Value chains

Images  -  above: Ammonia and methanol plants based on natural gas in Trinidad.  Below:  An oil refinery in Norway.

From reservoir to consumer (and the Earth's atmosphere) 

Value chains are the total set of activities for generating products that are valuable to consumers. For oil and gas, this obviously doesn't stop with extracting them from the underground. 

Many countries having petroleum resources desire to also develop related industries:  As suppliers to petroleum operations (local content), with industries aspiring to add value to oil and gas, and by using oil and gas to secure national energy supply.

A wide range of issues arise with efforts to develop the value chains of oil and gas:  Understanding the markets for oil, gas and petrochemicals; the characteristics of downstream industries; opportunities and pitfalls with industrial policy; education and capabilities; and the global climate issue.

The oil sector value chain: Report and workshop

Dr Erik Jarlsby wrote this report for the African Natural Resources Centre (part of the African Development Bank). A workshop on the report contents was held in Abidjan, attended by officials from several African countries. 

The report and workshop focused on measures that African countries may undertake (some not recommended or conditionally recommended) to expand the domestic value chains related to oil.  This includes local content development, refining, petrochemicals, price controls on refined fuels, and state participation in various stages of the value chain.  Licencing procedures and regulatory management of the upstream petroleum sector were also addressed.

We can deliver training that addresses the issues covered by the report.

The report is accessible at  https://www.afdb.org/sites/default/files/documents/publications/value_chain_analysis_for_the_oil_sector_3.pdf