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The Choice of Method of Transportation of Oil and Petroleum Products in Russia

Student: Zvolinskaia Anastasiia

Supervisor:

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Management (Bachelor)

Year of Graduation: 2017

Today, there is an active development of the oil industry in Russia. Large vertically integrated companies open new deposits, invest in large projects. This creates a problem of negative balance, and there appears a need to minimize costs, as well as to increase the efficiency of logistics processes. As a basis for this study, a vertically integrated oil company, Gazprom Neft, was taken, in particular, its refinery, logistics intermediaries and data on shipments of petroleum products. Methods of description, observation, comparison, analysis and synthesis, mathematical calculations were used in this research. The purpose of the work was to choose the method of transportation of petroleum products. To achieve this goal, the following tasks were set: - analysis of the main types of transport of petroleum products; - analysis of logistics operators; - analysis of data on the volume of shipments of oil products of the company; - analysis of the distribution of petroleum products by mode of transport; - calculation of costs for transportation of petroleum products by mode of transport; - development of measures to improve the logistics processes of the company. As initial data, the annual reports of Gazprom Neft, official documents on tariff rates of Russian Railways (Price List 10-01) and Transneft, were used. The study collected empirical data, which showed a significant difference in the cost of rail and pipeline transportation of light oil products. The conclusion from them was a proposal for more efficient division of oil products flows, restructuring of shipments: reduction of rail transportation of light oil products from the plant and increase in railway shipments of dark oil products. Proposals were developed to increase the efficiency of the logistics processes of Gazprom Neft, which are practically applicable to both the company under investigation and other vertically integrated oil companies.

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