It takes a lot of energy to produce energy. Natural gas and oil producers use significant amounts of both natural gas and electricity to extract, process, and transport the raw materials that are ultimately refined into various sources of energy and fuels. In 2012, an oil and gas producer in Texas turned to 5 for assistance in managing their electricity supply. This company required a robust and dynamic way of managing its electricity expenses given that its own revenues are closely correlated to volatile oil and gas prices.

5’s team of energy advisors and market analysts worked with this company to examine the way it used electricity to develop an effective energy management strategy. Initial efforts focused on a critical evaluation of the facility’s operating profile using its historical electricity usage data. Insights from this data enabled the client to optimize its operations and identify systems and processes that were not energy efficient.

5 also developed a procurement plan using its proprietary energy markets platform, Level5, to identify opportunities to make strategic futures purchases. Electricity market fundamental and technical analyses were used in conjunction with market dips to make purchasing decisions that lowered the client’s electricity costs over time. This plan not only lowered their operating costs, but also mitigated some of the client’s revenue risks that are tied to movements in energy prices.

5 is proud to serve and support this client, which plays a pivotal role in supplying the energy that fuels the economy.