1. Supply Chain of Petroleum Industry-
Issues & Practices (Refinery Downstream)
A Dissertation

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CONTENTS
Chapters Particulars Pg No.
Executive Summary
Chapter 1 Introduction
1.1 Introduction
1.2 Problem Statement
Chapter 2 Review of Literature
Chapter 3 Research Methodology
3.1 objective
3.2 Scope of research
3.3 Sources of data
Chapter 4 Supply Chain in
Petroleum Industry
4.1 Background
4.2 Issues & Practices
Chapter 5 Issues & Practices
5.1 Supply Chain as a
whole and Refinery
Downstream
Chapter 6 Storage, Pipelines & IT
Factors
6.1 Pipeline Logistics
6.2 Tanker Storage
6.3 Information
Technology & it’s Role
Chapter 7 A Company Analysis
7.1 Exxon Mobil
Chapter 8 Recommendations
Chapter 9 Conclusion
Chapter10 References

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Executive Summary
This Dissertation report on the topic “Challenges in the supply chain in a petroleum industry-
issues & practices (refinery downstream)” is a thorough discussion on the basic supply chain
issues & practices in a petroleum industry refinery downstream. The supply chain in the
following departments has been discussed.
 Pipeline logistics
 Refinery (downstream)
 Tanker storage issues
 Basic Supply Chain
 Information Technology
Various issues regarding the supply chain have been pointed out that includes Market demand,
forecasting, scheduling, tanker storage issues, pipeline issues, various factor involving supply
chain in a petroleum refinery downstream. Various IT factor that have contributed to the
development of supply chain in this sector.

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CHAPTER 1: INTRODUCTION
1.1 Introduction
The petroleum industry is involved in a global supply chain that includes national, international
transport, commands inventory visibility, control, handling, import export facilitation and
information technology.
The process of economic liberalization in India began in 1991, when India had a default on its
loans and request of 241.8 billion bail-out of the IMF. It was the effect of runoff culmination of
the cold war era marked by the 1991 collapse of the Soviet Union with India the main trading
partner. The rescue was carried out on the condition that the government launched new reforms,
thus opening the way to India the emergence as a free market economy.
There has been an increase in the global trade of petroleum products after the elimination of
trade restrictions. LPG, naphtha, kerosene, Diesel and gasoline are the main petroleum products
which are widely marketed. Because of the increase in competition in the world the refineries are
working on the reduction of costs. Installed refining potential is more than the demand in many
countries. India is also exposed to international competition due to the opening of the economy.
In order to withstand competition from other multinational enterprises Indian refineries must
concentrate on the reduction of costs. To maximize the effectiveness of the system, all elements
of the supply chain must be analyzed.
Supply chain management in the oil industry contains various challenges specifically in the area
of logistics which are not present in most other industries. These logistical challenges are a major
influence on the cost of oil and its subsidiaries. However the opportunities for cost savings in the
area of logistics still exists. Petrochemical giant organization undertaking a "swap" practice
which registered organization millions of dollars. The objective of this document is to shed light
on the challenges relating to the supply chain and the possibilities of the oil industry and on swap
practices which have long been employed by the petroleum industry of the giants of the world as
BASF, BP, Honeywell still have long been ignored in the management of the operations
literature.
When a region of the client has a request for a quantity of petroleum product it is in general
possible to meet the demand by using a number of equivalent products. Many factors influence
the proportions of products components that are combined to form a supply chain optimal
decision. These factors include the season of the year, the available slots of equivalent products
and the availability of appropriate and timely transport.
For these companies in the oil and gas industry the model of the supply chain begins with raw
materials such as copper and steel drilling equipment, telluric and new evolved tools. It extends

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through the manufacture of products necessary for the construction of drilling platforms off-
shore platforms and a host of facilities, often very unwelcoming some parts of the planet. It is
continued by the production, transport and refining until the products are consumed by the
people who have need of fuel and lubricants to keep their trucks and cars running. It certainly
includes the products and services doors to operating systems by these organizations, which
represent the fields of oil and natural gas services to businesses.
The various challenges of the industry are supplier ensuring effectiveness setting appropriate
targets for the stock Requesting supply conditions, technology Type and location of facilities.
Using different strategies in supply chain and which require customizing logistics network,
product updates, pipeline customization and also forming partnerships to improve the supply
chain.
The industry has a classical model of implementation techniques of management of the
procurement process. In a supply chain a company is related to its upstream suppliers and
downstream distributors as materials, information and capital flows through the supply chain.
The purpose of this research is to examine the role of supply chain management in the oil and
gas industry and deals with several related issues

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1.2 Problem Statement
With the increasing pace of global integration it is necessary that the supply chain of the oil
industry to compete in terms of its capacity in relation to the global and regional markets and
have to be competitive and efficient. This study focuses on the various logistical and supply
chain issues of downstream oil industry including various aspects of the conservation and the oil
pipelines etc and general practices in the industry. Improving the quality of the logistics and
transport systems and at the same time reduce costs improves with the use of information
technology providing solutions in the sector of the supply chain.

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CHAPTER 2: REVIEW OF LITERATURE
There is a large literature coverage in the depth of the technical and economic aspects of the
Petroleum jelly. However an integrative supply chain perspective is not common in the
industry or the research work. The literature is a lot more of the global supply chain
Perspective. As in other industries the typical approach was a Silo type study as a different
user without a unified approach.
Most of the peer-reviewed publications focus on only one of the aspects of the Supply Chain.
The process optimization and logistics planning, in particular the literature on the application
of the operations research and optimization techniques to further development of processes is
large.
In addition, some of the books published with the general economic treatment of the refining
business. In detail to the most important problems in the supply chain, inventory planning,
logistics networks planning, process equipment design, crude oil product yield optimization.
The supply concept of the petroleum industry is gradually in a customer-oriented approach.
The references to this holistic perspective are usually in the work of the consultants and they
are in many cases on the analogies with other industries in which more advanced supply
chain paradigms have been adopted.
Most of the works on refinery supply chain simulation in the literature address only a part of
the supply chain such as crude oil transport logistics with discrete simulation and optimal
control (Cheng and Duran 2004) simulation-based short-term scheduling of crude oil from
the opening to the refinery tanks and distillation (Chryssolouris 2005) agent-crude oil
procurement (Julka 2002).

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CHAPTER 3: RESEARCH METHODOLOGY
3.1 objective of the study
- To identify the issues in the supply chain of petroleum industry-
The supply chain in the petroleum industry has over the years have overcome many
challenges. Issues and challenges will be discussed.
 Pipeline logistics
 refinery (downstream)
 Tanker storage issues
 Usage of Information Technology
- To identify several industry practices in the supply chain industry-
Different steps & strategies used by the organization for their supply chain
development.
- Specific supply chain practices of organization (CASE)

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3.2 Scope of Research
The aim of this thesis is to investigate supply chain management in the oil industry and look at
options to improve the supply chain in the oil industry. The study will help the petroleum
organization to understand the need to establish a good chain of supply, since that will be
beneficial to the industry that the gaps are closed.
This study shows the ways to strategize the weaknesses in the supply chain. It will be beneficial
for the final product of the company and ensure proper operation. The study shall cover the
scenario post liberalization of the oil industry.
Petroleum Sector has a single business process when it comes to different factors that determine
the components logistics and how to coordinate to carry out effectively the logistics functions.
In order to reorganize the oil companies and restore the flow of operations to strengthen the
cross-regional integration of the supply chain to optimize the operation of the supply chain
information systems using the to establish the new system of evaluation of the performance of
the supply chain and so on.
3.3 Sources of Data
 Research articles
 White papers
 Blog pages
 Internet
 Reference books
Various research papers have been used as will be seen in the references.
Recommendation from experts has been taken into consideration for this project.
Purely qualitative in nature.

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CHAPTER 4: SUPPLY CHAIN IN PETROLEUM INDUSTRY
4.1 Background
PETROLEUM INDUSTRY & IT’S SUPPLY CHAINS BACKGROUND:
The oil industry plays an important role in the economic development of the country. Petroleum
Industry is very active. As well as other chemicals organization supply chain can account for up
to 70% of the total cost.
Business processes are highly evolved to divide. Chemical supply chains are typically non-linear
in nature. Supply Chain optimization in a strategic and operational level is an opportunity to
create value chemical organization and a possible source of competitive advantage.
The supply chain backs Refinery. The crude oil is manufactured consumer product in which the
specialty is the refineries and petrochemicals organization.
Processes - forecast production and the management of the logistics of delivering the subsidiaries
of crude to customers around the globe.
Petroleum Finished products in India
PRODUCT % PRODUCTION USE
LPG 9 COOKING &
TRANSPORTATION
NAPHTHA 11 FERTILIZER &
PETROCHEMICALS
PETROL (MS) 8 TRANSPORTATION
KEROSENE (SKO) 8 COOKING & LIGHTING
DIESEL (HSD) 40 TRANSPORTATION,
AGRICULTURE &
ELECTRIITY
GENERATION
FO & LSHS 11 INDUSTRY AND
ELECTRICITY
GENERATION
OTHERS 13 ROADS, PAINTS & OIL
EXTRACTION
TOTAL 100

