Text 3. Logistics Solutions for Energy Industry

The energy industry is changing rapidly. Deregulation has opened up both growth opportunities and competitive pressures for energy companies. Although the fuel impact of deregulation is felt. The competition has forced energy companies to look for new areas to reduce cost. One such area is logistics. Historically, vendors had been allowed to manage the transportation of purchased material. Many energy companies now view this transportation as a potential area for cost reduction either independently or as a part of an overall supply chain strategy. Recognizing the potential to manage cost in this area, energy companies have increasingly turned to logistics companies for solutions. Creating of these solutions has been a challenge for logistics companies. Traditional logistics programs strive to implement solutions that are efficient and manageable. However, the fluid and complex requirements of the energy industry demand tremendous flexibility for shipping of unique high-dollar material from a wide variety of locations, often on a short notice. Successful logistics solutions for the energy industry lies in ensuring the production or flow of energy. Successful programs will be operationally oriented, generating savings through efficiency and service. Transportation cost reduction cannot be the exclusive goal. The safe and timely delivery of materials that ensure the production or flow of energy must drive the design of the programs.

Global energy supply dominated by petroleum during the second half of the twentieth century will undergo a radical shift towards more gaseous fuels and alternative non-fossil fuel sources or fuels, such as: extra heavy oil, gas - gas hydrate, coal-gasified, coal - liquefied coal, nuclear, hydrogen, biofuels - biodiesel - ethanol. This not only must reduce air emission-caused pollution but also lower dependence on fuel from politically unstable regions. Changes in fuel sources and use will impact energy logistics in many ways. Different transport technology, routing, storage and management will be used, and the traditional producer-consumer links will undergo radical changes.

The major new developments are the rapid increase in petroleum demand of China and India, both poised to become major global economies, and the increasing push of the major industrial nations to conserve or reduce petroleum consumption. The effects of both are difficult to predict, but it seems certain, that China’s and India’s consumption will increase by at least 12 % and 6 % respectively per year. This will probably offset a major part of the reduction of petroleum use projected by the industrialized countries.

Middle East remains the world’s largest supplier of petroleum. Major new producers in Central Asia, Russia, Africa and elsewhere are rapidly capturing market shares. Their large-scale entry will have a great impact on energy logistics and tanker demand. The new Russians and Central Asian exports are primarily aimed at East Asia, a market, where they have a distinct geographical advantage. Similarly, West African producers are becoming major suppliers to America and Western Europe, where again they benefit by shorter delivery distances.

Exercise 29. Determine the parts of speech by suffixes.

Rapidly, opportunity, competitive, deregulation, pressure, competition, historically, vendor, transportation, potential, reduction, independently , strategy, increasingly, company, solution, traditional, manageable, requirement, industry, tremendous, flexibility, successful, operationally, efficiency, transportation, reduction, exclusive, timely, delivery, global, radical, gaseous, alternative, pollution, dependence, technology, storage, management, producer, consumer, radical, development, industrial, consumption, respectively, supplier, tanker, primarily, geographical, similarly, strategic, variety, efficient.

Exercise 30. Translate the following word combinations.

A) Competitive pressure, potential area, traditional logistics, efficient solution, manageable solution, complex requirement, tremendous flexibility, variety of location, successful program, through efficiency and service, exclusive goal, safe and timely delivery, global supply, radical shift, gaseous fuel, alternative source, politically unstable region, different technology, storage and management, traditional link, radical change, new development, global economy, industrial nation, per year, largest supplier, shorter delivery distance, strategic issue, alternative energy, extra heavy oil, gaseous fuel.

B) To force to look for new areas to reduce cost, to lower dependence, to manage transportation, to view as a potential area, to manage cost, to implement solutions, to ensure production, to drive the design of the project, to undergo shift, to reduce pollution, to impact energy logistics, to undergo radical change, to be poised to become a global economy, to increase by 12% and 6% respectively, to conserve consumption, to reduce consumption, to predict effect, to offset reduction, to have an impact on tanker demand, to be aimed at a market, to have a distinct geographical advantage, to become a major supplier, to benefit by delivery distance, to affect the future of energy logistics.

Exercise 31. Translate the following attributive and objective groups of word combinations.

1. V-ing + n

Changing industry, recognizing potential, creating solution, increasing production, generating program, increasing push, changing sector, starting point, operating agreement, sharing resource, effecting issue, shifting route, operating company, accounting issue, evolving company.

2. Adv. + V-ing + n

Rapidly changing industry, independently reducing cost, timely delivering provider, respectively increasing consumption, rapidly captu-ring producer, globally reducing consumption, globally dominating petroleum.

3. V-ed + n

Opened opportunity, forced company, purchased material, re-duced cost, oriented program, dominated supply, caused pollution, projected use, used technology, reduced consumption, increased con-sumption, aimed at America export, gasified coal, liquefied coal, in-dustrialized country.

4. Adv. + V-ed + n

Rapidly changed industry, historically allowed vendor, independently reduced cost, increasingly turned company, operationally oriented program, timely delivered material, globally dominated supply, respectively increased consumption, rapidly captured share, primarily aimed at East Asea export.

5. n + n

Energy industry, energy company, cost reduction, chain strategy, logistics company, logistics program, energy demand, logistics solution, transportation cost, energy supply, fuel source, energy logistics, transport technology, producer-consumer link, petroleum demand, petroleum consumption, world’s supplier, market share, large-scale entry, high-dollar material, tanker demand, delivery distance, energy source, gas hydrate.

Exercise 32. Translate the following sentences into English.

