Essay: The Case of Marathon Petroleum Company
Q 1.Explain one possible option that Marathon could take to reduce the time involved in the production process.
Considering the case of Marathon, it takes quite long time to transport crude oil from the depot, Louisiana Offshore Oil Port to the refinery firms and to the retailers in the country. Further, a lot of time is spent while importing oil from other economies until it reaches the Louisiana Offshore Oil Port (LOOP). As the crude oil is transported through inland pipelines and sea pipelines, it moves at a very low speed hence consuming more time. Besides the time spent while transporting oil, other causes of oil delay are uncertainties while transporting the oil.
The oil tankers can break down in the deep seas or be hijacked by pirates especially along the gulf of Eden. The consequence is late delivery that can affect the normal operations of the US economy. However, according to The Time It Takes website, the only possible efficient method to import oil to US is only through the super tankers while the oil gets into the US mainland through the LOOP undersea pipeline to the eight salt caverns. This means that the time spent in the seas cannot be reduced, but the time spent while transporting oil on the mainland and undersea pipelines can be reduced. One possible solution is to increase the diameter and speed crude oil of the pipeline transporting the oil in the land and under the sea (Marathon Petroleum Company, 2009).