1. Introduction
1.1 The background of Petronas and Upstream and Downstream
Petronas, Petroliam Nasional Berhad, which operates as an integrated oil and gas company in Malaysia and internationally, as well as other petroleum companies, is the most across the board and perilous outcome of oil and gas industry exercises is contamination. Petroliam Nasional Berhad is Malaysia's National Petroleum Corporation entirely claimed by the Malaysian Government which is built up in 1974. Petronas is working its center business in the Upstream and Downstream divisions.
Petronas' Upstream business investigates, creates, delivers and monetises oil and gas assets both locally and globally. The Upstream Business has an expansive arrangement of assets and playtypes
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Supply chain of Petronas
2.1 Extraction of Oil production
The initial phase in the oil store network is creation. Amid creation, unrefined petroleum is delivered on both area and adrift. Oil creation incorporates boring, extraction, and recuperation of oil from underground.
2.1.1 Process of Extraction of Oil Production
Extraction of unrefined petroleum can be partitioned into two noteworthy classes, which are upstream and downstream. Upstream is alluded to as 'Investigation and Production' part where raw petroleum is recuperated and handled. As it were, boring of wells and recouping the natural oil to the surface is termed as upstream. Downstream includes refinement of unrefined petroleum, offering and circulation of items, for example, gas, plane fuel, petroleum coke, black-top and considerably more. The downstream segment takes care of the requests of the buyers through plastics, manures, manufactured elastic and so forth. Furthermore refineries go about as the fundamental change point for all raw petroleum into its different consumable items and are primarily found locally. Subsequent to accepting oil from storerooms, refineries use different synthetic division and response procedures to change rough oil into usable items, for example, fuel oil, diesel oil, plane fuel, and numerous key assembling
Oil change is very easy to do; you don?t always have to go to Jiffy Lube or other instant oil change places to get it done. You can buy quarts of motor oil at almost any store and change them yourself. This way you can ensure the oils are of top quality and the job gets done right.
One of these factors was the logistical nightmare of redeveloping the infrastructure needed to transport oil to the refinery. As early as 1881, Standard oil operated approximately 3,000 miles of pipelines, eventually owning ninety percent of the nation’s pipelines. Although transcontinental railroads were an available alternative, pipelines were cheaper, reduced handling and storage fees, and were more efficient. The fact that modern oil companies invest hundreds of millions of dollars into speculating for sustainable natural oil deposits implies that such deposits are rare and hard to identify with a passing glance. If the spurts of oil proved to be isolated incidents, the capital invested in building pipelines and reestablishing a monopoly would have been squandered.
These refineries are located in three different main locations: Steele City, Nebraska, Wood River and Patoka, Illinois and refineries located on the Gulf Coast of Texas. The pipeline carries three different kinds of oil, which are synthetic crude and diluted bitumen, and also light crude oil. Light crude oil comes from the Bakken formation located in North Dakota and Montana, while the synthetic crude and diluted bitumen come from the oil sands in Canada. There are already three phases of the pipeline in operation and a fourth proposed phase, which has yet to be built. The newest proposed phase has been met with mixed feelings.
Oil is a significant, non renewable resource that is found underground and extracted through technological processes (Grubb). Consumption rates of the substance have never been higher. Oil remains to this day a vital aspect of production in industries like plastics, fertilizers, and asphalt. World oil consumption presently rests around 83 million barrels per day (...
"Oil Imports and Exports - Energy Explained, Your Guide To Understanding Energy." Web. 26 May 2011. .
After the oil/gas mixture is drawn from the ground, it is then stored into a storage tank and allowed to rest for a while. Then the gas is piped off to a set of distillation columns to clean up the ethane. In order to activate the chemical reaction necessary to separate the ethane, a thermal cracking unit (a sort of long heated tube) i.e. a plug flow reactor is used. After a series of distillations, ethylene exits the tube.
