485
1 CHARACTERISTICSOFSUPPLYCHAINSIN
THEOIL&GASSECTOR
According to Council of Supply Chain Management
Professionals (CSCMP) definition – “logistics is that
part of Supply Chain Management that plans,
implements, and controls the efficient, effective
forward and reverse flow and storage of goods,
services,andrelatedinformation
betweenthepointof
originandthepointofconsumptioninordertomeet
customers’requirements”
FollowingtoDouglasM.Lambert:“Supplychain
management is the management of relationships in
the network of organizations, from end customers
throughoriginalsuppliers,usingkeycross‐functional
businessprocesses tocreatevaluefor
customersand
otherstakeholders”where:
Logistics is an important part of supply chain
managementbutisnotsupplychainmanagement
Successful logistics is a key for economic
developmentandcorporateprofitperformance
Logistics can be used to provide value to
customerswhichoffsetsapremiumprice
For
mostfirm’slogisticsrepresentsanopportunity
tobuildasustainablecompetitiveadvantage
As mentioned earlier in supply chain
management,theOil&Gassectorisdeepeningwith
thetendencyto integrateover time.The main factor
conducivetothisistheintegrationofproductionand
logisticprocessestakingplacein
individualareas,the
controlofoneenterprise.TheroleofIntegratedOil&
Gas Operators is performed by all companies
included in the International Oil Company (IOC)
group.Twentiethcenturydominatedinthediscussed
sector. Similar aspirations are also visible in the
growingnumberofcompaniesfromtheNationalOil
Company
(NOC)group,whicharenationaloperators
in oil‐rich countries that control their resources.
Mention should be made in particular of Russian
Gazprom, Chinese PetroChina or national operators
fromtheGulfcountries,inparticularSaudiAramco.
The question arises in this context about the
typicalandspecificityofsupplychain
solutionsinthe
Supply Chains for the Oil & Gas Sector. Identification
and Location of the Oilfield Service Operators in the
Contemporary Geopolitical System
M.Rutowicz
GdyniaMaritimeUniversity,Gdynia,Poland
ABSTRACT: Upstream in Oil&Gas sector is the beginning of most operations at entire supply chain
management.Aclose‐knitboundbetweenthissectorandfurtherlinksoflogisticsprovidersisperceivableon
daily basis. Any turnaround has a significant impact on the whole supply chain and
its management.
Awareness of market fluctuations and knowing its strongest players helps to conceptualize the strategy of
optimizationandprepareforunpredictable.InthisworkIaimtoidentifyfactorswhichhavetobetakeninto
considerationwhileoptimizingthesupplychainfortheOil&GasSector.
http://www.transnav.eu
the International Journal
on Marine Navigation
and Safety of Sea Transportation
Volume 14
Number 2
June 2020
DOI:10.12716/1001.14.02.29
486
Oil&Gassectoragainstthebackgroundofmodeland
real solutions in the area of logistics management
appliedinotherareasoftheeconomy,andwhichare
a generalized achievement of logistics and
management sciences. The purpose of the following
analysiswillbetohighlightthespecificityofsupply
chain management in the Oil & Gas sector and its
varioussourcesandpremises.
Figure1.Lambert,D.M.,2014Editor,FourthEdition,Ponte
Vedra Beach Supply Chain Management: Processes,
Partnerships,Performance:p.3
Moreover,MichaelPortersaidthat“abusinessis
profitable if the value it creates exceeds the cost of
performing the value activities. To gain competitive
advantage over its rivals, a company must either
perform these activities at a lower cost or perform
them in a way that leads to differentiation and
a
premiumprice(morevalue)”.
Inthecontextofsupplychainmanagementforoil
& gas sector it could be translated as a permanent
trend to never ending optimization following to
technologicalandpoliticalchanges.
1.1 Configurationofthechain
The dynamics of the development of logistics
applications in management
in the last two decades
has meant that currently the issues of logistics
participation in management and optimization of
logisticsprocessescannotbelimitedonlytothelimits
of an individual enterprise. These processes should
includewiderstructures,referredtointheliterature
aschainsandlogisticsnetworks.
