The leading solution for helping lease crude transportation and marketing organizations optimize profitability.

From the increased production of crude oil to the lowest crude prices in years, these market dynamics present challenges and opportunities for crude marketers. With capSpire’s Lease Crude Optimization product, crude marketers and transportation organizations are able to achieve increased margins by optimizing strategic and tactical decisions.

Strategic Planning and Optimization

 

Whether considering new assets or long-term agreements, the strategic planning capabilities enable senior leaders to make the right decisions to improve profits.

  • Strategic planning capabilities enable crude organizations to financially engineer their supply chain and optimize both short- and long-term profitability
  • The software enables the modeling of existing supply chains in order to understand the impact on P&L due to both changes in network composition (leases, stations, storage, contracts) and market landscape (prices, market spread, quality spreads).

 

 

Monthly Nominations

 

The Monthly Nomination feature enables marketers to easily determine the optimal monthly nomination volume using a proprietary optimization model.

  • The key to maximizing monthly P&L is correctly setting nomination volumes at each receiving station or pipeline. While this sounds simple
  • Helps organizations accurately forecast lease volume and understand transportation costs, station quality constraints/penalties, and station market prices.
  • Determines the optimal nomination volumes based on trucking constraints, station volume limits and weighted average quality constraints and penalties at the stations.

Lease Crude Optimization

The new reality of fluctuating prices also adds additional pressure to margins creating the need for crude marketers to make better decisions. With capSpire’s Lease Crude Optimization product, crude marketers and transportation organizations are able to achieve increased margins by optimizing tactical and strategic decisions.

Lease Identification and Pricing

 

capSpire’s Lease Identification feature is a game changer for crude buyers and marketers.

  • Evaluates the break-even economics for all leases in a specific region
  • Compares the internal break-even economics with the break-even economics of competitors to give crude buyers the market intelligence they need to win lease volume at the right price
  • The tool allows you to look up real driving directions to existing and 3rd party stations
  • Automate the process of filling up your lease marketing funnel and rank your potentials by order of profitability
 

Truck Dispatch Planning

 

capSpire’s Truck Dispatch feature helps dispatchers make everyday dispatch decisions to optimize monthly P&L. This feature is especially useful when intra-month refinery, pipeline, or station disruptions affect your network.

  • The easy-to-use visual interface suggests optimal and alternative receiving stations for each lease delivery
  • Behind the scenes, capSpire’s proprietary optimization model determines the optimal and alternative-receiving stations
  • Considers monthly nomination targets, remaining forecasted monthly lease volumes, spot prices, actual deliveries, station quality constraints, and station pricing
 

Operational Analysis and Monthly Playback

 

The Operational Analysis and Monthly Playback feature allows crude organizations to analyze and compare in order to make the most profitable decisions.

  • Historical margins by operator, lease and station, and understand what operators, leases and stations contribute most and least to the overall profitability
  • Allows marketers and dispatchers to compare actual dispatch decisions to optimal decisions and quantify the impact and margin uplift potential.

Learn more about Lease Crude Optimization

The leading solution for helping crude marketing organizations optimize profitability.

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How does it work?

 
  • Leases, stations (pricing, quality constraints/penalties), transportation costs and historical tickets are loaded into the Lease Crude Optimization application either manually using our simple-to-use Excel interface, or we can integrate to internal systems. We have extensive experience with dispatch/ticketing and ETRM systems.
  • Managers leverage the Strategic Planning module to make asset and investment decisions.
  • Traders and marketers use the Optimal Lease Identification module to automatically locate and price potential leases to go after and model the impact of that new volume on the network.
  • Marketers use the Monthly Nomination feature before the 25th of the month to determine optimal nominations for the following month.
  • During the month, dispatchers and marketers will use the Truck Dispatch feature to suggest the optimal receiving station for each lease delivery.
  • After the month, marketers and dispatchers are able to review the lease delivery locations versus the optimal locations and understand P&L impact due to suboptimal decision making.
  • Using the What-if Analysis feature, marketing managers and dispatchers can understand the potential impact of changes to lease volume, stations and transportation costs.

Benefits

 
  • Provides crude buyers with the intelligence on what leases to attack and internal and competitor break-even economics.
  • Maximizes the potential monthly P&L by submitting optimal nominations to each receiving station.
  • Enables marketers and dispatchers to react to intra-month supply and demand disruptions.
  • Helps dispatchers make good dispatch decisions that are consistent with marketing and operational strategies.
  • Easily identifies potential margin gains by using the Monthly Playback feature.
  • Enables marketing and dispatch leaders to make strategic decisions that will improve month-over-month P&L using the What-if Analysis feature.

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