oil and gas industries Essay


The history of the planetary oil and gas industry is one of run intoing grim alterations and get the better ofing obstructions to growing. Never have these challenges been every bit dashing as they are today. Traders are spread outing into new markets with new merchandises particularly emerging markets in distant locations with high energy-consumption demands. The complexnesss of run intoing those demands, combined with the addition in oil and gas monetary values, has compounded the demand to drive profitableness with accurate prediction, hazard extenuation, and visibleness up and down the value concatenation. Oil and gas industries are now traveling towards seeking optimum degrees of operational efficiency and superior use of assets. To boom in this competitory market place, energy companies are forced to re-evaluate their concern and IT scheme. Information engineering ( IT ) has provided a enormous encouragement to the productiveness of the oil and gas industry. However, in the “eco-system” of IT solutions for an oil and gas industry, there are many concern processes co-existing. There are many jobs associated with concern procedures because some procedures are package-based and some are custom built. Driven by these issues oil and gas industries must incorporate their concern procedures in order to make a complete logistical concatenation covering the full path from supply to bringing, across multiple geographicss, currencies and country-specific regulations.

The concern of oil and gas industries is chiefly categorised in to upstream and downstream constituents. Exploration and production of rough oil and natural gas is referred as upstream where as downstream refers to refinement and merchandises derived from rough oil and merchandising and distribution of natural gas. ( Joffe et al. , 2008 ) . There are critical integrating demands in the downstream and upstream constituents ( SAP AG 2004 ) . The service suppliers and other trading spouses involved in the concern of oil and gas companies want to cut down the bringing clip by incorporating the concern procedures. ( Kumar & A ; Markeset, 2007 ) It has been found that in procedure industries like oil and gas there are many applications co-existing. Some applications are package-based and some are custom built. It is non possible that one application or one system to run into all the demands ( Gorton & A ; Anna, 2004 ) . Furthermore, there are integrating issues associated with informations, criterions, methodological analysis etc ( Qureshi, 2005 ) . In his survey Allan, ( 2003 ) argued that the slackly conjugate concern procedures must be redesigned to better the truth of concern information. One of the common jobs of oil and gas industries is that all the concern procedures are non crystalline or have equal interfaces so as to speak to other procedures ( Liu, Behroozi & A ; Kumaran, 2003 ) . In his survey Frankel, 1953 argued that the there are many integrating jobs associated with oil and gas industries and many of the concern procedure are slackly coupled. With regard to mechanization issues, the world is that non all concern activities are to the full automated. There are manual activities in any concern procedure. ( Ali, 2003 ) The extent and type of manual activities differs among assorted procedures. The more complex integrating issues originate when the procedures are modified or upgraded ( Themistocleous & A ; Corbett, 2006 ) .

Business procedure integrating enables an endeavor to react with flexibleness and velocity to altering concern conditions by incorporating its concern processes end-to-end across the company and with cardinal spouses. ( Liu, Behroozi & A ; Kumaran, 2003 ) . Procedure enables the administration to change over input into end product. There are many concern procedures that must be integrated with out mistakes and errors to accomplish the concern end. A concern procedure is a set of activities which need to be performed so as to put to death a concern map such as a purchase order coevals, client orders fulfillment. ( Allan P. Kjaer, 2003 ) Processes can be really simple, like a gross revenues individual taking a gross revenues order or can be really complex. A human being can execute these activities or they can be automated and performed by systems. ( Ronald J. Kolz, 2000 ) So, that the orders can be taken decently and bringing should be done on clip. The concern procedures of transnational companies may cross different companies each with its ain legal demands. The company ‘s bequest systems create so many jobs while transforming the information to ERP system and sometimes it may interrupt the full procedure. ( Marinos Themistocleous, Zahir Irani, Robert M. O’Keefe and Ray Paul, 2001 ) Integration of procedures requires reengineering the bing procedures. Reengineering the concern procedure involves alterations in each and every construction of concern. ( Elisabeth J. Umble, Ronald R. Haft and Michael Umble, 2002 ) The functions and duties of each and every individual should be changed and proper attention must be taken while reengineering procedures because these procedures support the full scope of operation schemes, merely the integrating is needed to pull off all concern operations at planetary degree.

Purposes and Aims

The purpose of the research undertaking is to analyze the demand and importance of concern procedures integrating within and between oil and gas industries and patterning the concern processes.

In order to carry through this purpose, the following aims have been identified

1. Behavior literature hunt to understand the demand and importance of concern procedures integrating within and between oil and gas industries.

2. To roll up the information sing the jobs and solutions of concern procedures integrating from the professionals who are working in oil and gas industries.

3. To analyze the information for lineation the focal points of concern procedure integrating.

4. Modeling the concern procedures of oil and gas industries based on the research findings from aims 1-3.

5. Make recommendations and promote the oil and gas industries to do most of the benefits of concern procedures integrating.

Undertaking Justification

The demand for concern procedures integrating within and between oil and gas industries has been universally recognised. Oil and gas is a complex concern. The concern consists of multiple concerns: automotive fuels, industrial fuels, petrochemical and feedstock, lubricator and feedstock, etc. There are critical integrating demands in the concern. One such country is polishing. It has been identified that if the refinement applications are integrated, the decision-making in the refinery operation can be improved. The applications which need to be integrated for such a scenario include on-line applications like control systems, works information systems, informations rapprochement, advanced procedure control, laboratory information, refinery optimization, refinery programming and refinery planning and off line systems like steady province simulation systems, kinetic theoretical accounts etc. If these systems can pass on or “talk” to one another, the refinery operations can be improved significantly.

When it comes to between industries the most of import country is supply concatenation, where integrating is really of import. Traditionally the complexness of the supply concatenation has resulted in shaping and optimizing localised supply concatenation procedures. For illustration, the refinery procedures are optimised for made-to-stock procedures while the procedures in the refinery concerns like air power fuel etc, are optimised for order-to-delivery procedures. However, it has been profitableness of concerns, the concern procedure of make-to-order demands to be implemented. The IT applications are still implemented for the localized supply concatenation procedures. In such conditions concern processes integrating becomes critical to implement the planetary supply concatenation procedure made-to-order. The demand to better the supply concatenation public presentation brings cross company integrating. A company may necessitate to incorporate systems with providers and/or clients. Typically, web commercialism applications are illustration of this scenario.

Health, safety and environmental ( HSE ) integrating

Another scenario is incorporating horizontal procedure integrating. One such illustration is wellness, safety and environmental ( HSE ) integrating. There are non many specific applications for wellness, safety or environment. Many of the bing applications take attention of these as good. Like merchandise safety information, characteristics would be built into a production lifecycle direction system or specific MSDS application. Equipment safety information is available in care direction systems. It is often required to incorporate all this information from an appraisal or coverage position.

The kernel of integrating is in doing information available across assorted procedures. The information handiness consequences in quicker and better determination devising and this brings benefit for the industry. The existent act of integrating is supplying informations motion from one procedure to another procedure. The concern procedure integrating scenario is a more complex scenario. Many ( in fact most ) concern procedures are distributed across multiple applications, across multiple users and multiple industries. This looks at endeavor integrating in a more holistic mode. In fact, most of the scenarios are concern procedure integrating scenarios and it pays to see them as such. The information integrating and user integrating scenarios are constitutional this analysis. The advantage is that integrating becomes smooth and lasting.

Research Approach

A important qualitative assorted methodological analysis will be implemented for primary informations aggregation. The instruments of assorted methodological analysis are study ( 25 respondents ) and interview ( performed with 10 participants ( Fennifer, 2004 ) . The study was intended to turn to issues of general information and organize a starting point, while the interviews explored the issues in deepness in order to analyze the relevant concerns that arose during the study. The ground the study research method has been chosen is because it consists of a cross- sectional design in relation to the information which is collected and this helps us to analyze forms of association between the different variables. Structured interviews will be used to roll up at a individual point of clip both qualitative and quantitative informations ( Bryman, 2008 ) .

Quantitative research helps in the aggregation of numerical informations and helps us in set uping a relationship between theory and the existent findings and AIDSs in coming to confirmed tax write-offs based on informations. The study with the aid of a questionnaire shall be conducted to garner this quantitative information. Qualitative research on the other manus will be used to judge the theories and constructs from the research done on the literature reappraisal ( Silverman, 1993 ) .

Research lineation

This chapter introduced the capable affair and examined the grounds for analyzing the issue at manus, which included adding strategic value to an administration by supplying an apprehension of the grounds for success or failure and value add-ons to the administration by execution of the topic BI application. It described the purposes and aims every bit good as supplying a brief overview of the intended results of the paper and an scrutiny of the intended results.

Chapter 2 – Literature Reappraisal

Integration issues

Integration, though extremely desired is non ever successful. The issues can be grouped as informations, application, mechanization, criterions and methodological analysis issues.

The informations issues arise as informations may necessitate to be corrected/validated/processes before it moves form one procedure to another. Some of these issues can be easy resolved but some can non be so easy resolved. For illustration, the issues related with real-time vs. transactional informations. This is the challenge of incorporating the operations informations with concern informations.

The operational systems produce time-stamped informations like rate of production while concern systems need transactional informations like production during a displacement or a twenty-four hours. The clip stamped informations demands to be aggregated before it can be sent to concern systems. A good output accounting and informations rapprochement system can be used to carry through this. There still might be some issues. For illustration, in one such instance the issue was that concern systems needed the information for the complete minutess during the twenty-four hours while the output accounting system was unable to supply such informations.

Realization of integrating

The realization of integrating is through the integrating of assorted applications. The application issue could be related to the first clip execution of integrating, or integrating continuity or life rhythm. One of the common jobs is that all the applications are non sufficiently unfastened or have equal interfaces so as to speak to other applications. The more complex integrating issues originate when the applications are modified or upgraded. Any such activity is normally done without sing the integrating position.

With regard to mechanization issues, the world is that non all concern activities are to the full automated. There are manual activities in any concern procedure. The extent and type of manual activities differs among assorted applications.

There are criterions issues related to the terminology every bit good as informations properties of assorted maps. For illustration, a standard point like a purchase order may incorporate different informations Fieldss in different applications. When the purchase order information moves from one system to another, there are informations transmutation issues.

Methodology issues are likely the most of import issues. Most of the clip, the methodological analysis is really specific to the immediate integrating demand. Most frequently, the methodological analysis achieves integrating by informations integrating and does non pay adequate attending to the concern procedure integrating. Many a clip a methodological analysis recommends alteration or decommissioning of bing applications and execution of new applications for the interest of integrating undertaking and makes justification more hard. The methodological analysis needs to take into history all the above issues as discussed above and necessitate to see the broader position in position of the life rhythm of the integrating itself.

Business procedure function

A concern procedure is a set of activities which need to be performed so as to put to death a concern map such as a purchase order coevals, client orders fulfilment etc. A concern procedure can be really simple, like a gross revenues individual taking a gross revenues order or can be really complex ( doing an investing determination ) . A human being can execute these activities or they can be automated and performed by systems. In world, all the concern procedures are linked together and most of the concern processes run across users and systems.

The concern procedure function exercising identifies and segregates concern procedures and paperss them. A concern procedure representation may dwell of a start, a set of sub-processes or actions and an terminal. These sub-processes are transmutation of informations, decision-making etc. The sub-processes can bring forth other concern procedures and therefore all the concern processes acquire linked together.