This approach is
based on logistics as a chain
approach, which‐taking into account the factor of
chronological appearance‐includes the following
chains:
Chain of goods. Understood as a wayʺthat they
overcomeproductsfromthemomentofextraction
oracquisitiontotheplaceofconsumptionbythe
finalbuyerʺ,which
meansthatthechainofgoods
isʺthe sum of distribution channels defined as
roads by which the product is moved from the
producer to the customerʺ. The chain concept is
mainly used in research on global processes of
goodsflow,includinginthecontextoftheroleof
transport
inthisrespect.Thisissueisparticularly
importantinthelogisticalactivitiesundertakenby
themostimportantIOCcompanyinterestedinthis
study,soitwillcomebacktoitlaterinthisstudy.
Logisticchain.Itisalsoknownasthestorageand
transport chain, which is a
technological
combinationofstorageandtrans‐shipmentpoints
alongfreightroutes,aswellasorganizationaland
financial coordination of operations, procurement
processes, inventory policy and all other links in
thechain.Itisalsounderstoodastheproduction,
commercialandservicecapacitiesthatareworking
in different functional areas of the
company,
aimed at creating additional value for the client,
between which flows streams of products,
informationandfinancialresources.
Supply chain. Perceived in the literature asʺa
groupofatleastthreecompaniesrepresentingthe
sphere of supply, production and distribution,
implementinglogisticandextra‐logisticprocessesʺ
whoseaim
istoʺensureefficientflowofmaterials,
products and services, starting from the place of
origin of the good and ending with the final
recipient.Supplychainmanagementareprocesses
thatcontroltheaboveprocessestoachievethebest
satisfactionandbenefitsforalllinksinthesupply
chain.ʺ
The
valuechain.Covering,inaccordancewiththe
concept of G. Gereffi and M. Christopher, a full
range of processes necessary to create a given
good, starting from the idea through subsequent
production and post‐production phases
(marketing),todeliveringitto the final recipient.
Alsotheconceptof valuechain,
likethe chain of
goods, due to itspotentially globalreach, should
beconsideredwhenconsideringtheissue.
1.2 Currentdesign(model–andhowitcurrentlylooks?)
Inthecurrentstandards,logisticschainmanagement
should be integrated, which also means the
integrationoflogisticprocessesinfrastructure,i.e.the
occurrenceof
operational,functionalandformallinks
between individual infrastructure elements and
systemic protection against various types of threats.
Thisobservationrefersprimarilytotrendsinsupply
chain management, not to the realities of the Gas &
Oil sector. In fact, aswill bediscussed a bit further,
thereisalack
ofamongthecompaniesinthissector
that in a model manner implemented in the supply
chain management integrated paradigm. The closest
are companies from the IOC group and many from
the NOC and Oilfield Services Companies (OFSC
group).
Themaingoaloftheintegratedsupplychaininthe
Oil &
Gas sector is to ensure maximum customer
serviceatthelowestpossiblecost.Fromthepointof
view of competition rules, efficient supply chain
management is a competitive advantage, the basic
exponent of which is customer satisfaction and
loyalty. These goals are also appropriate for
companiesintheOil&
Gassector.
Inthetechnicalandtechnologicaldimension,itis
perceivedasawarehouseandtransportroute,whose
main purpose is to supply raw materials from the
487
placeofextractiontorawmaterialwarehouses,from
theretoprocessinginstallations,andfinallyfromraw
material warehouses ready for target customers. On
the other hand, in the process dimension, which is
more interesting in this study,ʺthe essence of the
supply chain comes down to the coordination of
activities
in individual phases of the flow of energy
andfuels,andwiththemtheflowofinformationand
cash.ʺ In the product dimension, the duality of the
supplychainisexpressedintheexistenceofrelatively
autonomous supply chains of raw materials and
finishedproducts.Theyrequirenotonly,for
example,
different means of transport, but also significantly
different economic instruments, which results, for
example, from the separate methods of influencing
thepricesoftherawmaterialandonpricesandthe
levelofsalesoffinishedproducts.
