dhl energy sector brochure · of the international oil companies. the huge ... hydraulic fracturing...

$: DHL Energy Sector Brochure · of the international oil companies. The huge ... Hydraulic fracturing and advances in hori- ... out of China and India. In addition,$
EmpoweringEnergySector trends and supply chain solutions

TRENDS:

ThE ENERgy SEcToR ToDay aND ToMoRRoW

SEcToR STRaTEgy:

4 KEy SubSEcToRS aNDThEiR Supply chaiNS

iNNoVaTioN & RESpoNSiVENESS:

Dhl ENERgy cENTER lauNchES

Editorial | 2

bruce Edwards bill Meahl Steve harley

EMpoWERiNg ENERgyToday’s energy market is more dynamic than ever, with demand expected to keep rising while resources become more diverse and dearer, and competition keener. The energy sector tends to operate in harsh and chal-lenging conditions, often in remote, difficult to access areas. To meet these challenges, companies in the sector must invest in new technologies and geographies while always looking for ways to balance risks and costs.

Shale gas has started to change the nature of the business, with vast untapped reserves becoming available and redirecting the focus of the international oil companies. The huge increase in gas production – especially in the U.S. – has improved global energy security, but downward price pressure is causing concern for the major producers.

Thanks to innovative technologies, renew-able energies like solar and wind power are becoming more mainstream, and rapid progress in battery technology is trans-forming the prospects for electric vehicles.

At the same time, regulations are ever-more stringent, and health, safety, security and environmental (HSSE), as well as regula-tory compliance are top priorities across the industry, creating yet more supply chain challenges and making logistics require-ments that much more demanding.

In the face of these challenges, energy com-panies are redefining their business models with a view to outsourcing more of their non-core activities. In particular, they are looking to logistics suppliers specialized in >

Editorial | 3

the sector to gain access to technology and talent, while cutting costs and sharpening their focus on their core business.

At DHL, we have a global team of sector spe-cialists who understand the energy industry’s needs and concerns and can offer smarter, simplified solutions. They work closely with customers to optimize their complex supply chains and manage logistics costs better, so energy companies can focus on their core activities. And, our team applies the same exacting HSSE and compliance standards as the energy industry itself.

This brochure looks at trends in the indus-try and showcases how we are empowering the energy sector to operate more efficiently and effectively in the coming decades.

We hope you find it informative and useful!

Bruce EdwardsMember of the Board of Management, CEO DHL Supply Chain

Bill MeahlChief Commercial Officer DHL

Steve HarleyPresident, DHL Energy Sector

Trends | 4

ThE ENERgy SEcToR ToDay aND ToMoRRoWThe energy market today is both maturing and in flux. it is characterized by rising demand, fluctuating supplies and mounting regulation. according to the international Energy agency (iEa), global energy demand will grow by one-third between 2010 and 2035, as a result of rising incomes and population.

g lobal demand for energy is expected to keep rising over the next three decades and most of this increase

will come from emerging markets, with India and China accounting for half this growth – the latter already the world’s larg-est energy consumer since 2010.

The IEA also expects the share of fossil fuels to fall from 81% to 75% by 2035, with renewables increasing from 13% to 18%. Nevertheless, oil demand will continue to rise from 87 million barrels per day today to 99 mb/d by 2035, with demand for natu-ral gas also expected to rise significantly.

As a result, the energy industry must con-tinuously search for new and alternative sources, often in remote locations requiring more complex and costly extraction. At the same time, there is increasing diversifica-tion of supply, with the emergence of shale gas and the global liquefied natural gas (LNG) market. Global energy markets are

also being deregulated, opening the playing field to multinationals. Some of the major, vertically integrated energy companies are responding to these challenges by splitting into separate upstream and downstream entities. Meanwhile, renewable energies are coming to the fore, as innovative technolo-gies increase the efficiency and return on solar and wind power.

iNNoVaTiVE aNSWERSIn fact, new technologies and techniques will increasingly be employed to overcome the many resource constraints and chal-lenges facing the energy sector, as it invests some €28.7 trillion between now and 2035. Hydraulic fracturing and advances in hori-zontal drilling techniques have made the U.S. shale gas industry viable, and these techniques are now being pursued in many other locations, too. Wind turbine power generation is borrowing techniques from the aerospace industry to improve per-formance. Nanotechnologies promise to

revolutionize solar power generation. Rapid progress in battery technology is trans-forming the prospects for electric vehicles. And, smart metering is beginning to change the business paradigm for utilities.

