Downstream Oil Research Articles

SUBSIDY REMOVAL AND INDEPENDENT OIL MARKETERS’ ACTIVITIES IN THE NIGERIAN DOWNSTREAM SECTOR: A CATALYST FOR PROGRESS

It is general assumed that the removal of an impediment to the development of a matter can stimulate progress. The Nigerian economy is a mono economy solely dependent on the proceeds from oil for survival Crude oil is the mainstay of the Nigerian economy attracting up to 80% of the country foreign exchange. With its pivotal role in the development of the Nigerian economy this study focuses on accessing the activities of independent oil marketers in the Nigerian downstream oil and gas sector within the context of subsidy removal with the intention of making a case for their scrapping or retention. The marketing function of distribution is at the heart of marketing which borders squarely on logistics. However, the nefarious activities of oil distributors otherwise called independent oil marketers erode this function completely. The study adopts a thematic research design wherein existing literature on the subject matter were reviewed to discover gaps and outcomes for future research. From the findings, the retention of the independent oil marketers’ activities due to its vital position in the provision of the final consumer is recommended however, an increase in the supply of crude oil within the economy through the revitalization of the dilapidated refineries in Nigeria should also be considered; this would reduce the dependency on oil and development other sectors of the economy.

Fueling Trust and Loyalty Toward Oil Marketing Companies (OMCs) in Ghana: The Role of Corporate Reputation and Distribution Intensity

ABSTRACT This study examines the effect of corporate reputation – product and service quality, customer centricity, corporate credibility, and social and environmental responsibility (SER) on brand loyalty as well as the mediating and moderating roles of brand trust and distribution intensity respectively in these relationships. The study data was collected from 614 conveniently sampled customers in the downstream oil sector in Ghana, which was analyzed using covariance-based structural equation modeling. Results from the analysis indicate all corporate reputation dimensions except SER directly affect customer loyalty toward OMC brands. The findings provide insights into the intermediary role of brand trust particularly in the SER-loyalty relationship. The study also finds that distribution intensity serves as a boundary condition, strengthening the effect of product and service quality, customer centricity and corporate credibility on loyalty. These findings offer insightful implications for research considerations and actionable directions for OMC reputation-building activities that foster trust and loyalty in such a volatile and competitive sector.

Two-stage optimization model for scheduling multiproduct pipeline network with multi-source and multi-terminal

The multiproduct pipeline network with multi-source and multi-terminal encompasses multi-point injection and multi-point distribution. Upon reorganization of batches at transfer depots, the intricacies of precise batch tracking become increasingly complex, thereby rendering the optimization of multiproduct pipeline network scheduling particularly arduous. In this paper, we introduce a dynamic index batch numbering method. By delineating the boundaries of intermediate injection points, the issue is bifurcated into two sub-problems: the optimization of batch planning for multiproduct pipeline with single-source and multi-terminal and the optimization of resource allocation at intermediate oil depots. The proposed algorithm is validated on two genuine multiproduct pipeline networks in China, demonstrating its capability to generate feasible solutions within a computational constraint of 18,000 CPU seconds. The findings reveal that this methodology holistically considers the entire pipeline network system, encompassing upstream oil intake, downstream oil supply, and the tank capacities of transfer depots, thereby establishing a coherent link between pipeline scheduling and depot planning. This paper may serve as a reference for the automated formulation of multiproduct pipeline network scheduling strategies.

A dynamic two-phased approach for planning downstream oil supply chain network under uncertainty

This paper introduces an innovative approach for designing a downstream oil supply chain network under uncertain conditions, aiming to bridge existing gaps in tactical decision-making and day-to-day operational management. In the initial phase, the focus lies on tactical and operational decisions related to network planning, while the second phase emphasizes real-time transshipment decisions for daily operations. This two-phased strategy proves to be adaptable and proficient in effectively handling uncertainties. Applying the mixed possibilistic-flexible programming and a rolling horizon approach, we enhance the overall performance of the oil supply chain network. To validate the efficacy of our proposed method, we conduct a comprehensive case study utilizing a database sourced from governmental agencies, specifically tailored to the Iranian oil supply chain. Our results demonstrate the efficiency of the proposed approach in addressing uncertainties, including demand fluctuations and network costs. Furthermore, the methodology exhibits potential for broader applications in other supply chain systems and industries grappling with similar challenges.