Regardlessof the dimensionin which the supply
chain is perceived, it covers
a series of successive
processes.
1.3 Chainlinks/participators‐fromthesubjectiveside
Stakeholders of the supply chain in Upstream are
mainlycompaniesinthefields:
Sourcing
Buyers
Procurement
Suppliers
Manufacturers
Logistics
Planners
Finance
Riskmanagement
Sales
Generally speaking,
the integration of the supply
chain in the Gas & Oil sector should not be limited
onlytotheintegrationofindividualfunctionalareas,
but also the integration of individual processes.
Integration in the processual dimension should be
seeninthecontextofsupplychainriskmanagement.
You can see much
more clearly for its proper
functioningatthelevelofprocessesthanfunctions.In
this context, reference is made to the transport
processes,especiallyinthesectionbetweentheplace
ofproductionoftechnologicalcomponentsforOFSCʹs
andtheplaceofitsexplorationandexploration.
On this episode there
are cumulative threats, the
reductionofwhicheventhemostpowerfuleconomic
organization has no greater impact. Transport
systemsused for transporting loads areexposed not
onlytotheriskoftechnicalfailures,butalsoextreme
weather events, tectonic movements, sea level rise,
terroristattacks,andseizurebyseapirates.Potential
impactsofsupplychainmanagersshouldgotowards
minimizing the impact of external factors or their
eliminationfromlogisticprocesses.
In translating into management decisions, it may
finditsexpressione.g.inthechangeofthesupplierof
transport means. If they are characterized by high
failure rate, or resignation
from using uncertain
supply routes or route delimitation (vessels, aircraft
or trucks), bypassing politically unstable areas be
providing additional protection to those who are
swimming in areas threatened by, for example,
maritimepiracy.
Theintegrationof thesupplychain,whether ata
functionalorprocesslevel,allowsOFSCcompaniesto
manage
riskmoreefficientlyandeffectively,andthus
protect the primary goal of the integrated supply
chain,whichiscreatingadditionalvaluefortheclient.
2 MODELS–HOWCANTHEPROCESSESBE
INTEGRATED
2.1 Relationshipsbetweenprocesses
Theessenceoftheconceptofsupplychainintegration
is merging of demand
and supply management
processes,understoodas multifunctionalintegration,
enabling integration and optimization of the main
functions occurring inside the enterprise, integration
of many enterprises, enabling the merger of
enterpriseswiththeirbusinesspartnersandclients.
The values chain exists in both vertical and
horizontal integration models. The values for the
customer
are to be created, based on defined goals
andactions,inthefollowinglinksofthesupplychain
intheOil&Gassector:
explorationandproduction;
hurt/trading;
storage;
distribution;
sale;
new areas (e.g. implementation of high
technologies).
Analogouslytotheabove,
thevaluechainatIOC
includesthefollowingstages:
Conductingseismicsurveys fortheoccurrence of
oil/gasdepositsbothonthemainlandandunder
the seabed, using state‐of‐the‐art equipment and
usingstate‐of‐the‐arttechnologies.
Construction of wells along with technical,
transport, storage
and environmental protection
facilities (e.g. construction of landfills for
operationalwaste).
Strengthening and stabilizing wells, ensuring
stableoperationfromthemostefficientlevels.
Launching production from the most efficient
seamsandensuringthebestqualityrawmaterial.
The production process, including: a) mining of
the raw material;
b) transport to the refinery
(pipeline, sea, rail, etc.); c) direct use of the raw
material for energy production or its refining to
produce gasoline, diesel oil and other
petrochemicalproducts.
Distribution.Transport(pipeline,sea,rail,etc.)to
fuel terminals, and hence to petrol stations
(petrochemicalproducts).
Sales of
fuels in petrol stations and other
petrochemicalproductsinpetrochemicaldepots.
Upstream,themainfieldwhereoperatesOFSC’sis
focused of course on first four points, where
Exploration, Field Development and Production
Operationsisplayingmainrole.
