry has never before in the challenge. Note that the response technology and access hydrocarbons, not be able to access the resource, or unrecoverable, considered to detect the feature is on the rise. Technology Technolo gy also mature field of production for many years is much higher than expected in that you want to be the source. Great service of our technology, experience, and commitment to meet the needs of the future to help you in the industry is a major challenge.





















Oil resources of conventional oil once play heavy fuel oil.

Reservoir description, construction, completion, artificial lift and strengthen production optimization and Enhanced oil recovery Enhanced oil recovery (EOR) tertiary recovery, or could not be more than 100 million barrels of oil in the 3OO some estimates to unlock. EOR screening, pilot projects, full-field implementation Of hydrocarbons exploration and exploration of search cost uncertainty and features.

Identify, Evaluate, and playing lead, prospects, evaluation Managing GEO Mechanical factors in the life cycle c ycle of the hydrocarbon tank impacts every part, p art, you need to evaluate and manage. GEO mechanics Management - drill, GEO mechanics mecha nics of the reservoir, complete GEO mechanics, and mechanical earth model is defined , a high-pressure, high-profile nature of the hpht well given to the design d esign and execution, and systematic scientific approach is successful in hpht environment are obligated to temperature is high. h igh. The hpht reservoirs hpht readiness assessment is reached, a trusted hpht Soda carbonate reservoir flow performance of the world's oil reserves and more than 6% of natural gas reserves and 40 Percent of reserves.

Real-time operation, carbonate tank production

Real-time technology to improve decision making. Real-time drill, micro-earthquake intervention services, Tube Coil, intelligent, real-time monitoring and optimization, and the cement Evaluation & Design, Production & case holes, Formation Evaluation





















the operator to use the supplier IT, on the infrastructure. Technology has better internally, collaboration with the vendor's capabilities as a key ke y for the customer and to the contractor. In addition, this technology is enabled in collaboration is the EPC Contractors, equipment vendors and other partners, and plan is to confirm that you cannot run the communication, and the project's deliverables to effective enough to support. ROLE OF TECHNOLOGY

This industry equipment manufacturers, maintenance and operations op erations services organization and EPC contractors or -EPC Contractors how to become beco me suppliers to slightly different technology is required. But they are one of the reasons is what they have in common. They are much more with fewer resources are required to take the risk that th at you are asked to, but on the inside, and more effectively with trading partners and customers will need to work together. to gether. In addition, industry's needs and the available av ailable change the type of project, as the supplier of existing assets and extend the life of the new n ew system to build more detail than these new n ew project you need to prepare for. Economic pressures, many industry vendors, new revenue streams and aftermarket services such as warranty work for you to drive. All of these changes, the new request is placed in the IT infrastructure. Order is the oil and gas industry supplier companies in the industry that is required by b y applications to be successful Areas, engineering, manufacturing, construction, and after-market service management, mana gement, project management, to harmonize the work-in-process. Superior quality of the process to ensure the inside or outside contractors and subcontractors work performed by b y work performed as standard. risks associated with the project to provide a complete com plete overview of the risk. Proactive management of the tool for use in real-time. Re-contracts and outsourcing.

Traditional purchase orders received in the inventory materials ma terials are collected and the problem. However, they have a concrete, the quantity and quality of the service, or to specify the range of the submarine cable to the outline ou tline of the agreement? Contracts and contract with the items that























enterprise tools to predict than if you were using the project for what has happened, but it was too not do anything about it, and if you want to view only and that is not possible, look into the future. The project, track or off-track project milestones in the Project Impact provides the realtime view of the cut, and the trade-offs can be. With the conventional independent of the transaction reporting and forecasting period. Automated features to the general ledger must be reported each period; if you want to fetch cost data is displayed. In addition, revenue recognition of the routines to automate important tasks, timely payment, and the customer can check.

