DHL's Oil and Gas Upstream Solutions
July 2, 2014
What is DHL’s current involvement in the shale gas industry across Europe?
DHL have a strong portfolio of operations in unconventional gas, we have operations in the U.S, particularly in the midstream area, and in Latin America, where we are undertaking international rig move management. In Europe, we are operating with shale gas in Ukraine, and similarly in Asia Pacific, in both China and Australia.
Our contracts span the supply chain over a whole range of supply chain services including, international inbound forwarding, upwards costs, pipeline management, domestic and people transportation and health, safety, security and environmental services, particularly associated with the management of sub-contracted transportation providers.
The shale gas industry is a very important sector for DHL.
What types of energy companies does DHL support?
DHL provides a range of supply chain management services to the oil and gas industry, including logistics to managing integrated inbound supply chain to support major capital contract infrastructure, inbound to operations and MRO which is maintenance, repair and operations supply chain management, rig management and support, which is moving them internationally but also moving them in-country or in-region from one location to another and finished product logistics. In particular we provide integrated logistics and transport services, so we act as a control tower managing DHL aspects of contractor operations.
In terms of the types of business we support that includes, national oil companies, international oil companies, in particular the international company majors, service companies and drilling companies.
Is DHL looking to initiate activity in the UK shale gas industry?
DHL is interested in working to support the UK shale gas industry.
On the subject of extraction processes, currently there is no decision on whether a particular country moves forward with a particular extraction process, for example with ‘fraccing’.
Energy companies themselves will work with governments and if the governments decide to develop unconventionals then there is a real means for professional logistics services to reduce the community and environmental impact, and that’s because the logistics required for unconventionals are much greater than for conventional oil and gas activity.
DHL designs optimal logistic solutions, in particular that focuses on reducing the impact of the local community and promoting the use of the local content, which frequently will result to new opportunities for the environment and local communities. Logistics solutions for ‘fraccing’ operations can record the difference in terms of monitoring the local community impact in a professional and safe way and portray an appropriate corporate image for our clients, the oil or service companies.
DHL are certainly involved in ‘fraccing’ but our work with unconventionals comes once that decision has been made to proceed.
How do you feel the shale gas sector is currently developing in the UK and Europe?
In terms of the pace of development in the UK and Europe it is very naturally dependant on environmental policy, in that respect the decision has been taken on an environmental level.
So our plan once that decision has been made to move forward, we see the real need and eventual opportunity to provide professional logistics services, services which can support those businesses to reducing the impact on the local community and on the local environment.
So the pace of development is very much dictated by environmental policy but once the decision is made we will see development at a reasonable pace.

How does DHL help energy companies to reduce costs and improve productivity?
DHL is very much focused on offering integrated supply chain management solutions to clients, to give them full visibility and traceability in materials across the supply chain, which also provides a real professional approach improving companies when it comes to the environmental impact on local community.
The integrated supply chain approach that we offer includes a number of different services, from sorting, including product selection, planning for materials, purchasing, planning logistics, optimising inventory, improving pipeline management, repairs management and disposing of materials. The integrated approach that we take is all of those different functions together, to control the supply chain and provide that visibility and traceability to our clients.
Can you explain the role of Maintenance, Repair and Operational supply chains for energy organisations?
MRO supply refers to the core items that support operations that aren’t consumed in the production process, they don’t become part of the end product. This includes material groups such as, pipes, cables, valves, fittings and protective equipment. A whole range a different material groups, and the MRO supply chain can support operations by providing the materials necessary to keep the operations running at full capacity, MRO also supports full maintenance, whether that’s preventative, conditioned based maintenance or statutory maintenance.
Full integrated end to end supply chain for MRO materials that improves the quality of that supply chain, increases service quality, reduces the costs and increases productivity and increases production.
How do you feel the shale gas operations in Ukraine are running?
I have to say that I am extremely proud of our operations performance in Ukraine, working with all levels of health, safety and operation performance, allowing DHL to support our client, an international oil company in Ukraine, to achieve its project ambitions in terms of time and cost.
The operations in Ukraine are going extremely well.
Why are conferences and debates so important to the shale gas industry?
Conferences and debates are really important for the industry, to identify and share best practice, to provide a means of bringing new developments to the industry, the cross organisation of best practices from other industries, the contact between different businesses, a means of generating partnerships for the future, and it is an approach which addresses some of the key areas of potential issues that have been raised.
So conferences and debates can help to find the right solutions which will address issues such as impact on local community, environmental impact, as well as core addressing cost structures associated with unconventional gas development so helping to improve not just productivity but improve the costs that are associated with it too.
What do you think the benefits are of having a shale gas industry?
The core benefits for countries who are embarking on unconventional gas development are associated with the drive to reestablish their independence. Countries can see the clear benefits which have been seen in the U.S to unconventional gas development, a greater availability of gas, a reduction in gas price and gas as a true petro carbon food stock and the associated growth that’s been seen from the petrochemical industry, particularly in the U.S Gulf on the back of that food stock. Also, economic benefits through increased employment and the growth in the service sector supporting those exploration production activities.
That is what countries are seeing from the advantages of developing a shale gas industry.