488
2.2 Valueadded–whichisgeneratedwithinindividual
cells
With the perception of the supply chain in terms of
the value chain, it corresponds to the demand for
sustainable development, i.e. the idea that
contemporary development should not be at the
expense of diminishing the opportunities of future
generations,
which is increasingly raised both by
scienceandpractitioners.allrefertothenon‐lettingof
natural resources. The priority of ecological
requirementsinthesupplychainisrankedfirstinthe
hierarchyofprioritiesofoilandgassectorcompanies,
against health and safety at work and reliability in
financial management. In this respect, geographical
variations in the preferences for sustainable
developmentcomponentsarecharacteristic.
Thegreatestemphasisonitsenvironmentalaspect
lies in Europe, while in North America this factor
giveswaytoreliabilityinfinancialmanagement.This
is an important factor in the case of companies
operatingon
theglobalmarket,subjecttoavarietyof
conditions‐dependingonthegeographicregion.As
itisemphasizedintheliterature,theactivitiesofOil
& Gas sector companies are among the most risky
negativeenvironmentaleffects.
For this reason, they may encounter numerous
developmental difficulties, which may at least
minimize through the use of state‐of‐the‐art
technologies, maintaining positive relations with the
environment (social partners, co‐operators, state
institutions, political factors‐as part of corporate
social responsibility) and the most advanced supply
chain management procedures, covering areas with
diverse conditions. In the light of research, the
sustainable development
inhibitors include
inadequate infrastructure, high costs, lack of
knowledgeabouttheideaofsustainabledevelopment
and lack of ecological awareness. These
weaknesseshaveanegativeimpactontheprocedures
of sustainable management of the supply chain
(values).
3 GLOBALOPERATORSANDENTITIES
INVOLVEDINTHEOILFIELDSERVICES
Sustainability and environmental aspects
are one of
the most important factors shaping current supply
chaininOil&Gas,especiallyafterDeepwaterHorizon
explosion in April 2010. Currently for all IOC and
NOC proper purchasing management in Upstream
and Midstream seems to be most important factor
apartfromeconomicandtechnicissues.
The following companies represent the
biggest
entitiesclassifiedbyOilandgas.comin2018asOilfield
ServicesCompanies–OFSCs(excludeallNOCsand
IOCs).
Schlumberger‐foundedbyConradandMarcelin
France back in 1926. Schlumberger operates in
over 85 countries and employs about 100,000
people of 140 nationalities. The company,
registeredinthe
DutchAntillesandheadquartered
in Houston, Paris and The Hague supplies
numerousproductsandservicesincludingseismic
acquisition and processing, formation evaluation,
well testing and directional drilling, well
cementing and stimulation, artificial lift, well
completions and consulting, and software and
information management. The trophy for top
oilfield services company remains in
Houston as
sectorleader,Schlumberger,staystopofthepile.
Thefirmearnedover$30bnlastyearandpenneda
majorcontractfordrillingrigsandservicesforoil
and gas wells with Saudi Aramco. It will also
developamanufacturingbaseinthekingdom.The
AbuDhabiNational Oil
Company(ADNOC) has
collaborated on a joint training facility to benefit
UAENationals.
Halliburton‐earningover$20bnin2017andwith
55,000 employees worldwide, Halliburton is a
bonafidetopthreeentrantandoneoftheworld’s
oilfield service leaders. The firm has recently
signedathree‐yeardealwith
Aramcotoboostthe
Saudi firm’s unconventional gas production.
Halliburton has seen increased drilling services,
projectmanagementactivity, and completion tool
sales in the Middle East with a 6% spike in
regionalrevenues.
Weir Oil & Gas‐Scotland’s Weir Group has
enjoyedastellarstartto2018witha
35%increase
in orders for its oil and gas division – thanks in
maintoitsexposuretotheacceleratingUStightoil
business. But the company has a respectable
Middle East footprint and can be found from
SaudiArabiatoIraq.Weirnabsthirdplacedueto
its raft of
innovative solutions, including Weir
Edge, its newly‐branded aftermarket services
programwhichprovidesengineersinthefield.