The oil and gas industry, the service organization is a diverse lot. Project-based service, which provides the organization, in an enterprise environment, where appropriate at the appropriate time to people and equipment equip ment to do the job to ensure that there, is an important process for the mobilization of the need to ensure that you have. The enterprise application and you want to use, you have to use the equipment, and the equipment charge for each piece of media to track revenue generated to you need to be. Service is disconnected, from the service that you want to give a wide variety of business bu siness models to cover the wide range of business needs, n eeds, you can change how the generalization. However, many of these organizations to provide the elements of EPC to expand and more to take the risk out of o f the management of the work of the entity is to provide sufficient flexibility Excellent technology platform, on these potential are the future future needs of the industry, with minimal disruption to the business. b usiness. If you have plans to move to handle must exist could not be found. For many companies, to select a complex project for the





















CHAPTER 7: A COMPANY ANALYSIS

7.1 CASE: ExxonMobil position in the Industry

Exxon Mobil Corporation is vertically integrated oil company-wide to the oil supply chain; the upstream and downstream are located in. The Th e main focus of the strategy is the th e best. On the segment of the business to provide for upstream, a basic hydrocarbons. The other geological geolo gical exploration and production activities are formed by the downstream activity as a valuable cash generators as a product of the oil of the entire value chain from production to final consumer control. As described in the strategic statement and presentation, and an d later on, for the merger of o f Exxon and Mobil, preferences in the Company and in the center of the organic growth and the key strategic goals of the company. * The growing in the upstream, up stream, gas &Power Business Unit * To pursue greater integration, the efficiency of o f the downstream activities * business in Asia, especially in China and the nature of the price of crude oil and products are available to gradually, as well as the financial approach (transfer, and the futures market) and the





















* Profitability assessment, each retail site and global network ExxonMobil's Main Issues in Downstream Supply Chain

Exxon Mobil Corporation, to identify the existing down-stream down -stream of the competitive advantage of one of the four areas, the scale is: that is the maximum downstream operators in the world's largest refinery * Integration : the creation of a global functional organization to leverage the Integration on the scale. The other unit in the refinery, and site-to-site Oil Refinery and Petrochemical Plant (8O Percent of plants that are now in the Unified) between the adjacent refinery refiner y (cluster), and other business segments *technology : Focus on the development and application of proprietary technologies and The reduction of the capital and operational cost * Brand: to create and maintain superior brand identity low short-term elasticity of demand for gasoline is a non-durable * Collect demand as a result re sult of the formation of the market, and many man y of the smaller consumers , compensation issues, buyer power in some cases can be high. * The product differentiation is the (quality even with the description of the criterion would weaken the diversity), the number of most products * Buyer switching costs are easy to other gas stations; you can search for it in the face.





















Following this route, the carefully industry supply chain structures and processes To overall corporate strategy needs to be aligned with. These efforts, as the supply chain success strategy to carefully re-design of the development process, the plan to establish a management and information technology for design and implementation of changes will be required.





















CHAPTER 8: RECOMMENDATION RECOMMENDATION

The most important recommendation dealing with pipeline pipe line -transfer is that a mechanism for joint use of data about the space under OMCs depots and shipping plans need to be developed and will be put into practice. This allows for greater flexibility of action. Usage of new industry pipeline systems and storage units will act effective for optimizing the supply chain as storage is a very ver y important factor. Improvements in the technology industry in it were only on ly achieved integration, but the basic structure and process must be re-organized, supply chain integration. The process requires that all parties work and support in order to achieve achi eve industry wide added value in the field of global supply chain. A detailed analysis has to be carried out as other software can integrate a better integration of the supply chain. Firstly, this industry is confronted with an enormously taxing and extremely unpredictable unp redictable environment. The conventional silos approach widespread in the business has garnered local suboptimal structure in the downstream supply chain. Much more progress in the development of supply chain management culture in the place, it is still there is much room for improvement.























CHAPTER 9: CONCLUSION

Formerly a supply chain has been recognized and coordination mechanism is in place, it can still be enhanced. Today, petroleum organizations are looking for new ways in civilizing working & supply chain effectiveness. In some cases technology technolog y may allow several mechanisms for configuration across the supply chain. Generally oil & gas organization should view their supply chain pattern & coordination systems as worthy of improvement. This process involves relationship management by the company. co mpany. Both customer and supplier relations are key to effective coordination of supply chain. ch ain. Very few industries other than the oil & gas industries can benefit by maximizing the supply





















CHAPTER 10: REFERENCES

       

oil & Gas Industry in India www.iloveindia.com/economy-of-india/oil-gas-industry.html www.gail.nic.in www.economywatch.com www.indiaenergyportal.org www.ficci.com/media-room/speeches-presemtations/2oo3/jan/jan-petro-srini.ppt Kemthose Paul, 2003, Supply chain management in the Indian petroleum refineries, Phd Thesis, Cochin University of Science & Technology Fidel Santos Manzano, 2005, Supply chain practices in petroleum downstream,

Supply Chain for a Petroleum Industry Refinery Downstream-dissertation Ac

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