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Goals of a successful supply chain in a petroleum industry
Reduction for purchase of materials
- maximizing potential of production and meet
- the demand for sales numbers
- Respond quickly to market opportunities through the purchase of production
shortfalls in other players
- aim of each of the production units would be to maximize the performance and its
margin
- acquisition, purchase raw materials and not the best yields at lower cost
Strategies in practice:
- The programming
- When and in what order raw material should reach production plant
- At the time and in what sequence or modes to run the equipment
- That the orders to comply with the dates and what to promise
- Demand planning: For demand forecasting and demand of the final numbers based on
requirements of the supply chain
- Unified planning: the planning of the complete supply chain of the customer, depending on the
demand
- Planning: number of the distribution: Generate operational plans of distribution
-Production Planning: Generate operational plans for production.
These modules are supported by various stimuli that facilitate planning activities that
include:
Supply Chain database (SCD)
Geographic Information System (GIS)
Data Interfaces
- Demand numbers are fed to a unified planning module that contains representation of
supply, production and distribution facilities.
- The production and the supply and distribution (S&D) structure constitutes the basis
on which the best plan for the entire organization generates
- This corporate plan communicates to distribution modules and the production
planning modules to generate operational plans
- The best plan for the entire corporation is also used as a source of raw material
selection runs.
- GIS can be used to obtain the distances between the attractions, which are used as a
basis for calculation of goods

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SUPPLY CHAIN OF PETROLEUM REFINERIES:
Oil Refining is a material flow intensive industry where costs in the supply chain amounts to
40% of the total refining and distribution cost. Uninterrupted Flow of inputs and outputs,
including the by-products and waste of minimum facilities are crucial to cost effective and
efficient operation of capital intensive, process-oriented and closely coupled system such as a
refinery. The raw materials and logistics are very important to the refineries of the former
constitutes an important element of the total cost of the production and the later seriously affects
the production, productivity and profitability of the plant.
Management of the supply chain bottlenecks has long-term as well as short-term impacts on the
economy of a refinery. In order to understand the implications of the supply chain for raw
materials and energy intensive refineries in the context of the evolution of the situation, it is
essential to know the scope, coverage and the importance of the supply chain in general and the
management of the supply chain in particular. Supply Chain Management is focused on the

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technical organization of the flow of goods and services in the value chain, from the supplier to
the customer.
Strategic issues for the oil industry:
- Globalization
- Fundamental changes in demand, trade flows and
- Demography
- Change of capital investment and restructuring patterns
- The new competition from India and China
- Energy Management and Sustainability
- Growth in demand for long-term energy and geopolitics means
- Shares Alternative Power
- Regulatory Compliance
- Portfolio Management
- M & A - the main vehicle for the growth of certain segments (organization of average size -)
- The new groups of buyers emerge (India, China, East) innovation
- New models and business processes (skills, knowledge Management, collaboration, value
added services)
- Advanced IT technologies to support innovation
- Performance and Increase Margin
- Increase utilization potential (USA, Western Europe, Japan , etc)
- Grass root refinery and petrochemical complex (Middle East, China, India, Russia )
- Renovate existing facilities (Korea, China, India, etc.)
- Increase the potential conversion unit
• optimization
- Reservations Forage
- Yields
- Browse by high value
• Decision making in collaboration
- Focus on the coordination of the supply chain to maximize margins and reduce supply
Chain disruption
- Increase focus on collaborative decision making
• Explore alternative
- Ethanol, biodiesel, H2, solar, etc.
- Gas Cracking, Catalytic Cracking, etc.
Causes of "high value" initiatives in Downstream Petroleum Supply Chain
1. Improve the selection of raw material
- Integrating planning and scheduling workflows
- Reduce the gap in crude Selection Plan vs Actual

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2. Optimize the supply and distribution of products
- Optimization of Distribution
Causes for Production
3. Decreased GAP between the Plan and the actual
- Modeling Management / Component Molecular
- Application System Planning and Programming April . Larger unit performance and improve
reliability
- Advanced Process Control and optimization Performance Monitoring
4. Real-time visibility in refinery operations
- Viewing Refinery
- Analysis of production performance
Trend - Integrating the Supply Chain
Traditionally each operation within the supply chain (both inside and outside the refinery) was
administered and “optimized" in isolation.
• The largest organization of oil has begun to realize the great benefits to be had by the
integration of the supply chain and improving the entire company.
• Integration of the supply chain requires changed business processes and working practices,
supported by new tools and unified.
• Optimization of the supply chain can make a significant improvement in the profitability of the
company in general.
Inventory Management and operations scheduling
Programming environment for primary distribution
• Provides visibility into future inventory positions across the organization
• Multi -user environment based on Web
• The backbone of the oil supply chain - integrates with:
- Refinery Planning & Scheduling
- Planning the primary distribution
- Scheduling of Secondary Distribution
- ERP System
- Tank measurement systems
- Back office systems

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TYPICAL SUPPLY CHAIN WORK PROCESS:
4.2 Issues & Practices
Refineries are a link between supply chain stakeholders upstream and downstream stakeholders.
The sector distribution of the downstream petroleum is increasingly adopting a variety of supply
chain solutions.
Selection of raw product distribution at a point of sale, it is a chain with many links. The
unpredictability of oil prices, refining margins and long delays associated with vital as the gross
purchase and trade of products make the difficult process functions. The organization of product
development brought some good products in the area of SCM.
The dynamic nonlinear and complex nature of the supply chain with numerous interactions
among its entities is best evaluated using simulation models. The optimization of this system
does not lend itself to mathematical programming approaches. Simulation process optimization
appears to be most promising. In this article, we examine a simulation of the supply chain try to
optimize refinery and operating policies of refineries and investment potential using a genetic

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algorithm. Supply the refinery chain is complex with multiple entities, distributed, heterogeneous
and operates their functions based on certain policies.
The main products obtained from the activity of a refinery are: liquefied petroleum
Gas, naphtha, gasoline, kerosene, diesel, fuel oil, lubricating oil, asphalt, and petroleum coke.
Most of these products are used in all the days of applications (transport, heating, etc.)
In addition, petroleum products are also used in the petrochemical industry for the production
Rubber, nylon, plastic and other types of subsidiaries.
Challenges and opportunities in the supply chain
In many geographical areas, the increased demand for fuel is low. However, trade in goods has
increased due to the potential lack of refining in the main areas of consumption.
This creates a pressure on margins in regions with a deficit, because the finished products begin
Arising from regions with a surplus (as with the essence of Europe imports to the United States).
on the other hand, this creates new markets in other countries for local refiners and opportunities
to increase the efficiency of the overall supply chain.
Quality problems are particularly stringent than the new fuel specifications require a more
complex and costly investments in new processing equipment. These Investments do not always
provide an attractive return, but are in many cases required to keep operating refinery,
Environmental regulations and compliance rules (greenhouse gas emissions, Soil pollution, etc.)
are more severe , making the operation of the existing Facilities or the construction of new, more
expensive and complex. In addition, the Liability for environmental damage and the vulnerability
of the public image are larger obstacles for the industry.
Geopolitical factors surrounding the production of crude oil and the high volatility of oil prices
mentioned on international markets introduce additional components difficulties and variability
in the operations of the downstream supply chain. However, volatility creates opportunities for
profit that the organization can use the futures markets and futures to capture additional value in
their downstream activities (e.g., by freezing the refining margin futures oil).
If we consider the cost structure of the industry, oil downstream was significantly reduced
operating costs for the last 25 years. However, this cost reduction was not reflected in improved
net margins as there was continuous pressure and almost parallel as gross margins. As a result,
net margins have remained consistently below $ 2 per barrel in the United States until 2001, even
during periods of high oil prices.

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The industry has continued its efforts in cost reduction and increased efficiency, but was
Limited so far by certain attributes of the operations of supply chain downstream:
1. Limited flexibility as (for example) the raw materials lead times are long (usually a cargo of
crude oil will take several weeks to arrive at the refinery) and the planning process extends over
several months.
2. The integration of the supply chain of supply of crude oil marketing at the pump is still
missing after a longstanding silos approach. Generally, optimization tasks (typically using linear
programming tools) are oriented programming around the refinery as an island.
3 . Purchasing decisions of actions are rarely based on a global optimization of the supply chain,
but dictated by storage constraints, and reducing the enormous capital and the risk involved.
Problems in the supply chain of Indian refineries:
Important organization in many oil refineries in different parts of the country. Indian oil
Corporation is an example. Only organization in the refinery is also there in India. Multiple
refining organizations have their own advantages and disadvantages.
Main benefits are given below:
- Sharing experts and key expertise. Expertise in the purchase of crude oil and
Marketing can be used for all refineries group. Experience in refinery operation and refining may
be transferred to refineries currently available.
- A single point of decision will help in policy decisions. Headquarters will competent
team to make major policy decision for each refinery at different locations. The entire
refinery will have the style of uniform operation, so that the performance all refineries
can be better because of the centralized decision making.
- Purchase in bulk is possible that several refineries because purchasing is centralized
at headquarters. Buying in bulk will have the price advantage.
- forward purchase can be made for the large amount and the cash purchase can be
Reduced. This will give better savings in purchasing.
- Sharing is a gross gain for multi refinery site as bulk containers can be used to
transport crude oil from faraway places like Egypt. Thus, the gain in price can be
exploited by these groups.

