American Oil and Gas Reporter - September 2019 - 48

ARTICLE
REPRINTS
SEPTEMBER 2019
The "Better Business" Publication Serving the Exploration / Drilling / Production Industry

Fluid Imaging
& Chemistry
Page 106

Page 66

Richard Walt
President AIPRO
"We are interested in
solutions for our
industry and the
citizens of Arkansas."
Page 83

Scott Kidwell
Chairman NMOGA
"New Mexico's
industry is committed
to doing its part to
build a brighter
future for all."
Page 86

Chuck Robinson
President INOGA
"Indiana is a great
state in which to
operate. It has
produced a lot of oil
and we are proud of its
economic strength."
Page 90

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48 THE AMERICAN OIL & GAS REPORTER

pipe casing, such as 6 inch, to enhance the flow and fracturing
efficiency. As some operators move away from standard casing
sizes, Tenaris has the capacity to manufacture these nonstandard
tubular products to execute larger frac operations.

Logistics are vital to efficient operations in horizontal
resource plays, whether moving proppant, people
or pipe. What do you see as the biggest logistical challenges
for tubular products in horizontal plays? How can oil and
gas companies work cooperatively with OCTG suppliers
to streamline logistics, avoid supply pinch points, and
make sure pipe and connections are delivered where
they are needed and when they are needed?

ZANOTTI: As operators continue to focus on cost optimization,
we have adapted our service offering to support them. Over the
past three years, we have been transforming our company and
the industry through Rig Direct® services; it is a radical departure
from how the tubular sector operated historically. The new
business model is our solution to shorten the supply chain,
reduce costs, and better manage tubular stocks by synchronizing
drilling schedules to mill schedules. We offer technical advice
on product selection, collaborate with customers on demand
and supply planning, and have our experts at the rig site to give
technical assistance during product installation.
The main challenges lay in the demand planning and accuracy
of forecasting, done in partnership with our oil and gas customers.
The onus of managing inventory levels is on us, ensuring we
deliver the right amount of product when and where it's needed.
Our service centers are more than points of distribution;
they offer value-added services to streamline logistics. For
example, our Midland service center has a buck-on machine for
pipe accessories. Rather than taking the pipe to another facility
to buck on the float equipment and then transport it back to the
yard, we perform all the work in house before dispatching with
the complete order. It reduces the number of trucks, time and
costs for customers.
Also, our ability to effectively manage the truck traffic,
loading and dispatching pipe, reduces dwell time. This translates
to cost savings for customers, expedites their operations at the
rig, and improves the overall health, safety and environmental
performance of the supply chain. The more efficient our yards
run, the greater the benefits we can offer our customers.
Digitalization also is integrated in our mills and service centers
to further drive service to customers. To support the traceability
of our products, we have developed PipeTracer®, a unique tracking
and traceability application that allows operators to identify
Tenaris products on site with mobile devices. By scanning codes
located on the pipe body and thread protectors, customers can
download product information, create digital tallies and generate
Excel® spreadsheets specific to the operation.
Rig Direct is entirely customizable to tailor the level of
services to match the needs of the oil and gas company. Through
our service centers across the country working in sync with our
pipe manufacturing facilities, we have built a robust industrial
network that can adapt and respond quickly to changing market
conditions. We continue to refine our strategy to better manage
the flow of processes and materials to strengthen customer collaborations and complete the circle.

Looking at the bigger supply chain, what steps
can operators take to more accurately forecast
their anticipated demand needs and better manage

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American Oil and Gas Reporter - September 2019

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