The Russia-Ukraine conflict has rattled global commodity markets, sending crude oil prices to their highest level in more than a decade, while prices for natural gas, nickel and aluminum have also spiked. Transport disruptions and the possibility of additional sanctions on Russia have raised the prospect of tighter supplies for various commodities.

Given high oil and gas price volatility and uncertainty going forward, an understanding of the cost exposure to petroleum prices of key equipment and services procured by mining operators is key to strategically managing costs.

The following analysis leverages PowerAdvocate’s proprietary cost models to provide visibility into the exposure of key mining equipment and services to petroleum prices across the following commodities: fuel, miscellaneous; gasoline & diesel; natural gas; and petroleum products.

The ongoing Russia-Ukraine conflict has provoked new geopolitical tensions, prompted international sanctions, and disrupted global economies. Amidst growing uncertainty to the trajectory and implications of this conflict, energy firm supply chains face new risks that may impact their costs and disrupt their procurement processes. In this whitepaper, we identify and provide commentary on 3 core themes that bare increased risk as a result of this conflict: Commodity Price Inflation, Sanctioned Supplier Exposure, and Exposure to Impacted Vendors.

2022 presents a challenging cost environment for mining operators as inflation in cost inputs pressures operating margins. Meanwhile, the stakes of effective cost management will be high as operators face complex capital allocation decision-making as they re-position for the Energy Transition.

In our January report, we provide global 12-month forecasts for key mining cost categories, including mining loading and hauling equipment, explosives and maintenance services.

Operators leverage these forecasts to enhance their budgeting accuracy and to drive market-based cost reductions.

As commodity markets rebound, the window of opportunity for mining operators to drive supply chain savings is narrowing.

In this discussion, we look at:

• Recent trends in commodity metals pricing
• How these trends represent a strategic – and narrowing – opportunity for mining operators to capture savings
• Key components of a strategic roadmap for how mining supply chains can effectively leverage current market conditions to achieve market-based savings and protect against future inflation risk

In this discussion we look at the building blocks needed to understand supply chain risk across the enterprise and dig deep into the cost structure of mining tires to answer the following questions:

• What are the drivers behind the rise and fall of mining tire prices in different regions?
• What are the bottlenecks with your supply of mining tires?
• What does the future look like for key mining tire suppliers?

Amidst the COVID-19 market downturn, midstream projects are under intense scrutiny as executives look to reduce spending in a capital-constrained environment. However, data challenges prevent firms from identifying opportunities to lower cost estimates, resulting in scrapped projects and lost bids.

As the market downturn has forced Oil and Gas operators to diligently scrutinize 2020 budgets, common data challenges are impeding E&P executives from taking swift action. 

In our most recent market report, we examine two questions raised by executives grappling with the current market crisis:

We’re thrilled to share that over sixty industry executives across more than forty firms attended the 4^th Annual Oil & Gas Executive Forum on May 22nd at the Petroleum Club of Downtown Houston for our best event yet.

As the new year begins and E&Ps continue to face pressure to focus on returns, operators remain on the lookout for incisive market data and forecasts that provide greater visibility into potential risks and opportunities. 

Utilities are in the thick of an industry transformation driven by technological and competitive forces. 2019 shows no signs of slowing down. We have highlighted 5 key trends to stay ahead of in the coming year, so utilities can continue to position themselves for success.