Baker Hughes, a GE company‐Baker Hughes, a
GE company is likely to lose the GE part of its
name as parent company, General Electric,
struggles to reduce its debt levels. But
the firm
remainsaseriousoilfieldservicesoutfit.Recently,
itsecureda$175mndealfromAramcotoboostgas
field production in the kingdom, as well as a
subseaawardfromBPofftheWestAfricancoast.
The company has also linked up with Egypt’s
government to support modernisation of the
country’soilandgasindustry.
Emerson‐the number of companies offering
automatedsolutionstotheindustryisacrowded
space,butEmersonheadsthepack.Thecompany
hasseenakeyfacilityinSaudiArabiaopen,while
the acquisition of software provider Paradigm,
which has combined with Emerson’s own
Roxar
business,hascreatedacomprehensiveexploration
and production software portfolio. France’s Total
is utilising it to maximise reservoir subsurface
modellingandformationevaluation.
National Oilwell Varco (NOV) offers rig
technologies, wellbore technologies and
completions solutions. It has assets of more than
$20bn and 37,000 employees worldwide. The
company’sinnovative
solutionshavefoundready
marketstheworldoverbutNOVcontinuestosee
success in its bits, borehole enlargement and
coring businesses in the Middle East. It has just
489
inked a major joint venture deal with regular
partner Aramco to establish a rig manufacturing
facility.
Schneider Electric‐french energy management
andautomationspecialistSchneiderElectricisthis
year’s big mover. The company has major clients
intheregionincludingworkingwithADNOCon
itsimpressivePanoramaControlCentre
atitsAbu
DhabiHQandhelpingtosmarttrainthe Kuwait
OilCompany’s employeesvia itsEYESIM virtual
reality technology. Its deal to acquire Aveva, the
UK engineering software developer, for $3.8bn,
takesittoanotherlevel.
Siemens‐Germany’s Siemens leaps into our top
ten, thanks to its
innovative solutions and its
commitmenttodrivingitsdigitalpresenceacross
the region. The company is spending $500mn
establishing MindSphere Application Centres
around the globe where data specialists and
engineers will work with Siemens customers to
develop applications for data analysis and
machine learning. A tie‐up with Tenable offers
cybersecurity
assistancetotheindustry.
WeatherfordOil&Gas‐CEOMarkMcCollomhas
had a tough task since taking over last year.
Weatherford was dented by the 2014 oil price
plunge and he is determined to streamline the
business and save $1bn by 2019 with debts
estimated at $7.5bn. Started
in the US in 1948,
Weatherford employs around 46,700 employees
and operates in more than 100 countries. The
company provides a whole host of services
including drilling, evaluation, conveyance,
completion systems, production, maximising
recovery and well optimisation. Weatherford has
sold 31 land rigs to ADES International (a new
entry at number
15) encompassing operations in
Kuwait, Algeria and Saudi Arabia. Record US
production has helped total revenue rise 6% to
$1.5bn.
China Oilfield Services Ltd.‐The Beijing‐based
China Oilfield Services Ltd (COSL), is state‐
controlled, but also trades on the Chinese stock
exchange. Founded in 1967, COSL has around
8500employeesanditsservicescoverexploration,
development, and production of offshore oil and
naturalgasoperations.Itsfourbusinesssegments
are drilling services, well services, shipping, and
geophysicalservices.COSLclaimsa95%shareof
Chinaʹs market foroffshoredrilling services, 70%
ofthemarine support and transportationmarket,
60%ofthewellsurveyservicesmarketandmore
than 50% of the seismic data collection market.
WhileactiveintheMiddleEast,COSLisbelieved
tobelookingatanumberofacquisitiontargetsto
furtherincreaseitspresenceintheregion.