All of these trends and challenges are taking place in the context of growing regulatory pressure and environmental concerns. Safety, environmental and regulatory com-pliance remain top priorities across the industry.

In this context of cost and regulatory pressures, energy and utility companies are increasingly turning to outsourcing for a broader range of services than ever before. Specialized logistics suppliers can help enterprises gain access to technology and talent, as well as introduce effective strategies to cut costs, thereby allowing them to focus more effectively on their core priorities. >

Trends | 5

iNDuSTRy ExpERTiSEThe energy sector’s activities tend to be in hard to access, remote areas, where logistics are a challenge – both in terms of the phy s-ical infrastructure, as well as compliance with strict health, safety, security and envi-ronmental regulations. The combination of difficult operating environments and modern corporate compliance require-ments of transparency makes for particu-larly demanding operating conditions.

On the upstream side of oil & gas, explo-ration and production in Siberia or the Middle East, or offshore of Brazil or West Africa, introduces some complex logistical issues, requiring specialized services. These include capital project logistics and heavy lift expertise, as well as resupply of mate-rials, inbound logistics, and maintenance, repair & operations (MRO).

Energy mining has similar needs, while the power & utilities and renewables segment requires a network support system. On the downstream side of oil & gas for finished products, such as gasoline (petrol), diesel and lubricants, the logistical requirements tend to be the more traditional storage, handling and distribution responsibilities.

Changing global economic circumstances are also posing challenges and the energy industry is taking a number of measures to adapt and safeguard its future prospects. To this end, energy companies are integrating their businesses on a global basis and diver-sifying supply with more of a focus on gas and renewables. There is also a greater focus on the Middle East and downstream pro-duction to support huge demand coming out of China and India. In addition, there is a trend to move downstream production capabilities closer to upstream, to reduce transportation costs.

At the same time, as health, safety, security and environmental (HSSE) – along with business ethics – standards become ever-more stringent, companies are making HSSE and compliance a top priority, and this applies to their partners and suppliers, as well.

TRuSTED paRTNERTo address these challenges and success-fully develop their business, energy compa-nies are relying increasingly on partners with demonstrated industry expertise. The energy sector is looking to logistics provid-ers specialized in the industry to gain access to technology and talent, and as a means of cutting costs and focusing more effectively on their core priorities. These partners are also expected to proactively engage in the design and planning of logistics for major new projects.

For many energy companies, their biggest challenge is having confidence in effective coordination and delivery to expectations, with transparency on what’s happening on a day-to-day basis. They want to be able to know where any item, component or part is at any given point in time, anywhere in the world – from their orders to suppliers through to their deliveries to customers and contractors. They also want their supply chain flows to be better managed world-wide, including in remote areas, using control tower and other state-of-the-art information management capabilities.

Sustainability is becoming another strategic imperative for the sector, and companies are increasingly looking to the supply chain to provide a greener footprint. In addition, one of the key tickets for entry into this space is safe operations, which means hav-ing robust safety programs and procedures in place.

Trends | 6

“The International Energy Agency expectsenergy demand to grow by one-third between 2010 and 2035, and most of this increase willcome from emerging markets.”

Sector Management | 7

TailoR-MaDE appRoachEnergy is one of five strategic sectors – along with Technology, life Sciences & healthcare, automotive and Engineering & Manufacturing – for which Dhl has developed a tailored, cross-divisional sector management strategy.

abroad industry sector, energy is made up of a number of key subsec-tors, including upstream oil & gas,

downstream oil & gas, energy mining, and power & utilities and renewables. DHL recognizes the unique supply chain needs and logistics challenges among the various segments of the energy sector, which is why it has developed propositions targeted to each of the main subsectors.

The group’s sector management strategy calls for closer cross-divisional collabora-tion on integrated supply chain manage-ment solutions. Its cross-divisional com-mitment to the energy market starts at the top, under the leadership of corporate

board members from each of the DHL business units.

