Understanding Oil and Gas Procurement and Its Three Key Types
Introduction Procurement. Big word, simple meaning. It’s basically how companies buy goods and services they need. In the oil and gas industry , procurement is a game changer. Why? Because operations are huge, risky, and costly. One wrong supply, one late delivery—things can fall apart. That’s why smart procurement is not just paperwork. It’s survival. What Does Procurement Mean in Oil and Gas? Procurement in oil and gas is about getting the right materials, tools, and services at the right time. From drilling equipment to safety gear, everything comes through procurement. In the upstream oil and gas industry , this process is even more critical. Exploration and production sites are often far away. Remote deserts. Deep oceans. Which means supply chains can be tough. One missing spare part can delay drilling worth millions. So procurement here is not just buying—it’s planning, forecasting, and managing vendors. The oil and gas industry spends billions every year on procurement. S...