The oil and gas industry is one of the most dynamic industries which operates in a highly complex and diverse supply chain. With the oil prices on an upheaval, the industry continues to experience constant challenges, especially in terms of demand and supply. The fluctuation in oil prices is causing turmoil throughout the supply chain of the industry. The volatility of the market overall is affecting the long term and short term planning of business, thus trapping oil and gas suppliers in the power game driven by commodity cycles.
The industry’s supply chain is not only affected by the inconsistency of the crude market but also by the global energy consumption. The year-by-year increment in the consumption, as reported by EIA poses numerous challenges to the suppliers in the oil and gas value chain.
Global energy consumption
The energy consumption will grow by 28% in 2040, which calls for rigorous activities across the oil and gas sector. According to a recent Wood Mackenzie report, the number of new oil and gas projects will rise five-fold next year from a 2015 trough. These upcoming projects will require equipment and services to support the operations, and thereby a healthy supply chain.
However, the problems suppliers are facing presently is making the supply chain tumble, and dealing with them should be industry’s prime focus.
An absence of market-determined pricing system
When oil prices drop, oil and gas operators squeeze their suppliers for lower costs to shore up their balance sheet. When oil prices rebound, the tables are turned. Suppliers boost their prices and justify doing so by pointing to the strain in the supply chain due to increased demand and the higher cost of doing business after cutting to bare bones.
Such is the condition throughout the supply chain of the industry. This state ultimately makes it difficult to establish a unified pricing system for the commodities in the market and evokes vibrant competition among thousands of oil and gas companies. This and the diversified ownership in the system constrains the performance of the petroleum industry.
A shift in supply-demand fundamentals
The volatility of the crude market has a huge impact on the overall supply chain of the industry. The regular shift in supply and demand in the market ripples into the supply chain, demanding flexibility. For instance, when oil prices are low during a supply glut, the transportation cost decreases. This makes off-shoring production attractive for low-cost countries but when the prices fall, this scenario changes. Thus, with the sudden changes in the fundamentals, it becomes difficult for the suppliers to balance cost and efficiency at the same time.
Considering the complex nature of the oil and gas industry, the suppliers also face problems like establishing the right professional network and getting the right business leads.
In order to tackle these challenges, the industry needs sustainable solutions.
Amidst this backdrop, Energy Dais arrives as one such collaborative platform where the industry problems are being addressed through the most befitting solutions. Keeping in mind the various problems of suppliers, Energy Dais has developed an integrated channel for them by giving them the power to choose and connect with the best players in the industry.
How Energy Dais benefits the oil and gas suppliers?
This global full stream platform has unique offerings for the industry supply chain. Following are the benefits of this platform:
Energy Dais has over 15,000 companies in its directory. Signing up with the platform helps the suppliers gain instant visibility across the global oil and gas community. This, in turn, enables the suppliers to expand their business footprint.
Finding the right business partner at the right time
Energy Dais makes it simpler and easier for the suppliers to find the right business partner for their offerings. This helps them cut down on their costs and time. Searching for any product or service is very convenient for prospective buyers through the platform, making it easy for both – the buyers and suppliers to find the right prospect for themselves.
Opportunity to connect with global players
Energy Dais offers a Direct Messaging feature through which suppliers can connect with the company or buyers who have floated requirements on the platform. The message sent or received will be visible on their dashboard. The idea is to help the suppliers gain instant business opportunities through better networking. Also, better networking opportunities will help suppliers identify the potential business leads and grow their business.
Do business in previously inaccessible geographies
Energy Dais is a powerful business tool which empowers the suppliers to do business in previously inaccessible geographies. The global verified database and the regularly updated projects, tenders and RFQs on the portal provides an opportunity to look for business possibilities in any part of the world.
Qualified Lead Generation
By getting listed in Energy Dais’ Product and Services Catalogue, suppliers can showcase their products and services to the global oil and gas companies.
Energy Dais offers a completely unbiased and equal chance to all the companies to reach higher ranks in this listing. The prospects visit Energy Dais looking for companies, products and services, with the expectation to find the perfect one in a short period of time. Apparently, the companies and products placed in the upper spots grab the attention of prospects quickly and thereby possess a better chance for visibility. To put it simply, if you have seized the top positions, you are bound to gain qualified business leads.
Energy Dais acts as a significant knowledge sharing platform crucial for suppliers’ business. The news, articles, analytical reports, and other relevant information help them keep up with the recent industry developments.
Oil and Gas towards Collaboration
UKCS’ 4th collaboration survey in 2018 reveals that there have been no improvements in the Collaboration Index since 2017. The survey pointed out an immediate need for the industry, especially supply chain, to move towards collaboration.
“The changes the industry makes to improve supply chain collaboration must be sustainable, which means that they should be fully implanted and add value throughout the business cycle. Collaboration should not be forgotten when oil prices rise and the industry gets busier; this would lead to a reversal of the efficiency gains of the last three years.”
The supply chain of the industry is subject to vulnerabilities – be it geopolitics or oil prices. With a strong supply chain, the overall efficiency of the industry will witness improvement. Collaboration seems to be an effective solution.
The increased Collaboration Index of 7.7 in 2017, the highest till date, reflects that the industry bodies and companies are making efforts to bring down the segregations in the system and trying to come together for better growth prospects.
A new path ahead
With the vision to bring “the oil & gas sector together on a single platform in order to increase cross-organizational and international efficiencies through shared resources and common goals”, Energy Dais enables the stakeholders to collaborate and grow their business.
The time is now for the oil and gas industry to switch to smarter working habits.
If you seek to enhance your experience of doing business in oil & gas, click here to begin!