Discuss and evaluate Cairn Energy Supply Network

Cairn Energy Group is a well-established industry in Europe. It does adhere to stipulated rules and regulations that has been instituted by the firm for the success of the business. On the same note, the venture renders good services to its clients and has for very long period of time attempted to maintain good cordial relation with its clients. Energy industry is a very crucial and significant industry worldwide. It deals with the production and supply of energy to both domestic and infrastructure sector, the consumption of fuel energy is very high in our society today. Energy industry involves the production and supply of gas, electricity, power, coal, nuclear, petroleum and renewable energy. Various industries in the market are undergoing invention and innovation daily because of technological advancements. Innovation and invention should be increased to restructure the entire energy system.

  Cairn energy supply network is a broad organization that deals mostly with the drilling of offshore wells of gases and oils. It has been noticed to be a successful venture partners that mainly deals with explorations. It is an independent company that deals with discovering and development of oils in various locations around the world (Christopher, 2016). Cairn supply energy network was discovered in European countries but currently it is focused on frontier regions, areas reach in oils and gases

  The company coordinates with various people in order to ensure its success operations. For instance, people involved in the company’s operations are the employees, contractors and the communities around the operational area and the suppliers not to forget the government (Coyle, Langley, Novack, & Gibson, 2017).  Proper coordination with these groups ensures that the company’s activities are carried out in a logistic manner.

Cairn energy supply network has played a vital role in improving the economic status of the local and international community at large. This as a result of revenue and tax collected during its export. The social living standards of people have improved as a benefit of cairn energy as most people have been employed to provide labor by the company

    There are some limitations which are associated with cairn energy supply network which some include the exposure to dangerous disease and putting their lives at risk as accidents involved are fatal

Operational activities of the cairn supply energy company play a vital role to the lives of many people involved directly or indirectly in the company. For example, the company helps to improve the economic status of the people and country at large. Also there are various social and economic benefits which include revenues from the exported oils and gases; it creates employment opportunities to many individuals where many are employed as skilled and unskilled labor supply. Through extractions of oils and gases it has been noticed that infrastructure and social investments have developed in those areas this is to ensure easy transportation and accessibility to oils extraction areas. Energy security has been resolved as a problem to various countries. Cairn energy Supply Company has provided a permanent solution to issue of energy supply which has been affecting most of the developing and undeveloped countries.

Merits of Cairn Energy Supply Network

Waters & Rinsler (2014) allude that innovation is the improvement in the pipeline technology whereby the pipelines have been made to be cheaper and more environmental. Pipelines are incredibly expensive to install without the third party such as, the government, support. Environmental friendly pipelines reduce pollution to the environment and also reduces political conflict during the installation process (Flynn & Zhao, 2015).  Oil and gas should be supplied and stored in pipelines and containers which are safe and friendly, to reduce unnecessary accidents such as fire explosions. Oil and gases are where very flammable and explosive, the innovations done in the transportation system is incredibly good. The company has been configured with various bodies which has to ensure that the accountability and standard principles of the company are well adhered to. The company has to ensure that the materials and responsibilities of the company are well adhered to. Furthermore, the participation of the stakeholders and other organizations are collaborative to ensure defining and achieving the goals and objectives of the company are achieved.

There is no project that can be runned without being involved in any risks. It is important to have essential risk management to ensure that healthy and safety environment is attained in the working environment of oils and gases extraction. There are various dangers involved with oils and gas operations. Thus cairn energy supply company approach to these risks is to ensure investment opportunities that bring correct balance of all risks that may be involved in these operations. For example, there is a technical risk, political risks and commercial risks that may be involved.

 Oils and gases drilling activities involve many equipment and tools, thus controlling hazard to prevent injuries and deaths should be highly considered to ensure safety working environment. Workers and equipment are to be transported from the well sites as we know gases and oils to be highly flammable (Simchi-Levi, Bramel & Chen, 2014).  They should be stored well away from the extractions to avoid cases of fire that may be result of explosions. Oils and gases extraction should be transported well and be well stored as its crashes are the leading fatalities.

 It is of good health practices that all workers involved in oil and gases extraction zones should be provided with masks to cover their ears and nose for their health purposes. Some gases are poisonous that may have health effect on the life of an individual (Golinska, 2014).  Hands and legs protections should be well protected from the effects of direct exposure to the oils. Gloves and boots should be given to all workers to ensure their safety.

Identify and critically discuss production/product/manufacturing related challenge

 Health and safety is one of the critical constituents of oils and gas as their operational activities has been known to have serious threats to the working conditions of the workers. Working in gas and oil industry   exposes one to agents which lead to illness hazards. For instance, working at loud noisy and vibration environment may cause ear damages to the individual. Biological hazards that may be involved include been exposed to agent’s likes parasites and fungi from the oils which may be infectious and thus causes diseases to individual (Waters & Rinsler, 2014). All workers have to be protected from all these hazards

The main purpose of health and safety programmer in oils and gas industry is to identify and asses all the existing hazards at the work place and providing appropriate controlling measures to the hazards (Crandall, Chen & Crandall, 2015).  All process in oil and gas industry are always complex thus the safety and health programme organization should provide a well systematized approach to manage the occupational hazards.

The process of risk management in oils and gas industry should critically analyzed. The process involves risk identification. The cause of a particular risk should be identified and then appropriate measure given to control the risk. For instance, workplace inspections and audits should carry out frequently to ensure that no risk rises from that. Also the management of the company should be changed to ensure proper utilization of materials of the company without causing over usage with can lead to risk (Grant, Trautrims & Wong, 2015).  Introducing of new equipment and regulatory needs can be an alternative way of reducing risks at oils and gas industry.

