TRACS Urges Energy Sector to ‘Take Control’ of Its Global Assets Ahead of OTC
TRACS Assets, the Aberdeen-based leading asset tracking and rental management software firm on Wednesday 29th April 2015, announced the launch of ‘TRACS Mobile’ ahead of May’s Offshore and Technology Conference (OTC) 2015 in Houston, Texas. Thanks to a new strategic partnership between ecom instruments and Samsung, leading to their development of the world’s first ATEX Zone 1/Division 1 tablet, TRACS mobile application can now be brought into hazardous areas in the oil and gas sector around the world.
TRACS Mobile is a workflow application, which drives improved visibility of assets, facilitates stock movement in the field, reduces costs, enables more efficient workflow and enhances performance.
Jennifer Hall, Business Development Manager for TRACS, Assets, and Derek Austin, managing director of TRACS Assets, look forward to showcasing ‘TRACS Mobile’ at May’s Offshore and Technology Conference (OTC) 2015 in Houston.
Dr. Derek Austin, former student of Professor Higgs, of Higgs Boson God particle fame, and managing director of TRACS Assets says, “TRACS Mobile was a natural evolution for our software as it enables our customers to take control when in the field and in hazardous areas, thus simplifying the still common pen and paper reporting process and reducing human error. We recognized the future importance of hand held devices for the oil and gas sector and how this would impact on the use of our software, so looked to form a partnership with a leader in industrial hand held devices.”
Derek continues, “The strategic partnership formed with ecom instruments UK made complete sense in that we provide pioneering technology/software and they provide cutting edge devices, which can be used in even the most hazardous of areas. There was a definite synergy between both companies. We will be attending OTC and look forward to showing the benefits and usability of TRACS software to our clients, and the global energy sector. When coupled with the innovative handheld device from ecom, our software really does come into its own.”
Carl Henderson, managing director of ecom instruments UK, says, “We immediately saw the potential when running the TRACS Mobile application on our latest hardware. This powerful application, twinned with our latest device will be an effective tool for engineers and mobile workers in the oil and gas industry.”
Carl continues, “Innovation is not about invention, innovation is about taking existing components and bringing them together to create something greater than the sum of its parts. A prime example is the smartphone; operating systems, touchscreens, Gorilla Glass and integrated cameras all existed previously but when combined in the form of a smartphone, the results were breathtaking. The combination of ecom’s hardware and TRACS’ software solutions are extremely innovative and powerful and are certain to unlock the door to large cost savings across the industry.”
“With rapidly changing market conditions, there is an ever-growing need to become more productive and efficient while increasing the life-span of assets and equipment, all the while maintaining exceptional levels of safety. With a built-in camera and a full range of wireless capabilities, the Tab-Ex®, when used with TRACS software, enables equipment defects to be captured at the point of inspection, while maintenance work is executed, and made instantly visible to those who need to diagnose the issue and determine follow-on actions. We look forward to having the Tab-Ex® showcased at OTC, which will show end users the functionality of our device and its ease of use when combined with the TRACS Mobile software.”
NYC-based PIRA Energy Group believes that the current global setting as conducive to growth and expects a springtime rebound in economic activity. In the U.S., stock excess is about flat. In Japan, crude stocks draw and product stocks move higher. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:
World Oil Market Forecast
While economic worries remain, PIRA judges the current global setting as conducive to growth and expects a springtime rebound in economic activity. The magic of price is working on both oil supply and demand; balances are tightening. This is occurring at the same time the Middle East is mired in sectarian conflict.
U.S. Stock Excess about Flat
This past week’s inventory build approximately matches last year’s build for the same week, leaving stocks 167 million barrels, or 15.5%, higher than last year. The overall composition of the build did not change relative to last year so products are still 75 million barrels higher (11%) while crude is 92 million barrels (23%) higher than last year. Some 61% of the product excess is in NGLs.
Japanese Crude Stocks Draw, Product Stocks Move Higher
Crude runs eased slightly and crude imports declined, producing a stock draw. Finished product stocks built mostly on a rise in naphtha stocks. Gasoline and gasoil demands were lower, with slight stock changes for each. Kerosene stocks drew again fractionally as the heating season closes out. The indicative refining margin remains good and was little changed on the week.
European LPG: Supply Weighs, Demand Wanes
European LPG prices were sharply lower as buyers remained quiet while supply continues to weigh on markets. Cash cargo sized lot prices lost 9% on the week to print near $380/MT, just $2 below June swaps, and at a $175 discount to regional naphtha. Butane prices were mixed, with coaster batch prices losing ground but larger cargoes improving to $445. Current LPG prices are now so attractive that petrochemical feedstock buyers will likely look to maximize runs in the coming weeks, wherever possible.
U.S. Ethanol Output Drops
Ethanol production dropped to a six-month low of 921 MB/D during the week ending April 24 as several plants were offline for spring maintenance. PADD II output declined to 834 MB/D while production outside of PADD II climbed to a record 87 MB/D.
