SUPPLY CHAIN RESOURCE COOPERATIVE

Category Archives: Oil and Gas Procurement

  1. In industries that are going through a lot of Capital Expenditure investments, including construction of pipelines, LNG facilities, and mining operations, the role of procurement on the success of the organization is somewhat different.  The supply chain function impacts a company’s financial performance through improved operations in several areas of the business. Here are some […]

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  2. Proponents of integrated supply management propose that successful Contract Management (both pre and post award) requires a collaboration between the business functions (Engineering, Operations, Maintenance) that have the need (demand, specifications & service levels) that require contracting with third party services. The procurement function (contracting supply chain) typically provides the market & commercial expertise for creating […]

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  3. On election night last week, I was stationed in Calgary Alberta, watching the results unfold in Mountain Time, and wondering what was going on in the country I’ve adopted as home.  You see, I’m a native Calgarian, and was visiting my home town to share insights with a group of supply chain executives at the […]

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  4. A recent discussion with my colleague Tim Cummins at IACCM suggests that an increasing number of oil and gas companies are exploring alternatives to traditional “lump sum bid” contracts, that are typically used for large oil and gas construction projects.  This is largely due to risk aversion and the unpredictable nature of new project environments, […]

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  5. I recently participated in a workshop of oil and gas leaders in Calgary Alberta. With the announcement of $30/bbl oil, the long-term view of the oil and gas industry is that it is going to be a long time before oil goes back up to prior levels of $50/bbl plus, and may never reach the […]

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  6. I had the opportunity to speak to a group of oil and gas executives at the DHL Global Energy conference this week, held in the Petroleum Club.  I was joined by one of my former NC State students, Scott Frahm, who sat in on a few of the presentations.  The conference was a great opportunity […]

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  7. I have been having a number of fascinating interviews with Chief Procurement Officers this past week on the subject of procurement analytics and supply management risk.  This is part of a study I am doing that will result in a white paper later this fall, and will likely be one of our key themes for […]

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  8. I visited Calgary, Alberta this week, and found it to be an odd environment indeed! Oil has leveled off at $60/bbl, major companies have all gone through major budget cuts, have cut headcount and released hundreds of supply chain managers and others to reduce payroll. At the same time, a drive through the streets of Calgary is held up […]

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  9. I had the pleasure and honor of attending the 2nd annual Supplier Forum, hosted by Union Gas & Spectra Energy in Hamilton, Ontario at the end of April.  The meeting was intended to bring together senior executive’s from Union Gas’s top 100 suppliers, in a forum to open discuss how to drive improvement in the […]

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  10. I had the opportunity to host a good colleague of mine  in my supply chain relationships class this week.  We worked together years ago to help define the a baseline framework for strategic sourcing and category management that was deployed within the  a large oil and gas company’s lubricants group, and which later became deployed across […]

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  11. Lynn Good, Duke Energy’s CEO, spoke at NC State this week, and shared her many thoughts on leadership and transformation.  Her vision for what is otherwise often considered a stable and boring industry, energy utilities, provided a great deal for students and faculty to think about. Duke Energy’s roots lied in seeking to harness the […]

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  12. I recently spoke with an oil and gas executive, who shared with me his thoughts on post-award contract management.  He noted that “Demand management and specification management are some of the biggest problems encountered in post-award contracting.  A few years ago we reviewed this situation, and found that the biggest problems were often ones that […]

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  13. There has been a huge amount of economic data pouring out in the last two weeks, all the while in the face of news of increasing violence in the Ukraine, Jordan, and the Middle East. Domestically, we seem to be in a situation negative total inflation – the Fed will be on hold until December delaying […]

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  14. Oil prices continued to plummet last week to below $60, and experts predict that it could continue to drop.  All of a sudden, what seemed like a boost to the global economy has caused consternation and worry among economists, as the recognition that the oil supports jobs across a number of important sectors.  There are of […]

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  15. I was in Houston yesterday evening, speaking to a large group of procurement executives at a roundtable held by KPMG’s Procurement Advisory Group, at the fabulous Brennan’s restaurant on Smith Street.  The event was sponsored by Coupa, one of the leading providers of software, and several of the Coupa executives from the Houston area and […]

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  16. Many companies are still proclaiming that they have  “collaborative relationships”, but nowhere is this less the case then in the construction industry in oil and gas. In this environment, traditional Design-Build relationships are more risk-prone and litigious then ever. Recently I met with a group of companies in Niagara Falls, at a meeting hosted by Aecon, a […]

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  17. Today’s story in the Wall Street Journal discusses how more operators of the largest truck fleets in the US are in the process of converting their fleets over to natural gas powered trucks. These big companies, including Procter & Gamble, United Parcel Service, FedEx, and North Carolina based Lowes are all recognizing that the cost […]

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  18. This past week, I hosted a meeting with a small group of oil and gas procurement executives  in Houston to share thoughts on some of the major trends occurring in oil and gas, changes to the global oil and gas organization structure, as well as the impacts on procurement capability in the emerging ecosystem. As […]

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