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    Midstream Oil & Gas

Midstream oil & gas outlook

A volatile geopolitical environment, exacerbated by tariffs, may play a role in the economics of pipeline and storage availability in the near future, just as production volumes are expected to continue to grow. US pipeline construction and repair activity relies on imported finished goods and imported parts used for domestic manufacturing of line pipe, fittings, and valves.

Projected growth in midstream infrastructure will continue to demand balanced management over asset utilization and reliability of the network, to avoid upsets to overall system availability and related economics. Companies will increasingly rely on data analytics rich algorithms to continuously monitor the market, understand the risks and opportunities in the industry and adapt their asset availability in order to capitalize on system disruptions. This agile approach to managing the supply chain assets will help companies improve competitive positioning, retain consumers and improve growth prospects.

Impact of Industry 4.0 technologies

Some of the technology being employed under the Industry 4.0 banner include mobility sensing and surveillance systems like drones equipped with thermal imaging systems which help identify points of vulnerability, like corrosion and leaks, across pipelines. Key areas of transformation include improvements in data management to track inventory levels and monitoring system. Real-time fuel consumption data feeds refinery production demand in true, dynamic S&OP resulting in mitigated supply position and cash release.

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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