The Case for Change:

Why does the Canadian energy sector need to reimagine its supply chain?

Fifty-dollar oil, delayed projects, slashed capital budgets and lay-offs are taking their toll across the entire industry.  As companies attempt to rapidly correct problems and reduce the cost of production, the current situation demonstrates the burning need to find alternative solutions and new efficiencies. The Canadian oil and gas value chain must be significantly improved from beginning to end if we want to keep business in Canada and remain competitive on a global scale.  And because so much work in our industry is outsourced (to suppliers in the supply chain), we must reimagine those supply chains to drive innovation and cost savings for our industry. 

Taking place on October 28, 2015, in Calgary, Alta., the Canadian Energy Supply Chain Forum is a unique industry event that gathers supply chain professionals from Canada's top producers together with executives and senior managers from leading industry suppliers to collaborate around solutions that will drive greater efficiency and productivity in all stages of petroleum production.

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Who is the Canadian Energy Supply Chain Forum for?

Supply Chain Management Professionals

Are you a leader in supply chain management/procurement for a large producer, EPC, or major contractor?   Is it your job to optimize your  supply chain, seek improvements in operations and asset efficiency, or ensure projects are delivered on time and on budget?  Are you responsible for capturing sustainable cost savings for your company's capital projects or operations?

Are the following items imperative for you to perform your job effectively?  

  • Responding to today's market in an appropriate and timely manner
  • Working collaboratively with suppliers to avoid contractual delays or cost increases from change orders
  • Learning from industry experts and peers who have successfully built and managed effective, efficient, and collaborative supply chain relationships 
  • Learning how better relationships and process changes in your supply chain can yield dramatic results

Senior Leaders from Producers and EPCMs

Are you a senior director, VP, or EVP for an energy producer or EPCM (Engineering, Procurement, Constuction, Management) company?  Times are changing and the current approach and cost structure for both capital projects and sustaining operations will no longer keep Canada's energy industry competitive.  Players in the oil industry are now expected to do more with less and a more innovative way of doing things must be found.  Change and new ideas must be spread throughout your organization, and your leadership in this regard is essential.

Here's what you'll take away from the forum:

  • How to gain alignment between your business objectives and your supply chain
  • Leading international practices on how to build highly effective supply networks
  • Learn how collaborative approach to contract management can act as a source of competitive advantage
  • How to best respond to today's market and growing global competition

Contractors and Suppliers

 

Are you a contractor, service provider or supplier to the energy sector?  If so, you make up the Canadian energy "supply chain."  Here's what you'll take away from the event:

  • Customer perspective on supplier relationships, collaboration and buying processes
  • How to collaboratively respond to cost reduction requests
  • Business development and networking opportunities with primary buyers
  • Industry examples of how producers and suppliers have worked together to innovate, reduce costs, and create win-win business relationships

side background
  • On Time, On Budget

    How eight megaprojects bucked the trend

    Melanie Collison.  Oilsands Review.  

    After years of sporadic and often disappointing project delivery performance, a number of oilsands producers are executing on time and on budget by sharpening their own engineering, procurement and construction (EPC) tools.  The oilsands sector has a reputation for projects being completed late and over budget. However, Tom Mansfield, a senior director in the province’s Economic Development and Innovation Department, says we could now be starting to see the results of better planning that began years ago. READ MORE.

  • Productivity, Not Just Price

    The Real Solution to Surviving Low Oil Prices

    David Yager.  Daily Oil Bulletin

    Exploration and production (E&P) companies and the oilfield services sector (OFS) are once again embroiled in the latter half of their historic love/hate relationship. It’s not pretty.

    With oil prices down 50 per cent, clients are demanding vendors cut prices. Contracts mean little. Sue if you like. Some oil company executives are publicly telling investors they’re firing suppliers that won’t cut rates. Established relationships are secondary to E&P demands that vendors share the pain.  READ MORE.

  • Suppliers Under the Squeeze

    What happens to "industry collaboration" when producers demand service cuts?

     READ MORE.

  •  Market Intelligence Report

    How to thrive in a $60/bbl environment

    Despite reductions in capital budgets, oilsands maintenance, repair and operations (MRO) is expected to approach $39 billion in 2017. Learn how service and supply companies can capture a share of this MRO spend in the CanOils Market Intelligence Report, Hunting opportunities: Following the producer spend in a bear oilsands market.

    READ MORE.

  • Using PLM to Solve Industry Interoperability Challenges

    On Demand Webinar

    Efficiency is the key to executing well in today’s tough project environment where trapped value impedes any successful execution.  However, a massive amount of technical and business value remains trapped in systems that were never designed to work together.

    READ MORE.

  • Follow the Money

    Jim Bentien and Deborah Jaremko.  Oilsands Review

    Despite a stall in growth capital, producers are expected to spend more on maintenance and operations through 2017 as new projects come online.

    READ MORE.

