Oil
and Gas logistics refers to the transportation of drilling
equipments, extracted crude oil and natural gas and transportation of
refined products from one place to another. Petroleum logistics
covers entire phases from upstream to downstream. Oil and gas
logistics synchronizes with all kinds of equipments from multiple
origins to the areas that are difficult to access with the continual
concern for manpower and environment.
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With
the advent of shale oil boom, significant opportunities are created
for the railroads as a means to transport equipment, people and oil.
Railroads are being used to haul the special sand called as frac
sand, acids, pipes and other chemicals required in the shale
extraction process. Once the extraction process is carried out, rail
is being used to carry away shale oil and gas and waste products.
Optimum
utilization of rail has created a surge in the demand for cars that
can carry crude oil. New production sites, which do not have pipeline
network utilizes rail cars, for transporting crude oil and natural
gas from the exploration site to the refineries. Pipelines are costly
and time consuming to build and are often subject to construction
delays as it requires numerous permits. Rail car companies are
reaping the benefits, experiencing a backlog of orders for petroleum
carrying cars and are reporting strong financial results.
Railway
has to build additional infrastructure to keep up with demand in some
shale producing regions. The Bakken shale field in North Dakota is
the best example. In the year 2013, Bakken oil output hit a record of
727,149 barrels per day and majority of the oil was carried out by
trains. Rail has become the most favored mode of transport in the
area as it is cheaper than trucking and is more flexible than
pipeline.
Oil
and gas logistics takes place in various phases such as upstream
logistics, midstream logistics and downstream logistics. Upstream
logistics includes transportation of all the drilling equipments such
as drilling rigs, Christmas tree and blowout preventer to the
exploration location. Midstream logistics involves transportation of
extracted crude oil and natural gas from drilling location to the
storage location. Once the crude oil and natural gas has been stored
in tanks and terminals, then it is transported through various means
to the refinery for further refining processes. Crude oil and natural
gas once refined into varied petroleum products, they are transported
through pipelines, ships and trucks to the end users. Oil and gas
logistics comprises of all the activities such as air and sea
chartering, hazardous material handling, customs brokerage, supply
order management, purchase order management and offshore supply base
management.
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Some
of the key drivers of the oil and gas logistics market are new
discoveries of oil and gas fields and growing economies. However,
oversized equipments and remote location of drilling can hamper the
growth of the market. Ample opportunities are there for oil and gas
logistics market as demand for petroleum products is rising at a
healthy rate.
Some
of the key players in the business of oil and gas logistics are Gulf
Agency Company Ltd, Agility Project Logistics Inc, Kuehne + Nagel
Company, BDP International, DB Schenker, Crown Logistics, Neovia
Logistics, A.Hartrodt GmbH, SGS Logistics, SDV International
Logistics and Bollore Africa Logistics Ltd among others.
This
research report analyzes this market on the basis of its market
segments, major geographies, and current market trends. Geographies
analyzed under this research report include
- North America
- Asia Pacific
- Europe
- Middle East and Africa
- Latin America
This
report provides comprehensive analysis of
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for upcoming years
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profiles of top industry players. The report also includes a review
of micro and macro factors essential for the existing market players
and new entrants along with detailed value chain analysis.
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