The Dialectics of Nigeria’s Opaque Downstream Oil Sector and the Agency of Fuel Subsidy

The Dialectics of Nigeria’s Opaque Downstream Oil Sector and the Agency of Fuel Subsidy

Integration of Renewable Energy and Blue Carbon Ecosystems for Coastal Climate Change Mitigation and Adaptation in Indonesia's Oil and Gas Industry

This study investigates the potential of integrating renewable energy and blue carbon ecosystems for coastal climate change mitigation and adaptation in Indonesia's upstream and downstream oil and gas industry. The urgency for the integration is also discussed, including climate change mitigation, energy security, technological innovation, social and environmental justice, and long-term planning and resilience. The study uses Army Design Methodology to identify the key challenges and opportunities of integrating renewable energy and blue carbon ecosystems. The findings suggest that the integration of renewable energy and blue carbon ecosystems can play a crucial role in coastal climate change mitigation and adaptation, particularly in Indonesia's oil and gas industry. The paper concludes with recommendations for further research and policy development in this area.

Analysis of The Application of Risk Management in PT. Pertamina TBBM Tanjung Priok to Improve Non-Financial Firm (Case Study: Tank Construction X - Tanjung Priok)

PT Pertamina TBBM Tanjung Priok - Plumpang is one of the downstream oil facilities that plays an important role in the distribution and distribution of fuel for the community. Because, about 20% of the daily fuel needs in Indonesia are supplied from TBBM Tanjung Priok - Plumpang owned by PT Pertamina (Persero). In the course of time, many incidents (fire, etc.) within the scope of TBBM Plumpang. Therefore, this research aims to examine the application of Risk Management in the company PT Pertamina TBBM Tanjung Priok - Plumpang. This research uses a qualitative approach conducted through a process of interviews and direct observation. The purpose of applying Risk Management to this company is to identify what risks are involved in Risk Management within the scope of PT Pertamina TBBM Tanjung Priok-Plumpang by measuring the risk of probability and impact, and evaluating each existing risk, according to the case study of Tank X construction within the Tanjung Priok TBBM area. This research is expected to assist management in taking actions and responses to reduce the negative impacts of the possibilities that will occur in the future and provide an assessment of the various risks that exist. The results of this study will contain risk classes ranging from high risk, medium risk, and low risk.

Supplier Selection in Downstream Oil and Gas and Petrochemicals with the Fuzzy BWM and Gray COCOSO Methods Considering Sustainability Criteria and Uncertainty Conditions

A project always needs the participation of suppliers to provide the goods and services needed by the project. As the size of the project increases, the need to use suppliers also increases. Choosing the appropriate suppliers for the project is always a difficult task, and considering different criteria along with the existence of multiple alternatives always increases the difficulty and complexity of the supplier selection problem. This study deals with the supplier selection problem, which is one of the important issues in projects and organizations in the downstream field of oil, gas, and petrochemicals. The purpose of this paper was to investigate and improve the supplier selection procedure in this field by considering real-world uncertain conditions. To this end, the fuzzy set theory and gray numbers were taken into account. In the present study, the criteria were first determined by expert judgment; then, the fuzzy best–worst method (FBWM) was exploited to rank the criteria; finally, the suppliers were prioritized and ranked by using the gray COCOSO method The results showed that the highest and the lowest weights were obtained for the “price” and “attention to environmental issues” criteria, respectively. Also, the selected supplier was a supplier with a high score in all criteria. One of the practical benefits of this research is to provide a solution to speed up, facilitate, and improve the process of selecting suppliers for companies in the downstream field of oil, gas, and petrochemicals.

Supervision of the Distribution of Non-Subsidized Industrial Solar Fuel Oil in Bitung City

The purpose of this study is to describe, analyze and describe how the supervision of the distribution process of Non-Subsidized Fuel Oil - industrial diesel by channeling agents in Bitung City. The research method uses a qualitative approach. Data collection techniques with interviews, documentation studies and observation. The results showed that the supervision of the distribution of Industrial Solar Non-Subsidized Fuel Oil in Bitung City has not been implemented properly because it was found that there are business actors who have been operating and distributing Industrial Solar Non-Subsidized Fuel Oil from Bitung City to commercial areas within Bitung City and its surroundings without licensing so that the volume and quality of supply cannot be monitored and evaluated. In addition, there are business actors who take care of licensing and reporting later after an inspection by the Investigator appointed by the Downstream Oil and Gas Regulatory Agency.

