College of International Transport and Logistics

Energy & Petroleum Logistics Management Department

Oil & Gas Supply Chain Management

Energy Supply chain Management

Ground rules
outline
 Supply chain background
 Energy supply chain
 Energy market
 Demand Side Management
 Roles and responsibilities in supply chain
 Procurement in energy supply chain
 Supply chain background
• Steam engine- coal- mechanization- textile- iron -steam
1 rev
transportation

• Oil-electricity- mass production- combustion engine

2 rev transportation

• Electronics – communication- digitization

3 rev

• Information revolution- big data- IoT- block chain- AI

4 rev

• Neurotechnology - AI third gen

5 rev
 Energy supply chain strategy
commodity

Supply Demand
Fund, Information

• Production • Geographic
• Trading hubs • Sectorial

 Rationalization, operating expenses management

 Synchronization, reliability and agility (3R)
• Cost drivers:
Standardization- Economies of scale- competitive negotiation-
learning curve effect
Energy supply chain design

 End to end supply chain (supply- demand integration)

 Balancing capital and operating cost
 Partnership relations strategy
 Retailer/Supplier

Producer Trader
Energy
Market
Facility service participants Consumer
provider

Shipper
 Demand side management

1. Energy efficiency (light bulb)

2. Strategic load growth (utilization)
 Demand response
• Market based
1. Pricing
2. bidding
• Reliability based
1. Interruptible load
2. Direct load
3. Emergency planning
Roles and responsibilities in supply chain

Management Responsibility
 Strategic
• Supply chain strategy alignment
• Strategic sourcing
• Capacity planning
• Strategic partnerships
• Distribution strategy
• Uncertainty and risk reduction
Management Responsibility
 Operational
• Forecasting (Demand- supply)
• Operations Planning/ Scheduling
• Managing inventory
• Transportation planning
• Procurement
• Site location
• Controlling (monitoring)
• Integration (intra firm- SRM-CRM- global integration)
Procurement in energy supply chain
 Material – service
 Category management (no. of suppliers)
 Qualifying supplier
1. Prescreening
2. Prequalification a vendor
3. Technical evaluation
4. Approved vendor agreement
5. Preselection for bidding (Tech/ financially)
6. Contracting
Procurement in energy supply chain
 Partnership relation levels:
1. Transactional
2. Preferred
3. Value added
4. Alliance
5. Strategic partnership

 Tendering/Auctions
Partnership relations levels: