white paper<\/a> on the dynamics, challenges and opportunities that are shaping the current energy sector released by DHL.<\/p>\nThe document explains that the shift is requiring executives to rethink traditional energy supply chain models and implement a highly integrated approach, to drive down logistics costs and enhance profit margins.<\/p>\n
Jonathan Shortis, Vice President – Energy Sector EMEA (Europe, the Middle East and Africa says that the need and desire to explore new geographies and develop new technologies to reach and extract unconventional gas reserves has become ever more apparent.<\/p>\n
“While growth in the conventional energy sector currently hovers around 1 to 2 percent per annum, the unconventional segment is booming.”<\/p>\n
The BP Energy Outlook 2030 predicts that shale gas production will triple, and that tight oil production will increase more than six-fold by 2030. Unlike conventional oils though, unconventional extraction demands higher and continuous investment.<\/p>\n
In terms of Africa’s energy sector, Shortis says that there has been significant growth in oil and gas exploration and production, on the continent in recent years.<\/p>\n
“There is no sign of Africa’s exploration activity slowing down, and the continent is expected to continue on its growth path as its attractiveness as an investment destination for the sector becomes ever more apparent due to its untapped resources and potential of new discoveries.”<\/p>\n
Shortis however adds that, as in many other parts of the world, the development of unconventional reserves in the region is still in its infancy.<\/p>\n
“While there is a view that reserves in areas such as North Africa (Morocco, Algeria, Libya) and South Africa are substantial, little development has taken place.”<\/p>\n
The white paper explains that due to the ongoing shift in geographies of energy production and demand, energy companies are required to adjust their approach to supply chain management.<\/p>\n
Shortis explains that from a supply chain perspective, both conventional and unconventional energy companies face an intriguing set of challenges.<\/p>\n
“Supply chains supporting conventional energy market, are still developing as companies have had to expand into ever more inaccessible and remote locations to support the growth in global demand. In such areas, conventional energy faces the same challenge as unconventional, and that is to establish and maintain a robust infrastructure to support production in undeveloped and\/or remote geographies.”<\/p>\n
Shortis says that executives quoted in the white paper admit that energy companies often struggle to deal with the complexity of the supply chain and that they are challenged by a lack of visibility and predictability when they are working with multiple stakeholders at numerous drilling locations.<\/p>\n
“To address this issue, leading companies are adopting an end-to-end supply chain operating model, instituting a data-driven, integrated solution that connects all stakeholders in the chain. This solution blends state-of-the-art visibility and analytics with best-practice process management to achieve bottom line results,” concludes Shortis.<\/p>\n
The white paper, titled Building the smarter energy supply chain, is based on research by Lisa Harrington, Associate Director at the Supply Chain Management Center of the Robert H. Smith School of Business, University of Maryland.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
The global energy industry is undergoing a seismic shift, in part driven by development of new, unconventional sources of energy, such as shale gas, tight oils, coal seam gas and … Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":2001,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[482,516,597,742,1891,2178,2291,2438,2439,2528,2626,2640],"class_list":["post-2000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-coal-seam-gas","tag-convection-energy","tag-dhl","tag-energy","tag-oil-sands","tag-robert-h-smith-school-of-business","tag-shale-gas","tag-supply-chain","tag-supply-chain-management-center","tag-tight-oils","tag-unconventional-energy","tag-university-of-maryland","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/shale.jpg?fit=259%2C194&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-wg","jetpack-related-posts":[{"id":1524,"url":"https:\/\/www.oilnewskenya.com\/index.php\/african-oil-energy-sector-fuelling-global-investor-growth-dhl\/","url_meta":{"origin":2000,"position":0},"title":"African oil & energy sector fuelling global investor growth – DHL","author":"Samuel Kamau Mbote","date":"July 30, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] While Oil and Gas activity in West Africa is nothing new, it is the activity in East Africa which is creating a stir amongst exploration companies and of course, their suppliers. This is according to Steve Harley, President, DHL Energy Sector who says that while Angola and Nigeria\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/ophir-and-bg-group-extend-deepsea-metro-i-contract-in-tanzania-and-kenya.jpg?fit=729%2C510&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/ophir-and-bg-group-extend-deepsea-metro-i-contract-in-tanzania-and-kenya.jpg?fit=729%2C510&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/ophir-and-bg-group-extend-deepsea-metro-i-contract-in-tanzania-and-kenya.jpg?fit=729%2C510&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/06\/ophir-and-bg-group-extend-deepsea-metro-i-contract-in-tanzania-and-kenya.jpg?fit=729%2C510&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":2016,"url":"https:\/\/www.oilnewskenya.com\/index.php\/oil-potential-in-tanzanias-ruhuhu-block-placed-at-3-6-boe\/","url_meta":{"origin":2000,"position":1},"title":"Oil Potential in Tanzania\u2019s Ruhuhu Block placed at 3.6 BOE","author":"Samuel Kamau Mbote","date":"November 7, 2014","format":false,"excerpt":"Australian explorer Jacka Resources has said a prospective resource assessment at the Ruhuhu Block has set the highest estimate at 3.6 billion barrels of oil in both convectional and unconventional oil. According to the resource assessment the 3.6BOE\u00a0 include 263 million barrels of oil (MMBO) of conventional neogene oil and\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/ruhuhu-basin.jpg?fit=666%2C459&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/ruhuhu-basin.jpg?fit=666%2C459&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/ruhuhu-basin.jpg?fit=666%2C459&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":2144,"url":"https:\/\/www.oilnewskenya.com\/index.php\/exxonmobils-outlook-for-energy-sees-global-demand-fuelled-by-increase-in-consumption-by-developing-nations\/","url_meta":{"origin":2000,"position":2},"title":"ExxonMobil\u2019s outlook for energy sees global demand fuelled by increase in consumption by developing nations","author":"Samuel Kamau Mbote","date":"December 9, 2014","format":false,"excerpt":"Significant growth in the global middle class, expansion of emerging economies and an additional 2 billion people in the world will contribute to a 35 percent increase in energy demand by 2040, according to a new report released today by ExxonMobil. According to the 2015 Outlook for Energy: A View\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/12\/exxon.jpg?fit=1200%2C768&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":8338,"url":"https:\/\/www.oilnewskenya.com\/index.php\/total-committed-and-planned-investments-for-2020-2024-in-the-menas-energy-sector-in-excess-of-usd792bn\/","url_meta":{"origin":2000,"position":3},"title":"Total Committed and Planned Investments for 2020-2024 in the MENA\u2019s Energy Sector in Excess of USD792bn","author":"","date":"June 15, 2020","format":false,"excerpt":"Committed and planned energy investments in APICORP\u2019s 2020-24 investment outlook amount to USD792bn, a USD173mn drop compared to USD965bn in 2019-2023; The decline in investments is largely attributed to the 2020 triple crisis: the COVID-19 health crisis, the oil crisis, and a looming financial crisis; Investments are driven primarily by\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/maersk_deliverer-2.jpg?fit=432%2C473&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":4140,"url":"https:\/\/www.oilnewskenya.com\/index.php\/jacka-resources-considers-relinquishment-of-tanzania-ruhuhu-block\/","url_meta":{"origin":2000,"position":4},"title":"Jacka Resources Considers Relinquishment of Tanzania Ruhuhu Block","author":"","date":"November 30, 2015","format":false,"excerpt":"ASX listed Jacka Resources has said its management is exploring all options including relinquishment as farm-out campaign initiated in September 2014 and which has not seen much interest thus far. Jacka which is currently planning seismic and airborne gravity surveys attributes this to a lack of risk appetite in current\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/ruhuhu-basin.jpg?fit=666%2C459&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/ruhuhu-basin.jpg?fit=666%2C459&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/ruhuhu-basin.jpg?fit=666%2C459&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":2197,"url":"https:\/\/www.oilnewskenya.com\/index.php\/horizons-2015-what-to-look-for-in-the-year-ahead\/","url_meta":{"origin":2000,"position":5},"title":"Horizons 2015: What to look for in the year ahead","author":"Samuel Kamau Mbote","date":"December 18, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Source:\u00a0Wood Mackenzie Macroeconomics: Asia\u2019s consumers are key \u201cThe rate at which China\u2019s economy rebalances away from investment and towards consumption will determine long-term trends in energy demand,\u201d\u00a0Cynthia Lim, Senior Economist. China\u2019s economy is evolving and the nature of its energy demand growth is changing. 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