exxonmobil egypt meca supply chain session 1

FOR THE DEVELOPMENT OF FUTURE GENERATIONS

Professional Learning Program

“Education should be a mirror of a future society”

Sponsored by Organized by

Presented by:

FOR THE DEVELOPMENT OF FUTURE GENERATIONS 2

Agreements

•Please put mobile phones on silent

mode

•Smoking is not permitted

•In case of an emergency

Important information


Corporate Overview

• Presence on six continents and in nearly every country.

• Over 75,000 employees.

• Cooperates with 542 communities, NGOs, academic institutions.

• Upstream Exploration, Development, Production, Gas marketing, Upstream Research.

• Downstream Refining & Supply, Lubes & Specialties, Fuels Marketing, Research and Engineering.

• Chemical Manufacturing, Marketing and Research.

We’re proud of what we have been able to achieve to date … and we look forward to further achievements in the future.


Refining &

Supply Exploration

Upstream Downstream Chemical

Manufacturing

Fuels Marketing Development Basic Chemicals

& Intermediates

Lubricants &

Specialties Production Polymers

Gas & Power

Marketing

Exxon Mobil Corporation

Research & Engineering


What we stand for

Innovative Technology

Supply Reliability

Integrity


History in Egypt

• The history of ExxonMobil Egypt (S.A.E) dates back to 1902, when kerosene was the primary product supplied.

• Over 110 years ago, the Vacuum Oil Company, a predecessor of Mobil, first registered in Egypt.

• Around 1939, an affiliate of Standard Oil Company of New Jersey (Jersey Standard), Exxon’s predecessor, began exploring for oil in Egypt.

• In 2000, ExxonMobil Egypt (S.A.E.) was created as a result of a merger between Esso Standard Near East and Mobil Oil Egypt.

• Building on this long history, ExxonMobil Egypt (S.A.E.) has continued to be a premier fuels and lubricants marketer in Egypt.


Operations in Egypt

• Providing quality fuels to serve retail, industrial and wholesale customers across Egypt, together with a world class convenient store offer:

– More than 350 service stations.

– 25 On the Run stores.

– State-of-the art transportation fleet.

• Offering Lubricants and specialties as an

integrated series of Mobil and Esso lubricants covering all applications and including the most advanced technology in synthetic lubricants:

– Lubricants blended at our Mex and 10th of Ramadan blending plants (ISO 9002).

– Mobil 1 centers for today’s high-performance automobiles and heavy-duty trucks.

– Lubricant solutions, as experts in lubrication technology.

• Supplying the Aviation business

Unwavering Integrity and Safety Focus


Our People

• Highly qualified Egyptian workforce.

• Egyptian expatriates in global positions.

• Continuous focus on training and

development.

• Supporting more than 10,000 jobs through

service station dealers and suppliers.


Our Commitment


Environmental Protection

• Environmental Management

Systems

• Loss Prevention

• Emissions and Waste Management

• Research & Engineering

• Focus on renewable energy

• Biofuels

• Natural Gas • Community Value • Environmental Services


Community Investment

– Business conducted

with a consistent

focus on positive

contribution to local

communities.

– Community-based

initiatives supporting

diverse segments of

the Egyptian

community in areas

of education and

development, incl.

women.

– Believing in the

pivotal role the

private sector plays

in supporting the

communities in

which it operates.

Focus on education and development initiatives:


Modules in SCOPE

Planning

Supply Chain & Procurement

Operations Management

Marketing

Sales & Customer Service

Human Resources


AGENDA

• Session 1&2 – Introduction

Industry Overview

Supply Chain Planning

• Session 3 – Costing, Inventory Strategy &

Warehousing

• Session 4 – Deployment & Distribution


INDUSTRY OVERVIEW


Petroleum Industry Stages

Pipelines Railways

1. Exploration

2. Drilling

3. Production 4. Transportation

5. Refining

6. Distribution

Production


What is an Oil Rig


History of Use

• Please read your textbook!

• Arab scientists discovered distillation and were able to

make kerosene. This was lost after the 12th century!

• Rediscovered by a Canadian geologist called Abraham

Gesner in 1852


Oil seep in California


History of Use

• 1858: first oil drilled in Canada

• 1859: Edwin Drake!

• Who is he?

– He was the first person in the U.S. to drill for oil

• Where?

– Titusville, Pennsylvania

• Initial cost: $20 per barrel, within three years

dropped to 10 cents

• Now why do we measure oil in barrels?


History of Use

• 1901: Texas! Spindletop gushed 60m high and

gave 100,000 bbl

a day

• Name:

– Petro means rock

– Oleum means oil


Formation of Oil

• Oil usually occurs with natural gas: mixture of

hydrocarbons of light molecular weight

• Forms almost exclusively from organic matter in marine

sediments—whereas natural gas forms in both marine

and terrestrial rocks

• ? Remember coal? What is that?


Concentration of Oil

• What do we need???

• Source rock

• Reservoir rock

• Cap Rock

• Traps

– Structural

– Stratigraphic


• Structural Traps

– Fault

– Anticline

– Salt dome

http://www.priweb.org/ed/pgws/systems/traps/traps_home.html



Oil Recovery

• Initially used cable

tool drills


Cable tool bits

Oil Recovery


• Next was a rotary drill

– This is a tricone bit

Oil Recovery


Where is the oil?