Featured topics include:

  • A Global Investor Perspective: SWOT analysis of Canada's energy industry & why collaboration and innovation are necessary for sustained profitability and capital investment 

    To continue growing, our industry needs committed long-term capital. But we have a number of things working against us in this regard.  The energy sector has the second longest time fuse in terms of investment payoff, behind only the pharmaceutical industry. Investors are increasingly shying away from risky, large, long-lead-time projects.  New extraction methods become more "just in time" supply projects.  Oil and gas demand is being altered by technology.  Companies contemplating multi-billion dollar megaprojects that will come on stream in the next decade are thinking about some of these disruptive variables that can affect their investment decisions - and their decisions impact us all.

    With all these factors in play, it behooves us to understand how they impact Alberta investment decisions - and how we need to change our industry in order to continue attracting investment.

    Now that oil prices have dropped almost in half, we have the unique opportunity to look at the way we do things and drive new levels of innovation and productivity that will be required to ensure our ability to attract capital and ultimately, to ensure our long-term profitability and sustainability.  

    How will we meet this challenge? Our panel of investment leaders will first present where our industry stands from a global capital attractiveness perspective, then start exploring ways that we need to change through collaboration and innovation in order to ensure our long term success. 

  • Aligning Supply Chain with Strategic Business Objectives: SCM as a strategic core competency to drive competitiveness in Canada's energy sector

    Supply Chain organizations, almost without exception, strive to generate value for their businesses. They share the latest ""Supply Chain Best Practices"" as they develop better contracts, knock down prices, look for better suppliers, develop better RFPs and other processes, form cross-functional teams to work with their users, implement strategic sourcing and category management and more. However, is this what the business really needs? 

    Learn the surprising but obvious results from a major Alberta company whose SCM organization interviewed stakeholders from the CEO to the plant floor and across all departments from Operations and Maintenance to Finance to Sales to HR and Accounting to determine the key business drivers that its supply chain needed to support. Learn what they found with a few simple questions. And learn how these findings dramatically changed the focus and approach of their supply chain management organization.

    The case will then be followed by a discussion of why and how SCM must be driven from the top as a strategic core competency of the organization, especially in an industry like upstream oil and gas that relies so heavily on outsourcing, with the majority of annual corporate budgets spent on contractors/suppliers in the supply chain.

  • Productivity, Not Just Price: The real solution to surviving low oil prices

    As outlined in this Article in the Daily Oil Bulletin, Exploration and production (E&P) companies and the oilfield services sector (OFS) are once again embroiled in the latter half of their historic love/hate relationship. It’s not pretty.  With oil prices down 50 per cent from last year, clients are demanding vendors cut prices. Contracts mean little. Sue if you like. Some oil company executives are publicly telling investors they’re firing suppliers that won’t cut rates. Established relationships unfortunately become secondary to demands that vendors share the pain. This game of pricing ping-pong has been going on for decades. Everybody talks about how it should be different, but current events have proven yet again it isn’t. 

    What isn’t discussed enough is the real challenge — productivity. Lower commodity prices indeed require lower costs. But what matters most is the final capital investment per barrel. Total cost includes operational efficiency and time. This session will explore what customers and suppliers should really be talking about and working on to ensure a more sustainable pricing and profitability model for our industry and its supply chain. 

  • "We need a 25% cost reduction!" What producers and suppliers and doing together to achieve sustainable cost reductions

    With every major fall in oil prices, suppliers get letters from their large customers requesting 20-30% reductions in prices. This lively panel will provide real case studies of how customers are working with suppliers (at multiple layers of the supply chain) to collaboratively achieve customer cost reductions without threatening the financial sustainability of suppliers.

    Panelist 1: A seller’s perspective: How suppliers can respond to these requests, even with razor thin margins and a shrinking market.

    Panelist 2: Turning a 30% cost reduction request into a 25% opportunity. Learn how one producer took advantage of the cost pressure situation to actually strengthen their relationship with their supplier and collaboratively look at new ways that generated real savings, to the benefit of both.

    Panelist 3: Necessity is the mother of invention: How responding to cost pressures can actually result in streamlining suppliers’ operations and generate better profits.

  • Applying Technology Innovation Lessons Learned From Other Industries Using aerospace coatings technology in oil sands pumps

    Technological innovations are often made in one industry but silos inhibit their application to other industries. Learn from this case study how bridging industrial silos brought aerospace technology to the oil sands. Supply Chain professionals can build bridges and perform a collaborative role in using this approach to facilitate the link of oil industry engineering and operations with other industries to bring innovation to the oil industry.

  • Click here for a complete list of topics.

Additional Learning Opportunities:

In addition to the Supply Chain Forum on October 28, opportunities to further engage in topics relating to achieving supply chain  excellence exist on the days before and after the main event.

October 27, 2015

A)    Full-Day Supply Chain Management Workshops - details coming soon.

B)   Sales and Business Development Bootcamp - details coming soon.

 

October 29, 2015

With a long history of strong construction/major projects content at the Supply Chain Forum, we've decided to delve deeper and focus all related content on one day this year!  If you're a supply chain professional involved in energy construction projects, you'll want to stay an extra day for the Canadian Energy Projects Forum.  Two-day bundled passes are available at a discount.  

Find out more..

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This will be the supply chain event of the year!

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