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  • Pages
01 Agenda 2030
02 Contents
03 Introduction
04 Drilling down - the factors driving change in oil & gas
05 Five actions to future-proof revenues
06 Hydrocarbons are here to stay - for now
07 Insights from Amphora: Future-Proofing Oil Through Digitalisation
08 Insights from Amphora: Unblock the pipeline to oil trade finance
09 Insights from Amphora: Part 1 - Climate Change, Covid-19 & Oil Prices
10 Insights from Amphora: Part 2 - Climate Change, Covid-19 & Oil Prices
11 Insights from Amphora: Local deals will save Africa’s hydrocarbon sector
12 Insights from Amphora: Riding out the pricing peaks and troughs: maintaining oil and gas revenues
13 Insights from Amphora: Will the current health crisis hasten the early peak of oil demand?
14 Insights from Amphora: LNG continues to gain momentum as risk-weary buyers embrace short-term and flexible supply
15 Insights from Amphora: VAKT onboards NW-European barge post-trade processes
16 Insights from Amphora: LNG at an inflection point – the importance of optimisation in the mid-term
17 Insights from Amphora: Coming in from the cold – Arctic LNG takes its place on the world stage
18 Insights from Amphora: Automation and digitisation: cutting costs and speeding timelines in commodity and energy trading
19 Insights from Amphora: Peak oil demand predictions still fall wide of the mark
20 Insights from Amphora: Is natural gas a transition energy or not ?
21 Insights from Amphora: Coal faces an interesting future
22 Insights from Amphora: Carbon and ESG set for dramatic impact to energy industry
23 Insights from Amphora: 90-Day Track to A Successful Implementation
24 Insights from Amphora: ETRM Support and Maintenance
25 Insights from Amphora: Reference Data
26 Insights from Amphora: ETRM Training
27 Business Analyst
28 Project Manager
29 Support Team
30 Why Purchase a CTRM?
31 About Amphora
32 Biographies
33 Acknowledgements
34 TechPros.io

INSIGHTS FROM AMPHORA

Riding out the pricing peaks and troughs: 

maintaining oil and gas revenues

Oil prices fell from $50 to below $20 and back up to $35 in a matter of a few short weeks, creating global panic. The long-run equilibrium now looks likely to fall somewhere between $20 and $30 and prices may well remain low for at least 18 months. Maintaining oil and gas revenues in these turbulent times may prove a challenge too far for some.

A Reuters survey has found high levels of compliance with the OPEC+ agreement to cut supply. So far in May, the group delivered 4.48 million bpd of the pledged reduction, equal to 74% compliance, the survey found. Some observers believe cuts may have gone too far. Business Insider reports the CEO of one oil drilling company warning that “the US oil market is headed for a ‘mini-supply shock” with US oil prices braced to rise over 90% to $70 a barrel by the fall as the US has ‘over-cut production’.”

The US oil market is headed for a ‘mini-supply shock’ with US oil prices braced to rise over 90% to $70 a barrel by the fall as the US has ‘over-cut production’.

A further price war is likely. Hundreds of thousands of jobs are at stake. The US has gone from a net importer to a net exporter. Russia depends on a price point of $30-plus per barrel to balance its books, while Saudi Arabia is in an even more precarious position. Saudi Arabia is highly dependent on oil revenues, more so even than Russia, requiring an even higher price for the vast oil reserves that they have.

Price volatility represents a real threat to the survival of many oil and gas sector players. The average monthly volatility is usually around 3-10%. Recently, it has been as high as 50%. That simply does not work for a supply chain with a price lead of somewhere between 20 and 90 days.

In a market with such massive price fluctuations, how is it possible to maintain revenues and manage credit risk management? A single view of the commodity supply chain is vital. Amphora’s eBook ‘Agenda 2030: driving continued revenues in global hydrocarbons’ has more on achieving maximum visibility of the supply chain to achieve every possible efficiency.

Read the eBook

Real time commodity trading and risk management software