GineersNow Oil Gas Dec2020, chemical, fuel, crude, petroleum, lubricant, Vaccines, Pfizer, Moderna, AstraZenica, Sinovac, covid-19
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DECEMBER 2 0 2 0
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move between your locations and maximize your business operations.
Stay connected with voice and data access wherever your business takes you.
sasktel.com/mobileofficehub
E D I T O R ‘ S N O T E
All sectors of the oil
and gas industry have
been challenged by
the COVID-19 crisis, some
of which are already at risk
of bankruptcy and others
unlikely to survive with the
current depressed levels
of oil prices and margins.
Similarly, companies led by
frail management teams,
dominated by high-cost
assets, and carrying highdebt
burdens will experience
worst challenges, with most of
them disappearing or getting
acquired.
2020 The New Normal in Oil
& Gas Industry
While the majority of oil
companies have already
lowered their planned shortterm
capital spend, they still
need to consider a strategic
portfolio rebalancing to
provide them with the best
possible chance of enduring
the COVID-19 crisis and
emerging more secure in the
long term.
To do this, companies should
curtail high-risk exploration,
concentrate on low-cost
assets, and strip off their highcost
upstream developments,
including tar sands and shale.
They should also carefully
review, if not entirely cancel,
new construction of plant
upgrades or refining projects.
Companies need to rebalance
their business via stronger
positions in the petrochemicals
and natural-gas value chain,
all while providing stronger
emissions-efficiency initiatives.
4
To become more sustainable
and commercially attractive,
all oil and gas companies
should look into development
expansion in the field of
energy transition, electricity,
and renewables, investing
more in renewables and
decarbonization.
These shifts apply to both
international and regional
oil companies, along with
American drillers. However,
global oilfield service
companies should be the first
to take the most urgent and
thoughtful actions in response
to the COVID-19 storm.
Since they are the most
challenged by the reduced
activity in the oil sector
globally, they must quickly
lean towards the renewables
support. To acquire new levels
of efficiency in operation, all oil
and gas players will also need
to speed up their initiatives in
automation and digitalization.
These transformations are
the only ways to ensure a
company’s viability in the
petroleum sector for the long
term.
* For any inquiries, please contact Mr. Rohan Suares
Address: LG Electronics Gulf, P.O Box 61445, Dubai, U.A.E, Tel. # +971 52 710 0999, Email: rohan.suares@lge.com
C O N T E N T S
8
REBUILDING 2021 WITH
CBK HARDWARE TOOLS &
MATERIALS
20
2020 THE NEW NORMAL IN
OIL & GAS INSDUSTRY
36
2020 TRENDS IN OIL & GAS
52
4 OIL SPILL TECHNOLOGIES
WITH TWO GREEN THUMBS
UP!
68
LATEST TRENDS IN OIL
REFINARIES
84
THE LATESTEST TRENDS IN
OIL TANK STORAGE
100
OIL OVERSUPPLY AND THE
CORONAVIRUS IMPACT
116
THE PERSON:BONG
FADULLON
144
AFTER COVID-19: OIL & GAS
INDUSTRY
160
HOW COVID-19
DISRUPTED THE
CHEMICAL INDUSTRY
176
COVID-19 GUIDANCE
FOR OIL & GAS
WORKERS AND
EMPLOYERS
192
COVID-19 IMPACT ON OIL
REFINING INDUSTRY
208
PETROL STATIONS AND
CONVENIENT STORES
DURING PANDEMIC
6
FEATURE STORY
Rebuilding 2021 with
CBK Hardware Tools & Materials
The outbreak of the novel coronavirus across the globe has severely interrupted businesses in
almost all of the industries. And while most companies are turning to short-term strategies to
keep their operations running, they should also start to plan ahead and prepare their facilities
with the right tools and materials.
Increase Productivity, Cleanliness,
and Safety with Nilfisk
Nilfisk offers a diverse range of solutions that
directly supports your economic goals and
secures value retention by shortening down
cleaning times, reducing maintenance costs,
and consistently increasing profits. Here are
three of the most recommended Nilfisk cleaning
equipment that boasts large debris trays and high
quality air filters that will help in maintaining a
healthy environment for your employees.
• LS160-EU 17-inch low speed polisher
1300w. Perfect for medium-duty to high-duty
applications, including indoor cleaning, and is
simple, robust, and user-friendly. It automatically
locks when handle is in 90-dregree vertical
position.
• Scrubber BA 611 D. Has low noise level
for daytime cleaning and provides OneTouch
dashboard operation and detergent mixing
system.
• ATTIX 30-21 PC 230V 50HZ EU. Compact
but powerful wet and dry vacuum cleaning with
an ergonomic design and low noise, perfect for
workers on the go.
8
Improving Ventilation in the Workplace with Deton
As the largest manufacturer of ventilation equipment, Deton offers
products with optimized design blade, firm structure, and a smooth
running supply of soft and comfortable wind. Three of the many Deton
products ideal for cooling factories, mining industries, garage, and any
large spaces are listed below.
• DF650TW26BLK Industrial Fan. A luxury-type wall fan with three
speeds, an adjustable oscillating angle, pre-adjustable height, low-noise
motor, and large air volume, suitable for heat-stroke prevention.
• DFK650T26BLK Industrial Fan. Stand Fan with streamlined blade
design, firm structure, large air volume, low-noise motor, three speeds,
and adjustable oscillation angle that makes it suitable for heat-stroke
prevention.
• FF60M24CHR Commercial Floor Fan Series. Features highquality
silicon sheet and all-copper coil motor, adjustable blowing angle,
and easy-to-move wheels, making it suitable for ventilation in factories,
workshops, warehouse, and stores.
9
Saving
lives
every day
Part of Blue Ocean Robotics
FEATURE STORY
Investing in Security Services against Theft
With businesses avoiding physical contact, security guards are no
longer checking people who enter the building, thus giving thieves the
opportunity to steal from the business. Revamp your security with the
following devices that will protect you against such criminals.
• Yale YDM3115. Premium RFID card digital door lock with
multiple access, smart keypad and mechanical key override, break/
damage alarm, and emergency power.
• Dormakaba DMITS96EN24S. Concealed cam action door closer
that is suitable for timber, hollow metal and aluminium doors up to
130kg.
• Chubbsafes Viper. Combined burglary and fire resistant safe that
uses the new revolutionary “V” bolt system and comes in sizes of 11 to
91-liter capacity.
12
Continuing of the Business in
Case of Emergency
To keep your business running in the event of
emergencies, you must have backup systems
in store. The wide dynamic assortment of
CBK products for such cases can increase
productivity and give you a reliable back up
plan for any tough situation. Some of the
equipment you need to have on hand include
the NVNDG8500CLE Navigator Generator,
TOCBYIIIA/CYPH Toho Hydraulic Hand
Pallet Truck, STSXWTDPC528 Hand Trucks,
and Ridgid Ladder.
Achieving Cleaner, Healthier
Facilities with a Clean
Underground Drainage System
Metro Manila often experiences congested
and clogged sewage and drains that will take
roughly 12 hours to clear. Thankfully, with
Ridgid’s innovative underground technology,
specifically the Ridgid FlexShaft Drain
Cleaning Machines, SeeSnake® Cameras, and
the K-5208 Sectional Machine, clogged pipes
can be cleared in minutes. In partnership
with Co Ban Kiat Hardware, Inc., Ridgid
is safeguarding the state of the metropolis’
underground drainage system.
13
Managing Health and Sanitation Facilities
Businesses should not only focus on the workstations
alone but the restroom facilities, as well. Delta Faucets and
Dyson Technology with its Airblade Hand Dryers provide
innovative commercial solutions that will help businesses
with this matter. Some of the must-have equipment in the
washroom are listed below.
Where to Buy?
For 100 years, Co Ban Kiat Hardware
Inc. is the most trusted distributor of
home improvement and hardware items
in the Philippines.