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- Sharing products and streams is possible for these refineries, where there is a demand
for a product on the market in another refinery, while the product may be provided by
another refinery. Similarly, if a product is considered in a refinery that can be moved
to another place where there is a demand.
- Advanced products can be manufactured in a unit and can be supplied to all markets.
Advanced products normally require high investments, which is not possible with all
the refineries.
- A refinery group of refineries can handle very well logistical problems
Logistical difficulties problem increases with variables such as the limitation of the distillation
column, the limitation of the port facility for the treatment of ships, etc. logistical problem can be
divided into two stages, namely the stage design and stage planning and operations.
operational problems are less serious in nature refineries with many automation systems and
control. Therefore, they are not discussed in detail here. Majority of the problem of the design
phase cannot be corrected after the installation.
Inbound logistics problems
Largest category is made that the design stage, the stage of planning and operational phases. In
the case of refinery planning decisions should be taken at the design stage itself. Plans should be
made in the solution space constrained by the design. Major decisions of the design stage to the
logistics are attributes of the jetty, mooring types, selection of pipeline and storage tanks for
crude oil. Attributes imply Jetty project pier, unloading facility for crude oil, ease of control for
day and night and the turning radius for ships.
Docking is a bottleneck for many oil ports. Comes with a large ullage cannot be worn to most
ports. The alternative to what happens to one mooring points (SPM). Inbound logistics deals with
the identification of the provider, purchase, transportation, receipt and storage of raw materials
and services. In the case of a refinery logistics mainly deals with the identification of crude oil,
crude oil purchases, the selection of the ship, vessel schedules, receive tankers in port, pumping
crude oil to tanks in the tank farm. Crude oil received in tanks should be checked for quantity
gauges using either soaking or automatic level indicator, or both.
The warranty crude oil is allowed to settle for two to three days and released for refining using
automatic values . Logistics also covers the supply of the refinery water. The natural source of
water is supplied to the pipeline using the refinery. So the problems of logistics Water supplies
are minimal.

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Problems of internal logistics
Internal logistics generally deals with issues of transportation, value additions, and storage of
finished products. In the case of domestic refinery logistics deals with the delivery of crude oil
from tanks in the tank farm, pipeline transportation to the distillation columns, distillation,
transfer of refined various reservoirs flows, mixture to produce final products, and storage tanks
for marketing.
Selection process, product variety, site selection and potential products storage facilities are
important to consider in the design phase of a refinery; technology for many processes are
available. Choice of technology is very important because the availability of crude oil and
product demand has a strong impact on the processing of crude oil. Refinery site is important
logistics far is concerned.
Areas where annual planning is required are given below:
• Demand for products
• Availability of crude oil
• Economic budget oil
• Connectivity storage tanks with design - flexibility
Economic budget oil (CEO) is the estimated budget for a year gross. Product demand is
estimated for the year. Based on the estimated demand for the CEO is ready. Roll up short covers
the following areas.
Outbound logistics problems
Refineries use pipeline, ship, railway wagons, and trucks for the movement of refined products.
The amount varies with respect to the location of the refinery and market of the target. Transport
mode must be decided at the time of conception itself to build the facility infrastructure that
demand and supply.
Strategic and operational SCM solutions to problems in refinery
Strategic planning for the management of the supply chain. The present time is characterized by
the following significant changes in the oil refining sector in India.
- After years of government control, deregulation is almost fully implemented.
- The sector was opened for private companies
- The crude oil prices are firm now, after low prices in 1998
- Environmental standards are stricter
- Refining margins are shrinking
- The liberalized trade regimes allow both increased import and export of petroleum products.

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- New acquisitions, buyouts, and divestitures take place in this important sector.
The above changes create a need for refiners to reformulate their strategy more than ever.
In a refinery, the supply chain is very important because it is an industry intensive movement of
equipment.
Crude oil markets
Shipping crude oil
Unloading port operations:
When crude carriers and ships to make the products arrive, they must be received at the dock and
unloaded crude or product loaded as needed. The main problem that occurs here is put
restrictions on the size of vessels due to draft limitations due to cheaper and larger vessels cannot
be used to make crude. Delay berthing of vessels or their veils intervened sometimes due to lack
of night navigation facilities (night control). The main problem regarding the planning of the
operation is due to the concentration of ship arrivals creating a situation where there are many
vessels waiting for berthing, resulting in payment of demurrage. There are also times when the
berth is unoccupied and crude handling facilities are idle.
Crude oil storage: The logistics of the refinery has its particular problems. The allocation of
storage tanks for different types of crude oil is such a problem. This must be done so that the
ullage space required is available for gross required when required. In addition, the potential of
storage sufficient to act as an effective buffer between the supply fluctuations, first and the
variations in demand of production, on the other hand is essential. Since crude is produced in
excess expensive storing the same should be avoided as much as possible.
Refining operations: The different units and abilities and its operating range should be weighted
have. By this, it means that to the extent possible, there should be no need to build buffers until
the inter stage in the refinery. The refinery should also be flexible in terms of its ability to refine
a wide range of crude. Its operating attributes must be such that more distillates with higher
demand and giving more returns must be filed. Products must be made requiring minimum
mixture.
Finished product storage and mixing: As in the case of crude oil tanks, a crucial decision is
also here that tanks allocated to which products. Offline and online mixing times are not
available. The first is the traditional method, and requires less investment in machinery, but
requires more storage tanks products. Line blending is a more recent addition to the refinery

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Operations; it is instrumentation and automation intensive option that significantly reduces the
requirement produced tanks and stocks of products made by the refinery.

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CHAPTER 5: ISSUES & PRACTICES
5.1 Supply Chain as a whole
Reinvent the more unified strategic supply chain which can dramatically improve the economies
(as in the extraction of previously economically stranded to distance and oil reserves) in the
supply base - and to reduce the risks.
Paying greater attention to the HSE issues in the broader framework of concerns which are based
on the sustainability.
Logistics Planning can have an impact on cost of production in a way that is very difficult to
reproduce in any other part of the business.
The effects of globalization
The world economic growth and energy consumption has led to a proliferation of potential
suppliers to the oil and gas industry distributed in the world. This has allowed the oil and gas
organization to reduce their costs of production and exploration by sourcing products and
services from low-cost countries such as China although this has not had an impact on the court
highly specialized services such as drilling. Over the past few years many the international oil
and gas organization have therefore developed several extended supply chains than ever.
However at the same time this has accentuated the need for a better supply chain risk
management process. oil and gas organization need to be absolutely certain of the quality of the
products and services they buy and that their suppliers meet legal and business specific social
and ethical standards.
Sophisticated processes are therefore required to enable purchasers to pre-qualify and check the
organization of their supply chains - and they must respond to high standards. The systems and
processes which hosts and maintains supplier information also play a key role in ensuring the
integrity of the data.
Traditionally the buyers have built long-term relationships and trust with their suppliers. With
the supply chains of more and more of a global nature there are many new non-tested suppliers
to consider many of whom may be under-treated or outsourced further extends the chain. The
collection of data and to pre-qualify these new often low cost countries sourced suppliers is a
complex challenge in itself.
one of the benefits of globalization for the suppliers including those who are new to the arena has
been the willingness of international oil and gas organization to accept long-term contracts with
the suppliers that do they were generally available five years ago. This helps buyers protect

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themselves against the risk of rising costs, and in some cases against shortages of products and
services.
The rise of the NOCs
The rise of the so-called national oil organization (CNO) has considerably changed the oil and
the gas landscape. Saudi Aramco, The Russian group Gazprom, CNPC of China, NIOC of Iran,
Venezuela, PDVSA Brazil for Petrobras and Petronas of Malaysia better known under the name
of "new seven sisters' are now the world's most influential energy organization. Whole they
control access to 39 per cent of the world's oil reserves whereas the more traditional players can
draw in only 3.5 per cent of the world's reserves.
Many Nocs are expanding globally. Their supply chains too are therefore more and more
complex as the number of suppliers that they need to work with their country of origin. In order
to sustain their growth plans the NOC as the former is more established organization also need
robust supplier databases.
The Nigeria National Petroleum Corporation (NNPC) is an example of a NOC which is currently
in the construction of a database of pre-qualified high quality Nigerian oil and gas industry
suppliers. Achilles is supporting the government of Nigeria and NNPC in this objective in order
to support the sustainable development of the Nigerian economy by providing a basic tool of
development for the suppliers where full and fair opportunities for potential suppliers and the
transparency in contract awards.
Rarity as an impediment to the growth of the third factor affecting the oil and gas organization of
supply chains is a rarity of the offer - not only in the oil but also of labor goods and services.
There are different theories on when peak oil production will be reached but the current
consensus it will be hit in 50 years. BP Statistical Review of World Energy published in June
2007 said that there was enough oil for another 40 years of daily consumption at the current rate
of 85 million barrels.
With NOC reserves generally outside the boundaries of the great western petroleum organization
the traditional organization are forced to consider the exploration and production in more
difficult access to oil fields as the sand Canadian oils and deep water fields outside of Brazil.
Fields Exploration and drilling for oil in these difficult places requires an advanced technology
that must be obtained from reliable suppliers and can only be carried out with profit in moments
of high oil prices the cost of development and operation is much more than traditional areas. It
adds another dimension of risk related to the supply chain of oil organization.
Skills Shortages in particular of engineers are also a problem for the industry. Experienced
workers are retiring but several years of relatively low price of oil and therefore more low levels
of recruitment means that they have not been replaced by new talent from within the ranks.

