Logistics And Operations For Oil And Gas †MyAssignmenthelp.com

Question: Discuss about the Logistics And Operations For Oil And Gas. Answer: Introduction The oil and Gas industry is facing an intense pressure from the operational efficiencies due to the lowering oil prices. This is to achieve breakthrough by managing performance demand in an effective way. Digital technologies and models are important to meet the points in the oil and gas value chain. In current situation, the oil and gas industry has digital perspective to drive efficiencies across the industry landscape. The report primarily focuses on digital technology used by BP in managing its operations. It describes the role of digital technology in managing operational safety and supply chain. By considering all the factor chain and development procedure, it is able to manage the consequent changes taking place in the production and distribution channel. Company Overview BP P.L.C in a British Oil Company is located in London. It is one of the worlds 6th Oil and Gas Company. It became the largest oil producing company in the year 2012 and the 6th major company by capitalization. BP is coordinated vertically and carries out all the operations related to oil and petroleum. They have a sustainable interest in the management of bio fuel and wind energy. The changing technology has a long-term implication on the organization. Just like many other organizations, international oil giant BP has undergone a digital transformation of its own by relying on cloud computing. Digital Technology at BP BP has implemented effective cloud efforts over the last 18 months. It has gained rewards, due to the digital technology cost savings, in an effective way by adding innovation. Technological changes at BP have helped in managing the changes taking place in the digital environment. The changing use of technology and digitalization has helped in organizing the resources in the most appropriate way. This has helped in implementing the resource up-gradation in the company in order to gain the benefit. In order you remain competitive, it is important to implement an effective digital technology mechanism. This will help in gaining sustainable changes in the operations. It is important for organizing the day-to-day operations. It is the most effective way that is used by the companies in order to gain concrete changes. This is a necessary fact that needs to be implemented in order to coordinate the desired changes. The approach is effective while focusing on the deliberate changes that are important for achieving the ultimate goal. Upstream technology and its critical evaluation Digitalization helps in imbibing effective industrys ecosystem, by disrupting traditional value chains and redefining roles. The new business models allow companies in leading organizational change. By using a structured approach digitalization can be understood in order to develop changes in a systematic way. The technology stack approach helps in exploring how digitalization will alter the upstream oil ecosystem. It involves 5 steps in the upstream value chain: exploration and appraisal, concept development, project definition and execution, drilling, and production. These approaches are important from the point of view of providing structured changes in order to gain effectiveness. Digital technologies are significant from the point of creating better chance for the alteration of the upstream industry. This is also helping in adapting longer-term low oil price. BP is working efficiently in the field of digital oilfield, with a continuous focus on Field of the Future programme, incorporating 2000km of fiber cable in the Gulf of Mexico and the North Sea. This will enable onshore technician to directly communicate with the off-shore engineers. The digital technology has helped in 35 collaborative environmental project deployed internationally. They have moreover deployed a Real-time sound inspection on major assets (Saad, Mohamed Udin and Hasnan, 2014). The cloud, mobility, analytics and Big Data, used by the company is creating digital platforms for oil and gas companies in order to carry out operational functions. This has helped in managing engineering data and documents in order to seek critical information to contractors and employees. On a long run, the companies are using the digital platform to track and trace technologies. Holsman (2017) has very signified the growing importance of Digital technologies in transforming corporate functions like finance, HR, supply chain, marketing and procurement. The change in the IT has a higher impact and reduced costs in order to gain competencies. Secondly, the digital technology is been deployed at the worlds first Life of Field Seismic array at Valhall. They are harnessing power with the help of seismic and geologic data in order to recover oil and gas. The digital technologies has enabled in integrating the process data from multiple sources in the most efficient way. BP has materialized the union of cloud computing, sensors, advanced analytics, machine-generated algorithms in order to gain opportunities (Schnsleben, 2016). The Connected Upstream is BPs international intelligence network; by adding on the experience with cutting edge digital technologies. Their aim is to gain intelligent monitoring in order to understand whats happening at any given time. This technology is also helping in prediction. It is helping in optimization in order to drive performance in safety and productivity (Yusuf et al 2013). Intelligent monitoring BP is also using the intelligent monitoring in order to know precisely whats going on at any given time. The company is primarily focusing on intelligence technology extensively incorporated into offshore operations (Grant, Wong and Trautrims, 2017). This helps in bringing in effective benefits in terms of safety and operations: BPs proprietary data lake has more than 1 petabyte operational data 99.5% of inspection data is operated well in one single system, allowing to track performance and trends internationally(Digital technology.2017) The Distributed fibre optics technology used by the company, help in detecting precise location while entering the well and provide solution at an early stage. BP is using self-directed underwater vehicles and drones to inspect pipelines and infrastructure. This has helped in resolving the environmental issues in the best possible way. Role of digital technology in operational safety and supply chain Digital technology has helped in optimization of resources in the best possible way. This has helped in managing the resources in a well-effective way. This technology has helped in connecting Upstream in order to enable operational safety across the process. This has helped in the subsurface, to assess potential risks and opportunities (Broersma, 2017). BP has evaluated digital twin technologies in order to manage the ideas and actions before going live on actual facilities and operations. All these facilities have widely helped in predicting intervention and their impact on the overall process. The digital technology has helped in managing the previous data in an appropriate way. This is important from the point of view of making decisions. The optimisation system is a tool that is used to predict most favourable operating conditions in order to maximize production (Michel, 2017). The Centre for elevated Performance Computing, with the proprietary TDRM reservoir simulation software , has helped in making quick decision. It is important from the point of view of