Let’s shop wisely. #StayAtHome and
order online at your convenience. Visit
us in the following sites and enjoy deals,
discounts, and more!
Website: https://www.cbkhardware.
com/
Facebook: https://www.facebook.com/
cbkhardware/
Instagram: http://www.instagram.com/
cbkhardware
Join our Fast Growing Viber
Community http://%20https//bit.
ly/3ebeCXU
• Dyson Airblade V Hand Dryer. A simple and
compact hand dryer with HEPA filters and an easy-mount
backplate for simple, self-service installation. It is costs
up to 86% less than other hand dryers to run, much less
quieter, and can dry hands within 14 seconds.
• Delta Faucets Grail Series. Faucets with sleek chrome
finish, providing exceptional performance and stand up to
the rigors of each application.
Revamping your business after COVID-19 is easy with
these quality and reliable industrial products that will
streamline your business to achieve the highest standard
of profitability and efficiency in the operations. For almost
100 years, Co Ban Kiat Hardware is true to its promise
in bringing convenience to life in many aspects and to
provide more years of world class hardware solutions.
Co Ban Kiat
Hardware, Inc.
Ground Floor, Cobankiat
Building II, 231 Juan Luna St. Binondo
Manila, Philippines.
Phone +632 8243-1931
Phone +632 8243-5263
Phone +632 8894-6561
Email info@cobankiat.com.ph ;
ind@cobankiat.com.ph
Coby's Designer
Center
Unit 467 level 4
Shangri-La Plaza Edsa
Corner Shaw Boulevard
Mandaluyong City, Philippines
Phone +632 86364895
16
About CBK
Hardware
For almost a hundred years, a
family’s surname has become
synonymous to the country’s
biggest hardware supply
company. Co Ban Kiat Hardware
Incorporated, of the Cobankiat
family has a regular client
network of more than 1,500
industrial organizations; 1,600
traditional community hardware
stores, and 584 home building
specialty chain of stores across
Luzon, Visayas and Mindanao.
This ever-growing conglomerate
traces its humble roots to
Manila Chinatown, as a pioneer
enterprise started by family’s
patriarch, Mr. Cobankiat in
1920. Despite the ruins of World
War II, the business goes back
to its feet in 1948, rebuilding a
storefront from the very same
spot where it was known for
three decades.
This ever-growing conglomerate
traces its humble roots to
Manila Chinatown, as a pioneer
enterprise started by family’s
patriarch, Mr. Cobankiat in
1920. Despite the ruins of World
War II, the business goes back
to its feet in 1948, rebuilding a
storefront from the very same
spot where it was known for
three decades.
While the Filipinos continue to rebuild their lives post war, CBK
Hardware sees the opportunity to introduce the retail concept once
unheard for in hardware industry. Cobankiat Hardware brought the
first DIY business in the Asia. A do it on yourself concept that created
Cobankiat hardware in the Philippines. The Hardware Workshop
Store is the fruit if this endeavor. CBK Hardware further cemented
its legendary distribution channel with the creation of Coby’ Design
Center in Edsa Shangi La in 1996, a specialty store that caters to
discriminating taste of modern Filipinos.
In 1997, Mr. Johnny Cobankiat, the 4th generation Cobankiat leader,
set another milestone for the company when he brings a franchise of
Ace Hardware USA to the Philippines, and signs up CBK Hardware
as one of its major suppliers. This further expanded into delivering
quality world class products nearer to families of Filipino overseas
workers in the countryside.
A century’s excellence can quickly pass, and guided by the vision to
be the largest network supplier of the biggest global brands in the
hardware industry, CBK Hardware resolve to source the best products
to supply its customers anytime and every time.
17
20
The COVID-19 pandemic that caused global lockdowns has severely
affected the petroleum industry and pushed it into a state of major
crisis. The oil demand across the globe progressively weakened
during the early months of the year and was only exacerbated as
structural oversupply created by Russia and OPEC’s struggle for market
share continuously grew. Combining these two factors dramatically
dropped oil prices in the world to a 20-year low.
21
C O V E R
S T O R Y
22
The Role of COVID-19 in Transforming the
Structure of the Industry
With the oil and gas industry experiencing low prices,
oversupply, and volatility, many companies are expected
to be impacted by the economic downturn brought about
by the COVID-19 outbreak. Investors are already seeing
the industry as an increasingly unattractive investment
over the past ten years. What’s worse is that the prolonged
period of reduced oil prices will lead investors to place
their capital elsewhere since the traditional oil and gas
business model turns into a riskier and less commercially
attractive investment.
While the global economy will obviously recover in the
following months, it is likely that instead of returning to its
pre-pandemic “business as usual” state, the industry will
face prolonged significantly low demands because of the
drop in economic activity and the increased pressure to
switch to clean energy sources. Likewise, the industry will
also need to deal with issues in oversupply. Four potential
scenarios will likely happen to the industry based on
several factors.
• Back to Normal. This scenario largely depends on the
early V-shape recovery of the economy paired with the
failure to address the agendas on climate change and
renewables. Simultaneously, major oil producers must
agree to cut production to lower the current oversupply.
However, achieving these conditions are unlikely.
• Stagnation. In this scenario, the global economic
recovery and the impact on oil demand is L-shaped,
which seems more probable. Here, the adoption of lowcarbon
energy forms and renewables continue, holding
back the oil demand recovery. Nonetheless, producers will
gradually reduce oversupply in this scenario, supporting
modest oil prices that will still ensure the viability of new
projects.
• Severe Injury. As the worst case scenario, this will see a
slow L-shaped global economic recovery, combined with
increasing destruction in oil demand driven by the switch
to renewables and the consistent oversupply due to the
repeated failure to cut production. On the positive note,
the continued drop in demand will force OPEC and other
major oil producers to adjust the supply to an adequate
price level.
23
CREATING OPPORTUNITIES
WEYBURN, SASKATCHEWAN
ABOUT US
Potential investors are knocking on Weyburn’s door and for good reason: for
two consecutive years, Weyburn is the Best Place to Live in the Prairies
(Money Sense Magazine). With a young workforce, high median income,
and estimated annual household spending nearing $300 million, Weyburn is
the perfect place to live and invest.
REASONS TO CONSIDER WEYBURN, SK
Located on three major highways
Rail connectivity to Western Canada and rail centres in Chicago and
Minneapolis
30,000 trading area population
Third lowest commercial property taxes in SK
Second lowest residential property taxes in SK
Weyburn Regional Economic Development
11 - 3rd Street NE | Weyburn, SK S4H 0W1
(306) 842.4738
info@weyburneconomicdevelopment.com
www.weyburneconomicdevelopment.com
www.townfolio.co
26
While the global economy will
obviously recover in the following
months, it is likely that instead
of returning to its pre-pandemic
“business as usual” state.
27
28
For many players to survive and
succeed, they must not only focus
more on renewable energy but
also be able to deliver still-lowercost
solutions.
29
C O V E R
S T O R Y
• New Normal. The economy recovers after several months in a
U-shape, and with the tightening of policies on climate change,
oil prices are expected to strengthen. This will be the expected
scenario even if OPEC and other major producers fail to reduce
supply as much as in the past.
Post-pandemic Business Models for Oil Companies
Under any scenario, the oil and gas industry is likely to transition
towards greener energy sources in a post-COVID-19 world,
especially with the ongoing demand to lower CO2 emissions.
For many players to survive and succeed, they must not only
focus more on renewable energy but also be able to deliver stilllower-cost
solutions. Seven hydrocarbon business models are
expected to co-exist in the future.
• Diversified energy holdings. International Oil Companies
(IOCs) will transform into energy-holding companies with a
myriad of diverse interests. Their global oil and gas operations
will become truly diversified energy holdings that are robust in a
world that is switching to cleaner energy sources.
• XL oil companies. By prioritizing scale in monetizing
existing, ultra-low-cost oil and gas resources, the biggest and
most competitive national oil companies (NOCs) will emerge
victorious.