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The operators are working hard to fill this skills gap by encouraging the graduates and
experienced engineers in other sectors to enter the industry but it is a problem which cannot be
solved in the short term.
One way that the industry has helped to mitigate this problem of work is by combining resources
in procurement by the construction of a shared database of pre-qualified suppliers. There are a lot
of other industries could learn from this initiative.
Corporate Social Responsibility (CSR)
The fifth question important modification of the form of the oil and gas industry in the supply
chain is the corporate social responsibility (CSR). A number of disasters in the industry over the
last ten years of many who have cause of fatal accidents and significant harm to the environment
have the force organization to integrate CSR into their core activity (and public relations)
strategies. There is no doubt that CSR robust is now vital not only to the reputation but also to
the sustainability of the company of oil and gas organization. This emphasis on the responsibility
of companies is intensified by increasing control of stakeholder’s, investors, customers,
employers, the governments and the media. And the level of responsibility required will only
increase. The EU proposal to reduce greenhouse gases by 20 per cent by 2020 per cent for
example would have a considerable impact on the energy the west organization and probably it
will not be long before the oil and gas organization must register their carbon footprint - what
finally must include their supply chains - in their annual reports. A training effect is that the
industry will be in its turn request this information from their supplier’s or they are in the world.
These new drivers must be taken into consideration as they are becoming the main factors of
competitiveness. They also represent a transition to clean energy resources such as wind energy
hydropower and tidal energy. As the pressure mounted to NWC and the NGOS wholesale oil is
more and more aware of the maintenance of the so-called "operating permit" - the term used by
many industry experts to describe the acceptance of companies in which the oil organization
operate and their desire not to be replaced by NOCS. The improvement of their reputation for
fairness promotion of local industry and for the stewardship of the environment is essential to the
oil companies to gain ability continuing the licenses and production rights.
The supply of oil and natural gas the chains can be complicated and sometimes obscure systems
to many persons who rely on their products and services. API has created the supply chain
models for the oil and natural gas to communicate in the simplest terms how the industry works
from the identification of resources to the end user. These models provide simple visual
descriptions of these critical systems their main components and the customers of critical
services and the services that depend on this energy. Recognizing the critical components and
their placement in the system provides the context for understanding the diversity of systems the

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issues which may affect the various stages of development the production and distribution and
the resilience that is inherent in our whole nation of the energy infrastructure.
Motor Vehicle and rail transport of petroleum products
Crude oil and petroleum products were initially transported pulled by horses tank-wagons then
by railway tank cars and finally by motor vehicles. Following the reception at the terminals of
the vessels or pipelines in bulk liquid petroleum products are delivered by non-pressure tank
trucks or tank cars directly to service stations and consumers or small terminal called bulk plants
for the redistribution. LPG gasoline anti-knock compounds hydrofluoric acid and many other
products chemicals and additives used in the oil and gas industry are transported in pressure tank
cars and tank trucks. Crude oil may also be transported by tanker truck from small wells of
collection tanks and by tanker trucks and railroad tank car storage tanks for refineries or main
pipelines. Packaged petroleum products in bulk or in drums and pallets and cases of smaller
containers are transported by train or truck box rail car.
Government regulations
The transport of petroleum products by motor vehicle or the iron tank-wagon is regulated by
government agencies in most countries of the world. Organizations such as the US DOT and the
Canadian Transport Commission (CTC) have established regulations governing the design
construction safety device test, preventive maintenance, inspection and operation of tanker trucks
and tank cars. Regulations governing railroad tank car tank truck operations generally include the
pressure of the tank and the pressure-relief devices testing and certification before being put into
service initial and at regular intervals thereafter. The Association of American railroads and the
National Fire Protection Association (NFPA) are typical of organizations that publish the
specifications and requirements for the safe operation of tank cars and tank trucks. Most
governments have regulations or to accede to the Conventions of the United Nations which
require identification and information concerning hazardous materials and petroleum products,
which are shipped in bulk or in containers. Railroad tank cars tank trucks and Lorries are
plastered to identify hazardous products are transported and to provide information on the
emergency response.
Reservoir tank
Cars railway tank cars are constructed in carbon steel or aluminum and may be under pressure or
non-pressurized. Modern tank cars can contain up to 171 per cent of compressed gas at pressures
up to 600 PSI (1.6 to 1.8 Mpa). Non-pressure tank cars have evolved from small wood tank cars
of the late 18oos, jumbo tank-wagons which carry as much as 1.31 million liters of product at
pressures up to 100 PSI (O.6 Mpa). The pressure tank cars may be different units with one or
more compartments or a chain of interconnected tank-wagons calls a tank train. Tank wagons are
loaded individually and entire tank trains can be loaded and unloaded from a single point. The

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pressure and non-pressure tank cars can be heated cooled heat insulated and protected against
fire as a function of their service and the products being transported.
Iron all tank cars have high- or low-liquid or steam valves of loading or unloading and hatch
entries for cleaning. They are also fitted with devices intended to prevent the increase in internal
pressure when they are exposed to abnormal conditions. These devices include safety valves
which were held in place by a spring which can open to release the pressure, then close safety
vents with rupture disks, rupture to release the pressure, but cannot close or a combination of the
two devices. A vacuum valve is provided for non-pressure tank cars to prevent vacuum training
during the unloading by the bottom. The pressure and non-pressure tank cars have protective
housings at the top surrounding the loading connections examples of rows thermometer wells
and gauging devices. Platforms for the chargers may or may not be provided on the top of the
cars. The old non-pressure tank cars can have one or multiple domes of extension. The fittings
are provided on the bottom of the tank cars for unloading or cleaning. Protective Bumpers are
provided on the ends of the tank cars to prevent puncture of the shell by the coupler of the other
car during derailments.
LNG is shipped as a cryogenic gas-insulated tank truck and rail tank cars under pressure.
Pressure tank trucks and tank cars of LNG transportation have a stainless steel inner tank
suspended in a tank outside of carbon steel. The annular space is a vacuum filled with insulation
to maintain low temperatures during shipping. To avoid that the gas ignites in rear for tanks they
are equipped with two independent remote control of security of automatic shut-off valves on the
filling and discharge lines and have gauges on both the inside and outside the tanks.
LPG is transported on land in specially designed tank cars (up to 13o potential) or tanker trucks
(up to 40 potential). Tank trucks and tank cars of LPG transport are usually isolated steel
cylinders with spherical thrust equipped with gauges thermometers two safety valves a level of
gas meter and maximum filling indicator and the deflectors.
Tank wagons carrying LNG or LPG should not be overloaded because they can sit on a siding
for a certain period of time and be exposed to ambient temperatures which could cause an
overpressure and venting. Paste the wires and ground wires are provided at the level of the rail
and the tank truck loading racks to help neutralize and to dissipate static electricity. They must
be connected before the start of operations and not disconnected until the activities are complete
and all valves are closed. Truck and rail loading facilities are generally protected by the fire
water spray or mist systems and fire extinguishers.
The tankers
Petroleum products and crude oil tankers are generally constructed of carbon steel or aluminum a
plasticized material glass fiber and vary in size ranging from 1 per cent tank wagons of jumbo.
The potential of tanker trucks is governed by regulatory agencies and is generally dependent on

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the highway and bridge potential limitations and the allowable weight per axle or the total
amount of authorized products.
There are pressurized and non-pressurized tank trucks, which can be non-insulated or isolated in
function of their service and the products being transported. Pressure tank trucks are usually
single compartment and non-pressure tank trucks can have one or more compartments.
Regardless of the number of compartments on a tanker truck each compartment must be treated
individually with its own loading the unloading and safety devices. The compartments can be
separated by single or double walls. Regulations may require that incompatible products and
burnable and liquid fuels transported in different compartments of the same vehicle be separated
by double walls. When the pressure checks compartments the space between the walls should
also be tested for liquid or vapor.
The tanker trucks have either hatchways which opened for loading by the high valves for closed
top- or on the bottom of loading and unloading or two. All compartments hatch entries for the
cleaning and are equipped with safety relief devices to mitigate the internal pressures when they
are exposed to abnormal conditions. These devices include safety valves which were held in
place by a spring which can open to release the pressure and then close the hatches on non-
pressurized tanks which opens if the relief valves fail and rupture disks under pressure on the
trucks. A vacuum valve is provided for each non-pressure tank truck compartment in order to
avoid the empty during the unloading from the bottom. Non-pressurized tank trucks have forged
on top to protect the hatches relief valves and vapor recovery system in case of rollover. The
trucks are generally equipped with breakaway self-closing devices installed on the compartment
bottom loading and unloading piping and fittings to prevent spills in case of damage during a
rollover or a collision.
Tank Car and tank truck loading and unloading
While railway tank cars are almost always loaded and unloaded by the workers assigned to these
specific tasks tank trucks can be loaded and unloaded by either the chargers or the drivers. Tank
cars and tank trucks are loaded in the loading facilities called racks and can be top loaded by
opening the hatches or closed connections bottom loaded via closed connections or a
combination of the two.
Loading
Load and unload the crude oil, petroleum products, and acids and additives used in the oil and
gas industry must have a basic understanding of the attributes of the products handled the
dangers and the exhibitions and the operating procedures and work practices necessary to carry
out the work safely. Many government agencies and of the organization require the use and the
completion of the inspection forms at the time of receipt and dispatch and before the loading and
unloading Railroad tank cars and tank trucks. The tanker trucks and the railways tank wagons
can be loaded via the doors open on the top or through the fittings and valves at the top or bottom

