Oil
and gas logistics entail transportation of drilling equipment and
extracted natural gas and crude oil. Global oil and gas logistics
players are also involved in the transportation of refined products
from one location to another. Presently, petroleum logistics cover
all phases from upstream to downstream. Oil and gas logistics
services sync with all types of equipment.
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With
the expanding shale oil sector, many opportunities have been created
for railroads. These railroads can be used to transport people
(manpower), equipment, and oil. Presently, railroads are being used
to haul special sand (known as frac sand), pipes, acids, and other
chemicals. These resources are needed in the process of shale
extraction. Building pipelines is costly and time consuming, while
railroads are more effective for oil and gas logistics services.
Hence, rail car companies in the global oil and gas logistics market
are reaping major benefits. These companies are enjoying the rising
demand for oil and gas logistics services and have a backlog of
orders for petroleum carrying cars.
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.
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