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Spotlight - The Power Advisor Behind the Power Producer

January 14, 2021

The Power Producer

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.

5

Written by 5

Founded in 2011, 5 comprises a team of energy innovators, commodity traders, analysts, engineers, and former energy supplier executives. Together, they serve a broad array of private and public sector clients throughout the United States and Mexico, providing strategic advice on energy-related matters including procurement, demand-side management, rate optimization, regulatory intervention, benchmarking, bill auditing, RFP management, sustainability planning services, renewable power, and distributed generation. With an eye on growth, 5 has initiated a number of strategic partnerships and acquisitions, including the 2019 acquisition of Luthin Associates. 5 has been named to the Inc. 5000 list of fastest-growing companies in the U.S. for five consecutive years. The firm has also received numerous accolades and national awards for its corporate culture, leadership and innovation, including 5 consecutive years as a top 10 Best Company to Work for in Texas according to Texas Monthly Magazine.