News and Press top menu 2020
Global-Delivery
  • Midstream Header

    Midstream Oil & Gas

Helping midstream oil & gas navigate the way forward

Across the oil & gas industry, executives are looking for ways to quickly cut costs, reduce capex, overheads and non-core assets and protect cash. 

  • More than $85Bn has been cut from over 100 companies across the oil & gas industry
  • Midstream has been hit by the sharp fall in demand from downstream areas of the supply chain
  • Engineering Procurement Construction (EPC) projects face delays and cost escalation issues and there is uncertainty around future projects
  • The rigid nature of the oil and gas industry means it will struggle to change course quickly and minimize the financial impact of the crisis
  • Executives are under enormous pressure to devise a recovery strategy to quickly limit short-term disruption, support recovery in the mid-term, and build greater supply chain agility, resilience and optimization in the longer term 
  • Maine Pointe is helping clients in the energy sector navigate and accelerate through these challenging times with a process of stabilize-recover-rebalance which drives supply chain rationalization and improvement initiatives three times faster than a traditional approach

As quarterly earnings season looms, what will you tell your board and shareholders?

We can help

Maine Pointe's implementation experts have the remote capabilities and industry expertise to help accelerate your supply chain initiatives immediately. In addition, as a member of the SGS group, our clients have access to the world’s leading independent inspection, verification, testing and certification company. 

The way forward

SRR Graphic

 

Rebalance the oil & gas supply chain through Total Value Optimization (TVO)™

Built on a roadmap of three key stages; stabilize-recover-rebalance, Total Value Optimization (TVO)™ provides an accelerated pathway to overcoming short-term supply challenges and building the foundations for a resilient, digitally enabled, agile supply chain and operations of the future. TVO is achieved when an organization is dynamically able to anticipate and meet demand through the synchronization of its plan-buy-make-move-fulfill supply chain to deliver the greatest value to customers and stakeholders at the lowest cost and risk to business. 

TVO Pyramid-all.png

What Maine Pointe achieves in the oil & gas industry 

Client overview

We helped a leading regional energy company drive cross-functional collaboration and integration to enhance value.

What we did
  • Developed and implemented a management operating system (MOS) for cyclical forecasting, planning, control and reporting
  • Aligned procurement and sourcing and improved contract management across the enterprise
  • Improved safety standards to manage risk posed by unmanned delivery of volatile/hazardous products
  • Optimized rail car utilization
  • Transitioned logistics and distribution to a stand-alone function and introduced intermodal routing options
Outcome
  • Enhanced the professional environment with an emphasis on planning, execution and category leadership
  • Renegotiated freight rates and eliminated carrier surcharge 
  • Introduced a crude supply and pricing matrix for each refining center
  • Identified 48 primary routing alternatives and carrier combinations by lane
  • Established a process and procedures for managing major supply and demand disruptions
  • Delivered $5.5M in annualized savings and identified a further $50M
  • Achieved a 5:1 ROI

Client overview

We helped the operator of one of the United States' largest refineries diversify the crude oil supply chain to  help realize its strategic goals.

What we did
  • Mapped process flows for a new crude oil supply chain
  • Established a management operating system (MOS) and tools to effectively manage a large rail operation
  • Facilitated Class 1 railroad negotiations
  • Assisted with the management of a new rail infrastructure to unload crude oil
  • Helped develop a new rail car strategy and rail fleet management process
Outcomes
  • New MOS enabled the client to begin managing the receipt of three crude oil train units per week with in six weeks, increasing to two unit trains per day within a year
  • Reduced construction cost of new crude oil handling facility by $8M
  • Implemented rail fleet management best practices to reduce rail transportation and accessorial costs on chemicals by $1.6M per year