Improvement in Supply Chain Management for Oil and Gas Sector Using Drag Reduction Theory

Abstract

Supply Chain Management is an integrative philosophy about managing the flow of distribution channels from supplier to the consumer. PARCO, an oil and gas company in Pakistan has three existing pipelines. Out of three, two pipelines are running parallel from Karachi to Mehmood Kot. One pipeline is of crude oil and meeting the demand of PARCO refinery while second pipeline is of High Speed Diesel (HSD) and third pipeline is of (HSD & Kerosene) running from Mehmood Kot to Machhike(Sheikhupura).PARCO supply petroleum products from Shikarpur, Mehmood Kot, Faisalabad & Machhike to oil marketing companies (OMCs) as per their share, standard and demand. The purpose of these pipelines is to meet the country demand for petroleum products at various locations all over Pakistan. In the peak season when OMCs have high demand and receipt of product from PARCO pipelines are less, there is a need to enhance the flow rate of oil inside the PARCO pipelines to fulfill the demand of OMCs. This could be done economically by the application of drag reduction theory. So by injecting drag reducer, dragging of the oil inside the pipeline could appreciably be reduced thereby improving the pumping of oil.