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of each tank or compartment. Closed Connections are required when the loading pressure and
vapor recovery systems are provided. If loading systems will not activate for any reason (such as
an incorrect operation of the vapor recovery system or a ground fault or equipotential bonding
system) by-pass should not be attempted without approval. All panels must be closed and locked
during the transit.
The workers should follow safe work practices to prevent falls when loading from the top. If the
loading commands use pre-defined meters the chargers must be cautious and load the correct
products in the reservoirs and compartments. All compartment doors must be closed when the
bottom loading and when the top of the loading only the loaded compartment must be open.
When the top of the loading anti-splash loading should be avoided by placing the loading the
tube or hose near the bottom of the compartment and begin to slowly load until the opening is
submerged. When the manual controls of top loading operations the chargers must remain in
attendance not dock the loading of the stopping device (deadman) control and do not overfill the
compartment. The chargers must avoid exposures to the product and the steam by upwind and to
avoid the head when the top of the loading by open the hatches and in wearing protective
equipment when handling the additive to obtain samples of the drainage pipes. The chargers
must be aware and follow prescribed response actions in the event of a hose or line breakage
spill version fire or other emergency cases.
The unloading and delivery
During the unloading of tank cars and tank trucks it is important first to ensure that each product
is unloaded in the good designated storage tank and that the tank has enough potential to
maintain the whole of the product delivered. Although the distributors filling pipes lines and fill
the covers must be color coded or otherwise marked to identify the product contained the driver
must always be responsible for product quality at the time of delivery. Any delivery of product
the mixture or the contamination must be immediately reported to the recipient and to the
undertaking to avoid serious consequences. When the drivers or operators are required to
additive products or obtain samples of storage tanks following delivery to ensure quality or for
any other reason all safety and health provisions specific to the exposure must be followed. The
persons engaged in the delivery and unloading operations should remain in the vicinity at all
times and know what to do in case of emergency including the notification stops the flow of the
product cleanup of spills and when to leave the region.
Pressure Tanks may be discharged by the compressor or pump and tanks without pressure by
gravity vehicle pump or pump recipient. Tank trucks and tank cars that carry the lubrication or
industrial oils additives and the acids are sometimes unloaded by the pressurization of the tank
with an inert gas such as nitrogen. Tank cars or tank trucks must be heated by steam or electrical
coils in order to unload the heavy crude viscous products and waxes.

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Rack loading Fire Protection
The LPG is abounding in the small and the large weight. In totaling sample of crude oil the
finished products and the goods are sent by electronic mail or express Enterprise version of
laboratories to try and study.
So many skills are required by the drivers to stand up above the inertia created by this fact
evident called "mass movement". This activity requires a particular hardware including the
suction hose and the transfer pumps and the safety protection such as foundation to dispel
electrostatic release that build up and prevent any leakage of liquids or vapors.
Cleaning of tank cars and tank trucks
Air floating floating-roof tanks is to trim down to the smallest amount of the vapor space
between the top and bottom of the floating roof so that it is always rich in steam thus preventing
the possibility of a steam air-fuel mixture in the beach. All floating roof tanks have external
stairs or ladders and platforms modifiable ladders or stairs to the roof of the floating raised area
and perhaps trimmings such that the lead wires that electrically connect the top of the shell the
calibration tubes pipes and tubes of foam and overflow finding the automatic systems of
measurement signaling etc. advice or boots are provided around the perimeter of the floating roof
in order to avoid that the product or the steam to escape and collection on the roof or in the space
above the ceiling.
The combination tanks overflowing and thanks to the development and implementation of
operating procedures and work practices. The security of the operation of the storage tanks
depends on the receipt of the product in the reservoirs of potential defined by the designation
receiving the tanks before the delivery the reservoirs of measurement to determine the available
potential and ensure that the valves are properly aligned and that only the entry of the tank
opening reception so that the correct amount of product is provided on the tank. Drainage Areas
of dikes surrounding reservoirs receiving product normally be kept closed during the reception in
case of an overflow of spillage.
overflow, disaster prevention a safe operating practices, a variety of detection, Alarm, and shut
down the system and the media, and to understand all the products to each other in the pipeline is
the staff should be allowed to transfer, marine terminal, and the refinery, manual and automatic
control of the ship, including you can achieve.
On a regular basis before, or the product that you want to transfer to, and, in the event of a
system failure, the receipt, the transfer is as described in the documentation for the operation of
the steps you need to. Receipts are manually or automatically taken on the site or from a remote
location as the operational plan is controlled by the need to ensure that you have. After you
complete the transfer, all of the valve to the normal operating position and back or on the right

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side of the reception must be defined. a pump, valve and fittings for the pipeline, and the sample
is AIR several areas, bleed, wells, and are maintained to a good state to ensure spills, leaks, to
avoid the need to be ejected.
Tank gauging and sampling
Products, temperature and the sample is taken at the same time, you can manually run the
feature. temperature can be automatically recorded the resulting sample embedded connection. In
the manual, the sampling is being received; the tank needs to be restricted to. At the end of the
reception, and 30 minutes to 4 hours, a relaxation period of company and product strategy,
according to any of the static, manually or sampling and measuring prior to the consumer is
allowed to you need before you need to. One of the organization to establish and maintain
communication between or owing to the tides of the gauge to a Visual contacts with a low
ceiling and a floating-point other employees of the plant. Measurements, Tests, or other activities
of the tank roof or platform during an electrical storm entry must be limited to.
Venting of the fuel tank and cleaning
Storage Tank Inspection Services, test, maintenance, repair, and overhaul of the tank cleaning,
the need for government regulation, that are dependent on a constant, depending on the spacing
of the business and operational for a service policy. Tank to breathe and cleaning and the entry
have the potential to be a dangerous operation, and the job incident occurs without the
appropriate steps to establish a secure, but you can work. To follow these guidelines, if you do
not, contact the injury or damage, fire, lack of oxygen, toxic products; while they are exposed to
physical risk may occur.
Preliminary Preparations
It is pre-prepared after the number of required deposit inspection, maintenance and cleaning
services, you need to place it was. Include the following. Storage Solutions and programming is
a time to determine the distribution of the history of the tank is to determine the order that
contains the lead product, or to a previous Clean. And certified free of the lead of the
commitment of the amount and type of information that is included in the product, and the
quantity of residue in the tank, and to determine if it has not, the surrounding area of the tank,
and the equipment is to be used for the removal of the product version in steam cleaning, staff
trained and certified and understand the approval of the procedure, and a more secure
installation, assign the responsibility of employment based on limited space in the entry, the
installation, licensing requirements, and the security of the hot work, and the device's staff and
cleaning the tank or contractors during the cleaning of the tank before the conference or the
construction.

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The control of ignition sources
After the withdrawal of all of the available in the fuel tank, the pipe is fixed product, which is the
previous water samples drawn line or in the Open, and all of the ignition source is removed from
the surrounding area, until the fuel vapour in the tank, and free. To declare that on the track in
the empty, Compressors, Pumps, and other equipment, and the electric motor, or is in the
running, the wind or on the outside of the area of the dam, or, if the dam is the internal region, at
least 20 M through the fuel tank or other source of the fuel vapour. Activities in the preparation
of the tank during an electrical storm, bleeding, you will need to stop.
Removing residual
The next step is to remove as much of the product or waste remaining in the tank as much as
possible through pipes and fittings. The license can be issued. Distilled water or fuel can be
injected into tank via a fixed connection; can be of help to those who come up to the tank. From
the tank residue removal contain sulphur crude oil must be kept wet prior to processing to
prevent spontaneous combustion.
Isolate the tank
After all of the available products, was provided to the fixed pipeline, all connected to the pipe
line of products, such as the tank, the line, the oil vapor rebreeding, pipeline, to the sample form,
disconnect and close the valve to the tank and the insertion of the blind side of the line of the
tank valve, not to ban from the steam from the line input of the tank. Blind pipe between the tank
and the partial discharge and must be flushed. Outside the embankment, distributors are closed
and locked or must be tagged. The Reservoir, Pump, mixer, cathodic protection systems,
electronic measurement and detection system-level and in the disconnected, the energized and
locked, or must be off.
Vapor Release
Steam that is rendered into the tank is ready to be switched off. Test continuous or intermittent
steam and restricted to the tank vent area. By opening the tank to atmosphere, natural ventilation,
and in general, as recommended in the forced ventilation for safety. The tank is not the
mechanical ventilation is, depending on the size of the construction, the state of the internal
configuration of a number of ways. One way of cone roof tank, steam can be announced to the
placement of the tray is mixed (portable fan) in the Hatch in the top of the tank, and start slowly,
that the door is open, and the bottom of the tank, and then the faster the air we breathe and steam
tank.

