You’ve been there before: You call your trucking company to schedule a pick up on the 20th. You tell them it has to be picked up on the 20th. “No big deal,” they say, “we’ll be there.” Shouldn’t be a problem, right? Well, no, it shouldn’t be a problem. But what happens when it is a problem? What happens when the truck doesn’t show up until the 21st—a day late for your next billing cycle?
Oil and gas isn’t an industry where missing deadlines is an acceptable business practice. It’s a living, breathing market, and it relies on prompt action and precise logistics. What does this mean for your firm? Even in an increasingly global energy market – it’s still about who you know, and you simply can’t overstate the importance of having reliable partners. Smart operators enlist a trusted network of midstream vendors to ensure that logistics and marketing work together to achieve maximum value.
If all vendors are not created equal, how should one select a midstream partner? The following list outlines four characteristics shared by reliable vendors.
- Competitive Pricing: Price is an important part of any deal, and you can evaluate the price competitiveness of your midstream partners with a little research. What do their marketing channels looks like? Do they have asset-based partnerships? Firms with an extensive network are more likely to be able to price your assets competitively.
- Transparency: Perhaps you’ve heard it said: where there’s mystery, there’s margin. If this is true, there shouldn’t be any mystery in your midstream relationships. After all, your partners serve as a link from production to the end-user. As such, it is critical that they provide transparency every step of the way: From setting prices and all the way down the logistics chain.
- Experience: There’s no substitute for experience. Choose a midstream partner who has industry experience and a diversified selection of end-user markets.
- Back Office: Follow-through is non-negotiable for any midstream partner. Make sure your vendors are willing to provide administrative support every step of the way, from dispatch to division orders.
One Cypress Energy is proud to offer reliable and responsive marketing services for upstream providers. Put our experience to work for your firm, and take the stress out of crude oil marketing. Our 24-hour guarantee ensures timely pickup—and payment—on your oil and gas products. We are committed to your success by ensuring:
Your crude oil will be competitively priced
Reliable, timely, accurate revenue distribution
Experience and expertise with railroad commission filings
Responsive customer service, from dispatch to the back office
Click here to learn more about One Cypress Energy’s crude oil marketing services.