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

Energy Analytics Energy Transition
ByAndrew Gillick

In case you missed it, Enverus virtually hosted EVOLVE, our flagship conference, May 16-17. The event included two full days of presentations, panels and keynotes, distilling the most relevant data and thoughts on the industry today.  Below Andrew Gillick, managing director...

Energy Analytics Other
ByShane Reddell

In the current landscape of heightened environmental and social consciousness, upstream oil and gas companies face significant challenges in achieving favorable refinancing for their existing credit facilities. These challenges are compounded by the recent volatility in the debt markets and...

Energy Analytics Intelligence Publications
ByMaurice Smith

Wildfires that have already scorched more than double the average annual fire destruction across Alberta forced the shut-in of more than 300,000 boe/d while threatening future shuttering of output from the so-far largely unaffected oil sands region. Record temperatures saw...

Energy Analytics Energy Transition
ByHeather Leahey

CO2 containment risk has become one of the most popular topics among our clients evaluating CCUS projects. Operators need to understand and evaluate subsurface features that could trigger CO2 migration and containment losses as well as introduce additional safety, reputational...

Energy Analytics Energy Transition
ByRyan Luther

Anyone who thinks spending time at a public charging station is a blocker to buying an electric vehicle (EV) might want to consider the numbers behind EV and internal combustion engine (ICE) vehicle refueling times. The answer is that it...

Enverus Blog - 6 tax preparation tips for mineral and royalty managers
Energy Analytics
BySilas Martin

Recent years have been a roller coaster for mineral buyers, from record low commodity prices to highs for oil and natural gas in the last year. Going forward, challenges and opportunities will be plentiful. We expect oil prices between $80...

Power and Renewables
ByKenneth Curtis

It’s that time of year when generator and transmission outages are at their peak in PJM. The first half of April has not disappointed volatility-wise as the WHUB/NIHUB spread has set new 30-day highs largely driven by congestion. Figure 1:...

Enverus Blog - April's energy outlook: Analyst insights you can't miss
Analyst Takes Energy Analytics
ByChris Griggs

May marks a new month, and it’s essential to assess the energy landscape of April. Our Enverus Intelligence® | Research (EIR) team has scrutinized critical trends and advancements, delivering to you insightful analyst takes that can shape your business decisions....

Energy Analytics
ByCayley Krynowsky

Inventory is king in 2023. Operators and investors alike are more concerned than ever about remaining inventory – who has it, where is it, and will it be economic? To answer these questions, most turn to the tried-and-true, but also...

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

Access Product Tour

Speak to an Expert

Book a Demo