Now is the time for maritime shipping: North American oil refiners who are not fully leveraging maritime shipping could add tens, if not hundreds, of millions of dollars to their bottom line over the coming year. Now is the time to re-evaluate your sourcing and logistics strategies, capitalize on the opportunity to buy cost-advantaged crude directly from international markets and ensure low-cost, efficient transport to improve margins.
As the CFO of a 300KBPD refiner tells it, a $1 per barrel impact on margins would result in $100M saving annually, meeting the company’s 5-year savings target in just 1 year.
Two key factors are driving this opportunity:
- Over-supply of oil resulting in plummeting crude prices
- Internationally sourced crude has become more cost competitive
In the current environment it’s survival of the quickest
The most successful businesses are the ones that are asking themselves the right questions and know where to go to find the answers fast. These include:
- Is my current crude supply logistics strategy best supporting my business targets and objectives?
- How can I maximize margins by sourcing the cheapest crude from around the world that runs the best through my refinery?
- Am I taking full advantage of the global market via maritime shipping/barging and how should it be optimized with my other intermodal solutions?
- Do I have the right in-house resources to evaluate my right-now options and act fast?
Maine Pointe addresses these key questions in its insights paper : Oil & Gas Perspective: A $100M EBITDA opportunity for oil refiners.
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