1.) Introducing Logistics in Exploration and Production
• Definition of “logistics”
• How the E&P industry operates;
- Strategic considerations,
- Operational considerations
- Logistical considerations
• Logistics as an element of the supply chain
• E&P as a sector of the oil and gas industry
• Why “inward” logistics
• Fundamentals of the supply chain
• Fundamentals of the supply chain
2.) Procurement, Purchasing, Inventory and Stock
- Principles of purchasing,
- Identification of need,
- Specification of requirement
- Identifying sources,
- Choosing potential suppliers,
- Selecting the supplier,
- Placing the order
• More advanced concepts;
- Total Cost of Ownership (TCO),
- Procurement targeting
- Category management
• In-house classification of goods;
- Purchasing for immediate use,
- Inventory and stock
- Project materials
• Inventory principles;
- To stock or not?,
- Consequences of non-availability,
- Decisions about how much to buy and when,
- Opportunities to avoid holding stock
3.) Managing the Warehousing Function
• Storage of goods;
- The basics
– What, where, quantity, condition, access,
- Warehouse and yard facilities,
- Basic requirements,
- Functions and processes,
- Organisation and layout
• Storage systems;
- Racking systems
• Location and identification systems;
- Manual systems,
- Computerised systems,
- Bar coding
- Radio Frequency ID (RFID)
• Special storage requirements;
- Hazardous materials,
- Climate control,
- High security
- Some other special storage requirements
• Project materials storage;,
- Temporary storage facilities,
- Differences in materials management from stock materials,
- Some special considerations
4.) Receiving Goods, Oil & Gas Materials and Asset Management
• Goods inwards;
- Objectives and importance of the receiving process,
- Receiving processes,
- Treatment of wrong receipts
• Oil and gas specific materials,
- Oil Country Tubular Goods (OCTGs),
- Drilling chemicals
- Well head equipment
• Capitalised “moveables” control,
- Asset management,
- Standby equipment
5.) Managing the Transportation Function
• Road transport,
- Light transport,
- Heavy transport,
- Specialist vehicles,
- General principles of road transport management and control
- Fixed wing,
• Materials handling,
- Forklifts ,
- Manual handling
• Health, Safety and Environment (HSE)
• New challenges
6.) International Trade, Environment and other Management Issues
• Aspects of international trade,
- Customs regimes,
- Financial instruments,
- Insurance issues,
• Environmental issues,
- Management of surplus and waste materials
• Inventory accuracy ,
- Match of physical quantity to records,
- Accurate records of stock movements,
- Stock-checking programmes,
- Reconciliation guidelines
• Catalogues ,
- Catalogues and inventories
– The difference,
- Accessibility to requisitioners
• Management issues,
- Use of third-party logistics (3PL),
- Key Performance Indicators (KPIs)
- Corporate Social Responsibility (CSR)
7.) Basics of Petroleum Logistics
The course will be a mix of intensive teaching periods and more ordinary weekly lectures. The course will start with an intensive part lasting for one week with 3 hours of lectures per day. Then it will be a part lasting for 4 weeks with ordinary lectures with 9 hours per week.
After having completed the course students will know world oil and gas suppliers and consumers, history of petroleum industry, laws and regulations, and trade. They will know the chemical and physical properties of oil and gas, the geology of oil and gas onshore and offshore, exploration, drilling and refining processes. The students will know the petroleum industry supply chain and its infrastructure (oil depots, gas storage facilities, etc.), the supply logistics for drilling, extraction and refinery processing, the inventory management and the transportation of oil and gas and their derivatives in different physical phases by different transportation modes, and general approaches for distribution of petroleum and gas products.
The first part of the course will cover topics like world oil and gas resources, world production and consumption, and trade of oil and gas. Further topics will be laws and regulation of the petroleum industry, and the history of oil and gas exploration and production in Norway. The second part will mainly deal with oil and gas technologies like chemical and physical properties of oil and gas, the geology of oil and gas (onshore as well as offshore), exploration, drilling and process of refining the raw material. The last part will deal with the infrastructure of the industry including the different transportation modes, the supply logistics of the industry as well as the inventory management of oil and gas and their derivatives.
8.) Basics of Oil and Gas Technology
Upon completing the course, students should have achieved solid understanding of the main concepts and issues in the hydrocarbons oilfield development, in particular, the students should be able to:
Explain the reservoir formation process
Describe the main phases of the hydrocarbon reservoir development lifecycle (Upstream)
Describe transportation and refinery processes and identify key issues (Downstream)
Name the key methods of reservoir characterization
Qualitatively describe reservoir and pipeline hydraulics laws and name the key parameters involved
Discuss key issues of reservoir development, extraction and transportation along with approaches employed to handle them.