1. Некерованість в енергетичній промисловості відкрила як можливості росту, так і тиск конкуренції на енергетичні компанії. 2. Конкуренція змусила компанії шукати нові шляхи зниження собівартості. 3. Сьогодні багато енергетичних компаній розгляда-ють перевезення як потенційну сферу зниження вартості. 4. Енер-гетичні компанії все більше і більше звертаються до логістичних компаній за вирішенням проблем. 5.Успішне логістичне рішення для енергетичної галузі полягає у забезпеченні безперебійного енергопостачання. 6. Світове енергопостачання, в якому нафта займала домінуюче положення протягом другої половини двадцятого сторіччя, зазнаватиме радикальних змін на користь більш газоподібних видів палива та альтернативних неорганічних паливних ресурсів. 7. Зміна пріоритету паливних ресурсів та їх використання значно вплине на енергетичну логістику. 8. Радикальних змін зазнаватимуть транспортні технології, маршрути постачання, процеси зберігання та управління. 9. Радикально змі-няться й традиційні зв’язки між виробником і споживачем. 10. Нові тенденції в енергетичній галузі викликані швидким зростанням споживання нафти країнами, які намагаються стати лідерами світо-вої економіки, та зростаючими зусиллями великих промислових країн зберегти або зменшити рівень споживання нафти.

Exercise 33. Give synonyms or synonymous word combinations to the following.

To seek for new areas, to ship materials immediately, industry requirement, manufacture-user link, customer, seller, complete change, appeal to a logistics company, high-cost material, to deliver in time, influence energy logistics, guarantee the production or flow of energy, price reduction, great industrial country, world economy, emission-caused contamination, changeable requirements.

Exercise 34. Make up Reported General Questions beginning with: He asked whether (if) … or She wondered whether (if) … . Mind the rules of the Sequence of Tenses.

Model : - Is energy industry changing rapidly? - He asked if energy industry was changing rapidly?

1. Is traditional energy industry particularly common in some countries? 2. Does energy development face great challenges due to an increasing world population? 3. Will the world’s entire industrialized infrastructure collapse without energy? 4. Can resources be recovered economically under current market conditions? 5. Is oil supply largely controlled by the national oil companies of nations with significant reserves of cheap oil? 6. Does OPEC control a very large proportion of the total global oil output?

Exercise 35. Make up Reported Special Questions beginning with: I’d like to know … and I wanted to know … . Mind the rules of Sequence of Tenses where necessary.

1. Why does the oil price rise? 2. Why should petroleum consumption be reduced? 3. What can lower dependence on oil? 4. How will alternative fuels impact energy efficiency? 5. What alternatives are used to transport fuel? 6. What gas is the cleanest of all fossil fuels?

7. How will oil demand influence its price?

Exercise 36. Make up dialogues as in examples:

Model 1 : - Can you save energy in your household? - What did he(she) ask? I have not got him. - He(she) asked if you could save energy in your household.

Model 2 : - How can you save energy in your household? - What did he(she) ask? I have not caught the question. - He(she) asked how you could save energy in your household.

1. Why is insulation put in walls and attics? 2. Did fossil fuels take millions of years to create? 3. Can fossil fuels be renewed or reple-nished? 4. Is compressed natural gas used as a transport fuel? 5. How will pollution from automobiles be reduced? 6. What shift will global energy supply undergo? 7. Did petroleum dominate global energy supply during the second half of the twentieth century? 8. Will the traditional producer-consumer links change radically? 9. What region remains the world’s largest supplier of petroleum?

Exercise 37. Ask:

a) if the energy industry is changing rapidly;

if the competition has forced energy companies to look for new areas to reduce cost;

if historically vendors had been allowed to manage transportation of purchased materials;

if logistics is viewed as a potential area for cost reduction;

if transportation cost reduction cannot be the exclusive goal;

b) how deregulation has influenced energy companies;

why energy companies have increasingly turned to logistics companies;

what logistics solution must drive the design of successful programs;

how a shift towards alternative fuel sources will impact energy logistics;

what major new producers will have a great impact on energy logistics.

Exercise 38. Speak on:

- Logistics Origin and Definition;

- Transportation and Logistics;

- Logistics Solution for Energy Industry.

Exercise 39. Memorize the following words and word combinations to text 4.

Occupy – займати

fertile chernozem soils – плодоносний чорнозем

trade route – торговельний шлях

access – підхід; доступ

in terms of – з точки зору; що стосується

intertwine – переплітати(ся)

iron – залізо, чорний метал (залізо, сталь, чавун)

manganese – марганець

titanium – титан

ore – руда

rock salt – кам’яна сіль

gypsum – гіпс

clay – глина, глинозем

bromine – бром

graphite – графіт

mercury – ртуть

uranium – уран

deposit –1) родовище, поклад; 2) відкладати(ся)

ammonium – амоній

magnesium – магній

estimate – оцінювати

fuel oil – паливна нафта

field – родовище; галузь, сфера діяльності

demand – потреба, вимога; потребувати

bearing region – регіон, збагачений копалинами

peat – торф; торф’яний

shale oil – сланцева нафта

discover – виявляти, відкривати, знаходити

chronic – хромовий

onshore – на березі

via – через

reckon (among) – зараховувати / відносити (до)

deliver – постачати

billion cubic meter (bcm) – мільярд кубічних ме

crude – сировинний, необроблени

juncture – вузол; з’єднан

uneven – нерівном

comprise – включати, містити, вміщувати

work – завод

mutually beneficial – взаємовигідний

reliable – надійний

joint – спільний

strengthening – посилення, укріплення

safety – безпека

Exercise 40. Read, translate and give the gist of text 4.