The company’s Energy Board brings together the DHL Express, DHL Global Forwarding, Freight (DGFF) and DHL Supply Chain (DSC) business units around one table to coordinate strategy for the industry. Moreover, this coordinated effort focuses on a number of specific customers representing each of the subsectors. >


Full RaNgE aND REachDHL is a global leader in integrated energy logistics, able to meet the energy industry’s needs with its extensive network, capabilities and experience. The group provides the full range of logistics services across the supply chain to customers in the energy sector, from express document and oil-to-lab ship-ment, to capital project logistics, supply base management, up to rig move management and support. Its unique global reach allows it to work with energy companies anywhere in the world, from the Middle East and the central regions of Russia and the CIS coun-tries, to the most remote oil and gas fields in the South China Sea, off the coast of Brazil or West Africa. Together with the Innova-

tion Department of DHL, the energy sector team also works on new solutions to improve its customers’ supply chains.

oil & gaS upSTREaMOil & gas projects in the upstream subsec-tor are being affected by the rise in explora-tion costs. DHL is designing and imple-menting supply chain solutions for new capital projects and existing exploration and production facilities in order to reduce costs and increase efficiencies and produc-tivity for its customers.

A global footprint is essential for servicing the subsector and the group has specialist expertise in many parts of the world, such as

rig move management in Oman or supply base management for the offshore oil indus-try in West Africa. It also helps the big players in the industry build out their infrastructure, by overseeing all of the dimensional, heavy-weight and out-of-gauge materials required to build these plants and platforms, wher-ever they may be needed across the globe.

In addition, DHL coordinates all in-bound materials movements (e.g., drilling mud chemicals, consumables, etc.) to ensure the productivity of rig operations once estab-lished. Oilfield service companies, too, recognize the value the logistics partner can bring, especially with the movement of consumable and spare parts. >

Exploration and Production

Growing market subject to oil price

fluctua tions. Remote locations, difficult

to access. More complex and integrated

projects. On time delivery of critical

materials.

Refining and Distribution

Vertical integration pursued by

national oil companies. Shift

in production to oil producing

countries and growth markets.

Pressure on margins, drive towards

efficiencies. Direct distribution.

Extraction and Processing

High growth, highly fluctuating

commodity prices. Remote,

extended supply chains.

Generation and Transmission

Rapid expansion in emerging

markets. Field logistics solutions

for solar, smart meters and

utility infrastructure. Improved

engi neering efficiencies through

logistics support.

ENERgy SubSEcToRS aND ThEiR Supply chaiN DyNaMicS

upSTREaM oil & gaS

DoWNSTREaM oil & gaS

ENERgy MiNiNg

poWER & uTiliTiES aND RENEWablES

ENERgy SubSEcToRS


“Energy cannot be created or destroyed, it can only be changed from one form to another.” albERT EiNSTEiN


Precise maintenance, repair and operations (MRO) solutions are key to ensuring that engineers have the right materials at the right place and right time. The end-to-end MRO service offered by DHL can eliminate inefficiencies in the inbound flow of materi-als, supplies, equipment and information – and lead to a significant reduction in over-head costs.

Oil and gas drilling and service companies across the globe trust DHL to provide the most comprehensive resupply solutions essential to keeping both onshore and off-shore projects running efficiently. Because of its expertise in resupply, DHL counts seven of the world’s top ten oil field supply and drilling service companies among its satisfied customers.

Furthermore, DHL understands that man-aging the efficient flow of staff and resources to and from offshore platforms, construc-tion sites, drillships and floating produc-tion, storage and offloading vessels (FPSOs) is a complex task involving a wide range of services and multiple areas of expertise. Therefore, the group provides supply base

management solutions, helping customers to maintain optimum inventory and supply levels to improve both on and offshore pro-ductivity and asset utilization.

DoWNSTREaM oil & gaSFacing similar challenges, the downstream industry is relying on partners to source supplies from around the world, while streamlining the inbound flow of materials into new build projects or existing plants, to aid in construction, maintenance, repair and operations. This is an area where DHL has unique expertise, along with managing numerous international and local vendors.

In addition, the group can add tremendous value to the outbound supply chain by integrating finished product packaging, storage, handling and distribution services into a truly end-to-end supply chain solution for a wide range of products, including solids, liquids or bulk. Whether the business involves processing, refining, production or distribution, DHL helps to optimize the supply chain and increase plant and staff productivity through ready access to supplies, while supporting the

focus on health, safety, security and the environment (HSSE).

