The commodity contact management process is not the most organized process in Midstream Energy. Even though each commodity contract simply contains three major details – the quantity of crude being traded, the delivery dates, and the minimum contract price changes – Midstream companies still struggle to manage, let alone improve, the contract process. Energy companies agree on multiple contracts every day and each trade consists of tedious tasks that can be daunting and are open to many errors and delays, especially if you’re still using the antiquated Yahoo! Messenger client to start trade conversations. Here we discuss how Energy companies can improve the commodity contract management process.

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According to Merriam-Webster, a commodity is simply something of value that is bought and sold, but more specific to this blog, a commodity is “an article of commerce, especially when delivered for shipment.” Copper, corn, coffee and crude oil are all commodities that are sold and bought daily. These commodities are traded based off a commodity futures contract, where details of the trade, including price per quantity (e.g. volume/weight) of the commodity, are described for both the buyer and seller. Let’s take a deeper look at how a commodity contract works.

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Kinder Morgan Canada is in the midst of a $6.8-billion CAD Trans Mountain pipeline expansion project through the Interior of British Columbia. The Trans Mountain Expansion Project intends to install a second pipeline of 1,150 kilometers (714.5 miles) in length which will double the capacity. As with all projects in Energy, Kinder Morgan must do its best to minimize environmental impact and protect water sources, often at a significant cost. But with crude oil prices in the low $40’s USD per barrel, Energy businesses are under pressure to save money wherever they can. No one wants companies in our industry to have to face a choice between operating safely with minimal environmental impact or operating profitably. Let’s explore how Kinder Morgan, and other Energy companies, can implement new Environmental, Health and Safety (EHS or HSE) software that can lower EHS related operating costs and the impact of EHS incidents during projects like the Trans Mountain Expansion Project.

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With crude oil prices briefly dropping below $40 a barrel again last week, many companies in the Energy sector are under huge pressure to reduce costs and fight to stay profitable as they weather the storm. With the large number of layoffs happening in the industry, this means that Energy companies have to operate more profitably with less people. One way many companies are responding to the current market conditions is to improve operational efficiency with the help of software technology. Below are three ways software is helping Energy companies cut costs by improving operational efficiency.

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It has long been said that you have to see it to believe it. In the context of field operations, it is not always feasible to have the right people everywhere they need to be. In other words they can't always see what they need to see, when they need to see it. Fortunately, with advances and adoption of new wearable technology, managers can now see what is happening, live at a worksite, through the eyes of their employees. In Oil and Gas (O&G), many gears are moving quickly and unfortunately, a lot of incidents that occur at a remote worksite require much more than just a text or verbal conversation to correct. This usually means dispatching resources to the site which has costs and extends the time it takes to achieve resolution. Wearable technology in O&G has the potential to facilitate solutions, like a fixing a broken drill bit or connecting an incorrigible pipe, faster and at less cost.

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