• Regional “mini-majors”. Transforming their businesses into
tailored, diversified, and integrated models for their specific
regions, most regional players will eventually become diversified
“mini-IOCs.”
• Special-purpose vehicles (SPVs). To deliver more flexibility
within their portfolio-restructuring strategies financially, oil and
gas companies will increasingly create SPVs.
• US drillers. Being the most impacted by the oversupply crisis,
they will likely experience shrinkage and a major challenge for
medium-term survival.
• Global oilfield service companies. This sector’s business
models will be severely affected by the lowered drilling activity
levels. To survive, they must develop and innovate new solutions
for energy consumers and producers.
• Retailers. To ensure viable returns, this sector must invest in
non-fossil energy and other related customer-service areas.
32
- End -
33
36
As we close in on the year 2020, many individuals in the oil and gas
industry are conducting research and nigh endlessly studying about
how they can improve their efficiency, work ethic, output, and overall
morale. That having been said, here are their findings and gradually
growing trends that are prospected to be realized next year.
Here are some of those findings:
Firstly, the United States of America made over 15.3 million oil
barrels every day in the year 2018, which meant America was, at that
point, the top producer of oil in the entire world last year. Coming
from this finding, the question then is: how can the oil and gas indus
37
C O V E R S T O R Y
try keep up with such a massive supply and demand? To answer this
question and prepare the industry for the year 2020, we must take a
step back and revisit oil energy in 2018 and thoroughly scan the oil
and gas industry’s performance this year, as well.
If there is one thing certain, it is that the oil industry is constantly
evolving. Prices, for instance, are constantly shifting from high to low.
Like liquid, companies are always adapting to the energy market.
It is fortunate then that investors in the chemical industry have seen
an upward growth margin over the past couple of years. That having
been said, a bright idea may be to anticipate a potential decrease in
pace in the future.
The good news is the economic downturn of the oil and gas industries
in 2014 is a thing of the past. In fact, the oil markets have convalesced
exceptionally well. This is thanks in major part to a few happenings,
including:
The successful treaty between those who are and are not part
of the Organization of Petroleum Exporting Countries; less oil
production from competitive markets; and strong demand for
oil across the globe, among others.
Luckily, the natural gas liquid industry saw positive growth in 2018
as well, due to the Permian Basin manufactured an extra 2 million
barrels per day last year.
In 2019, things became a little different. Performance of the industry
fell back a bit compared to last year.
To start, there were a number of oil explorations this year.
According to a survey by the audit company Deloitte, there is hope
for a full recovery for the oil and gas sector this year from the huge
turnaround in terms of financial growth, gas prices, and investment
returns for the oil industry right now.
With how much the oil and gas sector has risen all throughout the
globe, there have only ever been a few risks presented from other
countries that export oil.
As the oil and gas industry licks its wounds from the infrequent
market, there have been several factors that point to an overall
upswing, such as:
Increased employment opportunities for American citizens; higher
business investments in the oil and gas industry; stabilized prices
38
39
42
There is hope
for a full
recovery for
the oil and gas
sector this year
from the huge
turnaround in
terms of
financial
growth, gas
prices, and
investment
returns for the
oil industry
right now.
43
44
With the
climbing price
of consumer
goods and the
swollen cost
of conducting
business in the
steel industry,
there could be
a disruption in
future supply
chains.
45
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C O V E R S T O R Y
throughout the year so far, among others.
There has also been an increase of financial
resources for the gas industry. This is because of tax
cuts and improved government spending, which
denotes that the oil market will continue to grow in
2020, despite the current taxes on the sector.
Thus, with the climbing price of consumer goods
and the swollen cost of conducting business in the
steel industry, there could be a disruption in future
supply chains.
This means that, come the year 2020, the biggest oil
and gas trend to keep a lookout for is profitable
returns for investors due to the exceptional
recovery of the price of consumer goods and cash
flows last year. That being said, the only thing that
investors have to worry about is how profitable
their returns will be.
In spite the fact that the oil and gas industry was in
a massive downward spiral several years ago, there
have been colossal upsurges in capital high-grading
and cost containment recently. Not to mention a
rise in the efficiency of operations too.
One should also expect to see:
A rise in the importance of infrastructure in the
oil industry, a major comeback of the natural gas
sector, a move towards sustainability in the oil, gas,
48
and chemical markets, and an emergence of
high-tech advancements in order to ease the
lives of the oil and gas industry workers.
In regards to the oil industry of 2020, one should
note be surprised when there is an upward
movement and greater emphasis in the importance
of infrastructure. Bigger process facilities,
underground pipelines, and storage building,
among other innovations, will be more to the
value chain of the oil and gas industry.
Another 2020 oil market trend that one should be
aware of is the return of the natural gas sector and
its potential to church out the most valuable
resource for low-carbon power generators
To conclude, prepare to see a spectacular move
towards sustainability in the oil, gas, and chemical
markets in 2020 in order to create a greener earth.
Despite the fact that the oil, gas, and chemical
industry always faced challenging in terms
of penetrating the sustainability market, its
attempts and journey to be more environmental
is commendable and honourable at best.
This is great news for each environmentalist in
the globe as the figureheads of the oil and gas
industries are beginning to invest in renewable,
low carbon energy companies and slowly but
surely forego their planet-deteriorating products
and practices.
As we move towards the year 2020, we must
remember that the oil and gas sector is
world-renowned tor its technological
innovation and its potential for growth.
-end-
49
M: +63 921 7105796
F E B R U A R Y 2 0 2 0
N E W S
The Industrial Hose
Market 2019-2027
Ecopetrol acquires 30%
of the Gato do Mato
discovery in Brazil’s
Pre-Salt
The Wireline Group
Upgrades to MiX
Telematics for ELD
Compliance and Asset
52 56 60
52
2
April 20, 2010 was the day the oceans suffered. Due to the tragic explosion of the British
Petroleum Deepwater Horizon drilling rig in the Gulf of Mexico, 5 million barrels of
crude oil was unleashed into the sea. 53,000 barrels of oil polluted the crystal blue waters
with thick oil that flowed for 87 days. Needless to say, it was the biggest offshore spill in U.S.
history—an industrial disaster for the books. But perhaps one of the more gruelling aspects of
the Deepwater Horizon oil spill was the clean-up. They did not have widespread oil spill cleanup
technology a decade ago. There was a lag in oil spill technology advancement since the 1989
Exxon Valdez disaster. That is why great news comes in the form of new advancements in oil
spill clean-up.
53
3
C O V E R S T O R Y
Here are 4 Ground-Breaking ways experts hope will
make the next Oil Spill Less Tragic.
1. An aerogel (freeze-dried mixture of claw with a polymer)
sponge to draw out oil and leave water behind
A sponge is easy to visualize—it is a
porous yellow cube we use to help
clean up spills in our kitchen. There
is even a kids show about a sponge
and it has aired for over 10 years.
Imagine if this was supersized to
the point it could entire square
meters of oil at a time. This is the
brainchild and recent realized innovation
of the researchers at Case
Western Reserve University. They
have developed a super-lightweight
clay sponge to draw out oil from
contaminated water and reuse the
absorbed oil for later.
2. One boat to out-skim them all
Booms and skimmers are popular clean-up devices
currently used in oil spills, but skimming
can only be done in smooth, still waters with
a sufficient amount of light. These booms and
skimmers are ineffective on rough waters and
darkness due to low visibility.
Fortunately, the company Extreme Spill Technology
has created a high-speed skimming vessel
that can solve these issues. These lightweight
vehicles can operate faster than traditional
skimmers, can skim in waves higher than 3
meters, and do not clog as easily. The boat has
been successfully tested by the Canadian Coast
Guard and are set to be sold worldwide.
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3. Magnetic soap may clean Tainted Water
During the incident in the Gulf of Mexico, dispersants were the most
commonly utilized weapon against the oil spill. Almost 3 million
liters of dispersants and soaps were used in the clean-up effort.
