Sunday, August 10, 2025
25.7 C
Lagos

REPORT: Supply Chains Must Change to Support Global Energy Demand

The development of new, unconventional energy sources, such as shale gas, tight oils, coal seam gas and oil sands, are driving a shift in the global energy industry that will require rethinking traditional energy supply chain models, according to a white paper by logistics company DHL 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.

With the ongoing shift in geographies of energy production and demand, the need and desire to explore and develop new technologies to reach and extract unconventional gas reserves is growing, spurring the need for energy companies to adjust their approach to supply chain management. The new approach will be highly integrated, according to the research, to drive down logistics costs and enhance profit margins.

From a supply chain perspective, both conventional and unconventional energy companies face challenges.

“Supply chains supporting conventional energy markets are still developing as companies have had to expand into ever more inaccessible and remote locations to support the growth in global demand,” said Jonathan Shortis, vice president, energy sector EMEA (Europe, the Middle East and Africa), DHL. “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.”

Executives interviewed for the research admit that energy companies often struggle to deal with the complexity of the supply chain and are challenged by a lack of visibility and predictability when they are working with multiple stakeholders at numerous drilling locations.

“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,” said Shortis. “This solution blends state-of-the-art visibility and analytics with best-practice process management to achieve bottom line results.”

spot_img
spot_img

Hot this week

UBA Group Chair, Tony Elumelu, Seeks Critical Measures to Drive Africa’s Development

L-R: President, Central African Republic, Faustin-Archange Touadéra and Group...

148 Nigerians Win ₦23m in Stanbic IBTC’s Reward4Saving Season 4 Promo

Stanbic IBTC Bank has successfully enhanced the financial well-being...

NCC Hosts National Broadband Mapping System in Abuja

L-R: Project Manager, Africa-BroadBand (BB) Maps, International Telecommunication Union (ITU),...

Sterling Bank Names First Beneficiaries of ₦2B ‘Beyond Education’ Fund

Sterling Bank, Nigeria’s leading financial institution, has announced the...

Former CFI of NAICOM, Sunday Thomas, to Chair NAIPE 2025 Conference

The Nigerian Association of Insurance and Pension Editors (NAIPE)...

Topics

Total, French Embassy Collaborate on Educational Dev in Nigeria

A joint scholarship scheme ("TQJS") titled TEPNG/ Quai d’Orsay,...

NNPC Wins The Whistler’s Transparency, Innovation Award

  The GCEO, NNPC Limited, Mr. Mele Kyari (3rd from...

Buhari Extends Medical Vacation, Fails to Return

President Muhammadu Buhari has sought extension of his medical...

ITU: Innovative ICTs to Drive Economic Opportunities

The economic opportunities of innovative information and communication technologies...

Don Charges SMEs to Explore Soybeans Packaging Options

Small and medium enterprises (SMEs) in the country have...

Custodian & Allied Insurance keen on Customer Satisfaction

Custodian & Allied Insurance (CAIL) is keen on developing...

Insurance Industry Most Resilient, Fast Expanding Sector in Nigeria –IICC Chairman

The Chairman, Insurance Industry Consultative Council (IICC), Mr. Edwin...

Fidelity Bank Equips Entrepreneurs for Global Trade Success with EMP 18

L-R: Prof Frank Ojadi, Director, Export Management Program, Lagos...
spot_img

Related Articles

Popular Categories

spot_imgspot_img