There are various challenges involved in drilling offshore oils and gases. Some of which include data processing. In most cases after the oil bearing rocks has been discovered by the surveys there is high probability that a well has to be drilled. The drilling process is quite complex and when done with untrained personal can result to a fatal accident (Mangan & Lalwani, 2016).  Successful extraction of oils on offshore reservoirs is influenced with technological advancement (Khetrapal, 2009).

   The other challenge involved in extraction of oils at offshore reservoir is that the process requires a highly trained manpower, Proper balancing of pressure is needed where fail to do so can result to accidents.

Ways of mitigating challenges

Onshore drilling of oils and gases has been noticed to be more than offshore drilling. This is because of the dangers involved in offshore drilling. There is various mitigation that can be employed to reduce the risks in offshore explorations. For instance, low-toxicity muds should be used in water based extractions to reduce risk that may be involved. Furthermore, offshore risks are as a result of ignoring the rules governing the operations. A multiple applicable acts should be implemented to regulate the offshore boards. Strategic environmental assessment should be provided to ensure that various mitigations are laid and put into action. There is also need for the company to initiate the inventory type of management in the view of heightening its efficacy and operations in their venture as such realize good production.  

Configuration and coordination

The cloud computing technology is responsible for detection of leaks in the pipeline that transports oil, leakage of gases and oil is very dangerous because it can cause a tragic accident due to its flammable nature (Christopher, 2016)). These machines are very powerful and they should be embraced at all costs in order to minimize irrelevant fire accidents. To bring the oil and gas to the surface, a well must be drilled through the rocks into the reservoirs. A couple of innovation has been done in this field which has contributed to the growth and development of a country hence good economic development of a country. Technological innovation of extraction of fossil fuel such as gas from shale and oil from oi sands is a great innovation that has been embraced (Grant, Trautrims, & Wong, 2015). Some fuels that were not accessible in the past decades can be accessible because of new innovations. These resources are very expensive but rare to find. Many parts in the world can identify the presence of oil and gas but they lack   the right machines to carry out the extraction process. These fuels are very flammable and dangerous therefore they should be handled carefully.

    There are various challenges that are faced by oils and gas industry in offshore drilling. More challenges are experienced in management of the equipment’s used in drilling of the oils (Luo, 2013).  Most of the equipment’s used are more complex and thus making the management of them to be quite difficult. For instance, the ‘mud’ pushing equipment has to be well managed if not the equipment can lead to fatal accident. The pressure of the atmosphere and that of the mud’ is drilled using the same equipment thus making it a challenge to contractors (Habib, 2016).

  As far as transportation matters is concerned oils has to be transported using an advanced method. This is to help reduce risks that may be involved by its spillage. For example, oil spillage on water bodies can result to massive killing of aquatic animals. There is destruction and pollution of environment when oil is spilled on land (Flynn & Zhao, 2015).

 When conducting offshore drilling the most logistic challenge that one is likely to be affected with is the deepness of the water, size and weight of the machine to be used in the drilling process (Harrison, Hoek & Skipworth, 2014). 

Gas has to be well transported and kept in a good equipment which it cannot cause its leakage. Some gases are flammable and thus they should not be exposed to flames as this can cause fire.in addition other gases like carbon monoxide can cause death as it does not support live. The drilling fluids are also one of the logistics that has to be considered as they may result to great challenge in drilling of offshore oils and gases.

Key and reliable offshore maintenance is the effective strategy that can be used to reduce all types of challenges experienced at offshore drilling operations. Knowing the best fluids and plant mobilization to use in offshore drilling can be an alternate way of reducing challenges. Cairn energy supply network has played a vital role in improving the economic status of a country. Providing a permanent solution has been one of the noticeable benefits of cairn energy supply network.

References

Christopher, M. (2016). Logistics & Supply Chain Management.

Coyle, J. J., Langley, C. J., Novack, R. A., & Gibson, B. J. (2017). Supply chain management: a logistics perspective.

Crandall, R. E., Chen, C. C., & Crandall, W. R. (2015). Principles of supply chain management. Boca Raton, FL [u.a.], CRC Press.

Flynn, B. B., & Zhao, X. (2015). Global supply chain quality management: product recalls and their impact. https://www.books24x7.com/marc.asp?bookid=61822.

Golinska, P. (2014). Logistics Operations, Supply Chain Management and Sustainability. Cham, Springer.

Grant, D. B., Trautrims, A., & Wong, C. Y. (2015). Sustainable logistics and supply chain management: principles and practices for sustainable operations and management. London, United Kingdom, Kogan Page Limited.

Habib, M. M. (2016). Supply Chain Management. Hauppauge, Nova Science Publishers, Inc. https://public.eblib.com/choice/publicfullrecord.aspx?p=4591572.

Harrison, A., Hoek, R. I. V., & Skipworth, H. (2014). Logistics management and strategy: competing through the supply chain. Harlow (UK), Pearson.

Khetrapal, B. (2009). Logistics & supply chain management. New Delhi, India, Alfa Publications.

LUO, Z. (2013). Technological solutions for modern logistics and supply chain management. Hershey, Pa, Business Science Reference.

Mangan, J., & Lalwani, C. (2016). Global logistics and supply chain management.

Simchi-Levi, D., Bramel, J., & Chen, X. (2014). The logic of logistics: theory, algorithms, and applications for logistics and supply chain management. https://dx.doi.org/10.1007/978-1-4614-9149-1.

Waters, C. D. J., & Rinsler, S. (2014). Global logistics: new directions in supply chain management. London, Kogan Page. https://www.books24x7.com/marc.asp?bookid=68025..