TRANSPORTATION
demand nor supply changes very much in reaction to a change in price. We are all aware of the fall in oil prices over the last 12 months. The need for logistics and for transport services of the industry has remained consistent though. The US Energy Information Administration (EIA) recently estimated global consumption of petroleum and other liquids grew by 1.2 million b/d in 2014, averaging 92.4 million b/d for the year. The EIA expects global consumption of petroleum and other liquids to grow by 1.3 million b/d in 2015 and by 1.4 million b/d in 2016. So demand for the products we carry is there, and is growing. The EIA also notes that ‘global liquids production continues to outpace consumption’. This means we also face the challenge of providing the same service levels and same safety levels, but with less cash in the industry, to be shared with everyone in the supply chain. Therefore, how a company adapts to the market changes, how it improves its processes, and how it manages its operational costs, are key to maintaining the company’s revenue in this challenging economic environment. How have demands changed in the last few years, and how has Tristar prepped to keep on top of demand and forecasted trends?
We have all sorts of vehicles and equipment available with our own 24/7 vehicle maintenance facility to ensure seamless workflow for our customers. All our vehicles are fitted with GPS technology, and our dedicated Journey Management team monitors vehicle movement on 24/7 basis, again, to ensure seamless workflow. What are challenges you are currently facing with regards to transport in the oil and gas industry?
The oil and gas market is traditionally a market where both demand and supply are price inelastic. This means that neither
Our stringent recruitment process ensures that we hire experienced and competent drivers, who are then given exhaustive safety induction training before driving.
Technology, and the pervasive availability of internet connections, have changed the way we work and the way we expect others to work. We live in an ‘on-demand’ society, where real-time information is now the norm. Customers increasingly want real time knowledge of their deliveries. All our systems and business processes need to interface with our Customers’ ERP system for orders, invoicing and payments. Tristar has invested heavily in Data Management, Information Analysis Tools, Mobility Applications, Network Security and Data Protection for today, and for tomorrow. It might seem a usual topic, and not related perhaps to supply and logistics, but the rapid advancement in autonomous technology and connected devices means we can expect these devices in our homes, offices and warehouses within five to seven years.
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