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Thursday, July 15, 2010

THE BUSINESS PROCESS OF SUPPLY, TRANSMISSION, AND TRADING

SAP for Oil & Gas supports the management and execution of bulk supply chain activities, from initial planning to final settlement. Our solutions automate and streamline key activities, including:

  • Bulk supply chain planning and optimization – SAP solutions enable you to plan and optimize key aspects of your supply chain, from long-term forecasting to operational planning, integrating them into daily operations and scheduling processes. You can also use information from execution and settlement activities to create plans, ensuring that all processes within the supply chain have a common heritage.
  • Bulk supply chain operations and scheduling – With SAP solutions, you can manage immediate and short-term operations and scheduling. You can also schedule transportation and pipelines, manage inventory and contract operations, and capture custody transfer documentation.
  • Bulk supply chain execution and settlement – SAP solutions streamline the deal-to-cash process loop, enabling you to update inventory, monitor product movements, and manage inbound and outbound invoicing. You can also apply execution information to planning and operations process cycles for ongoing and long-term planning.
  • Bulk supply chain reporting and analytics – SAP solutions support decision-making and strategy setting, helping you gather activity and performance data from many different sources. Using flexible report structures, analysts and planners can monitor supply chain activity at every process step and provide feedback on an ongoing basis as well as at periodic review points.
  • Physical oil and gas commodity trading – Working with the most heavily traded commodities in the world, you can capture deals, manage contracts, monitor positions, and integrate trading into the bulk supply chain. Because trade volumes are very large, companies can use bulk transport methods, such as marine vessels and pipelines, to achieve delivery.
  • Oil and gas paper trading and risk management – With SAP solutions, you can mitigate the risks of volatile market conditions – hedging your positions in commodity markets by executing paper trades for futures, options, and swaps. You can use a trading exchange or work directly with partners in over-the-counter deals. You can also use mark-to-market and value-at-risk calculations to monitor and evaluate risk from both physical and paper trading.

Bio-Diesel run Bus in Pune by Tatas

I read an article in the other thread of this forum about the launch of a Tata bus run by Blended Bio-Diesel in Pune. quoting ref.Express.com today. Mr.Sumantran of Tata Motors is kind enough to announce the quantum of waste lands somewhere around 150 million hectares suitable for growing Oil seeds like Jatropha and he is also hopeful to see a policy on Bio-Diesel soon. We know Tatas have huge potential in Research and Development atleast in Auto sector in particular considering their unassailable share of Indian Auto Market and its continued effort in providing Indigenous Technology in making cars,Buses,LCVs,HCVs, and even big trucks recently HYWA matching VOLVOS in India itself. Tatas have good brand value in all fields except in the case of Tea plantation Tatas have totally left the oil field vaccum when we saw them developing Rice-Bran oil in 1970s and the extraction of Nimbidin from Neem in 1990s. Today, thank God Tatas have come out to support Bio-Diesel and that to minimise emissions in cities and not their trucks operated by all sort of adulterated fuels on our Indian Roads very popular in Andhra and Maharshtra and even today one can notice a Tata truck carrying over loads infact doubling the permitted weight by the RTOs. Tatas are more active in other segments like communications,IT, instead of rendering any useful work for the Rural poor atleast in S.India. We know the reason may be their worst ever problem in 80s in oil sector due to strikes in their concerns forcing them to sell their Wonderful oil and Soap division rather destroyed their century old system of oil Technology in India gifted by Danish people.

THE BUSINESS PROCESS OF UPSTREAM MANAGEMENT

SAP for Oil & Gas solutions support processes related to the exploration, development, and production of crude petroleum, enabling key activities such as:

  • Exploration and appraisal – With SAP solutions, you can maintain your portfolio of assets by finding and developing new petroleum reserves. Integrated solutions support the full exploration cycle, enabling you to assess your current asset and production portfolio, identify exploration targets, acquire leases and licenses, manage surveys and appraisals, and model reservoirs.
  • Exploration and production contract management – SAP solutions facilitate the acquisition of petroleum reserves through mergers, acquisitions, or joint ventures. Our solutions enable opportunity analysis, strategic planning, venture equity trading, as well as the development and management of joint operating agreements and production sharing contracts.
  • Field development – SAP solutions helps you establish the size of the field, work out the most efficient production method, and assess whether the field will cover the costs of development and day-to-day operation and yield a profit.
  • Liquid and gas production – With capabilities for well mapping, production planning and execution, volume and capacity management, and quality assurance, you can ensure 24/7 production cycles and maximize quantities produced. You can also comply with corporate, industry, and governmental standards for safety and environmental protection while maintaining all facilities in good working order.
  • Allocation and settlement – SAP solutions enable you to allocate volumes and value to owners who have an equity share in a producing well or to sales contracts, indicating what you have promised to purchasers. You can also submit reports and pay royalties to governments and other public bodies.
  • Oil field service and repair operations – With SAP solutions, you can conduct long-range planning to optimize resources. You can also deploy and schedule resources as needed, when customer service requests come in or as planned service activities occur. Plus, you can outsource services, procure and source services, and carry out billing and payment activities.

Upstream management is enabled with SAP offerings such as SAP ERP. To find out how these offerings can help you improve your upstream management, please complete the "Contact SAP" form and request information about enterprise resource planning.

Are You a Small or Midsize Company?

If you’re looking for a more preconfigured solution to fit a less complex environment, consider our solutions designed to fit your business – and your budget. Learn more about SAP solutions for small and midsize oil and gas companies.

Want to learn more? Contact us or call the SAP sales office nearest you.

SAP FOR OIL & GAS

BUSINESS PROCESSES

The SAP for Oil & Gas solution portfolio enables you to automate, streamline, and integrate complex processes, including:

  • Upstream management – Streamline processes related to the exploration, development, and production of crude petroleum.
  • Supply, transmission, and trading – Manage the execution of bulk supply chain activities from initial planning to final settlement.
  • Refining and manufacturing – Control the processes involved with the transformation of crude oil into market-ready refined products.
  • Downstream marketing and retailing – Manage the complete opportunity-to-cash process through various channels, and support service station fuel management and convenience store retailing.
  • Asset management – Increase asset utilization, extend asset lifetime, collaborate with spare-parts suppliers, and improve utilization of service and maintenance teams.
  • Enterprise management and support – Handle all core enterprise activities in analytics, financials, human capital management, corporate services, and operations support.

Business Processes in Detail

SAP solutions and applications support business processes related to the oil & gas industry. Learn more about these business processes.

Want to learn more? Contact us or call the SAP sales office nearest you.