Implementation of Fuel Oil Transportation Business License Policy in Bitung City

The purpose of this study is to describe, analyze and describe how the implementation of the business permit policy for the transportation of Industrial Solar Non-Subsidized Fuel Oil by business entities related to downstream oil and gas business activities in Bitung City. The research method uses a qualitative approach. Data collection techniques using interviews, documentation studies and observation. The results showed that the management of the Transporters Business License still experienced obstacles. The Bitung City Environmental Service Office does not have the authority to issue recommendations needed in the process of obtaining a Transport Business License because the authority only exists at the Ministry of Environment and is not delegated to the District / City Environmental Service Office.

Implementation of Commercial Business License Policy in Downstream Oil and Gas Business Activities in Bitung City

The purpose of this research is to describe, analyze and describe how the management of the Non-Subsidized Solar Industrial Fuel trading business permit in Bitung City. What are the factors that hinder the processing of Non-Subsidized Fuel Trading Business License for Industrial Solar in Bitung City The research method uses a qualitative approach. Data collection techniques using interviews, documentation studies and observation. The results showed that the commercial business license policy for downstream oil and gas business activities in Bitung City has not been implemented properly because there are business actors who do not take care of the Commercial Business License even though they have been trading in Bitung City and its surroundings. There are obstacles in managing the Commercial Business License in Bitung City, namely the submission of files and management must be done directly to the Ministry of Energy and Mineral Resources because there is no representative authority in Bitung City.

Knowledge Management Model for the Downstream Oil Energy Sector in the Philippines: A Grounded Theory Approach

Knowledge management can guide the management of an enterprise in running the business with a greater degree of efficiency while decreasing business risks. This dissertation presented a Knowledge Management model as a simplified image outlining the relationships of the devised theory using the grounded theory approach of qualitative research. Through semi-structured interviews done by carefully determining the current preferences of organizational leaders of four oil major companies operating in the downstream oil business in the Philippines, of the relevant knowledge processes backed up by presented documents, presentations, and policy manuals. The grounded theory inquiry developed a principle on modern Knowledge Management encompassing the specifics in the downstream oil sector in the Philippines. Theoretical saturation was achieved at ten participants. Thematic analysis generated patterns of modern knowledge. In the model, there were certain management prerequisites with several characteristics and for these characteristics to be effective, sources of knowledge were clearly identified. Once validated knowledge has been established and security of knowledge has been secured, utilization of the knowledge ensues. While using the knowledge, the model puts value on responsibility to work in collaboration with other knowledge managers. Collaboration means shared responsibility to ensure that the knowledge at hand will only be used in promoting common business goals. Predicaments like devaluation, mishandling, and manipulation of knowledge are always possible and extra caution should always be given. The model which can be replicated to other organizations with allied business structures will strengthen the resolve of a knowledge management system benefits by improving the business processes, making better decisions and short and long-term strategy formulation.

An integrated MINLP model for multi-party coordination in downstream oil supply chain

Cooperation among enterprises can bring overall and individual performance improvement, and a smooth coordination method is indispensable. However, due to the lack of customized coordination methods, cooperation in the downstream oil supply chain cannot be carried out smoothly. This paper intends to propose a multi-party coordination method to promote cooperation between oil shippers and pipeline operator by optimizing oil transportation, oil substitution and pipeline pricing schemes. An integrated game-theoretic modeling and analysis approach is developed to characterize the operation behaviors of all stakeholders in the downstream oil supply chain. The proposed mixed integer nonlinear programming model constrains supply and demand capacity, transportation routes, oil substitution rules and pipeline freight levels. Logarithm transformation and price discretization are introduced for model linear approximation. Simulation experiments are carried out in the oil distribution system in South China. The results show that compared to the business-as-usual scheme, the new scheme saves transportation cost by 3.48%, increases pipeline turnover by 5.7%, and reduces energy consumption and emissions by 7.66% and 6.77%. It is proved that the proposed method improves the revenue of the whole system, achieves fair revenue distribution, and also improves the energy and environmental benefits of the oil supply chain.