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The insurance license or hot work activities of the ventilation must be published in. All of the
fans and fatigue of the tank firmly to the wall to prevent electrostatic discharge ignition, when
you are connected to. For security reasons, a cooling fan, air exhaust tablet operation if you can,
but you will need to use the electric motor, and is driven by a steam explosion. Internal floating
roof tank is the floating roof top and bottom of the individual parts ventilation may be required.
The vapor is discharged from the bottom hatch if you are at least 4m from the ground, the
vertical pipe and the wall around the dam, at a minimum, steam, because it is not necessary to
prevent accumulated in the low-level, or the ignition source to discharge to reach before. If
necessary, vapor, oil vapor recirculation system installation, you may be instructed.
Ventilation is making progress, the residue washed and removed Open the lower door water and
the suction hose to the tank is to prevent electrostatic discharge ignition, when you are connected
to. Crude oil sulfur content or high sulfur content of the tank products to generate heat when the
air is dry, such as residual to fire on its own. This is the water in the tank, and fill up the tank in
the air, the temperature rise of the spray-on in order to avoid should be avoided. The entire
residual iron sulfide, the smoke of any contact during ventilation in order to avoid the need to
remove it from flaps opens.
Initial Entry, inspection and certification
Provision of the boilers in the display of progress with the control of the vapour of the exhaust
ventilation at the point when you can get. It is the level of steam supply enterprise authority
regulations, or by the policy of the fixed lower than it is, if you are to enter into the tank of the
inspection and testing can be converted. Protection of participants breathing mask and a good air
supply must be worn. The Salon of the atmosphere of test, and to allow them to enter after you
get the tank, but the workers to enter the test and inspection, so that you can continue. There is
no obstacle, the ceiling, low support for the hole on the ground, and the other physical hazards,
in the inspection should be carried out to determine that.
Cleaning, maintenance and repair
The continuous ventilation and is the lowest level of drop-tank and a work permit the vapor is
the entry of staff sufficient facilities and respiratory, if necessary, to allow the tank to start the
cleaning. Monitoring the toxicity of the steam and atmosphere oxygen supply you must continue
in the tank of the entry level has been established for more than the allowed will be automatically
terminated, and as soon as the participants in the tank again to reach the level of security, and the
re-issued until the Permit you need to have. Ventilation during cleaning operations, the residue
and sludge in the rest of the tank. Only approved, low voltage lighting, lanterns and inspection
should be used for cleaning.

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tank cleaning and drying after the final inspection, and in the test, maintenance, and repair, or
recycling work, you need to perform before starting. The waterways of the roof pontoons,
column floating-point, it is not necessary that the development of a leak to make sure that it
supports the floor plate, the product is, in the space of these intrusions or under the floor was able
to leak in the note and the inspection. Bad weather, or secondary containment and foam seal and
protection and the space between you and the steam, also check the need to be tested. That there
is petrol in the tank is being. The tank or do not have any history when they are available, the air
of the evidence of Content lead, the Lead tank for free and by providing the labor supply air
breathing equipment if you do not want to enter in to that are allowed must be certified.
Hot work permits welding, cutting, and other hot work, and the repair and maintenance of the
other corresponding to the activity of insurance issued to you will need to permit. Welding or hot
work toxic or harmful gas to the tank, monitoring, respiratory protection and continuous
ventilation is required for or you can create it.
The fuel tank, or the internal floating-point equipped with the roof, if you need to, the Big Hole,
in many cases, the side of the tank and give unlimited access to allow for a narrow to enter a
space, so that you do not have to be cut.
The tank exploded with the painting of the outside of the normal, the following can be used to
clean the tank, and the tank is returned to the service before the finish. These types of activities,
the cleaning and the pipe, the Paint Tank, Tank and piping services use the application with
established security procedures, and carry out monitoring of hydrocarbon gas and liquid tank in
the vicinity of equipment to stop while the blast. silica sand, the possibility of dangerous
exposure. Because of this, many government agencies cleaning materials or non-toxic blast shot,
and it requires the use of the collection, cleaning, and recycling. A special collection is empty
cleaning equipment pollution of the explosion, the lead paint tank and lines, while cleaning to
avoid you can use. After the dry ice blasting, the leaking tank, pipes and that there are no leaks in
the walls of the stain, the test and the repair before painting.
Return the tank for the service
The services after the completion of the cleaning of the tank, ready to return in the framework of
the inspection, maintenance, and repair, the door is closed, all of the blind are deleted, the
connection pipe to the tank. Valve is unlocked and open, with mechanical and electrical systems
reactive. The leak before returned to the service, make sure that you are in the tank to be
hydrostatically tested many government agencies is required. The amount of water required for
an accurate test pressure required for the workload of the diesel fuel that is covered in the water
substance is often used. After the test, the tank is empty, it is ready to receive product. The
relaxation time is received after the legs of the tank; the roof is in the lowest position.

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Fire protection and Prevention
The hydrocarbons of oil refineries, into a storage tank is sealed in a container bulk terminals and
plants that there is liquid and vapor release might be in. These gases, and air must be on a
writeable range and the after ignition source to occur if the explosion and fire, the mix. The fire
suppression system is installed in the regardless of the size of the staff of the key fire prevention
of fire. Spills and releases of sewers or sewer entry must be suspended. Small spills wet blanket
and large spills of the foam and steam and air cannot escape the cover so you need to be.
Hydrocarbon gas may be present in the area will eliminate ignition sources and are controlled.
Portable fire extinguishers and service the car is transported in an accessible location and the
strategic location of the whole plant are located.
The creation and implementation of safe work practices, and best practices, such as heating
system and water for the secure (cold) permit Power Lock-out of the program tag out and
training of employees, and contractors and the training is essential for prevention of the boot.,
and employees report to the fire, the response, and the refuge of responsibility for, you need to be
aware when you are in the pre-planned emergency procedures need to be developed. In the event
of an emergency and to be notified of the organization, the installation of charging the phone
number is placed in the communication, you must provide a method. The local fire service
Emergency Response public security and mutual assistance procedures, also the organization of
the facility and to recognize the risk that you need to know.
The fires of hydrocarbons are controlled by one or a combination of methods, as follows:
Control of the oil and the fire, the fire of the best, the easiest way of fuel one of the withdrawals
of the fuel supply valve, flow of product, or there is a small amount of the product is the product
and the write to the exposure control if the diversion of the cover is cut.
The form, and the oil that flows out to prevent steam to cover and the air you can use a
combination.
Oxygen is another way, the supply of oxygen or air or water mist form suffocate in flame, or
carbon dioxide and nitrogen to the air in confined spaces to be a replacement for the use in order
to block.
Cooling water, mist or spray and the carbon dioxide is a product of the fire of petroleum
products, the ignition temperature: The temperature of the fire, the water vapor and cooling off in
order to avoid formation of the air can be used.
The dry powder is the combustion of chemical products of the fire is the fire of a chemical
reaction by interruption of the Halon fire extinguisher to the interference.

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Fire Protection storage tank
Prevention of fire protection and storage tank that is the evolution of the interaction of science
and dependent Tank-type status and the size of the product, and the quantity that is stored in the
water tank leaves and drainage of the interval Fire Protection installation, the reaction of aid and
the philosophy of the company is industry standards and government regulations. Fire Storage
Tank is simple or very difficult to extinguish the primarily in terms of the question of whether
the fire is detected during the attack, the first. Storage Tank of the operator is to see a number of
recommended practices and standards, in that it has developed, as an organization, the American
Petroleum Institute (API) and National Fire Protection Association (NFPA) is a storage tank, fire
prevention.
Floating roof tank top in the shape of the round, or if the seal is worn or is loose tank to the shell
if the, vapour escape and the air to fuel mixture can be mixed. In such a situation, there is a fire
lightning if the roof seal to the tank shell in the response from the point may occur. It is early if it
detects a fire seal are often hand or spray hose or the form system is applied by using the spray
fire extinguishers you can fire.
And if you do not have labels. Controlled fire extinguishers or fire hoses if you or a large-scale
fire in Progress foam and the roof can be applied to fixed or semi-fixed foam monitor or large-
scale systems. Note that it is necessary to be in the application form on the roof of the floating
roof tank if they take too much weight are placed in, the roof to can be tilted, or output large
surface can be the product of the exposure of the fire. Floating roof tank the foam seal and the
tank shell in the area between the Dams used to catch the foam. Form is scaled and the material
on the top of the dam, water tank roof overload the roof to prevent a complete collapse of the
drainage system should be removed from the system.
The regulations in the policy of the government and the company Storage Tank is equipped with
fixed or semi-fixed the system including foam, tank piping of the tube of the underground tank
and foam room injection pipe to the bottom of the injector tank, and distribution pipe and the
dam of the tank top of the form.
The generated by households in a centralized location that is fixed on the foam system foam
water solution in the tank, Pump, pipe system to the pump. Semi-fixed forms are typically, use
the portable system Foam tank form generator and the pump into the tank of the popular that is
connected to the water supply and the pipes is connected foam tank.
Foam-water solution is also generated in the central level within the agency that are distributed
in the system pipe hydrant the hose using the semi-fixed foam tank of the nearest mouth watering
system that is used to connect. The system is equipped with tank when it is not being fixed and
semi-fixed foam tank by using the monitor of Hose and nozzle on the top of that you can apply
to. What method of application control in order to be fully involved in fire tank is a certain
amount of foam is applied, using the specific concentration, and flow rate of a minimum quantity
of time is essentially dependent on the size of the tank is a special technique of product questions