Apparently, this is a lesser evil as dispersants do not easily break
down in the environment.
Luckily, scientists from the University of Bristol have developed a
new, iron-rich salty soap that reacts to magnetic forces once it is in
the water. This ingenious compound, when placed in a solution, rises
to the surface of the water, dragging the oil with it. The research is
still theoretical, but experts hope that it’s the first step toward a new,
important cleaning formula.
64
10
4. Kevin Costner’s Oil Filtration Machine
Yes, you read that right. Famous American actor Kevin Costner has a
green thumb and is doing everything in his power to support the
advancements of oil spill technologies. Kevin and Dan Costner
(Kevin’s scientist brother) collaborated and soon debut an
oil-filtration device that had been in development for more than a
decade. It is reported that Costner has invested 26 million USD of
his own money into a device that works on a centrifuge principle,
separating and jettisoning clean water from oil. This is very poetic, as
his character in the film Waterworld is also about a man whose heart
belongs to the sea.
With these inventions in their beta phase, the future of the sea looks
bright and Mother Nature can rest easier knowing these products are
here to help her.
-end-
65
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84
The advent of technology has brought a
lot of innovations in the field of oil tank
storage- and one of these is the use of
tank farm automation system.
The development of the tank farm automation
system paved the way for other milestones in
off-sites oil storage and mobilization, including
the use of programmable logic controllers
(PLCs), distributed control system (DCS),
temperature, level, and flow measuring
systems, advanced control and optimization,
preset controllers, and transactional business
information systems.
85
C O V E R
S T O R Y
Since the competition in the oil refinery business
is exceptionally high, you really need to invest for
the most advanced oil mobility and storage tank.
You will invest to the point that you are willing to
compromise your financial stability. But most offsite
oil refinery owners will opt to take the risk due
to the overwhelming benefits that you will get from
automated oil tank farm or depot.
In fact, the use of automated storage tanks and
other high-end auxiliary equipment makes it possible
to double or even triple the volume and speed of
receiving and disposing crude oil to the market. And
since automated oil farm tanks are bigger, there
will be no interruption in between the storage and
shipment processes.
But how this became possible? How come the
receiving, storage, and distribution processes take
place at the same time at a very fast rate?
Well, this is because automated oil farms are
intricately designed with subtle attachments to the
source terminals through rail cars, pipelines, marine
carriers, and barges.
86
Indeed, there are lots of benefits that you can get
once you apply tank farm automation in your off-sites
oil refinery facility.
However, before you employ and spend for the
installation of an automated oil tank storage system,
you need first to learn some of the best practices
that you can benchmark. Otherwise, you will just be
wasting your money, time, and effort.
Oil Tank Farm Automation Best Practices
• Keep a Safe and Sound Environment. Farm tank
automation is, indeed, a complicated thing. This adds
up to the fact that you are working with oil that is a
highly-volatile substance. With this, you need to be
very careful and keep the refinery site safe. This can
be done by conducting a couple of feasibility studies
to confirm if the automated oil storage tank fit in a
particular site.
You also need to make sure that all the pipes, valves,
and block valves are working properly before you
fully shift to farm tank automation system.
Another thing is that you need to check if you hire
the right people. Just try to assess if your workforce
knows how to manage and maintain an automated
oil tank storage facility. If not, you need to orient
them and teach them how to manage and run an
automated oil depot.
87
building
momentum
GRAHAMBUILDS.COM
90
The development of the tank farm
automation system paved the way
for other milestones in off-sites oil
storage and mobilization, including
the use of programmable logic
controllers (PLCs), distributed
control system (DCS), temperature,
level, and flow measuring systems,
advanced control and optimization,
preset controllers, and transactional
business information systems.
91
92
The use of automated storage
tanks and other high-end auxiliary
equipment makes it possible to
double or even triple the volume
and speed of receiving and
disposing crude oil to the market.
And since automated oil farm
tanks are bigger, there will be no
interruption in between the storage
and shipment processes.
93
ON THE BAKKEN’S DOORSTEP
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Overall business cost competitiveness
consistently ranked in Top 10
Birdtail
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• Swift Transition. If you do not hit the right
timing, shifting to oil tank automation could mean
a menace to your oil refinery site. Why? Because
the normal flow of operation will be affected. And
this will result in millions of financial setback- from
the failure of accepting new crude oil and abrupt
isolation to the market chain.
If you don’t want these things to happen, you must
know how to handle the so-called operational
flexibility. Operational flexibility means keeping a
minute to no changes in the normal operation of oil
refining and storage. And this can only be possible
if you have a well-studied plan. Try to consult first
some experienced off-site oil operators to gain
more insights on how to effectively adapt to using
automated oil tank farm.
•Maintenance. Of course, if you want your
automated oil tank farm to thrive, never forget the
maintenance. You need to check the pipes and
valves for any possible leak. You also need to
always check the temperature since it may induce
erratic changes to the volumetric measurements.
Most of the people who are engaged in oil refinery
and storage business even purchase some of the
top-notch tank gauging options for a more reliable
tank level and status check.
•Keep a Stable Source of Funds. Apparently, if
you want to dominate the off-site oil storage and
refinery business through utilizing automated tank
storage depot, you really need a huge capital! This
is because if you have a stable source of funds,
you can update and purchase new hardware in no
time. If the market deviates from your side, your
funds will be used to offset the possible monetary
setbacks that you will endure.
These are some of the significant facts that you
must know about the oil tank farm automation
system. If you use this innovation the right way, you
will definitely become the next oil refinery magnate
soon!
-end-
97
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Tel: 204-748-3704
Estevan, Saskatchewan
Tel: 306-634-5504
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Manitoba Oil & Gas Review 2019 9
M A Y 2 0 2 0
N E W S
Oil Price War Amidst
COVID-19 Pandemic
Ventilation Standards
for Buildings Converted
to COVID-19 Hospitals
UCLA Engineer Made
a Ventilator from
Hardware Items
48 56 60
100
COVID-19 or the
coronavirus,
is a recently
discovered
infectious disease that
has resulted in a global
mobilization against its
spread through stringent
government mandates such
as enforced community
quarantines, social
distancing, and limited use
of services and utilities.
Despite the sound validity
for the implementation of
these laws, their effects on
the economy, businesses,
utilities, and industries
have been detrimental and
disadvantageous to say
the least. In more ways
than won, the coronavirus
has also given way for
great uncertainty about oil
demand.
Following the discovery of
the new virus and infections
101
C O V E R
S T O R Y
in Wuhan, China at the beginning
of this year, the prices for oil have
significantly declined by about 20
USD a barrel until the end of the first
week of March.
Indeed, as security personnel
and government officials in China
shuttered production facilities and
other non-essential businesses as
part of their endeavors to prevent
the corona virus from spreading,
oil demand from China dropped
drastically as well. The Oil Market
Report from the International
Energy Agency gives emphasis
to the gravity of China’s role in
the consumption of oil since they
account for 14% of global oil
demand and more than 80% of
global growth in demand last year.
A newly released report predicts
that in the latter part of 2020, the
worldwide oil demand growth will fall
for the first time since 2009.
Indeed, due to China’s increasingly
salient role in the global economy,
any sort of problem China might
encounter in regards to its economy
is likely to notably affect the other
countries as well. Global fear and
102
uncertainty in regards to the spread of
COVID-19 is likely to negatively affect
investment decisions in China and in other
countries, further weighing on demand
prospects and lowering oil prices.
The subsidence in oil prices roiled
financial markets and got them nervous
about the spread of the novel coronavirus.
Equities in the US and the rest of the world
lost approximately 7% while shares in US
shale companies were hit the hardest.
Some shale stocks had lost 30% to 50%
of their value. These moves suggest that
investors are definitely challenged by
the pandemic as they are experiencing
an intensified fear of recession and have
begun spending their time in searching
for economic and financial safety.
Needless to say, there were a lot of
economic and social effects.
