Market price

Compare your prices to trends in the basin for more profitable operations

Click on the image to explore market price indices with our interactive experience.

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With a greater focus on fiscally responsible operations and more efficient teams across the industry, it has become more important than ever to streamline efforts and gain visibility into your spend in different markets. Traditional industry KPIs on their own – the movement of permits, the number of platforms, the number of completions – cannot help you drive a fiscally viable supply chain strategy, because they do not help you. not inform about price trends. In addition, a blind or blanket discount strategy is no longer viable due to small teams and a stressed supplier market. Therefore, the need for a platform that streamlines supply chain management strategies and creates a win-win situation for buyers and suppliers has become crucial.

Stop flying blind

The example below shows why the “blind” approach to supply chain strategy does not work. When you only look at Firm B’s two-year price curve (left), a 60% price drop looks favorable. But the data shows that the aggregate market price index fell 80% during that same period. Firm B’s price comparison with the market (right) shows that there is room for additional cost savings, as it is always overspending relative to the market.

Price curve at a category level of a single company versus a price curve of a market index at the category level

Market price indices: compare your prices to trends in the basin for more profitable operations

New Enverus Market Price Indices Solve this problem by combining the nearly $ 200 billion in annual spend flowing through the OpenInvoice network with Enverus’ activity-based metrics. Now companies can compare their own prices on various categories of goods or services to market indices in a specific region. Unlike other solutions based on “black box” assumptions and models, indices are based on real, anonymized, analytical-grade spending data that is frequently updated to the most recent information.

With this information, buyers can see deviations from market trends, understand the economic impacts of pricing, uncover specific opportunities for additional cost savings, negotiate win-win agreements with suppliers, and forecast trends. futures. This maximizes the value generated from this analysis and also acts as a normative system, driving strategies in underperforming areas.

Market price indices reveal opportunities and market signals for suppliers

Understanding market and price trends accurately is not just beneficial for buyers. Suppliers can gain significant competitive advantages by accurately understanding how trends are changing in an area. A price comparison of the Friction Reducers market in the Permian Basin to the Appalachian Basin is a perfect example of how buyers and suppliers can benefit from analyzing regional price trends. The price variation in the Appalachians (left) is much smaller than in the Permian. Indeed, although both areas have high activity, Appalachia is a very tightly controlled market with fewer supplier options for downhole. The Appalachian Market Index indicates that there may be additional opportunities for suppliers, compared to a market that may be oversaturated, such as the Permian. For operators, the greater variation in the Permian price index indicates a potential opportunity to reduce fracking costs while negotiating a win-win price agreement with suppliers.

Appalachian Friction Reducers Price Index vs. Permian Price Index

Permian vs Appalachian Basin market price comparison

Taking advantage of market price indexes is extremely important for buyers and suppliers, as the current pricing strategy can have a huge influence on the balance of the outlook, now and in the future. Market price indices provide visibility into the impact of price changes on individual parts of complex services in different regions, making it much easier for buyers to find opportunities for balanced and sustainable cost savings and ” improve strategic sourcing. For suppliers, understanding how trends are changing in various markets can reveal new business opportunities and signal market changes. Only Enverus can provide this unique information. Because market price indices are part of a centralized ecosystem, price analysis is easy and sustainable. Our world’s energy supply relies on buyers and suppliers who work together with maximum efficiency to extract resources. Enverus is committed to providing information that helps both parties strengthen their businesses, while creating win-win working relationships that move our industry forward.

About Enverus Market Price Indices

Enverus Market price indices compare your prices to the market by region or by basin, offering real visibility on the specific performance of the company. With this information, you discover your deviations from market trends, the economic impacts of your pricing, find specific opportunities for additional cost savings, and predict future trends.

For more information, contact [email protected], or request a visit by filling out the form below.

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Senior Analyst and Consultant, Analytics and Product (OFS). Akash works with multiple teams within the Enverus Product organization, providing subject matter expertise on the energy industry for various product innovation and consulting efforts. Its expertise lies in unconventional shale reservoirs with a focus on reservoir engineering, reserve estimation, production analysis, data-driven modeling and cross-platform analysis. He has worked on advocacy for data-driven decision making and the implementation of transformational change across the energy value chain. Prior to joining Enverus, he worked as a researcher at the University of Houston, developing workflows for better estimation of EUR using deterministic and probabilistic methodologies and providing valuable contributions to energy investment groups and companies. technical advisory groups. It has been published several times with SPE and AAPG in the past and presented at several industry and academic conferences. Akash holds an MA in Petroleum Engineering from the University of Houston and a BE in Petroleum Engineering from UPES, India.