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 managers 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 platform enables the modeling of existing supply chains to help quantify the impact of P&L changes.
  • Multiple side-by-side scenario analysis is built into the tool to allow running and saving analysis for future reference.

 

 

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.
  • Accurately forecast lease volume and understand transportation costs, station quality constraints/penalties, and station market prices.
  • This tool determines optimal nomination volumes based on trucking constraints, station volume limits and weighted average quality constraints, and penalties at the stations.
  • Marketers can easily re-evaluate and change the primary offload station based on changes in the supply network and market conditions. 

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

 

The Lease Identification feature is a game changer for crude buyers and marketers. The platform standardizes the lease-bidding process, allows users to save analysis for future reference, and ensures optimal pricing when bidding a lease.

  • The feature evaluates the break-even economics for all leases in a specific region and creates a dashboard output for users to easily analyze the results.
  • Create scenarios for comparing 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 platform allows you to look up real driving directions from existing and third-party stations to all possible lease and station pairs to perform a thorough transportation-cost analysis.
  • The process of filling up your lease marketing funnel and ranking your potentials by order of profitability is automated.
 

Truck Dispatch Planning

 

The 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 optimal and alternative receiving stations.
  • The tool considers monthly nomination targets, remaining forecasted monthly lease volumes, spot prices, actual deliveries, station quality constraints, and station pricing.
 

capSpire’s Lease Crude Optimization Cloud Offering

The leading solution for helping lease crude transportation and marketing organizations optimize profitability is now easier than ever to deploy

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Operational Analysis and Monthly Playback

 

The Operational Analysis and Monthly Playback feature allows crude organizations to analyze and compare the various components of their gathering network to make the most profitable decisions.

  • The tool analyzes historical margins by operator, lease, and station so users can understand what operators, leases, and stations contribute most and least to overall profitability.
  • Marketers and dispatchers can compare actual dispatch decisions to optimal decisions, and quantify the impact and margin-uplift potential.
  • The platform includes the ability to create new custom dashboards to suit the need of each organization’s business processes.
  • Data can be integrated from dispatch systems to give marketers intuitive ticketing and dispatch dashboards, and allows analysis of that data separately or in combination with the optimization outputs in the form of lookback dashboards.

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 and 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 the application into internal systems. 
  • Managers leverage the Strategic Planning module to make asset and investment decisions.
  • Traders and marketers use the Optimal Lease Identification feature to automatically locate and price potential leases, and model the impact of new volume on the network.
  • Marketers use the Monthly Nomination feature before the 25th day of the month to determine optimal nominations for the following month.
  • During the month, dispatchers and marketers use the Truck Dispatch feature to suggest the optimal receiving station for each lease delivery.
  • After the month, marketers and dispatchers are able to compare actual lease delivery locations to optimal locations, and understand the P&L impact of 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 market intelligence such as which leases to pursue, and internal and competitor break-even economics
  • Maximizes monthly P&L by submitting optimal nominations to each receiving station
  • Enables marketers and dispatchers to react quickly and effectively to intra-month disruptions in supply and demand
  • Helps dispatchers make good dispatch decisions that are consistent with marketing and operational strategies
  • Easily identifies potential margin gains
  • Enables marketing and dispatch leaders to make strategic decisions that will improve month-over-month P&L

Contact us

Contact us today to arrange a no-commitment consultation and find out how to optimize your commodities business.