Cost Insights
by PowerAdvocate

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

PowerAdvocate


Recent Posts

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?
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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.

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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:

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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.

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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.

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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.

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What Are The Recent Economic Changes In China That Can Impact Oil & Gas Supply Chains?

March 22, 2019 at 5:03 PM / by PowerAdvocate posted in Industry Insights

Summary
  • As China’s economic expansion matures and its GDP growth rate slowly declines, global supply chains will shift as they restructure around new economic realities in China
  • A major contributing factor to declining GDP growth rates in China is a slowdown in manufacturing, which constitutes nearly 30% of the country’s GDP
  • Increasing costs of production, which include rising labor wages, are making manufacturing in China costlier and thereby exports more expensive to global markets
  • The current US-China trade war, in which up to $250B of imports from China are subject to tariffs by the current administration, is adding additional pressure to global trade
  • It is imperative that Oil & Gas firms leverage better market data to stay abreast of global macroeconomic developments that can potentially impact their supply chains

 

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Higher Oilfield Costs to Continue in 2019

February 1, 2019 at 8:31 AM / by PowerAdvocate posted in Cost Reduction, Industry Insights, Oil & Gas

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. 

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Utility Update: 5 Things to Watch in 2019

January 10, 2019 at 3:45 PM / by PowerAdvocate posted in Cost Reduction, Industry Insights, Power & Utilities

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.

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[Whitepaper] How Segmenting Suppliers Can Help Predict Bidding Behavior

November 26, 2018 at 5:08 PM / by PowerAdvocate posted in Project Estimation, Power & Utilities

The variability of supplier responses to bid events can pose significant financial and operational risks to energy companies, especially as this behavior is prone to change when market and economic conditions shift. Variances in bid responses during the recent economic recession and recovery motivated PowerAdvocate to analyze the impact of macroeconomic factors on supplier bidding behavior. The aim of this analysis was to uncover trends that, when coupled with project and company-specific data, will enable industry leaders to better anticipate and mitigate project and supplier risk. If you missed our introduction of this analysis, you can read our previous blog about it here.

Our team hypothesized that suppliers who offer a diverse range of services, work across multiple industries, and service a wide geographic area respond to macroeconomic circumstances differently than smaller or more specialized suppliers. To measure these differences, and to better understand how a supplier’s profile influences their behavior, the team categorized bid data into two groups: bids from major suppliers and bids from specialized suppliers.

Download Whitepaper

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