Entries for 'oil'

ETRM Software House of the YearTriple Point received the prestigious “ETRM Software House of the Year” from Energy Risk magazine this week at an awards dinner held this past week at the Energy Risk USA conference in Houston. Triple Point was selected as the winner because of its revenue, profit, and customer growth in 2012 along with its unique ability to deliver innovative, next generation commodity trading and risk management (CTRM) solutions including mobile applications.

In 2012 Triple Point grew its revenue by 30% and its profit by 40%, and added 28 new energy companies to its base of 400+ customers including Spanish power generator Iberdrola Generation, Korean-based oil refiner and marketer SK Energy, Brazil energy giant Petrobras, and China National Offshore Oil Corporation (CNOOC) Limited.

Energy Risk also named Triple Point “Software House of the Year – Asia” in 2012. In addition, Triple Point has been named a Leader by two top analyst firms – by IDC in its 2013 IDC Marketscape: Energy Trading and Risk Management (ETRM) Vendor Assessment, and for four straight years by Gartner in its Magic Quadrant for ETRM Platforms.

When accepting the award on behalf of Triple Point, Sr. Vice President and Chief Marketing Officer Michael Schwartz emphasized that what makes Triple Point successful is the people behind the software, who are committed to delivering unsurpassed value.

Just a few years back, there were many articles discussing “Peak Oil” and whether the world had already passed the peak.  A typical headline was one in Fortune Magazine in 2008 with a headline predicting a dramatic increase in oil prices – “Here comes $500 oil.”

At the recent HIS CERA Week, it was reported that “Peak Oil” was already a distant thought for most presenters, and that much of the talk was about growth in natural gas and oil from unconventional shale resources in the U.S.

According to the U.S. Energy Information Administration (EIA), crude oil production in the U.S. exceeded an average seven million barrels per day (bbl/d) in November and December of 2012, the highest volume since December 1992.

The International Energy Agency (IEA) predicts that the United States will overtake Saudi Arabia and Russia to become the world's leading oil producer by 2017.

The WSJ MarketBeat Blog notes we are only at the beginning. “U.S. tinkerers discovered a way to extract oil and gas from shale, the source rock for oil and gas that was previously deemed uneconomical. That has boosted U.S. production to levels not seen in two decades, and that’s only the beginning: shale recovery factors could improve, and vast shale formations in Argentina, China, Russia and other countries are yet to be tapped. If technology ever allows the industry to recover 70% of oil from conventional reservoirs and to double or triple the current recovery rate from unconventional resources, the world could almost quadruple the reserves of global liquids.” 

In addition, Iraq passed a critical milestone last year by producing three million barrels a day of crude oil for the first time since before the Persian Gulf War, reaching a high of 3.4 million bbl/d in December. Given its access to vast reserves at low costs, Iraq could play a significant role in the growth of energy supply.  Of course, in Iraq there is much geopolitical risk attached to supply.

Even with increased production, there was still not enough oil to meet demand in the beginning of 2013.  The EIA estimates a 1.3 million bbl/d average draw-down in global oil stocks for January and February.

There are numerous uncertainties as we move forward including the rate of technology advancements, geopolitical risk in many energy rich nations, growth in demand as the world continues its economic recovery, etc.  Perhaps the only certainty is continued volatility and the need for oil trading risk management software to manage the volatility.

As Jim Rogers, Chairman, President, and CEO of Duke Energy has been known to express in speeches, “Ben Franklin said there are two certainties in life: death and taxes. To that, I would add the price volatility of natural gas.”

The future of energy is going to be quite interesting!

Oil-Trading-SoftwareA combination of persistently low margins and high volatility can spell bad news for refining operations, causing intraday swings in oil prices exceeding their margins. According to an article recently published in Global Technology Forum, this situation is driving greater integration between refinery operations and trading activities within oil companies. It’s no longer good enough to be buying or selling to meet the needs of the refinery – supply traders and marketing personnel are being asked to use their market knowledge to make smarter trading decisions.

According to Viren Doshi, senior vice president, Booz & Co., a more trading-oriented approach has been most prevalent in northwest Europe, the Mediterranean, and the US Gulf Coast. Companies in these regions have recently had to be more flexible to survive low margins and leverage high price volatility in their markets. Independent refineries in particular have been bullish on this approach because of their less complex operations.

Software solutions that can minimize costs and maximize refinery margins by optimizing the entire supply and trading chain have been key to making trading integration easier for refiners. These solutions have the ability to process refinery plans and forecast demand and production information upon which the supply and marketing groups can take action. They also enable plan changes to be immediately visible to the trading group for improved efficiency and productivity. To learn more, read the full article.

Events

Procemin 10th International Mineral Processing Conference

October 15-18, 2013 | Chile

XXV Brazilian National Meeting of Mineral Treatment and Extractive Metallurgy (ENTMME)

October 20-24, 2013 | Brazil



Opinions expressed on this blog are those of its individual contributors, and do not necessarily reflect the views of Triple Point Technology, Inc.