As you read in an earlier post, the IEA seems to have signaled that a return to higher prices in the short term seems unlikely. Is this the start of a total collapse of oil market as some might suggest? Probably not, but what it does signal is that it is time for even the new entrants from the shale revolution to become more savvy about how they trade and market their energy products.
Since the oil price is no longer high, these participants can no longer be complacent about how they manage this part of their business. They need to move away from spreadsheet and put some controls in place if they want to survive.
But wait, there is a cost to making that change, and if I am one of those new entrants to the shale revolution, do I really have the budget to move beyond spreadsheets and implement a trading and risk management system that will provide the control I need?
The short answer is with lower prices and increased volatility in the market you cannot afford to ignore the need for these controls. The longer answer is to put a trading and risk management system in place but do it with a “Lower Total Cost of Ownership”. At LANSHORE , Lower Total Cost of Ownership is our mantra.
A young engineer doesn’t need a Porsche or a Ferrari to drive to his or her first job after college. The same can be said about the newer entrants to the shale revolution. They don’t have the budget to buy the most powerful high-end energy trading and risk management systems in the market today, instead they need to look for cost effective solutions to keep themselves in the game.
Lower Total Cost of Ownership gets them the Energy Trading and Risk Management systems they need now at a price they can manage now and into the future. These companies need to get up and running quickly at a lower price and they have to keep their systems running in a cost effective manner.
LANSHORE has the organizational structure and the right people to help new entrants make this happen. Don’t spend all your money on a Porsche or a Ferrari, when all you really need is a Ford or Chevy to keep your organization in business.
- On December 10, 2014