Are Global Markets Ready for the U.S. Energy Boom?
Nearly four years after ending the ban on U.S. oil exports, the U.S. is now on track to regularly export 3 million barrels a day, making the US an indisputable force in the crude export market.
With current trends driven by the shale boom, the U.S. is well on its way to becoming a predominant crude oil exporter, a top LNG exporter, and the largest exporter for refined products and NGLs.
However, as the global paradigm shifts, there will unquestionably be risks. New market opportunities offer an excellent chance for better returns, but more supply chain touchpoints further complicate trading, operations, and logistics.
Even domestic producers focused on the U.S. Energy market will face increased complexity as transportation and storage infrastructure encounter increased bottlenecks — at least until market investments increase capacity.
So, How Can Energy Companies Prepare for the Unknown?
In a recent article for Shale Magazine, Richard Murphy, ION Allegro’s product manager for petroleum, writes:
Energy companies must be prepared for the only thing that is certain in the market — uncertainty. Because many U.S.-based energy businesses designed their commodity management processes prior to the shale boom, they are having to make big changes in order to keep pace with the evolving global market. To be truly successful in both domestic and global energy markets, U.S. businesses must have the tools and capabilities that enable them to combat additional complexity and risk. Real-time insight into global market data, asset optimization tools to handle vessel-borne transportation, and risk management capabilities for foreign currencies are critical.
As the global markets change, it’s time for energy companies to modernize their commodity management with a CTRM platform capable of providing the necessary insights for competing on a global scale. Spreadsheets, homegrown software, or outdated CTRM software just won’t cut it.