CASE STUDY :1

Challenges associated with Effective Feul Management in Oil Marketing Companies

Author : Shiza Riaz , Kaleemullah K.Khilji , Muhammad

Wisal Ikram and Matti Ullah

Published: Case Studies Journal.

Abstract:

This study outlines the topmost challenges faced by the Oil & Gas industry in Pakistan specifically the Oil Marketing Companies (OMC). It also assesses the awareness level for Fuel Telemetry System for effective fuel management across the supply chain in order to address the identified problems which include fuel leakages, contamination, fuel theft, spillages, reconciliation inaccuracies, product loss due to volatility & calibration and instrumentation challenges for precise measurements. The analysis of the survey results indicate that majority of the Oil Marketing Companies are facing issues mainly related to fuel loss & leakages (Ranked 8/10), incompatible systems (6.7/10), real-time fuel stock information gathering (6.6/10). 47% of the respondents indicate fuel losses of greater than 500 Liters per month on an average. The industry mainly relies on manual stock reconciliation methods (12%) and manual collection of information instead of an integrated technological application. Findings reveal that the level of awareness about Fuel Telemetry systems is acceptable (50%) but no Oil & Marketing Company has yet implemented such a system in Pakistan. However, the industry must look into the trade-offs before actually resisting or declining the application of Telemetry in effective Fuel Management.