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The Supply Chain Management Blog covers the latest in SCM strategy, technology, and innovation.

Shale Oil & Gas Producers Transform Supply Chains

As the world price of oil approached and exceeded $100 per barrel, the economics of energy production using advanced technologies became more attractive. In the United States, thanks to technological innovations in extraction of hydrocarbons from shale (fracking), we have a boom in natural gas and oil production. However, this increase in supply is putting pressure on prices and oil has now fallent in to the mid $80 range. This is causing a major profit squeeze for producers and they are looking at ways become more efficient.

Steve Banker of ARC Research has been looking into this problem. In a recent article for logisticsviewpoint.com, he says:

"In the process of doing research in this area—I talked to 45 subject matter experts on this value chain—I came to the conclusion that the single biggest opportunity to improve cash flows in this value chain will be based on implementing a form of integrated business planning specific to shale oil & gas. Oracle and Accenture have teamed up to create a solution set for shale oil & gas focused on doing better integrated business planning. Oracle will focus on software, Accenture on change management and implementation."

You can read the entire article here: Declining Oil Prices makes it Imperative for Shale Oil Companies to improve their Value Chains.

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