This briefing covers active market intelligence, regulatory guidelines, and tactical capture recommendations for federal and defense contractors pursuing opportunities in this procurement classification.
Keystone XL Pipeline’s Effect on US Oil Procurement.
A key consideration procurement professionals take into consideration is the cost of delivering goods from one location to another.
For those involved in the energy industry, transportation is a significant concern. Oil spills can cause grievous disruptions to the supply chain that could cause numerous detrimental environmental and social consequences.
That’s why oil pipelines appear so attractive – they reduce the risk associated with distributing much needed resources to refineries and other facilities. However, installing and implementing these assets isn’t always a smooth process.
From a purchasing management standpoint, the rejection of the Keystone XL proposal is a serious blow to energy companies with oil refineries dispersed across the American Gulf Coast. Although the pipeline would have been expensive to construct, this was a more feasible solution compared to the long-term costs associated with continuously transporting Alberta petroleum across the Plains States. Residual expenses will be caused by rail safety mandates, as well as recent laws that obligate companies to replace antiquated cars carrying chemicals.
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