As the world continues to struggle and
adjust with this deep fear of recession, the
Middle East and North Africa could be the
hardest affected by what could arguably
be the most destructive economic storm:
the coronavirus spreading to the region
and oil prices collapsing.
As of 9 March 2020, Iran had divulged
a great number of important statistics:
there were over 7,000 individuals who
tested positive for the coronavirus, with
at least 237 deaths having taken place
due to the pandemic. The rapid rise in
contracting the coronavirus there will
surely disrupt the country’s production,
trade, businesses, and other industries
dependent on the oil industry to keep
them going. The United Arab Emirates,
Iraq, Bahrain, Kuwait, Algeria, Egypt,
Jordan, Lebanon, Morocco, Oman, Qatar,
Saudi Arabia, Tunisia, and the West Bank
103
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106
HVAC contractors are at the
forefront in the war against dirty,
possibly disease-ridden air.
Safeguarding the air we breathe
against possible threats, these
HVAC contractors and technicians
are among the many noble
professional individuals and public
health workers in the battle against
COVID-19
107
108
According to The American
Society of Heating, Refrigerating
and Air-Conditioning Engineers
(ASHRAE) president WIlliam
Bahnfleth, any air cleaner that can
remove particles from the air has
the basic ability to reduce one’s
exposure to coronavirus.
109
BUILDING
PARTNERSHIPS
and Gaza all have also reported COVID-19
infections.
The capability and means to contain the virus,
while important without a doubt, will ultimately
depend on the strength of the public health
systems of those countries. As a general rule,
lower prices are good for countries importing
oil and bad for countries in the business of
oil importation. An easy way to get a sense
of the size of the real income effect is to
multiply the difference between production
and consumption (net oil export) as a share of
GDP by the percentage point increase in the
oil price. For instance, based on a hypothetical
assumption that oil prices were to stay 48%
below the 2019 level, Kuwait – where net oil
exports account for 43% of GDP – would
experience a decline in real income of about
20% of GDP. For the same increase in price,
Morocco would experience an increase in real
income equivalent to 3% of GDP.
That having been said, in affecting the oil
industry, the coronavirus has set off a series
of chain reactions that have been affecting all
other industries, mainly those that depend on
the oil industry’s gains and services. However,
due to the emergence of COVID-19 fighting
technologies and medicine, who could know
for sure when this whole thing will subside and
give way to normalcy once again.
-end-
112
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C O V E R S T O R Y
The Person:
Bong Fadullon
Phoenix Petroleum is the fastest-growing and leading independent oil company
in the Philippines, quicker to grow than many existing leaders in the oil and
gas industry. This is due in part to a great team, the support of management,
and the leadership of Henry Albert “Bong” Ricafort Fadullon.
Now the company’s Chief Operating Officer, Fadullon is a born and bred product
of Manila with humble origins in engineering. Fadullon is an industrial engineering
graduate with a minor course in mechanical engineering from De La Salle University.
Having worked immediately after his graduation, Fadullon’s credentials led to a
10-month stint in a local shipping company. Stepping forth into unknown territories
landed Fadullon in a multinational company. They assigned him to Mindanao, where
he worked for almost 25 years. Thereafter, he was brought back to his hometown for
a marketing role to reintroduce unleaded fuels, which he rebranded. This marketing
strategy sparked the “brand segmentation” evolution within the Philippines’ oil & gas
retail industry.
From then on, Fadullon had nowhere to got by up. He honed his skills in marketing
to better know people management and he wanted to get frontline supervisory
experience. After shining in the eyes of his superiors, he was tasked with the
responsibility of managing sales in Luzon. Fadullon was given his first overseas
assignment in Malaysia, followed by another overseas posting in Oman. He then
moved back to the Philippines to take on a couple of local roles, the first one was
for a regional B2B role overseeing four countries in South East Asia including the
Philippines, and eventually moved to run the entire retail business in the country and
the Pacific Islands. His last long-term posting abroad was in London for a seniorlevel
general manager position that allowed him to oversee operational excellence in
markets globally where Shell had retail presence. After his entrance and exits in each
country, the businesses did not only thrive but overwhelmingly flourished.
From the UK, where he was tasked with one of the global retail marketing functions
with responsibility over countries that Shell had retail presence globally, he went back
to the Philippines and took on another global role by serving Shell Shared Services
(Asia) B.V. as General Manager (Offer To Cash) for Global Businesses. Evident all
throughout Fadullon’s career history was the theme of turning around low sales and
bad businesses and giving them a brighter tomorrow.
116
As expected of a man with countless leadership hats and proofs of concept to his
skills, he was assigned his biggest position yet: the COO of Phoenix Petroleum when
he joinied the company in 2017. This position was assigned to him by none other than
the company’s owner, Mr. Dennis Uy.
“Technology is a key element
of Phoenix’s strategy because
as you move from oil and gas
to a more consumer company
— which is the future of
Phoenix — technology is going
to play a big part in having
a fortified relationship with
clients and customers.”
Bong Fadullon
COO
Phoenix Petroleum
117
Top 10 Accomplishments
& Breakthrough Projects
We asked Phoenix Petroleum about their latest
disruption, accomplishments or breakthrough
projects. Here are some of the most notable
achievements.
1. The first independent oil company to be
listed to the Philippine Stock Exchange after
the passage of the Oil Deregulation Law
2. In the past three years, Phoenix Petroleum
has expanded its business offerings and
services to include LPG, convenience store
retailing, asphalt, car care and maintenance
services, and digital transactions
3. Forged partnerships with Malaysian,
Japanese, Thai, and Chinese companies
4. Overseas ventures in Singapore, Vietnam,
and Brunei
5. Over 650 stations in retail network reached,
an average of 40 new stations per year
6. Grew market share to 7.09% — the
fastest-growing oil company in the Philippines
7. Introduced world-class innovative programs
such as the fuel additive Phoenix PULSE
Technology, the German-made SRG regulator
for its LPG, and the biggest stand-alone
FamilyMart store in the world
8. Largest network of into-plane services in the
Philippines, servicing 18 domestic airports in
the country
9. A record-high net income of Php 2.77 billion
in 2018, an 82% increase from the previous
year
10. Phoenix was also hailed “Marketing
Company of the Year” at the 40th Agora
Awards
118
119
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The Company:
Phoenix Petroleum
Phoenix Petroleum is an ever-thriving company
with endless potential and products that give
its competitors a run for their money.
Phoenix Petroleum was founded in Davao in
the year 2002. A thriving nationwide network
of retail and commercial channels, Phoenix
Petroleum is thoroughly armed with a manifold
product line that serves both individual and
industrial clients. The company has been
experiencing an average of 17% year-on-year
growth in a flat market.
Phoenix Petroleum prides itself in its expertise
on refined petroleum products and lubricants
for retail and commercial channels, and
bitumen used in asphalt; operation of oil
depots, storage, and transport services;
integrated logistics services including hauling
and into-plane services of Jet A-1 fuels for
airports and airlines; FamilyMart convenience
stores in the Philippines; Phoenix SUPER LPG
(formerly Gas Petronas); and PNX Petroleum
Singapore Pte. Ltd for business trading in
Southeast Asia and the rest of the world.
Phoenix’s foray into different businesses
allowed it to bag numerous awards, including
the prestigious Agora Award for Outstanding
Achievement in Entrepreneurship-Large
Scale in 2013. The award recognized Phoenix
for “growing a provincial-based business
into a nationally successful brand, for
embodying the Filipino’s enterprising spirit, for
persevering despite the odds, and for being an
indispensable partner of the Filipino.”
This oil and gas giant has also been publiclylisted
on the Philippine Stock Exchange since
July 2007 as the first oil company to do so after
the Oil Deregulation Law of 1998. Committed to
environmental causes and social responsibility,
Phoenix Petroleum supports various
initiatives that give back to multiple Philippine
communities.