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and the surface of the fire. And if enough foam sample application is not if necessary to control
the condition, the corresponding to the feature that can be used to minimize, or endangered
species.
The training, the fire personnel who have been instructed only to water is liquid fire oil deposits
that are allowed to use. Rash instant or boiling water in the steam is the product directly to tank
fire and the rise in crude oil prices to be after the application may be the result. Heavier than
water because most of the fossil fuels to extend, and the bottom of the tank and if the appropriate
enough, fuel and push the products of combustion and the top of the tank.
The water, which is normally used to control and/or off of the leak of a fire around the outside of
the tank valve to operate, the flow of control in the product of cooling the tank on both sides, to
avoid the boiling liquid and vapour is to expand, to reduce the effect of the heat and flame shock
tank and adjacent equipment. For the training to have the material, equipment instead of to be,
the employee of the fire, and the fire tank many terminals and storage facilities are established in
a lump sum on a policy that is, from the product of the maximum amount in the tank to protect
adjacent structures of the heat and flame and the rest of the products in the tank that is controlled
by writing up fire burned to the ground.
The health and safety of the plant and bulk terminal
Storage base of the tank, and the support, for the piping of the product on a regular basis to avoid
loss or damage to the corrosion, galvanic corrosion, sedimentation and other display is not
damaged you need to check or not. Tank pressure/vacuum valves, seals, and bumpers, the mouth,
the bubble chambers, roof drainage and water extraction valve and system devices too is not
damaged, test, and is on a regular schedule, it is necessary to maintain the equipment in the
winter, such as removing the. Or flame arrestors that the tank or steam collection line, check and
clean regularly, winter frosts appropriate to verify the operation of the need to maintain proper
airflow is installed. Automatically start or if the pressure drop is a closed tank valve operation,
you need to check.
Dyke surface or slope from the tank, Pump, pipe leakage to remove drain or in security areas
must have been released. A Dyke wall to keep the design of the drain valve is available if needed
to keep the water and the Dam emissions dug unless you want to close. Stairs, ramps, stairs,
platforms, and loading ramp to the rack, dams and reservoirs, the security conditions of the
shelters, snow and ice, the oil, you need to keep. It's a tank is leaking and in line as soon as
possible and will need to be repaired. The Victaulic couplings or the heat might be compromised
in the region, a similar piping Freeze to use on the fire in order to avoid, the line in the must be
discouraged.
Safety procedures and safe working procedures is established, it must be implemented, as well as
for the training and education of the terminal and the bulk of plants in the Operators,
maintenance staff, Tanker trucks and contractors who work in driver safety activities can be
performed. These measures will, at a minimum, a basic principle of the information for the

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contact of the hydrocarbons, the controls and the extinction risk, and protection and risk in
hazardous substances hydrogen sulphide and Synchronous fluorometric polycyclic aromatic oil
and residual fuel, Benzene, Gasoline and additives tetraethyl lead and methyl-tert-butyl (MTBE,
emergency measures, and normal physical, climate change-related risk this activity has occurred.
Asbestos insulation or any other of the tank and the pipe as a protection to the fund which may
not be present. For a task, and personal protective measures, and then to establish is that you will
have to ensure that the processing of these materials, and waste removal.
Protection of the environment
The terminal operator and the employee's response, the groundwater and surface water,
hazardous waste of hydrocarbon liquid and vapour, and handling and disposal of the soil and air
pollution relating to protection of the environment and the company's policy of the Government
of the regulations that it conforms to the rules.
The contamination of the water- Many of the terminal, the oil separator and the contaminated
water is the fuel tank and Drain Rack load area and parking area, and the water drained from the
tank from the Save for the treatment and to open the tank roof there is water. The terminal was
established, the water quality required to meet the criteria, and that allow you to water can be
obtained prior to.
The air pollution- prevention of pollution in the air, and both sides of the minimum steam valve
and the slot is included. Vapour load rack and marine dock entries before the tank to vent even if
the oil vapour rebreathing equipment to collect. These steams processed to the storage that is
returned in the form of the liquid or burned.
The land and water spills. Government agencies and companies are storage facilities planning for
Oil Spill Prevention control and Counter Measures, which have been performed may be required,
and that the staff is trained and aware of the potential risks and, notifications, and the action to
perform leakage and leakage. In addition to management of the terminal facilities, and the staff
in the liquid spills, is trained and equipped with the outside of the site in the case of an
emergency, the Tanker Truck rollover).
Treatment of wastewater and hazardous waste. The terminal to the regulatory requirements that
need to be compliant, sewage, and public or private waste oil to the work of discharge of the
processing to obtain permission. Government and business requirements of some of the steps and
critical to the site, such as the asbestos insulation of the waste tank and contaminated waste
storage products to clean. Workers have been trained in this activity that you may encounter the
risk of the potential risks that need to be recognized.

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Approximate storage and handling
Bulk storage tanks
LNGs Mass Storage Tank of the process of (crude oil and natural gas plants and refineries which
is a field in the distribution points point to the consumer of the stored (terminals, and storage
facilities). Most bulk LNGs are used in storage method
Under high pressure in the following environment temperature. LHR steel and is stored in the
pressure tank is 8 MPa underground permeation and rock salt.
Close to the atmospheric pressure under the pressure, low-temperature. LHR that is stored in the
Storage Tank Insulation steel thin-walled heat concrete tank top or bottom surface of or low
underground storage tanks. The pressure (0.005 to 0.007 in the MPa), close to the atmosphere -
at a temperature of 160Â underground storage tanks LNG of cryogenic storage is maintained.
LPG bulk storage tank or cylindrical (round) horizontal tank (around mechanism torque wrench
40 - 200) or Spherical (up to 8000.) In 6,390 in general, storage for more than 2400.
The design of the pressure tank LGH at low temperature can be stored; the vapour pressure is
lower than that. Propane, butane, propane tank pressure of 100% of the design should be. The
vapour space and fill the non-condensable gas partial pressure the maximum pressure from the
water pressure is taken into account the new demand. Ideal liquefied petroleum gas storage
container is completely empty; they are designed to be required. If you do not this the vacuum
valve must be provided. Design features, the pressure relief valve Liquid Level Gauge pressure
and temperature gauge valve internal cover anti-valve and excess flow must be included. The
high-level signal is the valve of the failure of the test is in an emergency, you are provided with.
Horizontal tank ignition %mound of the earth that is placed on or buried, usually, and the wind,
the existing or potential source installed. The last of the division of the horizontal tank
overpressure, the shell is the driving direction for the other end of the carefully of the tank length
of Earth parallel with important structures (and not an important end-point to the structure or
equipment).
Other factors, of the site, the reservoir, prevention, fire protection, such as the separation. The
codes, and regulations under the pressure of hydrocarbon gas in storage, and the boat, and the
adjacent property is a reservoir, and the critical structures, and the ignition source, process,
rockets, and heating, including transmission lines, transformers, load and unload facilities,
internal combustion engines and gas turbines in the horizontal direction between the minimum
distance.

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CHAPTER 6: STORAGE, PIPELINE & IT FACTORS
6.1 Pipeline Logistics
The nature of the chain supply of petroleum products in the pipeline, which is described on the
role play and oil pipeline description of the type of the system. Overview of the operation oil
pipeline distribution activities of the nature of the display. The cost-effectiveness of the oil
pipeline processing of the given reason. The service is based on the performance-related
measures oil pipeline transportation services provide a relative modal effect. The supply of
petroleum products, the segment of the pipeline, which will play an effective role, can be
identified with a chain.
The origin of the supply chain of the product or the primary supplier is present.
The original point, the member for all suppliers of the member. Power Point or other value is
added to the product, consumption, or other supply chain that will be used as an input to the
provided. In the supply chain organization and system of the product, it is known as value chain.
There are three basic types of petroleum pipeline transport systems:
1. Gathering Pipeline systems
2. of crude oil trunk pipeline systems
3. Refined-products pipeline systems
Collectively, these systems provide a continuous link between the extraction, processing,
distribution and wholesalers of deposits in areas of consumption.
Of crude oil trunk pipeline systems
Crude oil is transferred to the connection line. Of these, the pipeline has a collection of crude oil
tank system, ships, Barge, or other lines are displayed. As in the case of gathering pipelines,
pipeline, the supply of petroleum products is part of a chain, the internal distribution is an
integral part. Trunk line is a relatively large amount of volume is the Delivery Point is a
reduction in the number of relatively. The line is a small luggage is the delivery point. In general,
the lines of the network system are not operating in the mode. The sender is the transport of the
product you are bidding for quality, then you will receive the same molecular the distribution
line, the "batch" mode, running. The senders of the factory are bidding to receive the same
molecules.
Refined-products pipeline systems
Product Pipeline oil refinery and the Marine port and is in the market price of the large-scale
deposits and the refined petroleum products for the transportation system and the product is
usually on the track to retailers and consumers is being moved. The product is a fine, oil
collection system for providing reverse image of the system. Instead of the small stream flowing

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in large-volume of gas through the pipeline, tank farms, pipelines from the product of a large
potential system on the tank farm, the output for the Refinery, in the branch office, the small
potential pipeline to the service of the distribution of points - usually a large-scale deposit market
sectors. Product Pipeline of oil products, some of the physical distribution or the outbound
logistics is part of.
The following are the standard pipeline diameters for petrochemicals in a Refinery:
SL.NO.
Pipe line diameter in
inches Line Detail
1 14" MS
2 14" MS
3 24" HSD-NEW
4 24" HSD-OLD
5 14" FRN
6 18" PCN
7 10" PX
8 8" BZ
9 8" ME-OH
10 10" OX
11 18"/16" ATF
12 8" AFS
13 12" PROPANE/LPG
14 14" PROPANE/LPG
15 30" CRUDE TRF
16 32" CRUDE TRF
17 10" LSFO-INSULATED
18 12" LSFO-INSULATED
19 20"/24" ZRTF-LSFO-INSULATED
20 30" CRUDE TRF
21 30" CRUDE TRF
22 30" MS
23 24" MS
24 12" MS
25 16" ALKYLATE
26 30" HSD
27 24" HSD
28 14" SEZ-FRN
29 24" SEZ-PCN
30 64" SEA WATER SUPPLY LINE
31 60" SEA WATER SUPPLY LINE
32 42" SEA WATER RETURN LINE
33 42" SEA WATER SUPPLY LINE