4 SPECIFICITIESANDCODITIONSBETWEEN
PURCHASING
ANDDISTRIBUTION
PROCESSESFORSPECIALISTCARGOES
In the book “Building High Performance Business
Relationships Supplier” (Douglas M. Lambert,
A.Michael Knemeyer, John T Gradner defines
relationship management as “the business process
that providers the structure for how relationships
withsuppliersaredevelopedandmaintained”.
DemandsimposedbyOFSC’sonsuppliersrelated
to
veryspecifickindofcargohascreatedwithinlast
year’s specific niche on logistic operators market
calledgenerallyasa“projectcargo”logistics.Mostof
internationaloperatorshascreatedseparatedivisions
dedicatedtohandlesuchkindofshipmentstofill‐up
highrequirementstoUpstreamcustomers.
The market of logistics
services is divided
similarlylikeIOCandNOC–meanstherearepresent
huge international companies and also national
logistics entities, which creates these markets very
diversified.
Thebiggestplatersonglobalfreightarerankedby
threemainfactors:GrossRevenue,OceanTEU’sand
AirMetricTons:
Figure2.https://www.logisticsmgmt.com/article/top_25_
Freight_forwarders_strong_grouth_abundant_opportunity
From this group separated divisions responsible
forProjectCargoarepresentmainlyatDHL,Kuehne
+ Nagel, DB Schenker, DSV, Panalpina, Bollore
Logistics, CEVA, Geodis , Agility, Deugro and C.H
Robinson.
The evolution of supply chain management
towardsasustainablemodel,takingintoaccountthe
ecologicalaspect,relatedtovaluechain
management,
should be considered in terms of development
opportunitiesoftheGas&Oilsectorenterprises.
This is particularly concerning of OFSC’s
companiesoperatingglobally,butwiththeresources
necessarytostrengthenitspositionasagloballeader.
In particular, they have the potential to use ICT in
improving the
efficiency and effectiveness of supply
chainmanagement.Inscience,however,anumberof
factorsareperceived,whichshouldbeperceivedfrom
490
the point of view of the companies of the analyzed
sector in terms of threats. Conducting business
operationsonaglobalscaleisassociatedwithahigh
level of uncertainty as to the smooth and smooth
functioningofthesupplychain.
The systematic delivery of loads is of key
importance
in this respect, without which the
remainingfunctionalareascannotfunctionproperly.
In the planning and implementation of processes
relevanttothesupplychainintheOil&Gassector,
the uncertainty factor should always be taken into
account, constantlymonitored and verified the scale
ofthreatthatthecompanyʹ
soperationswillsustain.
The supply chain in the analyzed sector should
have both a strong theoretical as well as empirical
foundation, created in the latter case based on
systematic observation of the global environment in
which the vast majority of oil and gas companies
operate. In its real form, it
cannot be a theoretical
construct but have an empirical dimension, taking
into account the real conditions, environment,
potential and goals of a given company. Only
management based on the empirical model can be
effectiveandeffective,especiallyinthefieldofvalue
chaincreation,intheaboveunderstoodsense.
5
DISTRIBUTIONANDFORWARDINGINAIR,
SEAANDROADTRANSPORT
The leading OFSCʹs companies operate in an
international economic environment, turbulent,
uncertain, exposed to more or less expected crisis
phenomena. This is a set of determinants for the
supply chain, qualitatively different from domestic
ones.
The global reach of its functioning,
which
generates fundamentally different challenges to
ensuringtheefficiencyandsecurityofitsfunctioning,
ischaracteristicfortheinternationalsupplychain.In
the international supply chain, the importance of
modern technological solutions increases
significantly, allowing not only to support its
efficiency,ensuresecurity inthetransnationalspace,
but also to
control its complex infrastructure on an
ongoing basis and react as quickly as possible to
emergingthreats.
Upstream and OFSC’s are geographically
diversified mainly at old USRR courtiers, Middle
East, West Africa, South America (Mexican gulf,
Venezuela,México,Brazil)andNorthAmerica,which
isdemandingchallengetakingintoaccountthathigh
technology providers are located mainly in US and
Europe.