122
UDENNA Tower at Bonifacio Global
City is currently the corporate head
office of Phoenix Petroleum.
123
124
“The oil and gas Phoenix of the
past is no longer the oil-andgas
Phoenix of the future or the
present,” said Fadullon. “Thanks to
technology, Phoenix is able to bring
its business together and improve
its relationship with customers”.
125
“We are driven to invest in research
that improves resource recovery and
reduces the environmental
impact of extraction.”
- CEO Dan MacLean
IMPROVE
RECOVERY
REDUCE
ENVIRONMENTAL
IMPACT
SUSTAIN
ECONOMY AND
JOBS
Facebook twitter linkedin Instagra Youtube
Phoenix Petroleum’s speedy growth as a star
player in the oil and gas industry from the
Philippines is due to its strong leadership
and reliability as a credible provider of topnotch,
high-quality fuels. With their new
Phoenix PULSE Technology at the ready, their
already-innovative fuel products experienced
an elevation in quality. This resulted in the
improved performance of the fuels and the
contentment of their large and loyal pool of
customers throughout the country. Its fullyequipped
stations, buttressed by strong locator
partners, service a steady flow of motorists
and travelers who rely on their quality fuels and
endless list of services.
Truly, Phoenix Petroleum’s commitment to
delivering world-class service, empowering
people, and revving up every Filipino’s
entrepreneurial spirit burns bright enough for
all to see.
128
As a homegrown company expanding
internationally, Phoenix Petroleum is confident
in its Board of Directors and Management
Team, among them is Mr. Fadullon himself.
These figureheads streamline their decisions,
making the decision-making process nimble
yet well-thought-of.
Like Fadullon, Phoenix Petroleum’s products
are top-notch, effective, efficient, and heighten
the quality of the machine it fuels.
Phoenix Petroleum treats motorists of different
vehicles to a wide array of petroleum products
that meets Euro 4 specifications for cleaner
fuel. High-quality fuels, including Biodiesel,
Super Regular 91 Gasoline, Premium 95
Gasoline, and the flagship high-performance
Premium 98 Gasoline––all with Phoenix PULSE
Technology––cater to any and all the motorists’
needs.
First in the list is Phoenix Premium 98, which
gives a lot of bang for a buck with its standardbeating,
higher octane rating. Users enjoy the
benefits of increased acceleration, reduced
engine friction, protection against corrosion,
cleaner gasoline deposit,and prevention
of further deposit buildup. Phoenix PULSE
Technology is a fuel additive with advanced
cleaning and protection properties for
enhanced power and acceleration.
On top of fuels, Phoenix Petroleum also has
a high-standard product line of lubricants
for automotive and industrial use at their
disposal. These products enhance engine
protection, speed, and power. Lubricants are
sold to businesses and are available in several
Phoenix fuel stations nationwide, in partner
auto and bike supply and repair shops, and in
hardware and retail stores. These lubricants are
used in the fields of agriculture, construction,
manufacturing, marine, mining, motorcycle,
power, passenger cars, jeepneys, trucks,
and buses. Armed with engine oils, axle and
transmission oils, coolant brake and clutch
fluids, greases, and hydraulic fluid for any
machine in any industry, Phoenix Petroleum
is ready for a wide range of oil and gas
requirements.
129
130
Phoenix has embedded financial
technology or fintech in its 650
retail stations, Family Mart stores,
4,000 LPG hubs, and 17,000 retail
touchpoints. The fintech system
records 500,000 customer visits
per day and features an electronic
payment gateway through Posible.
131
C O V E R S T O R Y
Lastly, Phoenix Petroleum is also present in
the business of liquid petroleum gas (LPG)
and Autogas, a clean-burning, high-octane,
environment-friendly alternative fuel for
vehicles.
For homecooks, Phoenix’s LPG business
includes Phoenix SUPER LPG cylinders for
household and commercial use (in bulk for
industrial use). These flammable mixtures of
hydrocarbon gases are used as fuel in heating
appliances, cooking equipment, and vehicles.
Phoenix Petroleum turns the dial up to eleven
with their Phoenix SUPER LPG. A credible
and efficient green alternative fuel for home
cooking, Phoenix SUPER LPG lets chefs and
homecooks discover the joys of cooking and
gives modern Pinoys the freedom to rule and
master their kitchen.
For the motorists on the road looking to create
a greener tomorrow, Phoenix Petroleum offers
Autogas: a green fuel due to its slow emission
characteristic, health-friendly properties, and is
perhaps the perfect alternative fuel for vehicles
today.
In 2019, Phoenix Petroleum opened its 650th
station on the corner of Alabang-Zapote Road
and Filinvest Avenue, Muntinlupa. This is just
the latest in Phoenix Petroleum’s plans to
expand to other locations in the country and,
134
in the near future, more parts of the
globe.
Some Phoenix stations are equipped
with locators, such as convenience
stores, restaurants, and car care repair
shop to offer more value to customers.
Mr. Fadullon himself experienced many
hardships like any other big name,
but his response to these challenges
are worthy of applause––to face them
head-on, prepared, analytical, and
passionate. Nothing but hard work and
determination, peppered generously
with his amazing leadership skills and
desire to manage people well, was and
will forever be his key to success. And,
much like its current COO, Phoenix
Petroleum is steadily on the rise, facing
and challenging many oil and gas
giants along the way.
Note: Date of interview 21st January
2020 at Udenna Tower
135
136
With a 17% year-on-year growth
since 2016, Phoenix is very much
capable of going outside Asia. Its
ability to grow its businesses to
exponential levels helped it gain
an environmental, economic, and
strategic impact that isn’t easily
copied by its contemporaries.
137
Phoenix Petroleum
Philippines, Inc. is the
fastest-growing and
leading independent
oil company in the
Philippines. It was
established by Davao
businessman Dennis
Uy in 2002 and has
been publicly listed on
the Philippine Stock
Exchange since July
2007.
140
Subsidiaries under Phoenix
Petroluem
Phoenix Petroleum Philippines, Inc. is a
conglomerate composed of related and
complementary subsidiary companies that
were acquired or established over the past
years.
Phoenix LPG Philippines, Inc. is engaged in
selling and marketing of the Phoenix SUPER
LPG brand and other gas products. It was
previously known as Petronas Energy
Philippines, Inc., a subsidiary of Petronas
Dagangan Berhad of Malaysia, before it was
acquired by Phoenix Petroleum in 2017.
PNX Petroleum Singapore Pte. Ltd. Is the
first overseas company of Phoenix Petroleum.
It focuses on trading and supply and serves
the fuel requirement of the Phoenix group and
of other companies.
Phoenix Asphalt Philippines, Inc. is a joint
venture by Phoenix Petroleum, Thailand’s
TIPCO Asphalt, and PhilAsphalt. The
company is involved in the operation,
marketing, and distribution of bitumen and
bitumen-related products in the Philippines.
Philippine FamilyMart CVS, Inc. is the local
franchise of Japan’s FamilyMart convenience
store chain. It was acquired by Phoenix
Petroleum in 2018.
Posible is a digital transactions provider
acquired by Phoenix Petroleum. It offers bills
payment, money remittance, bank deposit,
phone load, e-pins and gaming pins, and
other digital transactions through a portable
machine.
Phoenix Vietnam Pte. Ltd. is the second
overseas venture of Phoenix Petroleum and is a
joint venture with Cong Ty Tnhh Cong Nghiep,
a Vietnamese company. PVPL is engaged in
the marketing and distribution of LPG products
in Vietnam.
VIETNAM
-end-
141
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42 46 50
A
few months have passed since the initial coronavirus outbreak
spread across the world and caused the countries to implement
extreme albeit completely valid rulesets such as community
quarantines, nationwide lockdowns, mass testing operations,
and medical frontline endeavors, among other methods to buttress the
coronavirus’ spread. Many industries as well are reeling from the adverse
effects of the virus, doing everything in their power to remain working in a
slowly collapsing economy.
