Cost Insights
by PowerAdvocate

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

PowerAdvocate


Recent Posts

Europe O&G: 2021 Downstream Market Reflections

February 8, 2021 at 3:24 PM / by PowerAdvocate posted in Industry Insights, Oil & Gas

2020 has been a volatile year for downstream supply markets, and several key cost categories have moved sharply. For example, since last January,

  • Hot-Rolled Coil Steel costs have increased by 40%+
  • Copper costs have increased by 16%+
  • Organic Basic Chemicals costs have decreased by 4%+

As operators refine their CapEx and OpEx programs for 2021, we have found that it is important to understand both how key downstream commodities have trended, and the impacts of those trends on key cost categories – for example, the 16%+ increase in copper costs contributed to a 7%+ increase in Electrical Supplies.

Read More >>

Europe O&G: 2020 Upstream Cost Top Movers

December 17, 2020 at 10:34 AM / by PowerAdvocate posted in Industry Insights, Oil & Gas

2020 has been a volatile year for upstream supply markets in Europe, and several key cost categories have experienced inflationary pressure. For example, since January,

  • Screen costs have increased by 16.6%
  • Generator costs have increased by 11.7%
  • Carbon Steel Pipe costs have increased by 11.3%

Understanding how key cost markets are trending unlocks value across the entire cost management lifecycle:  from identifying market-driven opportunities and risks to support category strategy development, to executing data-driven vendor negotiations, to tying contracts to favorable indices to underpin contract resilience.

Our team recently put together a list of upstream cost categories which experienced the most inflationary pressure during 2020. 

 

Read More >>

Accelerating Supplier Diversity Programs

October 20, 2020 at 4:23 PM / by PowerAdvocate posted in Power & Utilities

This year's economic, cultural, and health environment has elevated the industry's focus on supplier diversity initiatives. As an example, over 50% of the top 25 investor-owned utilities in the US referenced the topic in their Q2 earnings call, vs. just 20% in Q2 of last year. However, data and resource challenges can often hinder progress to stated diversity program goals.

Read More >>

A Narrowing Opportunity for Mining Supply Chains

July 14, 2020 at 8:37 PM / by PowerAdvocate posted in Cost Reduction, Industry Insights, Mining

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
Read More >>

What COVID-19 Means for Your Supply of Mining Tires

June 1, 2020 at 4:21 PM / by PowerAdvocate posted in Cost Reduction, Industry Insights, Mining

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?
Read More >>

Pricing Projects in the Wake of an Oil Crash: How Midstream Firms Can Stay Competitive in a Down Market

April 10, 2020 at 6:00 PM / by PowerAdvocate posted in Project Estimation, Cost Reduction, Industry Insights, Oil & Gas

COVID19 Production

 

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.

Read More >>

COVID-19 Market Report: Managing O&G Supply Chain in the Face of a Market Crisis

April 8, 2020 at 4:20 PM / by PowerAdvocate posted in Cost Reduction, Industry Insights, Oil & Gas

COVID-19 Should-Cost

 

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:

Read More >>

Highlights from the 2019 Houston Wood Mackenzie Energy Summit

December 19, 2019 at 3:46 PM / by PowerAdvocate posted in Industry Insights, Oil & Gas

We’re excited to share that PowerAdvocate recently took part in sister company Wood Mackenzie’s Energy Summit in Houston.

Read More >>

Case Studies: A Cost-Centric Mindset in a Down Market

August 14, 2019 at 12:25 PM / by PowerAdvocate posted in Industry Insights, Oil & Gas

As oil prices continually dip below $60/bbl and margins tighten, E&Ps are facing more pressure than ever to manage costs in order to deliver more shareholder value. After recent second quarter results, even top E&Ps suffered stock plummets upwards of 30%, which analysts have attributed to rising costs of production. The challenge – and the opportunity – is for operators to exercise greater capital discipline by more surgically executing cost-cutting strategies.

Read More >>

Highlights from the 2019 Oil & Gas Executive Forum

May 31, 2019 at 2:28 PM / by PowerAdvocate posted in Cost Reduction, Industry Insights, Oil & Gas

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

Read More >>
Subscribe to Cost Insights

Join thousands of energy industry leaders and receive regular insights to help your organization manage costs more intelligently

Request more information about our Data and Cost Reduction Technology Suite: