Cost Insights
by PowerAdvocate

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

5 of the Top Chemical Savings Opportunities for Oil & Gas

March 3, 2017 at 9:30 AM / by PowerAdvocate

Everyone knows that commodity markets are volatile – but volatility can also translate into opportunities to capture market declines and turn them into savings. So how can downstream procurement teams ensure that suppliers pass on savings from market declines in chemicals, which are critical to operations?

Last year, we shared the top chemicals that Oil & Gas firms should be saving on based on actual market data that tracked changes in input commodities, margin, and overhead from 2014 to 2015. Before prices start going back up, it’s time to assess whether you’ve taken advantage of the declines that have occurred since the peak of the market. Read on to see an updated list of top chemical savings opportunities for downstream firms.

 

The Top 5 Chemicals You Should Be Saving On:

1. Ammonia: 43.6% Decline Over Last Two Years

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2. Hydrochloric Acid: 35.5% Decline Over Last Two Years

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3. Ammonium Hydroxide: 32.3% Decline Over Last Two Years

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4. Urea: 22.5% Decline Over Last Two Years

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5. Demulsifiers: 18.7% Decline Over Last Two Years

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Want to learn more about additional commodity market declines, and how to translate these declines into real pricing concessions with suppliers? Contact us here.

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