World Oil Reserves, Dec. 2005

B.P. Estimate

0100200300400500600700800

North Americ

a

Central/S

outh America

Europe

Eurasia

Middle EastAfric

a

Asia and Oceania

Billio

n B

arr

els


World Oil Reserves, Jan 2007

Oil and Gas Journal, includes tar sands in Canada

0100200300400500600700800

North America

Central/South America

Europe

Eurasia

Middle East

AfricaAsia and Oceania

Bil

lio

n B

arr

els

Where is the oil?


World Oil Reserves 2005

Total 1201.332 billion barrels

Venezuela,

79.729

Russia, 74.436

Iran, 137.49

Iraq, 115

Kuwait, 101.5Saudi Arabia,

264.211

United Arab

Emigrates, 97.8

Libya, 39.126

Nigeria, 35.876

All others,

216.544

Kazakhstan,

39.62


World Wide Oil Production

Country

Production (KBD)

• Saudi Arabia 10,846

• Russia 9,886

• USA 6,736

• Iran 4,325

• China 3,795

• Venezuela 2,566

• Iraq 2,423

• Kuwait 2,784

• Emirates 2,980

• Qatar 1,378

• Libya 1,846

• Egypt 530


Consuming Nation

(KBD)

Population

(millions)

United States 19,497.95 314

China 7,831.00 1345

Japan 4,784.85 127

India 2,962.00 1198

Russia 2,916.00 140

Germany 2,569.28 82

Saudi Arabia (OPEC) 2,376.00 25

Canada 2,261.36 33

South Korea 2,174.91 48

Mexico 2,128.46 109

France 1,986.26 62

Iran (OPEC) 1,741.00 74

United Kingdom 1,709.66 61

Italy

Egypt

1,639.01

730

60

85

World Wide Oil Consumption

http://en.wikipedia.org/wiki/United_States

http://en.wikipedia.org/wiki/People's_Republic_of_China

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Russia

http://en.wikipedia.org/wiki/Germany

http://en.wikipedia.org/wiki/Saudi_Arabia

http://en.wikipedia.org/wiki/OPEC

http://en.wikipedia.org/wiki/Canada

http://en.wikipedia.org/wiki/South_Korea

http://en.wikipedia.org/wiki/South_Korea

http://en.wikipedia.org/wiki/Mexico

http://en.wikipedia.org/wiki/France

http://en.wikipedia.org/wiki/Iran

http://en.wikipedia.org/wiki/OPEC

http://en.wikipedia.org/wiki/United_Kingdom

http://en.wikipedia.org/wiki/United_Kingdom

http://en.wikipedia.org/wiki/Italy


How long will it last?

• Things to take into account

– Reserves

– Rate of use

– Recovery percent

– Undiscovered Resources

– Price

– New Technology


World daily Crude Oil Production

0

10000

20000

30000

40000

50000

60000

70000

80000

1950 1960 1970 1980 1990 2000 2010

tho

us

an

d b

arr

els

/da

y



• Quick Calculation. According to the previous

graph we use about 72 million barrels per day.

Oil reserves are 1201.332 billion barrels.

• This equates to approximately 45 years of oil!



• M. King Hubbert

– "Our ignorance is not so vast as our

failure to use what we know.“

– His prediction in 1956 that U.S. oil

production would peak in about 1970

and, his analysis has proved to be

remarkably accurate.



39

Manufacture - Different Grades

DISTILLATION

REFINERY GAS

LPG

CRUDE

Product Uses

Petrol

Jet/Kerosene

Diesel Gas Oil

Fuel oil


END CONSUMER PRODUCTS

from oil field

TERMINALS

Retail (Service Stns)

ExxonMobil Aviation

ExxoMobil Marine

I&W (Ind. plants) Pipelines Railways

Barges


LPG

MOGAS

AVIATION FUELS

ADO / GAS OIL

LUBRICANTS

FUEL OILS

BITUMENS

CRUDE YIELDS - REFINED PRODUCTS

REFINERY OUTPUT


PRODUCT CLASSIFICATION


Refinery Operations

Unit

PETRO VIDEOS/petroleum refining basics.flv


OIL REFINING

Typical Oil Barrel Composition

– Gasoline C4 to C10 27%

– Kerosene C11 to C13 13%

– Diesel C14 to C18 12%

– Heating Oil C19 to C25 10%

– Lubricating Oil C26-C40 20%

– Residue >C40 18%


Supply Chain Planning

(MRP II)


What is a Supply Chain?

• Flow of products and services from:

– Raw materials manufacturers

– Intermediate products manufacturers

– End product manufacturers

– Wholesalers and distributors and

– Retailers

• Connected by transportation and storage activities

• Integrated through information, planning, and integration

activities

• Cost and service levels


What is Supply Chain Management?

Supply chain management is a set of approaches

utilized to efficiently integrate suppliers,

manufacturers, warehouses, and stores, so that

merchandise is produced and distributed at the

right quantities, to the right locations, and at the

right time, in order to minimize system wide costs

while satisfying service level requirements.


Formal Definitions

‘The design and management of seamless, value–added

processes across organizational boundaries to meet the

real needs of the end customer.’

Institute for Supply Management

‘Managing supply and demand, sourcing raw materials and

parts, manufacturing and assembly, warehousing and

inventory tracking, order entry and order management,

distribution across all channels, and delivery to the

customer.’

The Supply Chain Council


Objectives of Supply Chain Management

• Meet target Customer Service Levels

– Avail the Right Product

– At the Right Time

– In the Right Quantity

• Minimize overall system costs

– Inventory Management

– Manufacturing Efficiencies

– Network Efficiencies (Sourcing)

• Absorb and Manage Uncertainties

– Network Configuration

– Integrated end-to-end information flows

exxonmobil egypt meca supply chain session 1

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