Shippers opt for one-stop logistics

The global oil and gas logistics
market is set to grow at an
average annual rate of 6%
over the next three years
to 2020, according to the
London-based global research
company, Technavio.
A new Technavio report
released last month (May) and
titled ‘Oil and Gas Logistics
2017 – Opportunities,
Challenges, Strategies
and Forecasts’, says an
international surge in offshore
oil and gas exploration and
production activities has been
a primary growth driver for
the logistics industry.
The report points out that
due to the complexity and
scale of oil and gas projects,
shippers of the product are
increasingly looking for highend
logistics and supply chain
contract partners that offer a
one-stop solution to help them
avoid outsourcing different
tasks to different vendors.
The oil and gas logistics
industry is not just about
focus on the product supply
chains – it also deals with
the non-hydrocarbon supply
chains, which include
handling of the heavy
equipment, spare parts, and
other requisite materials and
services required to run the oil
and gas business.
“The delivery of the
equipment and services is
critical to find, extract, refine,
and market the oil and gas.
Procurement and supply
chain involves huge costs and
is of critical importance for
oil and gas companies,” said a
Technavio researcher.