Outsourcing Logistics in the Oil and Gas Industry

Abstract

The supply chain challenges that the Oil and Gas industry faces in material logistics have enlarged in the last few decades owing to an increased hydro-carbon demand. Many reasons justify the challenges, such as exploration activities which have moved to remote locations, not only increasing distances from supply houses and refineries but also escalating logistics costs. Mammoth costs of material unavailability drive the inefficiencies largely. The objectives of the study is to discover the logistics needs of oil and gas companies, the motivation, benefits and the requirements of outsourcing logistics. The study aims to identify the material supply chain inefficiencies in the industry and proposes solutions to solve them. In this study, Oil and Gas industry’s outsourcing practices in logistics are analyzed along with the trends of the third party logistics companies serving the industry. The participants of this study are from different companies in the Oil and Gas industry dealing with supply chain operations.