ENERgy MiNiNgMining companies, too, face their own set of unique logistics challenges, with depleted reserves, stringent environmental restrictions, as well as rising operating costs, often due to remote operations lo cations, along with fluctuations in the external eco-nomic environment. As a result, logistics costs are rising.

DHL combines mining sector competencies with industry-leading multimodal logistics services anywhere in the world, including in remote locations. This is backed up by a commitment to the most stringent HSSE and regulatory compliance principles.

poWER & uTiliTiES aND RENEWablESWhether building a new power station or nuclear reactor, or supporting field engi-neers in transmission and distribution activities, complex supply chains are a real-ity in the power & utilities and renewables subsector. >

Oil & Gas Downstream

· Lead logistics partner

· Inbound to operations

· Maintenance, repair and operations

· In-plant services

· Packaging, blending and drumming

· Bulk and packaged handling and distribution

· Inventory management and optimization

· Transport management

Oil & Gas Upstream

· FEED studies and logistics strategies

· Simulation modeling

· Capital project logistics

· Integrated supply chain management

· Supply base management

· Rig move management

· Time critical deliveries

· Consolidation and transport management

· Tool rotation

Energy Mining

· Project consulting

· Capital logistics

· Crating and packing

· Inbound to operations


· Site stock management

Power & Utilities and Renewables

· Capital logistics for windmills and power stations

· Inventory management


· Kitting

· Final configuration (smart meters)

· Field logistics solutions

Dhl ENERgy SubSEcToR SoluTioNS


While new capital projects and existing power, utilities, transmission and distribu-tion facilities each have their own unique supply chain challenges, the need to get or keep equipment online is of paramount importance.

Intensifying competition, complex regula-tions, and the drive for grid parity by renewables are all tightening profit margins. This has resulted in logistics and its associ-ated costs becoming a focal point for many energy producers as they look for cost sav-ings, greater efficiencies and new markets. A more efficient indirect materials supply chain can have a dramatic bottom line impact by increasing the utilization of a power & utilities company’s engineers, reducing risk and mitigating downtime.

Logistics forecasting, planning, packaging design and container and routing optimi-zation are just some of the ways in which DHL can help reduce customers’ costs and make them more efficient. In addi-tion, its extensive network in over 220 countries and territories means it can help customers access virtually any new market rapidly.

With its proven solar, wind and other renewables industry expertise, DHL can provide the most cost-effective solutions for renewable energy companies, so they can make the most of opportunities across the globe and grow their business.

The DHL energy team understands the spe-cific requirements involved in delivering delicate technology, like solar components and products. This is supported by an array of advanced technology that allows custom-ers to keep a constant check on tempera-ture, humidity, shock alerts and location. The group’s end-to-end solutions with a single point of contact offers customers peace of mind in reduced handling and increased visibility during the transporta-tion of their products.

On the wind side, from shipping nacelles, blades, towers or any other major wind turbine component halfway round the world, to ensuring that an urgent replace-ment part minimizes downtime of a tur-bine, DHL’s dedicated global sector team has the insight, understands the sector’s needs and is able to demonstrate best practice across the wind industry.

By partnering with a global logistics firm that has local expertise in key wind, solar and other energy markets and that provides logistics solutions with full transparency, flexibility and reliability, customers can increase their speed to market and further grow their business.

Capital Project Logistics & Transportation

Within the energy sector, capital projects are typically:

· Large scale and highly complex

· Operationally difficult supply chains

· Fragmented contractual responsibilities

Advantages of DHL for the capital projects market:

· Strong corporate and financial stability

· Legal entities in every region of the world

· Experienced team that understands requirements on an international, local and multi-functional level

Energy Supply chain | 13

Energy Supply chain | 14

caSE STuDy: oil pRoDucTioN coMpaNya Middle East-based oil company required a strategic partner to manage its country and global supply chain in support of oil exploration, drilling and pumping operations. given a variety of logistical challenges specific to the upstream oil & gas subsector, Dhl delivered a tailor-made solution to meet the customer’s rigorous requirements, as detailed in the following case study.

