The future for the oil & gas industry seems dynamic owing to inroads in “clean energy” and stricter regulations by the authorities (India’s Prime Minister has a road map which now aims to ensure that at least 30% of vehicles run on electricity by 2030) to reduce the carbon footprint and cut oil imports.
Globally, procurement and supply chain are set to be at the forefront of key strategies that will be implemented by oil and gas companies especially in the current era of low oil prices. For refining and petrochemical companies that are facing increased price volatility and heightened regulations, operational excellence is key to survival and growth. As capital expenditure and investments increase, companies need to strike balance by driving excellence in plant management and operational efficiency.
With the complex structure of the oil industry, the following are critical for the industry:
- Availability of right data at the right time for various stakeholders
- Integrating supply chain with vendors and suppliers for each organization involved in the process
- Solutions to handle multi-modal transportation, resource tracking, logistics, and cost tracking
- Demand forecast, capacity planning
As per our 2020 predictions the oil & gas industry needs to maximize operational efficiency, supply chain continuity, increase transparency,integrate new technologies, and most importantly to diversify and invest in clean energy in order to showcase growth. The rising demand and changing trends concerning clean energy will shape the industry’s growth.
Oil & Gas Industry Challenges
The gas and oil industry is witnessing rapid changes. As the world continues to rely on organic energy sources, micro- and macro-challenges affect the global industry. Investment in energy resurgence is expected to shift steadily. As a result, it is expected that new technological developments will move from the upstream sector to midstream refining operations, infrastructure and petrochemical facilities. There are some key challenges facing the industry:
- Deteriorating Fiscal Terms- Instability and insecurity have cost the industry a decline of $2.3 billion in predicted tax revenues. Also, the decline was due to dramatic reductions in production and drilling exploration.
- Changing trend towards eco-friendly resources.
- Several risk factors related to the scarcity of workforce, stakeholders, cyber-security, regional stringent regulatory regime, political instability, and global price volatility.
- The various other challenges are unconventional resources, substitute fuels which entail second-generation bio fuels, china as a significant market influencer and smart oilfield innovation.
How We Can Help
The strategic importance of sourcing, procurement and supply management has risen in its significance for the Oil & Gas industry.
C1 provides numerous e-Procurement solutions to help you tackle uncertainties prevailing in this sector and help you figure out exit gates or identifying sustaining plans. Our solutions will help you figure new cost-cutting opportunities in supply chains with the help of various analytical tools.
Our comprehensive e-Procurement suite includes inventory and indent management, e-Auctioning, e-Sourcing, vendor management, contract management, and risk management. With the focus of providing you the liberty to transform your supply chain as suitable to your requirements, we also provide actionable insights derived from our analytical tools such as expense management, budget, and spend analysis.
As pioneers of the e-Procurement space, we have assisted some of the biggest companies in the Oil & Gas sector. Our clients include:
