PRE-WORKSHOP SURVEY Analysis and Discussion Barney E. Welch - PowerPoint PPT Presentation

PRE-WORKSHOP SURVEY Analysis and Discussion Barney E. Welch Director, Homeland Security The Permian Basin Regional Planning Commission

CRITICAL SUPPLY CHAIN (OIL & GAS) WORKSHOPS PRE-WORKSHOP SURVEY The Society of American Military Engineers (SAME) and The Critical Infrastructure Partnership (TISP) developed the Pre-Workshop Survey for the Critical Supply Chain Workshops. This short 10-question Pre-Workshop Survey was developed to obtain data and provide subsequent analysis tailored to the Oil and Natural Gas Supply Chain. 24 workshop participants completed the survey out of 125+ attendees. The results of this survey is provided for discussion.

CRITICAL SUPPLY CHAIN (OIL & GAS) WORKSHOPS PRE-WORKSHOP SURVEY Q1: What is your role in ensuring the security or resilience of the Oil and Gas Supply Chain? Examples of answers: • Government enforcement of applicable safety and health standards • Risk assessments and overall physical security. Work closely with IT Security for SCADA issues • Investigation of all thefts • Proper installation and operation of SCADA and communications network infrastructure. • SCADA communications • Risk assessments, overall physical security. Work closely with IT Security for SCADA issues. • I may be asked to assist with Emergency Management planning and/or coordination • One Call Notification Center services. Underground excavation damage prevention training, public education and awareness. • To protect or identify oil/gas theft. • Fire Chief responsible for extinguishment of hydrocarbon fires. • Critical infrastructure protection at the federal level. • Promoting Public Safety along the Union Pacific Right of Way • EHS Representative for an E&P company • Monitoring of assets through various methods, tactics and equipment • Corporate Security for the Permian Basin and Delaware Basin. I work with our supply chain to develop more secure ways to protect our assets • Providing adequate and efficient security to for all modes of transportation of oil and gas

CRITICAL SUPPLY CHAIN (OIL & GAS) WORKSHOPS PRE-WORKSHOP SURVEY Q2: I consider the following to the greatest threat to our supply chain operation: Examples of answers: • Workplace fatalities and amputations • Vandalism and theft • Deliberate sabotage and/or vandalism • Domestic/Homegrown terrorism, Cyber attacks • Fraud perpetrated by fraudulent invoicing. Theft of our assets by individuals and organized crime • Entry to the sites in the field • Supply disruption by external forces • We focus on man-made, preventable excavation related events. Effective processes and procedures can minimize this risk. Suggest terrorism and natural disasters are greatest threats. • Low employment • Educating the work force both internally and contractors on properly securing all assets. • Road conditions and traffic safety • Semi trucks and low clearance vehicles • Transportation security • Pipeline

CRITICAL SUPPLY CHAIN (OIL & GAS) WORKSHOPS PRE-WORKSHOP SURVEY Q3. Which business unit drives the supply chain initiatives in your organization? Other (8.33% - 2 responses – Finance (4.17% - 1 response) N/A, and Executive Committee) Logistics (12.50% - 3 responses) Executive (8.33% - 2 responses) Production & Manufacturing (11.54% - 3 responses) Sector / Government Outreach (16.67% - 4 responses) Human Resources, Research & Development, Sales & Marketing Demand and Supply Planning (0.00% - 0 response) (12.50% - 3 responses) Information Technology Compliance and Regulatory (4.17% - 1 response) (20.83% - 5 responses)

CRITICAL SUPPLY CHAIN (OIL & GAS) WORKSHOPS PRE-WORKSHOP SURVEY Q4: How important are the following functions to your Supply Chain Landscape and Strategy? Critical Important Not Important Future Gap Not Applicable Total or Needed Risk Assessment 62.50% (15) 25.00% (6) 0.00% 0.00% 12.50% (3) 24 Consequence Analysis 25.00% (6) 62.50% (15) 0.00% 0.00% 12.50% (3) 24 Business Intel & Sit Awareness 13.04% (3) 65.22% (15) 4.35% (1) 4.35% (1) 13.04% (3) 23 Cloud Computing 0.00% 39.13% (9) 26.09% (6) 8.70% (2) 26.09% (6) 23 Demand Planning 14.29% (3) 61.90% (13) 0.00% 9.52% (2) 14.29% (3) 21 Business Contingency/Continuity of Ops 54.17% (13) 25.00% (6) 4.17% (1) 4.17% (1) 12.50% (3) 24 Supply Network Planning 19.05% (4) 47.62% (10) 4.76% (1) 9.52% (2) 19.05% (4) 21 Forecasting & Replenishment 13.64% (3) 63.64% (14) 4.55% (1) 4.55% (1) 13.64% (3) 22 Distribution Planning 13.64% (3) 54.55% (12) 9.09% (2) 4.55% (1) 18.18% (4) 22 Mobile Supply Chain 4.76% (1) 42.86% (9) 28.57% (6) 4.76% (1) 19.05% (4) 21 Production/Refinery Planning 28.17% (7) 41.67% (10) 8.33% (2) 0.00% (0) 20.83% (5) 24 Supplier Relationship Mgt 20.83% (5) 45.83% (11) 16.67% (4) 0.00% (0) 16.67% (4) 24 Logistics/Infrastructure Functions 54.17% (13) 29.17% (7) 4.17% (1) 0.00% (0) 12.50% (3) 24 Relationship Mgt Supply Chain Analytics 9.09% (2) 54.55% (12) 18.18% (4) 4.55% (1) 13.64% (3) 22