U.S. Ethanol Prices and Manufacturing Margins Gained in April
Ethanol prices climbed during April, supported by rising petroleum values and robust demand in both the domestic and export markets. Manufacturing margins improved as corn costs fell.
The information above is part PIRA Energy Group’s weekly Energy Market Recap- which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.
The oil & gas industry currently suffers a shortage of mid-career professionals primed for leadership & supervisory roles, the legacy of the last oil price downturn in the 1980s to mid-90s. At that time the industry endured significant job losses, and hiring came to a standstill. As a result of the limited talent added, the group of individuals advancing into supervisory or eventual leadership positions in the oil and gas industry is notably small.
Since oil price started declining late last summer, layoffs in today’s industry are nearing 100,000 worldwide. Oilfield service companies Schlumberger, Baker Hughes, and Halliburton announced layoffs of around 20,000, 10,500, and 9,000 employees respectively, while E&Ps BP and Chevron each announced layoffs approaching 10,000 of their employees. According to a survey completed in January 2015 by Rigzone, 44% of the surveyed companies indicated that they plan to hire fewer workers over the next six months while 5% indicated they plan to completely halt hiring efforts.
Although the oil & gas industry employs numbers of low-skilled workers, the lifeblood of the industry is the variety of specialized engineers, technicians and rig crews who boast years of involvement in the field along with formal training or university degrees. Continuing widespread layoffs, frozen or reduced pay checks and the effects a lengthy downturn will have on the industry can dissuade such individuals from pursuing careers in oil & gas and encourage college graduates to move into more stable industries.
Just as the legacy of the 1980s-90s created a shortage of experienced workers – contributing to rising costs, execution challenges, and safety concerns – the numbers of lost personnel, both current and future, threatens the long-term capacity of the industry. To many in the business it feels like history is repeating itself.
Katherine Dunn, Douglas-Westwood Houston
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NYC-based PIRA Energy Group believes that the vast majority of the bearish news is already out and that the price lows for global crude oil markers are in. In the U.S., stocks build but surplus to last year narrows. In Japan, crude and finished product stocks build, amid higher demands. Specifically, PIRA’s analysis of the oil market fundamentals has revealed the following:
Asia-Pacific Oil Market Forecast
PIRA believes that vast majority of the bearish news is already out and that the price lows for global crude oil markers are in. The current trajectory to crude stocks peaks in May, and then draws commence June-August. Supply disruptions, while having come off in March, will remain high for the foreseeable future. Any final deal with Iran will not result in significantly higher volumes until much later in 2015 at the earliest. Meanwhile, Saudi Arabia’s production is making new historic highs and the Kingdom is raising prices to Asian customers. The magic of price is working to tighten oil markets and higher oil prices are in the offing. PIRA has once again revised its 2015 crude oil price outlook higher.
U.S. Stocks Build but Surplus to Last Year Narrows
The United States had another hefty stock build this past week. Last year’s overall build in the same week was even larger leaving the year-on-year inventory excess modestly down. Over half of the year-on-year increase is in crude oil, while the bulk of the rest is in other products. Gasoline and distillate stocks are each 15-17 million barrels above last year, but since gasoline inventories are nearly double those of distillate the year on year excess is a smaller 7%.
Build, Amid Higher Demands
Crude runs increased slightly and crude imports rose such that stocks built. Finished product stocks also built. Gasoline and gasoil demands were higher, but with a slight stock build for gasoline and a more significant stock build for gasoil. Kerosene demand rose and stocks drew 30 MB/D, similar to the rate drawn in the previous week. The indicative refining margin eased on the week but still remains statistically strong.
Freight Market Outlook
Thus far in 2015 spot tanker markets have eluded the seasonal decline generally experienced during the second quarter of the year. Firm spot tanker rates helped by rising OPEC output and cheap bunkers combined to propel first-quarter vessel earnings to their best showing since 2008, and this momentum has continued in April. Although floating storage has not yet materialized to any significant degree, a current overhang of West African crude could produce some floating stocks.
High U.S. LPG Stocks to Keep Building
Propane inventories continue to climb in the offseason, with stocks adding 1.99 million barrels in the latest week, matching the previous week’s build. Propane inventories are currently 57.5 MMB, 31 million barrels higher than a year ago. Inventories of other NGLs and LRGs (excluding propane) increased by 2.7 million barrels last week, climbing to the 85.2 MMB level. The surplus to a year ago expanded to 12.6 MMB.
Ethanol Prices Rise
U.S. ethanol prices gained the week ending April 17 as petroleum values surged. Demand was strong as blenders prepare for the peak driving season. The information above is part of PIRA Energy Group’s weekly Energy Market Recap - which alerts readers to PIRA’s current analysis of energy markets around the world as well as the key economic and political factors driving those markets.
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