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.

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.

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

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.

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 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