Production and Operations Management

product and Operations Management November 14, 2010 Production and Operations Management Since there is no storage capacity at the LOOP offshore style, the rank oil is conducted directly by undersea pipeline to every eight underground salt caverns with or so 50 meg put storage capacity or to 600 thousand barrels of above ground storage (www.marathonpetroleum.com). If Marathon puts an offshore port at the LOOP this can reduce the time knotty in the production process. Marathon can attach the immix of crude oil by moving by pipelines and increase pipeline efficiency by shortening the time that it takes to transport crude oil. According to the Association of Oil Pipe Lines (APOL), the average cost to transport a barrel of oil was $1.05 in April 2005. Currently, there are 408,664 miles of crude oil pipeline about the globe, according to estimates by Visiongain Ltd. In the first quarter of 2010, cosmoswide oil supply was approximately 86.5 million barrels a day. On an annualized basis at $1.05/per barrel, this places global revenues for transporting oil through pipelines at approximately $33.1 billion (www.marathonpetroleum.com).

Assuming that all pipelines were operate at full capacity, it is estimated that a 20% increase in global crude oil flow would generate approximately $6.6 billion a year in revenue for the worlds pipeline operators due to the increased flow capacity (www.marathonpetroleum.com). Marathons exploration activity is focused on adding juvenile, profitable production to existing fondness areas, such as the North Sea and the Gulf of Mexico, and in developing new core areas, such as Angola, Indonesia, Poland and key onshore vision plays in the U.S. To achieve profitable and repeatable exploration political program results, they balance risk, timing to first oil, costs and scale of Production and Operations Management Opportunities. By Marathon expanding and developing to new core areas their timing will be balanced. The... If you want to get a full essay, order it on our website: Ordercustompaper.com

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