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DECEMBER 2 0 2 0



HARD WORK

MADE EASY.

When you want to get more work done with less effort, John Deere’s 624K Wheel Loader delivers the smooth,

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Stay connected with voice and data access wherever your business takes you.

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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-

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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


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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


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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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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

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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


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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

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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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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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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-

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176

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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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


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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

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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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208

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.


209


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


216

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.

- End -

221




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