DHL Solution

DHL provides a range of supply chain solutions to this customer, including:

· Land-based rig move coordination and execution

· Cargo clearance, consolidation and overland haulage

· Water and crude diesel haulage

· Cargo deliveries to well sites

· Industrial project management

DHL also provides a single point of contact via control tower, managing:

· Fleet of 470 and assets from four main contractors

· Vehicle optimization linked via SAP

· GPRS enabled fleet

· Bespoke planning tool MTL

Customer Benefits

· Robust health, safety, security and environmental system and processes

· Rig move efficiency: Less management attention

· Delivery performance: Up to 30% reduction in transport costs

· Improved decision-making through better supply chain visibility

Customer Challenge

This customer needed a partner that could provide:

· A skilled workforce to transfer support to its operations

· Systems-led visibility to improve planning and control

· An excellent HSSE record

Conclusion

Based on its industry expertise DHL was awarded a five-year contract, acting as a non-asset bearing partner, optimizing and managing new and existing logistics providers.

Strategic advantage | 15

ValuE pRopoSiTioNDhl’s main value proposition for the energy sector is that it can support the customers’ entire end-to-end supply chain with integrated solutions provided as one package.

h ealth, safety, security and environ-mental (HSSE) standards and regula-tory compliance are business critical

for the energy sector, and its partners and suppliers must have the same degree of com-mitment. HSSE is an area where DHL puts a strong emphasis and which clearly differ-entiates the group among the competition.

Its safety strategy is anchored by an HSSE vision of Goal Zero – the relentless pursuit of no harm to people and no signifi - cant incidents – and an OHSAS-compliant HSSE management system. The company’s approach is to nurture a self-sustaining HSSE culture via personal interventions, personal responsibility, and individual con-sequences. The group extends these princi-ples to its subcontractors and suppliers, as well, and regularly monitors and assesses compliance. The company also maintains relationships for networking and sharing of HSSE best practices with customers from the chemical and energy industry.

The group takes business ethics compliance equally seriously and has teams and mecha-nisms in place to ensure the highest standards of compliance, including with the Foreign Corrupt Practices Act (FCPA), U.K. Anti-Bribery Act and OECD Anti-Bribery Convention. Moreover, DHL invests in a variety of global compliance training programs covering conduct, cor-ruption, competition and bribery, while all of its energy sector team members undergo rigorous mandatory compliance training annually. >

hEalTh, SaFETy, ENViRoNMENTal aND REgulaToRy coMpliaNcE

HSSE Performance Improvement Strategy

1. Clear Procedures & Standards

2. Compliance with Critical Safety Rules

3. Behavioral Based Safety (BBS)

4. HSSE Risk Assessment & Mitigation


Global Reach, Local Knowledge

· Growing number of global Energy Centers

· Regionally focused initiatives designed to support energy growth and capability

· Commitment to follow customers and to invest in new territories

· Local market knowledge and presence in 220 countries/territories

global NETWoRK

a s the world’s leading provider of cross-border express, global for-warding, freight and contract logis-

tics services, the company is able to provide end-to-end supply chain solutions across more than 220 countries and territories worldwide. Its global network encompasses over 4000 offices and more than 120,000 destinations, and it handles more than 1 bil-lion shipments per year using more than 450 hubs, warehouses and terminals and 83,800 vehicles.

In addition, the group is building up its global energy expertise in different geogra-phies, along with regionally focused initia-tives designed to support energy growth and capabilities. Furthermore, its commit-ment to follow customers and invest in new territories, combined with its local market knowledge and presence in all geographic regions make for a unique offering. >


T hanks to its unwavering commitment to quality and reliability, DHL cus-tomers can count on improved pro-

ject delivery, increased production, higher efficiency, faster material movement, and reduced operations costs. Notably, the company provides end-to-end multimodal transport management systems able to link vendors globally, along with quality man-agement systems and innovative supply chain solutions tailored to the needs of the energy sector.

What is more, a collaborative approach of

listening and learning allows DHL to develop market-leading solutions that sim-plify the lives of customers. These include an integrated, one-stop-shop approach to providing logistics to the energy sector, experienced in-house specialist teams and equipment, a capability to offer specialist simulation modeling and transport engi-neering consultancy, and a comprehensive and unique portfolio of services. >

T he global community of DHL energy experts is dedicated to serving cus-tomers in the sector with industry

competence. Its worldwide network of more than 450 specialists have particular competence in heavy lift, supply base man-agement, rig move management, MRO, and load engineering.

