Business Automation

How Operators Using OPIS Fuel Rack Prices Can Cut Costs

byLaura Blewitt

Oil and gas operators are having a decent year so far, price-wise, with WTI lately hovering near $70/bbl. Who could imagine prices were nearly $100 lower in April 2020?

Despite the healthier margins for operators, the lessons learned from 2020’s dramatic decline in oil prices will not be forgotten. Oil and gas operators continue to be more vigilant with spending and cost management.

Rising oil prices translate to rising fuel costs

Depending on the size of the operator, fuel costs can add up to a $25 million to $150 million spend category. Fuel costs are rising this year in conjunction with stronger oil prices, so operators will continue to look for ways to ensure no overspending is overlooked.

The way that suppliers charge operators for fuel costs is improving. Five years ago, fuel costs were “all-inclusive” supplier day rates, giving operators little control or visibility into fuel-specific costs needed to manage drilling and completions.

Today, fuel costs are “split,” giving operators improved spending control. Despite this improvement, Enverus estimates that operators continue to overspend by 3% on fuel, mostly due to the inability to audit the specifics of fuel invoices.

Click below for access to a complimentary trial of MarketView with OPIS rack pricing data!

Sign Up Today!

In order to recover the 3%, operators need to effectively:

  1. Automate fuel price entry.
  2. Validate transportation charges.
  3. Audit historical fuel and transportation charges.

Today, we’re going to dive into the first step: automating fuel prices based on OPIS rack rates.

Take advantage of Enverus’ long-lasting partnership with OPIS

OPIS, the Oil Price Information Service, is the go-to fuel rack price for U.S.-based fuel suppliers. Enverus has supplied its trusted rack prices to customers via the MarketView platform for 20 years. The visibility gained with using MarketView enables operators the transparency that they crave.

  1. Utilize the OPIS index for price discovery and that all-important look into the market for assurance that you are being invoiced properly.
  2. Looking at NYMEX only does not bring the full picture and doesn’t tell the complete story — you must look at rack pricing assessments from market experts.
  3. Verify your contracts in real-time using our MarketView ExcelTools add-in.

FIGURE 1 | Track the OPIS rack prices that matter most to you with MarketView Desktop.

With MarketView, finance and accounting professionals can receive OPIS rack pricing and other essential energy market indices in real-time. The platform also allows users to automatically feed OPIS pricing into their daily workflow. Even in Excel, users can automatically pull the day’s rack prices with confidence and ease. The lightweight software provides robust price data on the go — whether users are working from home or back in the office, accessing OPIS pricing is simplified with MarketView.

Receive complimentary access to OPIS rack price data

For the first time ever, our partners at OPIS are working together with us to offer a complimentary trial of OPIS data within the MarketView platform. We are excited to extend this offer to you! Please fill in the form here to express your interest and set up your trial.

Laura Blewitt

Laura Blewitt

Subscribe to the Enverus Blog

A weekly update on the latest “no-fluff” insight and analysis of the energy industry.

Related Content

product-knowledge
Intelligence Operators
ByErin Faulkner

E&P activity targeting the Cleveland formation in the Anadarko Basin more than doubled in 2023 with 46 new wells reaching first production, compared to 20 in 2022 and similar levels the previous two years.

summer-outlook-pjm
Energy Transition
ByRyan Notacker

Renewable fuel uptake has surged in California in recent years, contributing to a 141% increase in the California Low Carbon Fuel Standard (LCFS) credit bank surplus and resulting in a drop in credit prices from ~$185/tonne to $75/tonne from 2019...

Enverus Blog - Coterra’s big Permian projects defy degradation worries
Intelligence Oilfield Services
ByJoseph Gyure, Editor, Enverus Intelligence

In the biggest oilfield services transaction since 2016, SLB agreed to acquire ChampionX Corp. for $7.76 billion in stock, bringing an industry leader in production chemicals into the OFS giant’s fold. ChampionX’s $420 million in net debt brings the transaction...

drilling-services-professional
Geoscience Analytics
ByDai Jones

Offshore drilling is a complex and multifaceted process essential for accessing oil and gas reserves beneath the seabed. Exploration drilling is the initial phase, crucial for identifying potential oil or gas reservoirs. It involves the deployment of mobile drilling units...

team
Operators
ByBryn Davies

Did you know that Enverus now has 18 offices around the world, with the most recent addition of the Brno office in Czechia

available transfer capacity
Energy Transition
ByRiley Prescott

Renewable integration has experienced a remarkable surge in Texas, with the installation of more than 9 GW of renewable capacity in 2023 alone.

minerals-management
Minerals
ByPhillip Dunning

Are you considering buying mineral rights in Texas? Before you take the next steps, familiarize yourself with the comprehensive information we've presented in this blog post.

enverus-instant-analyst-ai
Analyst Takes Generative AI
ByEnverus

The energy sector is definitely drawn to the potential of artificial intelligence (AI). The promise of making things work better and more efficiently is too tempting to ignore.

Enverus News Release - Utility growth prospects: Quantifying long and short opportunities
Analyst Takes Power and Renewables
ByRob Allerman

For much of March, the California Independent System Operator (CAISO) experienced significant fluctuations in power prices due to congestion, transmission outages and bearish pricing trends in SP-15. My team used Panorama to better understand and the Power Market Publications in...

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Let’s get started!

We’ll follow up right away to show you a quick product tour.

Sign up for our Blog

Register Today

Sign Up

Power Your Insights

Connect with an Expert

Access Product Tour

Speak to an Expert