On April 20, 2011, an oil rig in the Gulf of Mexico exploded on British Petroleum’s (BP) Deepwater Horizon. As a result, of the 126 BP crew members aboard, 11-15 were reported missing. Six days later, underwater robots reveal at least two leaks are dumping 1,000 barrels of oil into the Gulf per day. Consequently, this would become one of the worst oil spills in the history of the United States and perhaps the petroleum industry. This recent Oil Spill portrays one of many dilemmas BP has faced as it scrambles to expand and globalize itself as a transnational corporation in the world economy against other oil and gas companies. Although this disastrous event has affected BP negatively, the company has found a way to overcome it, while still becoming the 6th largest in the world; it continues to do this by offshoring, outsourcing, and merging with other oil and gas companies, three key strategies BP has been using since its establishment in 1909.
finding new ways to drill for oil and also refine it more efficiently to ensure that
Oil companies performing exploration and production services belong in the ‘upstream’ area of the business. Upstream oil companies such as Exxon, Shell, and BP, among others, lease the services from ‘service companies’ to perform the actual drilling of the well. Pride International, Halliburton, Baker and BJ are a few major service companies. Pride International performs drilling worldwide, both onshore and offsho...
MSCI, a budgetary investigation firm with extraordinary aptitude in surveying the estimation of intangibles like carbon hazard, examined the petroleum business ' execution in five key classifications: operations, wellbeing and security; capacity to get to assets in developing markets; carbon discharges; interest in option vitality; and interest in unpredictable fossil powers like oil sands and oil shale, coal bed methane and coal crease gas, and both gas-to-fluid and coal-to-fluid energizes.
The measure of petroleum abundance and production in Nigeria is measured by the United States. According to the statistical data and the U.S. measures, Nigeria reserves make the country the tenth petroleum-richest nation, and by far, one of the most affluent countries in Africa. In the middle of 2001 its crude oil production was averaging around 2.2 million barrels per day. Though, there is a very prominent market for offshore rigs, nearly all of Nigeria’s primary reserves are in and around the delta of the Niger river. Ever since Nigeria became independent, it is one of the few oil producing countries that can increase its oil output drastically. The g...
Since its discovery back in the year 1858 crude oil has been become one of the most sought after resources on the face of the planet. It is due to this fact that the oil industry has fallen into a rather odd category in the case of globalization and seeking out new markets, new labor and new customers. The reason being that the need for crude oil and fuel is always present therefore the product of oil in its basic sense sells itself and the companies do not have to go out and publicly advertise it in the sense that clothing lines and other commodities do. Oil companies must focus more on the matter of why an individual should buy their oil and along with other alternative fuels over their competitors even though in the end the companies products are the same thing. The company ExxonMobil has been the superior company in the oil industry for quite sometime now, and had plenty of success as individual companies before their merger in 1999. The reason for there success is partially due to the power they wield as the most successful company, leading to many new refineries around the world, making deals with smaller companies to gain access to new markets and are leading the world in alternative fuel research. However these things all come naturally to the biggest oil company in the industry, the real question is how they became the powerhouse they are now. That question can be answered by the way in which the company has not focused in globalizing their product of fuel and oil, but globalizing the image of the company company. This is achieved by focusing on charity in which they donate hundreds of millions of dollars, Foreign Direct Investment in areas in which they wish to expand by attempting to provide these impoverished areas wit...
,n.d. web. 21 May 2014 Petroleum engineering. Encyclopedia Britannica. N.P., n.d. Web.
» Downstream: significant refineries incorporate unrefined petroleum preparing and transport of items to retail outlets.
The industry is divided into three distinct sectors including the upstream, midstream and downstream sectors. The upstream sector includes the exploration and production of crude oil as well as the exploration and production of natural gas. This sector has experienced the largest amount of deals in terms of mergers and acquisitions, which will be further discuss in section III. The midstream sector involves the transportation of extracted petroleum from the upstream sector through pipelines, rail, barge, truck as well as storage. Finally, the downstream sector connects the end consumers through derived products such as gasoline, liquefied natural gas (LPG), liquefied natural gas (LNG), kerosene (aircrafts), and diesel…