Caltex Value Chain

1824 Words 7 Pages
Compared with the ideal value chain, Caltex existing value chain has many shortcomings.

Exploration and Development
With the deepening of oil exploration, since non-renewable oil and gas resources, making the exploration and exploitation more and more difficult and the cost is rising year by year. The production cost of crude oil also increased, mainly due to investment in technology is not enough. In addition, Caltex costs in exploration and development aspects of the constitution should be further optimized, mainly the proportion of non-productive costs too much. Oilfield construction aspects of the costs, including infrastructure maintenance costs, large repairs wells, oil and gas processing and power costs and fuel expenses remain high
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Due to this problem, it is critical to determine the buying time, quantity and also the buying price of the crude oil. So a forecast for supply and demand with higher accuracy is required. Furthermore, the freedom of the supply chain is limited. Specifically, after this determination about the supply of the crude oil, it is difficult to change the order since products are always transported by ship, which will always lead to financial losses.
Firstly, equipment should be renewed regularly to prevent the occurrence of leaking phenomena due to the aging of equipment. Pipelines should be checked from time to time. Once problems are found, they need to be solved in time. Secondly, the management of petroleum storage and transport links should be strengthened as well. Each employee in the Caltex should take responsibility to avoid the waste of oil and gas resources. Thirdly, with the rapid development of network technology today, Caltex must obtain the latest and most completed information in the fastest way in order to enhance the responsiveness ability. Information management can help Caltex to improve the accuracy of business information, so that their business and management procedures would be more reasonable. It is helpful to develop more rapid response capability of Caltex which could enhance the production, operation
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Closed the unnecessary refinery in Sydney and New South Wales and offer the reliable supply of transport fuels to Caltex customers.
3. Lytton refinery in Brisbane need to focus more on necessary operational and financial performance improvements.
4. Setting office in Singapore to reinforce the fuel product supply chain following the closure of Kurnell refinery. Ampol Singapore would be a wholly operated subsidiary of Caltex Australia which provide raw petroleum product imports and related delivery to Australia. Furthermore, Ampol has begun a long-term strategy with Chevron to assist with the procurement and supply transportation fuels (petrol, diesel and jet) including associated shipping

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