Good Essay About Holly Frontier Corp

Holly Frontier Corp started its operations as autonomous petroleum refinery in United States. There are two segments in which Holly Frontier operates; namely the refining and the HEP. This corporation is involved in the production of refined high value products i.e. gasoline, LPG, fuel oil, Lubricant specialty products, diesel fuel, jet fuel, tailored along with specialty asphalt. Holly Frontier is the refiner of petroleum products along with it, involved in supply of petroleum products that ranges from gasoline to petroleum based lubricants and waxes. The Chief Executive Officer of Holly Frontier at present is Michael C Jennings. Mr. Jennings is oil specialist having an experience of 28 years in this industry. In Utah and New Mexico, along with additional three states, the main refining operations of the company are held. Holly Frontier Corporation was founded in year 1947and in Dallas, Texas, it was headquartered (Nolan).
The corporation offers the petroleum-based products also to retailers, wholesalers, self-regulating marketers, government bodies, railroads, convenience stores, and other refiners, for the use of commercial airlines, chains of truck shops, paving manufacturers/contractors, and commercial along with specialty markets. HollyFrontier Corporation’s refineries cater diverse marketplaces i.e. Mid-Continent, and US region of the Rocky Mountain and the Southwest. In July 2011, the corporation merged with the company named Frontier Oil Corp, which leads company change its former name from Holly Corp to “HollyFrontier Corporation”. The corporation have the ownership and holding of 5 refineries along with the collective capacity of about 443,000 barrels per/day of crude oil in Oklahoma, New Mexico, Kansas, Tulsa, El Dorado, Artesia, Cheyenne, Wyoming, Woods Cross and Utah along with the ownership and control of the terminals of asphalt at Oklahoma, New Mexico, and Arizona and vacuum distillation along with more facilities at the New Mexico, Lovington.
HollyFrontier Corporation’s mission is to be United States leading petroleum terminal, refining, and the pipeline company and it believes in employing and developing the employees that are incredibly essential for the attainment of the company’s goals. HollyFrontier Corp is a company which provides an equivalent opportunity to everyone. HollyFrontier provides all of its potential capable applicants, a consideration for employment despite of any religion, color, race, gender, disability, national origin, sexual orientation, age, gender identity, or the experience status.
“Moody's Investors Service” has assigned rating to HollyFrontier Corporation, Baa3 Issuer Rating and furthermore Moody’s enhanced its rating to Baa3 of its “unsecured senior note”, that was previously rated at was Ba2. This assigned rating is been persistent by company’s reefing asset deliberate location, the company’s balancing logistics ability, along with the company’s management team unsurprising robust performance. Prior to Holly Corp. merger with the Frontier Oil Corporation, the forerunner companies were managed unadventurously, hence persistent to work with exceptionally fewer financial risk in the preceding 2 years. HollyFrontier Corp is having auspicious geographical position that allows the company for access to significantly low-cost crudes in current position of the commodity prices and also provides potential to process great quantity of heavy crude (Klein, et al.).

The major challenges faced the organization:

Procurement
There are numerous challenges that industry faces in which the HollyFrontier Corp is being operated. As all over the world, companies are been incessantly moving globally, therefore these are heading toward the markets that are extremely challenging and land rig, the surroundings are now becoming extremely complex and muddled in which operations are been conducted and therefore there is a need for making arrangements for procurement intended for such type of new settings. HollyFrontier as well like all other corporations is trying to transfer towards the value-based strategies and also selling down to have increase in its cash values. HollyFrontier Corp has decentralized organizational structure. In wake of the rapid globalization, the company is required to move from centralized to regional model and is in a need to maintain these regions strong and secure (Nolan).

Sustainability

A brawny assurance for developing the most innovative and novel technologies to meet up the demands of energy and the sustainability relating emerging challenges must be at the first and foremost important position for industry in which HollyFrontier Corp is operating. Pertaining to such challenges HollyFrontier Corporation ought to engage in momentous research & development of inventive technologies that are intended to design for the progress and effectiveness of the operations and going on renewable technologies must be preferred if the company wanted to meet the emerging challenges of sustainability.