Beyond the business case? Retracing the walk of Corporate social responsibility and financial performance relationship in the Oil and Gas sector

AbstractThe relationship between corporate social responsibility (CSR) and financial performance (FP) has not been thoroughly investigated in the literature. In particular, the nature of the relationship between the two constructs has not been investigated in depth. Therefore, drawing on the resource‐based view and Stakeholder theory, this study theoretically and empirically examined the relationship between economic perspective of CSR and FP analyzing the mediating role of competitive advantage under the empirical settings of the downstream Oil and Gas companies of Pakistan. Based on the 178 responses from the managerial level employees of these firms, the empirical outcomes stands with the assumption of the study that the implementation of CSR in the Oil and Gas industry is economically driven and have a positive relationship with FP, while competitive advantage partially mediates the relationship between economic CSR and FP. The outcomes of the study carry the important managerial and practical implications for Oil and Gas firms which are fallen in the business case.

Crude Oil Production, Corruption and Upstream Oil Revenue in Nigeria: General Outlook, Conditions and Methodology

The study examined general outlook and conditions of crude oil production, corruption risk and upstream oil revenue in Nigeria. The study focused mainly on the revenue generated from crude oil production and oil export with the purpose of assessing oil exploration and corruption with the objective of investigating Nigeria’s oil export and its contribution to the growth of revenue generation and finding out if the level of corruption affects the upstream revenue generation in Nigeria. it is discovered that the following variables are germane in the empirical studies reviewed and econometric models are conceptualized that proven oil reserve, OPEC quotas, global oil demand, global oil supply, geopolitical risk index, disaster risk index, global terrorism index, global oil price, exchange rate variation, upstream oil theft, number of pipeline vandalism, oil bunkering, tax evasion and corruption perceptions index are relevant and possible determinants of downstream oil revenue in Nigeria. An empirical study to investigate the relationship and causal effect of the above-mentioned factors are recommended for further study with a view to making reliable policy statements on revenue sustainability and highlighting and reducing the counterproductive effects of corruption risks in the exploration and production of crude oil in Nigeria.

Oil Subsidy, Corruption Risk, Midstream and Downstream Oil Revenue in Nigeria: Problem, Prospects and Methodology

The exploratory research identified the problem and prospects on the oil subsidy corruption risk and downstream oil revenue in Nigeria. The study focused mainly on the revenue generated from oil refining, storing, marketing, distribution and sale of petroleum products with the purpose of investigating Nigeria’s oil subsidy payments and its effects on the growth of downstream oil revenue and finding out if the level of corruption affects the downstream oil revenue sustainability in Nigeria. It is revealed that the following factors could explain downstream oil revenue and models are conceptualized that landing cost of PMS, poverty index, demand for local consumption, refining capacity and official pump price global oil price and exchange rate variation are probable significant variables in determining the volume of oil revenue in the downstream sector in Nigeria. A quantitative study and methodology are recommended to evaluate the impact of fuel oil subsidy and corruption indices on the dependent variable (downstream oil revenue) with a view to predicting and forecasting a sustainable and dependable oil revenue in refining, storing, marketing and distribution of petroleum products in Nigeria

Causality among Oil Revenue, Non-Oil Revenue, Fiscal Risk Factors and Budget Execution Phase in Relation to Debt Overhang and Crowding-Out Theories: Contending Gap Issues

We reviewed literatures on the complex causality among oil revenue, non-oil revenue, fiscal risk factors and budget execution phase in relation to debt overhang and crowding-out theory. The majority of papers surveyed study on investigated the long-run and short-run relationship between fluctuations of oil price ; direction of causality between total revenue and total government spending ; the dynamics of the tax revenue and expenditure nexus, explored the impact of oil prices volatility on the key factors of the government budget, analyse the relationship between public expenditure and debt —little research in the area of the impact of oil price fluctuations on key macroeconomics variables. The evidence provided by the empirical literature is that there are indeed heterogeneous responses to position on complex causality among oil revenue, non-oil revenue, fiscal risk factors and budget execution phase in relation to debt overhang and crowding-out theory. It is detected that most study reviewed did not disintegrated relevant revenue: oil revenue (upstream oil revenues, downstream oil revenues, petroleum profit tax(PPT)); non-oil revenue (company income tax (CIT), value added tax (VAT), personal income tax ) and budget risk factors: oil price volatility (OPV)(OPEC Spot OPV, Brent OPV, West Texas Intermediate OPV), public debt (external public debt, domestic public debt), debt servicing (external debt interest service and domestic debt interest service) on budget execution phase (public expenditure: capital budget expenditure and recurrent budget expenditure). It is recommended that research effort should be made in answering the following research questions: what is the effect of oil revenue on budget implementation (public expenditure: capital expenditure and recurrent expenditure)? How non-oil tax revenue is correlates with budget implementation (public expenditure: capital expenditure and recurrent expenditure)? Of what effect is oil price vola