supply chain management and safety. The Plant Operations Advisor, partnership with GE, has helped in the live field trial in the Gulf of Mexico. This has gradually helped in reducing unplanned downtime by evaluating operational data (Milakovi?, et al 2014). The Connected Upstream has helped in paving a path to the remote operations. This is important from the point of view of carrying out routine offshore tasks. These tasks will be completed by using automation and robotics (Alazzani and Wan-Hussin, 2013). This is related to combining of efforts in the best possible way in order to organize digital experience. It is moreover important for enhancing the power of digital with the experience and expertise of people The Wells Monitoring Centre in Houston, has helped in bringing information and know-how regarding a project. The Advisor console is important from the point of view of gaining an effective role in Oman to reduce the drilling time. This has helped in enabling the real-time information on important parameters Critical evaluation of cloud based ERP system to enhance organisations methods of planning and coordinating The changing technology has helped in shaping both the large and small sized energy companies. Most of the benefit has occurred in the vacuum due to the restricted connectivity. This has helped in gaining significant growth in the Oil and Gas Industry (Tordo, et al 2013). The modular computing at BP is creating an independent ground for the business enterprise in managing the large sized data. This has provided with an ample of opportunity to collaborate the operations in order to ain the effectiveness in the operations. The current technology has helped in managing the data in order to procure information in the best possible way. This is an effective way through which the planning process can be managed. An organization can handle critical issues taking place in order to stimulate the continuous work. This process is important in gaining effective goals in order to procure effectiveness (Ahmad, et al 2013). In order to manage the data and organizing the system and Procedure, BP has very well coordinated the functions through cloud computing technology. This is important for managing the efforts in order to arrange effectiveness in the operations. This is important enough for developing interest in the most appropriate way by managing the units located at the different places. This is important for managing the effectiveness in order to manage sustainable objectives. BP has evaluated digital twin technologies in order to manage the ideas and actions before going live on real facilities and operations. . The digital technologies has enabled in integrating the process data from multiple sources in the most efficient way (Badiru and Osisanya, 2016; Harrison, 2006). The Wearable technology and industrial mobile devices helps in collaborating in a better manner. 3D printing is helping in managing spare parts in order to manage the tools and technology. The continuous changes in the Virtual or digital representation have helped in managing the 3D scanning technology . There is a continuous use of predictive analytics and automation in order to enlarge throughout the value chain (Seifarth and Boush, 2013). Main logistical and operational issues and challenges it The digital technology has created issues in managing the logistical operations. It is difficult for the operational manager to manage the work in an effective way. There is an extreme level of pressure on aligning the functions in an appropriate way for the team. . The changing technology has a long-term implication on managing the logistical functions. The employs might face issue in implementing the changes in the best possible way (Mangan and Lalwani, 2016). There can be issues in implementing the changes at the different units located across the world. There is a possibility that the organization may fail in achieving the targets in order to manage the functions in a systematic way. Just like many other organizations, international oil giant BP will face the consequences due to digital transformation. The cloud computing technology will require an effective training and development functions in order to organize the efforts in a well-defined way. 4 of the key human behavioural issues The primary objective of introducing a change is to stimulate effectiveness in the age of digital transformation. There can be issues regarding the implementation of technology at different unit. The cloud computing and ERP technology will be taking time in implementing the effective knowledge and work among the employees located at the different places. Employees will be facing issues while implementing the changes at the different unit. This is important from the point of view of gaining an effective insight. Employees might resist changes taking place in the organization. It is a general human behavior to implement changes in the daily routine. There can be issues in implementing the changes in the most appropriate way. The employees might take time in understanding the process. There is certain restriction in managing the work within the time-period. It is important enough for managing the changes in the best possible way (Armstrong and Taylor, 2014). There can be significant impact on the organizational performance due to the changes in the digital technology. Employees might face difficulty in imbibing the changes according to the process. This is significant from the point of view of deploying effectiveness in the company. The key behavioural issues might affect the organizational growth and sustainability on a long run. Conclusion To conclude, the digital technology has completely transformed the scenario due to the change in the oil and gas sector. There is a need to implement an effective technology system that helps in up-grading the mechanism. It is important from the point of view of growth and development taking place in the sector. With high paced changes in the technological sector, there is an ongoing need that requires an appropriate mechanism. In order to manage the changes it is important to embrace changes to look for hidden sources of value. The report focus on the key issues, this sector faces while HR are recruiting and retention. Digital technology has made a significant impact on the oil and gas companies to arrange an effective system in order to manage the requirements. Recommendations It is recommended to provide with an effective training and development process. This will help in managing the changes in an easy way. The oil and gas sector might face issue in operating the work for which they require an effective cloud computing and ERP software. There is a continuous necessity to manage the changes by organizing the efforts in the best possible way by implementing symmetrical changes. References Ahmad, N.K.W., de Brito, M.P., Rezaei, J. and Tavasszy, L.A., 2017. An integrative framework for sustainable supply chain management practices in the oil and gas industry.Journal of Environmental Planning and Management,60(4), pp.577-601. Alazzani, A. and Wan-Hussin, W.N., 2013. Global Reporting Initiative's environmental reporting: A study of oil and gas companies.Ecological Indicators,32, pp.19-24. Armstrong, M. and Taylor, S., 2014.Armstrong's handbook of human resource management practice. Kogan Page Publishers. Badiru, A.B. and Osisanya, S.O., 2016.Project management for the oil and gas industry: a world system approach. CRC Press. Broersma, M.2017. 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