Cost Insights
by PowerAdvocate

Intelligence for energy companies seeking a data-driven approach to cost management

Midstream, Refining, and Petrochemical Project Forecast: 2016 through 2020

August 26, 2016 at 4:54 PM / by Energy Intelligence Group posted in Project Estimation, Cost Reduction, E&P, Midstream, Downstream

With the future of oil and gas prices still uncertain, many midstream and downstream firms are asking how much investment is still being planned for the coming years.

In today's project forecast update, we share how and where the market is planning projects in the midstream, refining, and petrochemical sectors over the next four years. Read on to view maps of the top areas of capital investment through 2020:

Billions are Planned in Gas Pipeline, LNG, and Energy Storage Projects

Midstream_Project_Forecast_2016-1.png

Sources: SNL, Oil & Gas Journal

This map of planned midstream investment suggests three important observations:

  • Large LNG projects will ramp up over the next 4 years
  • The Gulf Coast continues to be an area of some of the largest investments, with many pipeline projects still planned for the Northeast
  • Storage projects are not to be overlooked as an area of competing investment

Let's next take a look at the downstream market.

More than $100B of Downstream Projects Planned through 2020

Downstream_Project_Forecast.png

Sources: Oil & Gas Journal, Petrochemical Update, ICIS Chemical Business Magazine

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[Video] Oil & Gas Labor Market Update

August 26, 2016 at 3:11 PM / by Energy Intelligence Group posted in Cost Reduction, E&P, Midstream, Downstream

With billions of dollars of Oil & Gas projects still in the forecast, craft labor markets are becoming more and more constrained. And at the same time that demand for labor is rising, supply of skilled laborers has declined drastically and benefits & health care costs have risen to new highs.

The result is an especially challenging labor market for Oil & Gas firms working with welders, equipment operators, electricians, pipefitters, carpenters, and other craft laborers.

In our latest Labor Market Update, we share:

  • Why labor market supply has plummeted since the recession and which sectors are experiencing the greatest hit
  • Where supply/demand dynamics are expected to result in the greatest risks
  • Which wage build-up components you can negotiate against in service RFP's
  • And lots more...

Interested in viewing the labor update? Click here to access the brief 20-minute recording:

View Labor Update

 

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[Video] Taking Advantage of Currency Markets: A Guide for Oil & Gas

August 26, 2016 at 2:45 PM / by Energy Intelligence Group posted in Cost Reduction, E&P, Midstream, Downstream

Two months ago, the British Pound lost 15% overnight. Since 2012, the Japanese Yen has lost 58%. So how do those drastic changes in currency markets impact Oil & Gas?

In our latest Oil & Gas currency update, we share:

  • Why it's so important for O&G firms to pay attention to currency markets
  • Specific tactics for taking advantage of currency volatility and achieving millions in savings
  • How currency wars and competitive devaluation drive risk and opportunity for O&G

This presentation was the most highly rated content at our annual User Group conference, and it has since been viewed by more than 40 energy firms.

Interested in viewing the currency update? Click here to access the brief 20-minute recording:

View Webinar

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3 Moves O&G Supply Chain Negotiators Could Be Bringing to the Negotiation Table

August 19, 2016 at 6:56 AM / by PowerAdvocate posted in Cost Reduction, E&P, Midstream, Downstream

Negotiating with Oil & Gas suppliers is notoriously difficult: suppliers have a better sense of market demand, they have more data on their cost structures and overhead, and they have more visibility into their competitive landscape. Today, we share 3 research-backed negotiation tactics that Oil & Gas supply chain professionals can bring to the table to remedy that imbalance of information.

Whether you’re a seasoned negotiator or preparing for your first supplier negotiation, read on to learn more about the 3 psychological principles that Oil & Gas supply chain professionals can use to drive down costs.

