Monday, July 14, 2025
27.1 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
spot_img

Hot this week

NAICOM, Insurance Industry Mourn Buhari

It is with profound sadness that we received the...

Polaris Bank Partners Woodhall Capital, UK, Lagos State in ₦1.5bn Creative Economy Fund

L-R- Abimbola Ozomah, Executive Director, Polaris Bank; Mojisola Hunponu-Wusu,...

Heirs Insurance Group Reports N61bn GWP in 2024, an Increase of 70%

Heirs Insurance Group (HIG), Nigeria’s fastest-growing insurance group, has...

Stanbic IBTC Holdings Meets CBN’s N200bn Recapitalisation Policy

In a landmark achievement that highlights the steadfast confidence...

SanlamAllianz Partners NCRIB on 2025 Empowerment Series

Dr. Abosede Adegbite, Consultant, Family Physician; Tope Adaramola, Executive...

Topics

Fidelity Bank Enhances Educational Facilities in Benin, Abuja

Fidelity Bank Plc, a leading financial institution, has once...

NESTLE: Building Sustainability into Product Design Process

The Nestle Brands The way a product or service is...

NNPC Committed to Building Huge Oil, Gas Infrastructure to Make Sector Thrive

NNPC Limited's Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan...

Royal Exchange Confirms Auwalu Muktari as Group CEO

The Board of Directors of Royal Exchange Plc has...

Sterling Bank: N133bn Earning Caps Impressive 2017 Performance

Sterling Bank Plc released its FY-2017 results, which...

NIMC, FMAFS Partner on Farmer Registry, G2P Card Project

Preamble The Federal Ministry of Agriculture and Food Security (FMAFS)...

NNPC/Seplat JV’s “Eye Can See” Programme Restores Vision, Hope in Imo

Host community members await further medical attention during the...

INEC Publishes Notice of Anambra State Governorship Election Nov 6

The Independent National Electoral Commission (INEC) held its regular...
spot_img

Related Articles

Popular Categories

spot_imgspot_img