One such industry that faced multiple consequences thanks to COVID-19
is the oil and gas industry. After the months that have passed, one question
still remains: is this post-coronavirus season a new age of reckoning or
opportunity?
144
145
C O V E R
S T O R Y
The oil and gas industry is currently experiencing its third
price collapse in 12 years. After the first two disruptions,
the industry managed to bound back, some might even
say better than before. However, this time is different.
The current context combines a supply shock with an
unparalleled demand drop and a global crisis. In addition,
the sector’s financial and structural health has never been
worse. Shale and excessive supply, among others have
all contributed to poor returns. Now, with prices at an all
time low executives sense that change is inevitable. The
COVID-19 crisis accelerates what was already shaping up
to be one of the industry’s most transformative moments.
While the actual depth and duration of this crisis are
unbeknownst to us, research suggests that without
fundamental change, it will be difficult to return to the
prior days of the coronavirus, when an attractive industry
performance for the industry has historically prevailed.
Due to COVID-19, there have been challenges that require
the utmost attention. The combination of the pandemic
demand disruption and the supply glut has generated an
industry crisis.
146
There have been short-term scenarios for supply,
demand, and prices. Under the best-case of these, oil
prices could recover in 1-2 years. Price differences in this
period are also likely to be seen as both challenges and
opportunities. Demand for refined products has plunged
by at least 20 percent and research suggests that it will be
at least two years before demand recovers.
There are also long-term challenges for the industry. It
is expected that growth in demand for hydrocarbons,
specifically oil, will peak in the 2030s before declining
once more. Juxtaposed to that, the upstream cost curve
will likely stay flat. Needless to say, geopolitical risks will
continue to be a major factor in affecting supply and
demand. The resilient albeit battered shale oil and gas
subsector will persist to provide supply that can be rapidly
brought onstream.
Today, governments are laser-focused on managing
the COVID-19 pandemic and mitigating the effects on
economies, which is deflecting attention away from the
energy transition, which is a persisting challenge in
147
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2016 - page pub-a4-v2v.indd 1 23/03/2016 16:54
2016 - page pub-a4-v2v.indd 1 23/03/2016 16:54
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150
Today, governments are laserfocused
on managing the
COVID-19 pandemic and mitigating
the effects on economies, which
is deflecting attention away from
the energy transition, which is a
persisting challenge in and of itself.
Innovations that have cut costs
for wind, solar, and batteries will
continue and the decarbonization
will remain a paramount objective
for the industry.
151
152
The oil and gas industry is currently
experiencing its third price collapse
in 12 years. After the first two
disruptions, the industry managed
to bound back, some might even
say better than before. However,
this time is different.
153
and of itself. Innovations that have cut costs for
wind, solar, and batteries will continue and the
decarbonization will remain a paramount objective
for the industry.
So, how does the oil and gas industry win in the
“new normal”?
A handful of companies whose business models
or asset bases are already distinctive can thrive in
the new normal. But for most companies, a change
in strategy, and potentially business model, is
an obvious need. The oil and gas industry can
learn from other companies and industries. It is
instructive to seek inspiration from other industries
that experienced sector-wide change, and how the
leaders within these industries emerged as value
creators.
Mittal Steel Company built a model around
acquiring assets with structural advantage
and then cut costs and improved operations.
Additionally, they initiated significant industry
156
consolidation as well. Nucor Corporation
combined industry-leading operational capabilities
with a first-mover status in electric-arc furnace
technology. Others concentrated on scale and
technology in profitable niches like seamless pipe.
There is also merit for the oil and gas industry
to take bold action during the crisis to secure
resilience and accelerated positioning. They must
reshape their portfolio and radically reallocate
capital to the highest-return opportunities,
take bold mergers and acquisitions moves,
unlock a step-change in performance and cost
competitiveness by re-imagining the operating
movel, and ensure supply-chain resilience by
redefining the strategic partnership approaches.
This will indubitably create an oil and gas industry
of the future in both talent and structure––one that
is ready to face the new normal.
-end-
157
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As revealed by the Occupational Safety and Health Act of the US
Department of Labor, there should be guidelines in place in the
workplace now that the COVID-19 pandemic is happening. It is essential
that employers remain aware of the changes in the outbreak conditions,
including the spread of the virus and the testing availability in the locality,
to better assess the risks and properly impose the guidelines set by the
OSHA. For the oil and gas industry, low risk exposure tasks include oil
and gas drilling, servicing, production, distribution, and/or processing
tasks that do not require frequent close contact with other coworkers,
contractors, customers, or the public.
177
C O V E R
S T O R Y
178
Performing duties in non-public areas of oil and gas
production and/or processing facilities, away from
other workers or the public, is also considered low
risk.
The medium risk tasks involve oil and gas
drilling, servicing, production, distribution, and/
or processing tasks that require frequent close
contact (within 6 feet) with coworkers, contractors,
customers, or the general public. Traveling within
facilities or between facilities, such as control rooms,
trailers, and dog houses, and sharing vehicles are
also labeled as medium risk tasks. Fortunately, there
are no high nor very high-risk tasks involved in the
oil and gas industry.
Engineering Controls
The latest information regarding the asymptomatic
spread of SARS-CoV-2 reveals that there is a need
for social distancing and other protective measures
in the oil and gas workplace. To combat this spread,
changes in production practices should be in place
to keep workers within appropriate distance from
each other.
This includes configuring communal work
environments (such as control rooms, jobsite trailers
and/or dog houses) in a way that workers are at
least six feet apart. If feasible, the alignment of
workstations, including the control panels/boards,
should be modified, too, to space workers within
at least feet from one another and not facing each
other. Ideally, markings and signs should be placed
around the workplace to remind employees of
physical distancing even during break hours.
Use impermeable physical barriers between
workstations, but make sure that these do not pose
additional hazard to the workers (e.g. reduced
visibility around equipment). The ventilation around
the facility is important, as well. One way of doing
this is to keep windows open and minimize the
use of fans blowing air from one worker to another.
Consider consulting an HVAC engineer, if possible,
to provide the adequate ventilation systems.
179
182
Performing duties in non-public
areas of oil and gas production
and/or processing facilities, away
from other workers or the public, is
also considered low risk.
183
184
Practice proper hand hygiene for
those who will carpool and provide
hand sanitizers with at least 60%
alcohol.
185
C O V E R
S T O R Y
Administrative Controls
Apart from introducing the engineering controls, the administration
should also take steps to reduce the contact of workers. Set different
arrival and departure times, so as not to congest common areas like
the parking lot, shower rooms, and control rooms. This should also be
done to break times and if possible, numerous temporary break areas
should be set up.
Encourage workers to move in a single file throughout the facility with
six feet spaces in between. Appoint a specific worker who will monitor
and facilitate social distancing in the facility.
Limiting the number of personnel assigned to the common operating
rooms is also encouraged. Take advantage of video conferencing apps
to hold meetings and avoid congestion of people within a room.
Carpooling to work and job sites should be discouraged. If company
188
shuttles are to be used, make sure to limit the number of people inside
each vehicle and increase the frequency of trips and the number of
shuttles to accommodate all of the workers. Group workers together in
small numbers to keep the exposure cluster as little as possible.
Practice proper hand hygiene for those who will carpool and provide
hand sanitizers with at least 60% alcohol, so they can sanitize
their hands before and after using the vehicle. Each vehicle used
should also be cleaned and disinfected after every trip, making sure
that commonly touched surfaces, like handles and seat belts are
disinfected thoroughly. In addition, coughing and sneezing etiquette
must be observed within the vehicle.
The administration is encouraged to set up a system for workers to
easily notify their superiors if they ever learn that they come in contact
with a suspected COVID-19 positive or whenever they show any
symptoms of the disease. Develop back-up staffing plans should this
happen, as well.
- End -
189
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Office
Building Management Solutions
Oil refining has typically balanced the decline in oil prices in the crude
market, as volumes grow with the decrease of crude prices. However,
the pandemic has severely interrupted this dynamic.