The course provides basic coverage of the topics related to hydrocarbon field exploration, appraisal, development and production processes. It starts with a discussion of the modern view of hydrocarbon field formation followed by a review of reservoir development lifecycle and methods for reservoir characterization. Formal treatment of simple mathematical models (e.g. Darcy’s and Forchheimer’s laws) is given to emphasize key issues in hydrocarbons extraction and transportation. Hydrocarbon chemical composition and properties are discussed from the perspective of the refining process. Typical problems associated with reservoir management along their mathematical formulation and possible approaches are discussed. To further solidify understanding of the reservoir as a complex natural object, modern software tools used to create reservoir models and maintain them up-to-date are studied using Petrel seismic simulation software.
9.) Industrial Organization
3 hours of lectures per week.
Assessment methods: One compulsory assignment that counts 30% of the final grade. 4-hour written final examination that counts 70%. The final grade is a calculated a weighted sum of the grades given, regardless of a pass / non pass in the individual grades given.
Support materials for examination:
Purpose: To provide insight into modern idustrial organization theory in order to enable the students to analyse strategic interactions among firms operating in markets with less than perfect competition
The course provides an introduction to basic (non-cooperative) game theory, which is applied to the study of strategic interaction among firms operating in imperfectly competitive markets.
Basic non-cooperative game theory
Tactical decisions regardin what and how much to supply
Tactical decisions regarding what price to charge, including tacit collusion
Strategic decisions in order to avoid or limit competition
10. Advanced Petroleum Logistics
After completing the course students will get in-depth knowledge of main world oil and gas sources location (as a starting points in supply chain) and main destination points, world transport system, transport expenses in different regional of oil and gas markets. Students will know specific issues and techniques for transportation of oil, gas and petroleum products using different modes of transport.
Students will also know managerial processes in frame of oil and gas supply chain, specific problems and solutions associated with the management of logistics activities like supply management of oil and gas depot, maritime ports depot, supply of refineries, distribution of products in relation to petroleum logistics, basics of calculation of capacities, transportation possibilities.
World resources of oil, gas and coal and their location, and evaluation in terms of transport accessibility.
Organizational form of oil and gas companies, vertically integrated oil and gas companies, independent oil and gas producers, service oil and gas companies; Infrastructure for transportation of hydrocarbons. Transportation and storage of oil, gas and petroleum products, and their place in petroleum supply chain. Basics of oil and gas cargo properties. Technical characteristics of pipelines, railway, road, maritime and inland water transport (rolling stock, tanker fleet, barges). Conditions for cargo transportation, choice of transport modes; Pricing in transport, tariff's policies, transportation cost reduction.
Main routes of oil and petroleum products supply. Overview of the major maritime routes, and the largest transport companies. Energy security and transport routes. Characteristics of global network of maritime oil and liquefied natural gas transportation. Maritime terminals, their role as logistics centers. Operations at the independent offshore crude oil and petroleum product terminal for bunkering trade; Inventory management of hydrocarbons. Oil depot as an object of dispatch control, its operations divided into transshipment, distribution, and technological units. Main depot operations: receiving, storage, rental, metering and accounting. Interaction with different modes of transport. Operations management; Control of operating modes of
trunk oil and petroleum products pipelines. Task dispatching services at various levels of management and the order of interaction between them. Procedure for acceptance of operations in pipeline system. Record of the number and definition of quality of oil. System changes in the quantity and quality parameters of oil. Scheme of normal
(technological) oil traffic. Oil and gas transportation in harsh climate and weather conditions
Oil and gas production handbook:
An introduction to oil and gas production, transport, refining and petrochemical industry ABB Oil and Gas Burns, M.G.,
7.) International Oil and Gas Logistics
After the completing the course students will get in-depth knowledge of main world oil and gas sources location (as a starting points in supply chain) and main destination points, world transport system, transport expenses in different regional of oil and gas markets. Students will also know managerial processes in frame of oil and gas supply chain, specific problems and solutions associated to the management of logistics activities and significant points like supply management of oil and gas depot, maritime ports depot, supply of refineries, distribution of products in relation to petroleum logistics, basics of calculation of capacities, transportation possibilities
The aim of the course is to study main logistics issues for crude oil exporting countries and their companies, and study specific items concerning the international flows of hydrocarbon raw materials and petroleum products. It covers points of origin of crude oil and petroleum products (mainly maritime ports and their characteristics), final points of destination (ports, refineries), pipeline systems in different regions in the world for crude oil, petroleum products and natural gas. The course describes and analyses three main oil and gas supply chain blocks – marine terminals, oil depot, and pipelines.
