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Risks and Opportunities
Here is what our experts have to say:
Roger McKnight, Senior Petroleum Advisor
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“I have been involved in the marketing and pricing of refined petroleum products for over 40 years with 25 of those at Texaco and Imperial Oil and I find the current pricing structure of petroleum fuels is the most complex that it has ever been. This is primarily the result of an increasingly tight balance between demand and supply throughout North America. There are now many fewer players in the marketplace with the result that there is a pronounced trend towards higher profit margins and major changes in the way products are marketed as well as how market share is protected. Compounding this is that it has now been more than 30 years since a completely new refinery has been built in North America.
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Molson Robertson, Senior Risk Analyst, Energy Markets
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“Energy markets in North America are now heavily influenced by the price of crude oil on the New York Mercantile Exchange which directly affects the price of oil. Today, oil is a world commodity more than ever driven by geo-political, consumption, production, taxes, location and many other factors. This makes it increasingly complex when purchasing natural gas and electricity in open markets. It is not unusual for prices of both spot and longer term parcels of gas and power to swing by significant amounts in a very short time, sometimes in a matter of hours. As a result it is critically important for companies to have effective control over these areas of costs through a well-crafted risk management strategy. This must include the on-going monitoring of all market ‘knowns and unknowns’ that can tweak and act upon that strategy at a moment’s notice. That is how we ensure budget certainty and the avoidance of bad supply arrangements and unnecessarily high prices for our clients."
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Deighton Jarrett, Senior Commodity Advisor
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“with North American energy markets constantly moving by radical amounts that have never before been experienced, the costs of industry commodities such as propane, nitrogen, oxygen, carbon dioxide and other gases, welding wires and supplies and lubricants and greases are now subject to both regular and significant increases in cost. Some of the costs are justified while others are not and we work to distinguish between the just and unjust changes in price so that knowledgeable negotiations become possible. Industrial gas costs vary by extreme amounts between various suppliers and between various customers, creating an extreme risk of unknowingly overpaying. At En-Pro we remove that risk by providing the otherwise unknown information, i.e. the best available price for the commodity you are buying, in the quantity and method you buy it, at the location(s) in question.” |
George Kral, Senior Analyst, Chemical Markets
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"I have found after spending two decades working in the manufacturing sectors securing organic and inorganic chemicals from both domestic and international markets that securing these products on a continuous basis at the best possible price is a complex exercise.
In today’s business world it is not just supply and demand alone that dictate chemical product prices. There is a vast array of other factors such as energy derivatives, transportation rates, currency exchanges and geo-political events. Because all price changes with major suppliers do not come into play at the same time -- and they don’t always affect all users -- we are continually uncovering discrepancies to the disadvantage of customers. Prices that are competitive today are often not competitive tomorrow."
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John Voros, Senior Petroleum Advisor
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“With ever- rising fuel, equipment, labour and land fill costs and the push to recycle as much day-to-day industrial and domestic trash as possible, the cost and management of non-hazardous industrial & commercial waste demands more attention today than ever before.
Over the past 15 years we have seen a great deal of ‘smoke & mirrors’ recycling programs offered, programs that were supposed to reduce costs and ‘green up’ the environment but didn’t. Our experience is that extremely careful consideration must be given to any waste disposal contract and recycling program to avoid unnecessary pitfalls. Without first-hand knowledge of the waste disposal business no one can be confident that any proposed contract is actually the best for their requirements. We can determine the validity and competitive stance of any such agreement and also can manage the request for proposal of any waste disposal requirement regardless of the materials and number of locations involved throughout North America.”
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