Today, crude oil prices are declining because of the oversupply brought
about by the rapid drop in demand across the globe. With the pandemic
shattering the economy of the majority of the countries, most businesses
and personal travel have drastically slowed down in the past months,
especially commuting by car. As some analysts suggest, gasoline
demand is likely to plummet by 50% during the months which are greatly
hit by the COVID-19 outbreak.
192
193
C O V E R
S T O R Y
194
This low demand in oil is currently damaging the
inventory not only at oil refineries but also in the
distribution network. This, in turn, produced drastic
declines in the crack spread (the overall difference
between the price of a barrel of crude oil and the prices
of petroleum products refined from this). A majority of
the market has already reported negative crack spreads,
with the US Energy Information Administration (EIA)
daily prices report for April 13, 2020 showing the crack
spread at -0.084.
With the current state of negative crack spreads and
increased inventories across both the oil retail and
distribution network, refineries are more likely to require
shut-ins and export their outputs. One silver lining,
though, is the robustness of the diesel market during
these times. Its market experiences less severe declines
in demand, with only a drop of close to 20%. This can be
attributed to the fact that supply chains and businesses
in this sector remain open to provide essential services
to retail and industrial businesses which are less affected
by the pandemic.
As companies in the oil industry search for ways to
combat these difficulties and reduce the negative impact
of the outbreak, they need to consider a few steps to
keep their firms afloat.
• Taking care of their resources (both human and
assets). It can be challenging to continue operations
under the restrictive rules of the pandemic. But it is
a must to develop and implement proper COVID-19
protocols, contingency plans, and schedules in a bid
to ensure the integrity of assets and the protection of
employees.
• Supporting customers. Despite the current situation,
customers stand at a priority for oil companies. It is best
to communicate and compromise with customers now to
retain them. A variety of measures to achieve this could
be pricing flexibility, delayed payment terms, and putand-call
options, to name a few.
• Assessing and managing storage positions and
inventories closely and quickly. Check the controllable
value chain for trouble spots. Identify where you want
inventory to go to and how you can manage price
exposure and levels.
195
Research at the Schulich School of Engineering
Engineering
UndErgradUatE
EnginEEring Programs
AerospAce
BiomedicAl
chemicAl co-op
civil
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electricAl
industriAl
mechAnicAl
www.ryerson.ca
198
As companies in the oil industry
search for ways to combat these
difficulties and reduce the negative
impact of the outbreak, they need
to consider a few steps to keep
their firms afloat.
199
200
Companies should expect to
face additional challenges and
opportunities once the COVID-19
pandemic subsides and the global
economy begins to bounce back
201
Schulich School
of Engineering
University of Calgary
Cashmere
Velvet-like
Luxurious
Effect
C O V E R
S T O R Y
• Searching for global market outlets. Look for markets outside that
are less affected by the pandemic and can potentially take product
cargoes in the short term.
• Considering the shutdown of refinery. While not ideal, firms need to
review the profitability and the market options for the plants. It is best
to prioritize production in refineries with the most profitable operations
and higher flexibility for moving volumes.
• Preparing for recovery. If shutdowns or shut-ins are deemed
necessary, use the extra time for maintenance and turnaround activities
to keep things smooth once the initial recovery starts.
• Revisiting capital projects portfolio. For plants that have to shutin
or shut-back, consider deferring or cancelling projects in order
to preserve the capital. See which projects can be accelerated or
bundled, as well.
204
In the long run, companies should expect to face additional challenges
and opportunities once the COVID-19 pandemic subsides and the
global economy begins to bounce back. The moment this happens,
it is an advantage to have a strategy and plan to keep the company
as unaffected as possible. An effective strategy should consider the
following:
• Management of the resumption of demand
• Exploration and establishment of a broader and flexible markets
• Optimization of commercial opportunities
• Enhancement of emergency protocols
• Continuation of customer relationship building
As the globe and the oil industry emerge from the COVID-19 outbreak
and the damaging collapse of oil prices, today is the ideal time for oil
firms to look into downstream landscape and strategize on ways for the
industry to emerge victorious.
- End -
205
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The past few months have seen a drastic change in almost all
business function as they respond to the COVID-19 pandemic.
Among those businesses that has proven to be resilient in the face
of crisis and is dubbed as essential, as well, are the convenience stores
and gas stations.
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C O V E R
S T O R Y
Tons of the convenience stores and gas stations,
which have become vital businesses in the
neighborhoods they are in, have applied changes to
keep up with the tough times. Although some of the
changes made may be temporary, others are more
likely to become a permanent thing in the future,
ultimately changing the business practices in both
industries.
Convenience Stores and Gas Stations
as Essential Businesses amidst the
COVID-19 Pandemic
Before the outbreak hit the globe earlier this year,
studies have revealed that about 40% of fuel
customers rarely visit the actual convenience store
at their gas stations. However, this has changed
just recently as these stations became the local
food and grocery option when the lockdowns
began. Since these small shops are typically only
a 10-minute walk or drive from a person’s home,
it is but logical to grab necessities there. In fact,
in rural areas, 8 out of 10 Americans often pick
up their groceries whenever they are at their local
convenience store.
When the pandemic hit, the US government dubbed
convenience stores as an essential business, and
a survey in April 2020 revealed that over 50% of
convenience stores reported an increase in grocery
sales during the outbreak. Sales in the food service,
however, have significantly declined, mainly due
to the change in menus and services, including
the shutdown of seating and self-serve areas to
minimize the risk of potential contamination.
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Sales in the food service,have
significantly declined, mainly due to
the change in menus and services,
including the shutdown of seating
and self-serve areas to minimize
the risk of potential contamination.
215
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To meet the increasing needs of
their customers, a handful of gas
stations have begun stocking extra
staple items, including bread, milk,
and toilet paper.
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C O V E R
S T O R Y
Changing Convenience Stores and Gas Stations to
Satisfy Customer Needs
To meet the increasing needs of their customers, a handful of gas
stations have begun stocking extra staple items, including bread, milk,
and toilet paper. Others who already have mobile apps and online
ordering options have added curb-side pickups to their features, as
well, while some have partnered with online delivery services like Door
Dash and Uber Eats.
220
They have also added plexiglass shields at the checkout counters
and increased the cleaning and sanitization policies to protect both
the customers and employees. Some stores decided to shorten their
business hours to give way to more thorough cleaning and restocking
activities, while others implemented new payment methods, such
as Point of Sale mobile payments for curb-side option and EBT food
(SNAP) payments. This comes as an improvement after the McKinsey
Global Payments Report reveal that 75% of transactions are done
through cash. Now, electronic payment technologies are expected to
grow in popularity, including mobile wallets (Alipay, PayPal, WeChat
Pay, and even QR codes and barcodes), credit and debit cards (whose
users have dramatically doubled in the past five years), and even
augmented reality tools where gas station attendants can simply scan
payment codes on customers’ smartphones and finish the transaction
within 30 seconds.
Convenience Stores Updating their Customers on New
Changes
Since the beginning of the lockdown periods, many customers rely
on convenience stores and gas stations for their daily essentials. This
meant that business owners should prioritize getting the word out to
their customers regarding their expanded staple item options and the
new delivery and payment systems they have put up to deliver services
and products safely. This can easily be done through various signage
across in the store and sending out mailers to their local regular
customers to raise awareness on the changes.
The Future for Convenience Stores and Gas Stations
Although it remains uncertain how the outbreak will affect these
businesses for the rest of the year and further into 2021, the impact
will likely be smaller as conveniently located shops in neighborhoods
will continue to become an essential business. However, several
factors, such as government regulations, stay-at-home measures,
and temporary store closures, will result in both short and long-term
economic effects. This meant that it is but necessary for all businesses
across many industries to adapt to the changes in the environment and
their customers’ needs, especially since changes in the gas station
industry are already in motion. Keeping up with the technological
solution is an advantage.
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