Several forms of industrial companies are presented including vertical integrated oil companies and independent companies. The course deals with the world tanker fleet and conditions of transportation (freight, price formation, types of tankers and their use for different routes etc.), both for oil, petroleum products and liquefied natural gas. It considers logistics costs including transportation, storage, cargo transshipment, pumping etc. Several technological issues (characteristics of refineries, conditions of transportation of oil and petroleum products using tankers or via pipeline etc.) will be discussed from the logistics point of view.
The main topics of the course are:
World resources of oil, gas and coal and their location, and their evaluation in terms of transport accessibility.
Organizational form of oil and gas companies, vertically integrated oil and gas companies, independent oil and gas producers, service oil and gas companies; Means of delivering oil, oil products, and liquefied natural gas to the world markets. Infrastructure for transportation of hydrocarbons. Transportation and storage of oil, gas and petroleum products, and their place in petroleum supply chain. Characteristics of global network of maritime oil and liquefied natural gas transportation. Maritime terminals, their role as logistics centers. Operations at the independent offshore crude oil and petroleum product terminal for bunkering trade. Measurement and calculation of cargo (Gross Volume, Net Volume). Draft survey. Use of trade information systems for managing sales operations; Oil depot as an object of dispatch control, its operations divided into transshipment, distribution, and technological units. Main depot operations: receiving, storage, rental, metering and accounting. Operations management; Control of operating modes of trunk oil and petroleum products pipelines. Tasks dispatching services at various levels of management and the order of interaction between them. Technical documentation dispatchers. Procedure for acceptance of operations in the pipeline system. Record of the number and definition of quality of oil. System changes in the quantity and quality parameters of oil. Scheme of normal (technological) oil traffic.
Main routes of oil and petroleum products supply. Problems of hydrocarbon flow transit.
Overview of the major maritime routes, and the largest transport companies. Energy security and transport routes.
8.) Transportation and Forwarding of Hydrocarbons in a Supply Chain.
By completing the course students will get in-depth knowledge of specific issues and techniques for transportation of oil, gas and petroleum products using different modes of transport in various logistics settings. Students will know oil and gas forwarding systems, stevedore main issues, international laws and practice to organize the transportation of oil, gas and petroleum products
The course covers existing approaches of hydrocarbons transport management. The products in oil and gas industry (crude oil, gas and petroleum products) exist in three phases (gas, liquid, and solid) and are transported by pipelines, railway (cisterns), road, maritime and inland water (tankers, barges), containers (solid cargo). In this course the choice of transportation mode, regimes of transportation, physical and chemical properties of products, existing routes, tariffs etc. are studied. The course covers the following topics: - Technical characteristics of pipelines, railway, road, maritime and inland water transport (rolling stock, tanker fleet, barges); - Basics of oil and gas cargo properties. Conditions for cargo transportation, and choice of transport modes;. - Basics of transport economy. Lot-sizing (transport batches) in different transport sectors, inventory management of hydrocarbons, terminals, oil depots, interaction with different modes of transport; - Pricing in transport sphere. Tariff’s policies in different transport sectors; - Transportation costs reduction. Organization of transport processes. Transport mode choice methods; - Oil and gas transportation in harsh climate and weather conditions. The Northern Sea Route as a transit link from Europe to Asia; - General logistics management principles in transportation companies (in vertical integrated oil and gas companies, outsourcing etc.). - International sale-and-purchase contracts (basis principles of contract design; transportation terms for contracts INCOTERNS 2010; insurance of contract subjects) - Ways of purchasing to the global markets (brief characteristics of the ways - vehicle, railroad, maritime, mixed, pipeline; logics of choosing the optimal route of transportation; logics of choosing the optimal providers of transport and logistics services); - Contract of carriage (compilation of contract of carriage; contractual liability and insurance; negotiable and nonnegotiable shipment document; consignment and their role in trading; shipment document, as a proof of execution of contract obligations); - Financial aspects if international contracts (documents controlling disposition of the goods; crucial notes: general principles and rules; role of UCP-600 in transport provision of foreign trading); - Particularity of acceptance and returns of goods in the case of 3GL (general rules, terms and conditions in different cases).