Contents

• This assignment is based on the following scenario –
• SCENARIO
• European Commission statement:
• “The new energy landscape of the 21st century is one in which the world’s
• economic regions are dependent on each other for ensuring energy security
• and stable economic conditions, and for ensuring effective action against
• climate change. This is especially relevant in the case of oil, which is the
• world’s number one energy source and is expected to remain so in the
• forthcoming years. Global oil consumption has increased by 20% since 1994,
• and global oil demand is projected to grow by 1.6% per year. The dramatic
• price rises experienced in recent years, and heightened awareness of the role
• of hydrocarbon combustion to global environmental change, have returned
• energy, and petroleum, to the centre of political debate.
• The European Commission emphasises the importance of an effective,
• accessible, global oil market, ensuring competitive supply and stimulating
• greater efficiency and innovation. In order to contribute to the transparency of
• the oil product market, the Commission publishes the weekly Oil Bulletin,
• describing the price trends of the main petroleum products and the evolution
• of the taxation of these products in Member States. In order to gain better
• insight to the energy markets, the Energy Market Observatory System
• (EMOS) is being developed. The system is designed to provide, from 2007,
• reliable and transparent energy market data. It is designed as a vital tool in
• the identification of threats to a secure energy supply for Europe
• …….
• Internal Market
• Reinforcement of the security of the oil and gas supplies in the framework of
• the energy internal market. A fully competitive internal energy market for the
• 2
• EU, that will allow citizens and businesses to enjoy all the benefits of security
• of supply and lower prices, is central to European energy policy.
• Liberalised and competitive markets help security of supply by sending the
• right investment signals to industry participants. But for this competition to
• work effectively, the market needs to be transparent and predictable.
• The European Commission takes responsibility for the implementation of
• European legislation on security stocks of oil and market observation. It also
• considers new initiatives that may be taken to help the completion of the
• internal market for energy.
• Oil is a global market, but ensuring that all Europeans have access to energy
• at reasonable prices requires action at a European level. Promoting equitable
• access to new and existing infrastructure, enhancing market transparency,
• facilitating access to additional oil supplies and coordinating effective
• response in the event of supply disruptions will play a key role in securing
• available energy at affordable prices. It is crucial for Europe that the internal
• energy market stimulates substantial investments in all areas of the energy
• sector.”
• In order to design a realistic and efficient European supply chain for oil
• by 2020, the European Commission has asked each member state to
• work on this matter. Each member state designated a single
• organisation or body best suited to carry out this extensive research. All
• research will then be collected analysed and aggregated by the
• European Commission in order to create a directive or possibly a
• Regulation on Oil supply applicable to all member states. The
• responsible body for the UK is the UKOOA. In order to carry out this
• research the UKOOA has sent an ITB to some selected Supply chain
• consultants asking them to present a proposal based on the
• investigation of TWO (2) relevant and important supply chain aspects
• within the oil industry.
• You have been contacted by The United Kingdom Offshore Oil and Gas
• Industry Association to submit a bid for this research.
• The objective of this research is to make some recommendations to the
• UKOG board of Directors on how to design a suitable supply chain for
• the oil industry that will integrate the forecasted trends in customers
• demand by 2020.
• You and your business partner have created in 2006 a company
• specialized in supply chain design and optimisation mainly for
• European manufacturing industries

Description

Given the above scenario, your assignment is as follows:
1. Develop a process flow map that illustrates the oil supply-chain from
sourcing and procurement of raw materials to manufacturing to the end
consumer as well as any significant processing steps for the EU market.
2 - Provide your assessment as to whether or not the oil supply chain(s)
will successfully cope with the future oil demand.
3 - Provide recommendations to UKOOA as to how they can ensure that
demand for oil products in the EU market is met without interruption.
4 – Present and describe the optimal oil supply-chain solution coherent
with your findings.
NB 1: Find two (2) academic papers on supply chain of particular
relevance to your research and use them to make recommendations
about how the supply chain should be designed in the oil industry for
the UK market.
Your recommendations should demonstrate an understanding of the
concepts/models of the article chosen (including their potential
limitations) and the ability to apply theses concepts to the oil industry.