CRITICAL SUPPLY CHAIN (OIL & GAS) WORKSHOPS PRE-WORKSHOP SURVEY Q5: What are the objectives of Supply Chain Security and Resilience initiatives in your organizations? Critical Important Not Important Future Gap/Need Not Applicable Total ID & respond to business quickly 39.13% (9) 39.13% (9) 0.00% 0.00% 21.74% (5) 23 Improve operational efficiency 27.27% (6)` 54.55% (12) 0.00% 0.00% 18.18% (4) 22 Reduce production and distribution costs 31.82% (7) 13.64% (3) 4.55% (1) 0.00% (0) 50.00% (11) 22 Return on investment 31.82% (7) 31.82% (7) 0.00% (0) 0.00% (0) 36.36% (8) 22 Increase public safety and security 65.22% (15) 26.09% (6) 0.00% (0) 0.00% (0) 8.70% (2) 23 Improve customer support 18.18% (4) 36.36% (8) 0.00% (0) 0.00% (0) 45.45% (10) 22 Aid to decision making 14.29% (3) 57.14% (12) 0.00% (0) 4.76% (1) 23.81% (5) 21 Assist in disaster response & recovery 60.87% (14) 34.78% (8) 0.00% (0) 0.00% (0) 4.35% (1) 23 Growth in sales and revenue 27.27% (6) 31.82% (7) 0.00% (0) 0.00% (0) 40.91% (9) 22 ID bottlenecks & single points of failure 27.27% (6) 54.55% (12) 0.00% (0) 0.00% (0) 18.18% (4) 22 A tool to aid route planning 9.09% (2) 45.45% (10) 4.55% (1) 4.55% (1) 36.36% (8) 22 A tool aiding planning for sales/promotions 0.00% (0) 13.64% (3) 22.73% (5) 9.09% (2) 54.55% (12) 22 Logistics analytics 8.70% (2) 56.52% (13) 8.70% (2) 0.00% (0) 26.09% (6) 23 Corridor & Transport optimization 13.64% (3) 45.45% (10) 4.55% (1) 0.00% (0) 36.36% (8) 22 Distribution optimization 13.64% (3) 45.45% (10) 0.00% (0) 0.00% (0) 40.91% (9) 22 Improve delivery & pricing forecasting 4.55% (1) 22.73% (5) 27.27% (6) 0.00%(0) 45.45% (10) 22 Minimize cascading impacts/consequences 31.82% (7) 45.45% (10) 0.00% (0) 0.00% (0) 22.73% (5) 22

CRITICAL SUPPLY CHAIN (OIL & GAS) WORKSHOPS PRE-WORKSHOP SURVEY Q6: What are the main challenges to your supply chain’s security and resilience? Critical Important Not Important Not Applicable Total Financing Initiatives 13.64% (3) 45.45% (10) 4.55% (1) 36.36% (8) 22 Return on Investment 22.73% (5) 31.82% (7) 0.00% (0) 45.45% (10) 22 Risk & Resilience Skills - External 9.52% (2) 52.38% (11) 4.76% (1) 33.33% (7) 21 Known Hazards & Vulnerabilities 39.13% (9) 52.17% (12) 0.00% (0) 8.70% (2) 23 Unknown Threats & Hazards 52.17% (12) 39.13% (9) 0.00% 8.70% (2) 23 Conflicting Public/Private Sector Restrictions 27.27% (6) 54.55% (12) 4.55% (1) 13.64% (3) 22 Capabilities not avail or develop challenges 4.555% (1) 45.45% (10) 22.73% (5) 27.27% (6) 22 Technical/Procedural Integration or 22.73% (5) 40.91% (9) 4.55% (1) 31.82% (7) 22 compatibility Issues Supplier or Production Issues 18.18% (4) 40.91% (9) 4.55% (1) 36.36% (8) 22 Distribution or Logistics Issues 13.64% (3) 59.09% (13) 4.55% (1) 22.73% (5) 22 Unreliable Infrastructure Functions 31.82% (7) 40.91% (9) 0.00% (0) 27.27% (6) 22 Public Policy 31.82% (7) 45.45% (10) 4.55% (1) 18.18% (4) 22 Technology or Software 22.73% (5) 59.09% (13) 0.00% (0) 18.18% (4) 22 Compatibility Issues

CRITICAL SUPPLY CHAIN (OIL & GAS) WORKSHOPS PRE-WORKSHOP SURVEY Q7: What is the frequency at which you meet with the stakeholders in your supply chain? 1-5 times a 12 (50.00%) year 6-12 times a 4 (16.67%) year More than once 6 (25.00%) a year Member of a 2 (8.33%) Business Ops Center 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

CRITICAL SUPPLY CHAIN (OIL & GAS) WORKSHOPS PRE-WORKSHOP SURVEY Q8: What is the lifecycle of your system management? Examples of answers: • Not sure • Unknown (10 responses) • 2 years • “?” With equipment we are still in development • 5 years • 18 months • 10 years • N/A (5 responses) • 0

CRITICAL SUPPLY CHAIN (OIL & GAS) WORKSHOPS PRE-WORKSHOP SURVEY Q9: Estimated the percentage of budget to be spent on cyber and physical security and resilience in your organizations 2016 budget? 1% (20.83% responding) 2-3% ( 20.83% responding) 6-8% (4.7% Unknown (54.17% responding) responding ) More than 10% (16.67% responding)