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34 42" SEA WATER RETURN LINE
35 12" NITROGEN RECEIPT LINE
36 08" NITROGEN RECEIPT LINE
37 -8" POTABLE WATER LINE
Anticipation of the request
The demand forecast, and the quantity of each product distribution for some companies, to
different market must be transported. In addition, logistics capabilities, or request that you want
to use is to determine whether the products that are available to the appropriate volumes
In good time for the market to be made in each category. The demand for the future level of
knowledge, the application of the activities you plan to service responsible for logistics.
The construction of a pipeline for the profit of the company before you begin, it is the economic
life of the pipeline, a sufficient volume of the pipeline, the owner of the loan repayment, the
operational and maintenance costs and benefits to compensate for the return, risk and investment
in an effort to justify their support to enable in order to establish, to the tariff that it was delivered
to.
If the petroleum geologist, oil is found, confirm the importance of the reserves, the estimated
potential production you will need to decide on. These activities flow of a potential market. An
oil industry expert in the production of research and the future value of the forecast is expected
as the foundation. The impact on the construction of a pipeline, directly or indirectly, the next 15
to 20 years to predict the weather conditions. In particular, the state of the economy and
population, the product of an increase in demand, the construction of a refinery in the area of
expansion and determine the aisle, domestic and foreign production of crude oil pipeline, and
competitiveness of the prospects of the changing nature of the industry, the government and
actions.
Installation Site selection
Types, Layout, the location, and the number of installed potential strategic important. The cost of
the installation of the correct location or the location of raw materials from primary producers in
the supply chain to the consumer can be reduced. Selecting the site, the first thing to consider
various resources and market areas of the farm.

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Purchases
The unit of the production and marketing of business process efficiency, operation is to ensure
that products, services, and information retrieval.
The procurement functions are
1) Resource, and supplier selection is included.
2) To get the entries you need to make sure that the form.
3) The distribution of the goods arrived upon arrival, the coordinate system
4) Price negotiations
5) To control the quality of the incoming goods.
For a specific project, a selection of the pipe of economic factors and the nature of the items, and
the expected determined by Flow. The Land of the construction of the building.
Since the end of the 1800s, steel, and almost the entire pipeline, and the material of the tank were
selected. Today, Double submerged arc welded pipes are used, the spiral weld (vertical weld you
are replacing) welding (Weld), such as pipes, for without a powerful.
Materials handling
Materials handling, (Off Road) move or Raw Materials in all aspects of the flow of interest.
Materials and semi-finished products, and finished products on the site. Success of material
processing, reduce inventory costs, improve productivity and contribute to.
Value is the product to a terminal or storage facilities that are processed in each of the time
without the need to add the costs of any primary distribution purposes, to the extent possible, to
eliminate it. Crude oil and petroleum products in the pipeline for the transport and the objective,
fully achieved.
Product admission, transport, and the discharge of a single process, the remote control is bound
to the operation is usually.
Packaging
First of all, package, and damage to the product, and the product is protected from all of the
potential risks of other goods to prevent damage. Second, the package is saved, and the product
of the movement of material to reduce processing costs.
Warehouse Management
Product Sales and consumption at a later time are stored in the production as soon as customers
Should be after you must be, at least. Storage space that you want to keep the stock required to
maintain control of the work.

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The pipeline shall take the form of warehouse tank farm. tank farm law, first of all, the reception
and the central collection, the dispatch integration as a point at which the storage facility, and the
second or buffering is done, as the first and third, facilities for shipping, delivery has been
isolated. tank farms, refineries, and oil field located in the sea port, the pump station and
wholesale deposits. A key feature of the tank farm at the request of as a buffer to synchronize
product that arrives before it needs to be able to save.
Crude oil field is received from the collection system, the line. Along the line of the junction, the
tank farm transfer and integration in transit to the crude oil temporarily, batch processing, and
measurement, hijacking or pipeline is used at the time of the repair. Pipeline terminal, a variety
of other shipping crude oil pipeline for delivery to the tank, and the refinery or ocean port are
separated.
Inventory Management
Inventory management is a significant issue. Both the production and marketing of feature must
be the satisfaction you need to continuously. However, the inventory of a large capital-intensive
warehouse space, note that in addition, the inventory of financial resources are consumed. The
cost for the space in the warehouse, and the inventory of the value of the opportunity cost.
Because of this, the maximum Exchange determines the opportunity cost of the situation and the
results from the stock. Between the side effects must be reached.
Treatment order
Command processing your order fill that is associated with the activities.
This will include the following.
For more information, the Sales section of the verification of the consumer's creditworthiness
Required packages, many of the details of the inventory management staff, the delivery of the
original shipping documents, preparation of the communication status of the command, the
method of payment and shipping.
Efficient pipeline to process planning is important. This is the from each ship criteria this easy to
move, which means the entire stream to a destination in the trunk in a pipeline at the speed
required for all the time configuration is required.
The logistics and communications
Distribution is usually good, the information and communication systems for effective
management is required.

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Effective communication,
1) The business and customers must be in between.
2) The Company and its suppliers, and
3) Companies - for example, a marketing major functional component, production, logistics, etc.
4) The various logistics activities, purchase, as a warehouse, order processing, inventory
management, transportation, and
5) The various components of the logistics activities. Accurate, timely communication is
Successful, which are coordinated with Unified logistics management and provide the foundation
for.
Transport
In its simplest form, is in the pipeline transportation, commodity origin point or products to
which it is necessary surplus for the pipe to the pump.
Oil production in the area, the construction of a pipeline for crude oil is shipped in general, this
process, this is oil pumped from a well, or separator soaked in natural reservoirs or gas
transferred to another system. The oil flow and heat, or treaters in the water in the sediment are
removed, or, you have the option of the collection volume pipeline system for delivery to until
you are ready for the "lease" the tank.
Crude oil is a sender is a line, and he is to enter his own crude, the other shippers and associated
with it. The volume of crude oil, depending on the class of the group. The oil pipeline operators
approximately to the same quantity are received from the producer comparable to the destination.
With the same quality of crude oil, not things, on-time delivery of the specified volume of other
shipping in the same volume can be replaced.
Reverse Logistics
The process of the return of the product distribution is an integral part of the process.
Sales of the product to the customer or defective or over people that have been received to return
to item can be bad. In the pipeline to transport the desired package and the return of Empty
Containers of non-container of build mode. Pipeline between the origin of long-term links and
destination. If necessary, return to a continuous service you do not need to reverse the process, or
if the pump is included. The reverse logistics activities do not need transportation of significant
economies of scale to enjoy high measurement in the pipeline.

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The relative effectiveness of pipeline operations
Pipeline infrastructure is a very large amount of capital provides the services that the rest of the
operating cost is relatively small. Continuous flow Pipeline transportation (in other words, the
other vehicle load), batch transfer without interruption, and other modes, high volume. Because
of the high interest rate of the economy of scale and density to achieve when enough, on-
demand, and can be a sustainable ongoing high usage of transportation in the pipeline is very
competitive in comparison to other forms of transportation.
EFFICIENCY OF THE SERVICE
The determining factor of the most relevant transport performance of the service, the client
functionality, accessibility, security, transport time, reliability and flexibility are required.
The following are the determinants of these, in general, easily defined to clarify the specific
construction of a pipeline. Features of specific products of the carrier for the transport of
necessary equipment and facilities to provide you with the technical features. Pipeline is the
investment cost is required. These costs are fixed, and that it was inevitable that you say, rapidly,
the unit, and the flow is reduced and increased. As a result, pipeline transportation, and irregular
in the small volume of the product to these businesses and organizations that require it is not
appropriate for it.
The accessibility of the carrier service, through the specific link to the physical access to
facilities has the ability to provide. To be more precise, the product is the reference
Of the specified point to the point of use or consumption may have the ability to transfer.
In the pipeline (in the case of petroleum products) transfer to closed tank Battery Replacement
Service is on the top of the tank, only you can provide. tank farm, the oil wells, refineries, and
maritime port, Pipeline Track and wholesale deposits. Because of this, and that you can access in
the pipeline transportation services that are time deposits, the wholesale price of oil refineries,
and between the upstream has to offer. The supply pipe downstream of the deposits accessibility
zero. As a result, the petroleum products Depot service between the client and the distribution of
road transport, almost without exception.
The point of view of the quantity, the transport of goods in the pipeline is remarkable Record
Security. Shrinkage by theft, fire, damage or loss, risk of spills, evaporation is not important.
Order cycle time between the order placement and delivery of the total elapsed time. This is
often the case; a higher-speed, transportation, and cost are considered. Plan logistics, a speed
short supply and delivery cycle, and in the system, the stock for the means.
Crude oil line or the delivery of long-distance network is a single sender each time you are not in
batch size of the Sender to be shipped pre-request indicates that it is.