Demand management

In the initial mid century owing to the economic growth and the enlarged population, the global energy demands may raises to twofold. The worldwide fuel demand might possibly rise up by approximately 26% in following 25 years; which is approximately counted for o110 million per/day barrels, sated by IEA. An augmented growth will be experienced by the rising economies of Asia. The increasing population growth rate will raise the demand for oil consumption over the long run along with reinvigorated growth of the economy and developing countries transformation like India and China. The further forecasts have been made by IEA that by year 2030, the oil supply of the world will required to raise up to 106 Million barrels from existing 84 Million barrels per/day (Klein, et al.).

Production

HollyFrontier is been operating in an industry that is facing shortage of liquid fuel in present period. There is mammoth need to raise the liquid fuel production in the upstream segment. Not just this, there is also a need for regimented avenues in relegate intended to surpass, to marketplaces the extracted goods.

Distribution

The most important feature/aspect of the downstream segment of HollyFrontier Corporation is distribution along with the trading. With no trading instituting proper avenues the company’s operation will considered to be useless. For that reason, value chains ought to be properly inspected in order to make certain the proficient trading along with its product distribution. Moreover, disciplined avenues ought to be developed for making it certain that the company’s products are upheld at the unwavering prices when these are circulated. In different parts of the world, product prices are pointlessly augmented in centers of the distribution that leads to an excessive load on consumers ultimately (Nolan)

Actions and process implemented to address these challenges

In order to tackle with the challenges that are faced by the HollyFrontier in procurement, the corporation have started to operate and function in hybrid model, in which there is centralization of several functional progression capacity. The owners of the Process essentially assist for deciding how to operate these processes.  In many situations, these have both organized upstream along with the downstream, advisory role to different business units.  The weekly meetings with the people that are being working in business units are held and onsite trainings may perhaps be conducted for the proficiency areas.  It is crucial to make use of this approach, from avoiding having “8 versions of category management.”
The growing demand for the petroleum based products like fuel and crude oil that are been offered by the company can possibly covered by increasing transport fuel combined with the high tech technologies. It can also perhaps be consummate by raising the contribution of the bio fuels. These fuels are exceptionally precious since these are extraordinarily well-suited with the current infrastructure and because of this; these fuels can buy and sell and circulated in routine filling stations (Klein, et al.).
Additional renewable energy resources ought to be used and further focus ought to be positioned on energy usefulness throughout the entire supply chain. If the corporation wanted to meet up the rising sustainability challenges it must turn out to be a leader and must take on responsibility of innovators, who engender the solutions to the problems and it must also make outlays in sustainable energy. With the accurate administration levels along with the precise actions, HollyFrontier Corp can make advances in operations of their business, energy efficiencies, and may possibly increase the usage of renewable energy and may perhaps build up additional goods and services that are sustainable.
In view of the upcoming demands of the consumers in markets, there are numerous challenges that the HollyFrontier Corp been facing. In rejoinder to varying needs of distillate along with the gasoline, the corporation has been backing the hydrocracker in United States regions of the Rocky Mountain, in the Woods Cross Refinery. Leidos as extremely steadfast contractor, carry out turnkey services: EPC services like planning the engineering services, the project arrangements, along with the incorporation control intended to bring hydrocracker as per the schedule and budgeted resources. The Leidos planning team helped the corporation in finding the way, how oil refining is altering the dynamics for renovating the product from an inferior to a high worth, procurement along with more than 25 pieces of process equipment installation. Moreover, it also engaged in design-build of all the main apparatuses which includes charge and the recycle pumps, the chief reactors, diesel ultra-low sulfur reactors, heat exchangers, and the strippers plus the fractionators (Nolan)
Conclusion

Work Cited

Nolan, Peter, and Jin Zhang. 2003. "Globalization Challenge for Large Firms from Developing Countries:: China’s Oil and Aerospace Industries." European Management Journal 21.3, 285-299.
Klein, Benjamin, Robert G. Crawford, and Armen A. Alchian. UK: 1999. "Vertical integration, appropriable rents, and the competitive contracting process." Journal of law and economics: 297-326.