Does your organization nominate based on lease profitability? What process do you have in place to revise and improve nominations to maximize margins?
The key to maximizing monthly P&L is correctly setting nomination volumes at each receiving station or pipeline. While this sounds simple, it requires organizations to accurately forecast lease volume and understand transportation costs, station quality constraints/penalties, and station market prices.
When you bid a new lease how do you evaluate break-even economics versus the competition? How do you ensure you’re buying lease volume at the right price?
By comparing the internal break-even economics with the break-even economics of competitors, you are able to give crude buyers the market intelligence they need to win lease volume at the right price. Having this data at your fingertips enables you to automate the process of filling up your lease marketing funnel and rank your new leases by order of profitability.