The oil markets are undergoing rapid change. Global economies are slowing. Supply is abundant and prices are tanking. (Learn more in "Why You Need ETRM Software to Support Oil Transport.") But history tells us that lows are frequently followed by all-time highs. The net effect is that the complexity and volatility of the crude and refined markets are here to stay and will most likely increase in the coming years. It is important that marketers, refiners, and exploration and production (E&P) companies have real-time, advanced systems in place to mitigate risk, manage physical movements, and optimize decision-making. When researching energy trading and risk management software (ETRM), there are certain features that oil companies should look for.
Features to Look for in ETRM Software Supporting Crude Oil
Some of the features to look for in ETRM software supporting crude and refined products include:
- Flash P&L that enables traders to mark their books throughout the day
- Physical contract capture along with complex pricing features such as crack spreads and formula-based deals
- Netback pricing to track costs throughout the entire product lifecycle enabling a transparent view from production to sale of end products
- Complete scheduling and logistics functionality from simple back-to-back matching of trades to support for extremely complex itineraries that have multiple legs and multiple modes
- All high volume modes of movement and transport supported including pipeline, truck, rail, vessel, and barge
- Scenario optimization, “what-if” deals, stress testing, VaR, Monte Carlo simulation, and other advanced risk management techniques
Using ETRM software with these features enables traders, risk managers, schedulers, and back office personnel to gain a real-time view of required information from original trade through to final destination.
Benefits of ETRM Software
Next-generation ETRM software provides these benefits to oil companies:
- Automatically maintain audit logs that track all users and activities including new deals, feeds from external exchanges, and deals being edited
- Gain real-time P&L data throughout the day
- Capture all information on the buying and selling of an energy product, including storage and transportation
- Understand the underlying causes driving P&L changes with P&L attribution
"To support the future growth of SEI’s business and ensure our customers’ needs are met in a timely and profitable fashion, we needed to streamline the flow of information throughout the organization and reduce the amount of time spent on back-office paperwork and reporting. Of the multiple vendors we evaluated, Eka offered the most comprehensive and cost-effective solution. We were particularly impressed with the amount of time Eka spent with us to understand our business model and requirements."
— Scott Johrde, COO, SEI Energy
Eka's Next-Generation ETRM Software Supports Crude and Refined Products
Dynamics in the crude oil markets are changing for a variety of reasons, including drastic price fluctuations, and will continue to change in the years ahead. Eka’s InSight CM - Oil platform provides greater control over trading, risk, and the supply chain for all oil market participants. Use Eka's InSight CM - Oil platform to manage the entire transaction lifecycle including deal capture, risk, operations, scheduling, and accounting, and gain a competitive advantage.
Next-Generation ETRM Software for Crude Oil and Refined Products
Eka understands the specific and unique requirements of oil companies, including marketers, refiners, and exploration and production (E&P) companies. We know that efficiently managing volatile prices and logistics is critical to your success. Partner with Eka to mitigate risk, manage physical movements, and optimize decision-making.
Oil Trading and Risk Software to Improve Logistics
Eka’s next-generation ETRM software platform, InSight CM - Oil, enables oil companies to manage the entire lifecycle of crude and refined products including purchase, refining, blending, storage, transportation, sales, distribution, and trading. With InSight CM - Oil, all information on the buying and selling of an energy product is captured, including storage and transportation. The platform supports complex pipeline logistics and the necessary range of transportation types including truck, rail, vessel, and barge.