Downstream Deregulation Policy and Stability in Petroleum Products in Nigeria: A Case of South-South Region

Nigeria economy is almost singularly hinged on crude oil and therefore, highly sensitive to internal and external shocks in the oil sector. This study examined the impact of downstream oil deregulation policy on stability in petroleum products in Nigeria. Survey design was used in the methodology of the study. The hypotheses formulated were tested using ordinary least squares linear regression technique. The study revealed that the downstream oil deregulation policy promotes the availability of petroleum products in the economy. The study also revealed that local refining of petroleum products positively impacts on deregulation of the downstream oil policy in the country. It was further revealed from the findings that the removal of petroleum products subsidy and efficient pricing of petroleum products enhances the deregulation of the downstream oil policy in the Nigerian economy. It was recommended that the government should make petroleum products available through efficient liberalization of the downstream sector, remove subsidies, build more refineries or maintain the existing ones and regulate the prices of petroleum products in the country. Government should get all the four refineries working at all costs. This will help to reduce the huge amount of money spent on refined fuel importation and will be diverted to infrastructural development for the economy.

To optimize gas flaring in Kirkuk refinery in various seasons via artificial intelligence techniques

Unavoidable flaring in downstream oil industry causes pollutant emission in large amounts which is potentially harmful to nearby cities or farms. Hence one must manage exhaust toxic gases to raise enough in atmosphere or redirect from such places. Since Kirkuk refinery in north Iraq is next-door to agricultural farms on west yet to residential areas on east optimizing its layout for flare stacks is something acute. In this work we wrote codes in MATLAB software to simulate incomplete rather than complete oxidation as well as pollutant generation reactions. Then we made use of FLEUENT software to simulate pollutant propagation in Kirkuk oil purifier complex yet also farther to city as well as farms with respect to seasonal air currents on lowest troposphere layer. Finally, we set neural network approach to train on simulation data thereafter to unify outcomes to turn into a fast technique for layout optimization. Results show that optimization process efficiency relies on air current velocities as well as its direction. At intermediate air flow rates optimum layout includes only a selective portion of existent flare stacks. Outcomes also illustrate that heuristic techniques that have stronger local search such as particle swarm or artificial immune system can improve flare layout in seasons with intermediate air currents here summer plus early months in autumn while approaches with weak local search like Monte Carlo are more appropriate in winter for which we have no or low air flows in Kirkuk governorate.

Reuse of microalgae residue after oil production as a Fenton-like catalyst in wastewater treatment: Catalytic performance and mechanism

Efficient and economical catalysts are crucial for activating H2O2 in Fenton-like reactions. Microalgae harvesting by magnetic separation will inevitably result in unrecovered Fe3O4 nanoparticles (Fe3O4 NPs) entering the downstream oil production stage. This part of Fe3O4 NPs can play a catalytic role in the co-liquefaction process with microalgae to improve the bio-oil quality, and then be separated from the liquid phase along with microalgae hydrochar (MHC). Herein, this N-rich MHC loaded Fe3O4 NPs composite (Fe3O4@MHC) as a by-product was recycled without reprocessing to remove Rhodamine B (RhB). Detailed characterization data indicates that Fe3O4 NPs can be well anchored and dispersed on MHC surface after liquefaction. The Fe3O4@MHC exhibits an outstanding catalytic performance in the activation of H2O2 for RhB degradation, with a removal rate of >97 % within 60 min at a lower dosage (0.17 g/L). MHC act as electron donors due to the abundant oxygen- and nitrogen-containing functional groups to accelerate Fe2+/Fe3+ cycle. OH and O2− are the dominant active species in catalytic systems. This study not only provides an economical carbon material with high efficiency for environmental remediation, but also proposes a reliable solution for the disposal of solid residues after microalgae bio-oil production.