Curious how the election of Donald Trump may impact your supply chain? Looking for new approaches to purchasing steel-based equipment within an environment of increasing protectionism? Wondering whether the bankruptcy of major shipping companies affects your logistics and freight costs?Watch our Q3 2016 Quarterly Market Outlook webinar on-demand to get answers to questions like these and more.
We're excited to share a brief 10-minute video update on the steel market for Oil & Gas Supply Chain firms. In the video below, we cover:
- How savvy Oil & Gas firms are shifting from importing finished steel products like line pipe to a hybrid approach of importing raw steel plate and taking advantage of rolling and coating services in the domestic U.S.
- Which steel tariffs are still in play, which countries have the lowest rates, and how those tariffs impact future sourcing strategies for more specialized steel products
- Why domestic coating may result in savings on freight costs and regulatory complications
- Why U.S. production of steel plate has historically been lower relative to U.S. production of hot-rolled steel, and why this complicates a completely domestic approach
Interested in talking through your sourcing strategy for steel-based products? Send us a note at email@example.com
Earlier this week, news broke of the planned merger of GE’s Oil & Gas business with Baker Hughes. By combining GE’s machinery and equipment focus with Baker Hughes’s services focus, the merger will create one of the largest “fullstream” providers in the energy industry and will likely increase the competitive stance of Baker Hughes against the likes of OFS giants Schlumberger and Halliburton.
Years of shipping oversupply and declines in freight rates have created a shipping crisis that directly impacts Oil & Gas firms. In this market update, our Energy Intelligence Group shares:
- Why slowing trade growth has caused a massive oversupply of containerships
- How oversupply should translate into much lower freight rates for you and your suppliers
- Why the shipping crisis is systemic and how initial bankruptcies in firms like Hanjin signal a larger wave of financial distress
- How that introduces risk of delay and disruption into your Supply Chain (and specific, tactical methods for mitigating that risk)
Scroll down to view:
Interested in learning more about your exposure? Send us a note at firstname.lastname@example.org
Prices for caustic soda have dropped by more than 54% since they peaked in 2009.
But now, they’re going back up.
Do you have a plan in place to buffer against caustic soda price escalation and drive savings opportunities?
Click here to download our step-by-step guide on how to capture savings on caustic soda using market data and analysis.
In our latest macroeconomic update, our Energy Intelligence Group shares the latest on key economic factors affecting Oil & Gas Supply Chain teams today. Scroll down for a brief 15-minute update on:
- GDP movements
- The election's impact on Oil & Gas
- Our interest rate outlook
- The recent market rally
- Infrastructure spending
- Spikes in copper
- Protectionism and trade
Interested in learning more? We're always happy to talk: email@example.com
In January 2015, monthly line pipe imports to the United States, including circular and welded line pipes, reached 315,000 metric tons. By September 2016, these imports dropped to 60,000 metric tons, more than an 80% decrease in 20 months. While low oil prices over the last two years might have discouraged investment in pipeline projects and thus decreased the demand for line pipe, they impacted less than 30% of US pipeline projects in 2015, according to the US Oil & Gas Association. One significant driver behind the drop in imports remains tariffs.
In today's post, we share some innovative new ways to approaching line pipe sourcing in a world of increasing tariff determinations.
As oil prices began falling in mid-2014, oil market observers naturally assumed that OPEC would play its traditional role and cut production in order to stabilize prices. However, since then, the group has failed to implement any meaningful cuts, contributing to a massive global supply glut and a bear market in crude. While this course of action is partially a response to the economics of US shale plays, it has been driven by internal clashes within OPEC, particularly between Saudi Arabia and Iran.
The scatterplot results from our previous blog post reveal two findings around utility gas distribution replacement rates that surprised us. First, our analysis shows that at the current rate of replacement, the majority of the industry will require at least 25 years to complete their programs. Second, we find capable, prominent companies plotted on the bottom of the y-axis – near a zero percent Replacement Rate. There are two metrics that help shed some light on what’s behind these findings.
Two cost-reduction concerns are top-of-mind for Oil & Gas firms right now: 1) Ensuring maximum savings from the downturn, and 2) Protecting against price escalations from the rebound.
In a recent webinar attended by 60+ O&G peers, a leader in Statoil's supply chain discussed how her organization achieved wins in these areas, driving substantial cost-avoidance for high-spend, strategic categories.
In this webinar recording, you'll learn:
- How to create data-driven counteroffers in supplier negotiations and tie costs to specific indices
- How to position yourself in a market of increasing prices
- How Statoil took advantage of cost models to achieve more than $450K+ of cost reduction and avoidance
- And lots more...