Freightforwardinginsupplychainmanagementis
using for logistics operations several advanced
systemsofpurchasingspaceandpricefromairlines,
ship owners and overland companies. Additionally,
very sensitive points of transport systems are
terminals, ports, warehouses, storage yards and
customsbrokerageagencies.
Insimplifiedterms,thelogisticprocessforonshore
and offshore oilfield operators in an example looks
likethis:
Figure3.Incoterms2010
In all these places, it is required to conclude
transport and shipping contracts, long‐term storage
contracts and customs clearance authorizations. In
order to manage thousands of subcontractors,
logistics operators use many IT tools to effectively
andsafelytransportentrustedloads.
6 FINALCONCLUSSIONSANDSUMARRIES
Many years of experience in
the cooperation of
oilfieldserviceoperatorswithLogisticsprovidershas
meantthatthemanagementofglobalchainsnowhas
asolidbasisforfunctioning.
However,theoilandgassector,dependingonthe
price of crude oil, is very susceptible to fluctuations
and crises. Every time the oil barrel curve
goes
drasticallyupordownithasanimmediatereflection
inthesupplychainsaroundtheworld.
Today in 2019, provide chain management is
maybe additional necessary for upstream business
thanwithinthepastanditsrolecanforcertaingrow
withintheclosetofuture.
For the last years‐actually
throughout the 20th
century, the demand for oil increased constantly
reachinginthemiddleof2008morethan160USDper
barrel.
In the context of geopolitical and economic
changes, supply chain management is often an
elementary basis of the companyʹs competitiveness
strategy, which is driven by increased emphasis
on
cost control, outsourcing and expanding the area of
operations around the world, and consequently
increases the demand for logistics services for
customers.
Over the last decade, new concepts for the
development of economies and economic systems
have emerged. The new AI technologies, including
autonomous transport, development of renewable
energy sources,
and quantum computer work will
cause further dynamic changes with significant
impactonoilexplorationandproduction.
Therefore, the key issue for OFSC’c is not only
managingthecostsoftheintegratedsupplychain,but
also continuous work on the optimized costs of
exploration, where effective management of supply
chains
is increasingly perceived as an additional
sourceofrevenuesforoilandgascompanies.
Therefore, the most significant challenges for
OFSC’sforthefuturewillbetoeffectivelyassessthe
impactsassociatedwithoptimizingthesupplychain
resultinginrealneedsonthechangingglobalmarket.
491
Duetotheambiguousdata,itisextremelydifficultto
estimate the contribution to the revenue that the
supply chain can bring to the general operation of
OFSC companies. This is an area of much‐needed
research that should allow even better mapping of
logisticprocesses.
The contemporary approach to
SCM and SRM
shown, for example, in the works of Douglas M.
Lambert‐manybenefitsofconsciousmanagementof
the supply chain and subcontractors in a holistic
approach.
OFSCʹs have a wide range of management
activities covering supply logistics with a special
emphasis on cooperation with logistics operators on
the functioning and effectiveness of the tools
described in this work, probably because the tools
andskillsarenotwelldeveloped.
In order to be able to achieve a perfectly
functioningsupplychainforOFSCʹs,itisnecessaryto
cooperate with logistics operators in the field of
definingKPIʹs,
findingcommonbenefitsandmethods
of their mutual fair distribution among all
participantsofthechain.
REFERENCES
Gereffi, G., Humphrey, T. & Sturgeon, T. 2005 The
Governance of Global Value Chains, review of
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Lambert, D.M. 2014. Supply Chain Management: Processes,
Partnership, Performance: 2. Ponte Vedra Beach: FL:
SupplyManagementInstitute
Lambert, D.M., Knemeyer M.A. & Gradner, J.T. Building
HighPerformanceBusinessRelationships
Supplierp.15
Stevens,P.2016.IntenrationalOilCompaniesTheDeathof
the Old Business Model Energy, Environment and
Resources
https://cscmp.org/CSCMP/Educate/SCM_Definitions_and_
Glossary_of_Terms
https://hbr.org/1985/07/how‐information‐gives‐you‐
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