The group’s energy expertise extends across all subsectors, from power & utilities and renewables, to energy mining, to oil & gas upstream and downstream. Furthermore, the energy sector team operates to the high-est HSSE industry standards.

Maintenance, Repair and Operations

For MRO, DHL’s solution enables customers to identify, separate, understand and address each of the components of the total cost of ownership for MRO supplies. In this way, customers can better manage their indirect materials supply for maintenance, repair and operations to maximize “time on tool” and increase plant availability, while keeping costs down.

See DHL’s MRO webcast to learn more about this offering: www.dhlsupplychainexperts.com

Sector Know-How

· Worldwide network of more than 450 specialists and experts

· Competency in heavy lift, supply base management, rig move management, MRO, load engineering

· Subsector logistics expertise in renewable, nuclear power and energy mining

· Qualified energy industry experts in HSSE

· Sector specific trend knowledge and innovation background

REliabiliTy, iNNoVaTioN aND SiMpliciTy oF SoluTioNS

ENERgy ExpERTiSE

Simpler, Smarter Solutions

· An integrated one-stop-shop approach providing energy sector logistics

· Dedicated global account managers supported by experienced specialist teams and equipment

· Capability to offer specialist simula-tion modeling and engineering consultancy

· Comprehensive and unique portfolio of services

www.dhlsupplychainexperts.com

innovation & Responsiveness | 18

Showroom of the Dhl innovation center

The Dhl Energy center powered by innovation is a showroom presenting the group’s

competencies in the energy sector, in partnership with the Dhl innovation center,

which showcases innovative solutions in the logistic branch

Dhl innovation center – the interaction and communication platform

innovation & Responsiveness | 19

T he DHL Energy Center, a new part of DHL’s Innovation Center structure, which opened in September 2012 in

Houston, provides visitors a close-up view of best practices and expertise along their value chain in the energy sector. The facility demonstrates the challenges and trends of the industry in combination with the logistics capabilities to cope with these. It showcases DHL’s global capabilities as well as the group’s cross-divisional commit-ment to provide end-to-end supply chain solutions tailored to the needs of energy com panies across the industry’s subsectors, worldwide. In addition, it highlights what inno vation means for DHL and how it uses new technologies in the best interest of the industry, and features possible new energy solutions. With over 300 companies active in the field of oil and gas in Houston, this is an ideal location to facilitate customer dia-logue and combine the visit with workshops.

Industry experts will guide the visitors through the exhibition area to discuss potential logistics solutions for supply chain processes within the energy sector. Visitors can also see first-hand examples nearby, such as DHL airport facilities, control tower and transport management systems. Through its control tower and lead logistics partner (LLP) solutions, DHL can offer improved control, visibility, risk manage-ment and integrated IT solutions. The Energy Center also refers to critical health, safety, security and environmental (HSSE) principles, and to sustainability, as well as compliance capabilities and policies.

DHL continually strives for technological breakthroughs and operational improve-ments. The Energy Center therefore also presents innovations within this sector and it is linked with the DHL Innovation Center in Troisdorf, Germany, which exhib-its innovative logistics solutions along the supply chain.

The facility in Houston is structured with eight multimedia exhibition stations based on the value chain of an energy customer. These include stations focusing on explora-tion, extraction, production, distribution, LLP and control tower design, along with HSSE, compliance and sustainability.

The DHL Energy Center presents a com-prehensive picture of proven solutions and innovative research for complete capex and opex energy supply chains.

Energy Center Themes

· Exploration

· Extraction

· Production

· Distribution

· Lead Logistics Provider (LLP)

· HSSE, compliance, sustainability

· Innovation

Contact us:[email protected]

Dhl ENERgy cENTER lauNchESpresenting the big picture of integrated supply chain competence for the energy sector

[email protected]

Future prospects | 20

a gREENER FuTuRE:MEETiNg ToMoRRoW’S ENERgy DEMaNDSWhen it comes to energy, the future looks green, with demand for solar, wind – as well as hydropower geothermal, biomass, marine energy and other renewable sources – expected to keep rising briskly.

Future prospects | 21

W ith the share of renewable energy anticipated to reach 18% by 2035, solar and wind will be especially

strong growth areas. Solar energy holds particular promise, as technology improves efficiency and prices for components and panels continue to fall.