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Post-Brexit Market Events to Keep an Eye On

August 11, 2016 at 2:45 PM / by PowerAdvocate posted in Cost Reduction, E&P, Midstream, Downstream

Brexit didn't have to shock the markets as badly as it did. Increased volatility that this event created (see here for our webinar on the topic) highlights the importance of tracking market trends against a calendar of geopolitical events relevant to your business. Such events have demonstrated time and again their ability to jolt markets, and even cause inflection points that drive economies into severe downturns. It is therefore important to look forward to the following international developments relevant to O&G:

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[Webinar] What Does the Brexit Mean for O&G?

August 3, 2016 at 11:58 AM / by PowerAdvocate posted in Cost Reduction, E&P, Midstream, Downstream

Curious what the Brexit means for Oil & Gas? Will the implications be wide-ranging, or is the decision primarily symbolic?

In our latest Q&A session, we share:

  • What actually happened
  • What the Brexit means for O&G Supply Chains
  • And how you can proactively respond

We invite you to view the brief 20-minute recording here:

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[launchPAd 2016] Debrief on Our 9th Annual User Group

August 3, 2016 at 11:32 AM / by PowerAdvocate posted in Cost Reduction, E&P, Utility, Midstream, Downstream

Thanks to everyone for our 9th successful User Group conference!

In today's post, we share a brief recap of the content, and if you're interested in hearing more about any of the presentations, just send us an email at costinsights@poweradvocate.com, and we'd be happy to set you up with any of our presenters.

Members of the Energy Intelligence Group present their "State of the Market" update

PowerAdvocate_User_Group.jpg

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Murphy Oil-Led Webinar: Driving Value Through Better Data

July 12, 2016 at 12:33 PM / by PowerAdvocate posted in E&P

A few weeks ago, roughly 70 E&P supply chain professionals across 30 firms joined us for a webinar led by Murphy Oil on the value of better data. In the video recording below, you'll hear about the material benefits Murphy has seen from more accurate, granular spend and market data in 2016. 

More specifically, you'll hear about improvements across:

  • Data management efficiency
  • Spend data usability
  • External market data leverage

If you're interested in hearing more about how you can drive similar results through better data, just follow up with us here.

 

 

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The UK Votes to Leave the EU: Market Reactions to “Brexit” and Implications for Global Trade and Price Trends

June 27, 2016 at 7:45 PM / by Maciek Wojdakowski posted in Cost Reduction, E&P, Utility, Midstream, Downstream

In a referendum on June 23, a majority of voters in the United Kingdom decided to leave the European Union, one of North America’s largest trading partners. While the “Brexit” vote is theoretically non-binding and does not immediately put the UK outside of the EU, it creates substantial uncertainty for UK businesses and all those engaged in commerce with the country. The result immediately jolted global markets and raises the prospect of other EU members holding similar votes following the successful “Leave” campaign in the UK.

In today's post, we cover the significance of this event as well as the challenges it raises for energy Supply Chain organizations.

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Downstream Savings Series: Part 1: Price Variance Analysis

June 9, 2016 at 9:03 AM / by PowerAdvocate posted in Cost Reduction, Downstream

We recently hosted a cost reduction webinar highlighting simple analyses that refiners and petrochemical companies can use to uncover millions in savings across their supply base.

In case you missed it, we’ve pulled out a few of the highlights below. Today we’ll focus specifically on price variance analysis, an analysis that helps answer questions like:

  • Does your price paid match your contract price?
  • Are there erratic fluctuations in your prices?
  • Are different suppliers charging different unit prices for the same item?
  • Are you receiving the discounts that suppliers committed?
  • Are the prices you’re paying moving in line with the market or are they staying flat over time?

Price variance occurs for a number of reasons: buyers may be buying off contract, suppliers may not be charging their contracted prices, and different suppliers may have different price points. But no matter the reason, unit pricing analysis can be incredibly valuable for capturing quick savings wins.

Scroll down for a brief intro video and a 5-step guide to eliminating price variance.

 

 

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