Electric vehicles will also be an important driver in this move toward renewable energy, as advances in battery technology bring hybrid and all-electric cars and trucks into the mainstream.

Not only is demand for renewables driven by the search for alternatives to finite car-bon-based energy supplies, but environ-mental concerns and CO2 emissions policies are also playing an ever-more important role in this market shift towards cleaner energy and enhanced efficiency.

Some 90 countries, accounting for over 80% of global emissions and over 90% of the global economy, have pledged to reduce or limit their carbon emissions by 2020, in order to mitigate possible global warming. Scores of countries and regions already have emissions trading schemes operating or under development, includ-

ing the European Union, China, Japan, India and California.

And business is onboard, too, with more than two-thirds of companies indicating that concrete carbon reduction targets or plans are already in place, based on a survey of 1,800 business customers in the six key global markets of India, China, the U.S., Brazil, the U.K., and Germany. 1

ShaDES oF gREEN iN chiNaChina – the world’s biggest energy con-sumer and carbon emitter – is also a major growth market in terms of demand for green energy, with government policy steering the country towards a lower-car-bon future. According to the Economist Intelligence Unit (EIU)2, China’s share of renewable energy will rise from 13% in 2010 to over 16% by 2020, as its overall energy consumption expands significantly.

The combination of the government’s push to encourage the use of renewables and low-cost production in China is driving down the cost of deploying wind and solar in the country, and intensifying global competition in the sector. The growth of the renewable power industry in China,

combined with the push by nations around the world to address climate change, will be the key drivers of the green energy economy for years to come.

1 Delivering Tomorrow: Towards Sustainable Logistics, Deutsche Post DHL, 2010 http://www.dp-dhl.com/en/logistics_around_us/ sustainable_logistics.html

2 A Greener Shade of Grey: A Special Report on Renewable Energy in China, Economist Intelligence Unit, May 2012

GoGreen

Sustainability and reducing carbon emissions is a central aspect of how DHL does business. Under its GoGreen label, Deutsche Post DHL was the first logistics company to offer carbon-neu-tral shipping services, and to publicly commit to a clear-cut goal of improving the carbon efficiency of its own opera-tions and those of its transportation subcontractors by 30% compared to 2007 levels by the year 2020.

www.dp-dhl.com/en/logistics_around_us/ sustainable_logistics.html

Dialogue | 22

VoicE oF ThEcuSToMER “WE TEaMED up WiTh a logiSTic coMpaNy bEcauSE WE NEEDED To REDucE oVERall SpENDiNg aND coST oF oWNERShip WhilE iNcREaSiNg ouR plaNT aND pERSoNNEl pRoDucTiViTy.”oil sands producer in Northern alberta

“aS a lEaDER iN ThE ENERgy DiSTRibuTioN iN bRazil, WE NEED aN EFFiciENT Supply chaiN To SuppoRT MaiNTENaNcE aND REpaiRS opERaTioNS, iN oRDER To MEET high SaFETy STaNDaRDS aNDachiEVE goVERNMENTal TaRgETS.”

a power company in brazil

Dialogue | 23

“The remote locations of oil fields in our region mean that drilling and production operations have to be oper-ating consistently and simultaneously across dozens of distant sites, often only accessible via harsh terrain. This is a significant challenge we face in our daily work.”a major oil company in the Middle East

IMPRINT

Published by DP AG

Charles-de-Gaulle-Str. 20

53113 Bonn

Represented by:

Steve Harley,

President DHL Energy Sector

Silje Skogstad,

SVP Global Media Relations

Responsible for content:

Gert van Dijck,

Global Head Sector Strategy

Paul King,

Senior Director, Energy Solutions

Editorial:

Diane Rinas,

Senior Communication Manager

Website:

www.dhl.com/energy-sector

www.dhl.com/energy-sector

“aS oNE oF ThE global lEaDERS iN iNTEgRaTED ENERgy logiSTicS, Dhl oFFERS SaFE aND coMpliaNT SoluTioNS ThaT bRiNg ValuE To ENERgy coMpaNiES by iMpRoViNg ThEiR pRoDucTiViTy aND iNcREaSiNg EFFiciENcy.”

dhl energy sector brochure · of the international oil companies. the huge ... hydraulic fracturing...

Documents