U.S. Gulf Coast Dominates New Oil Landscape; Genscape Launches Unprecedented Supply Chain Monitoring to Deliver Market Transparency

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New report examines the evolving domestic and global crude oil pricing environment and the probability of a Gulf Coast benchmark

“We used to look at the Cushing storage hub for insight into the U.S. oil supply dynamic. That’s not enough anymore,” said Chris Sternberg, managing director of oil at Genscape.

The Seaway line reversal in May of 2014 marked a turning point in the North American crude oil market with the draining of record stocks at the Cushing, Oklahoma storage hub. Attention has now shifted to the U.S. Gulf Coast and its capacity to move, store, refine, and export the glut of U.S. crude oil.

The goal of Genscape’s new U.S. Gulf Coast Oil Supply Chain Service is to provide a holistic view of market fundamentals in the region to help traders, analysts, hedge funds, and infrastructure owners stay ahead of the evolving supply-demand dynamic. Using a range of patented, proprietary monitoring technology and a team of market experts, the comprehensive service provides granular inventory levels, 30-minute pipeline flows, and real-time camera tracking of refinery performance to provide unmatched transparency to this crucial region.

“We used to look at the Cushing storage hub for insight into the U.S. oil supply dynamic. That’s not enough anymore,” said Chris Sternberg, managing director of oil at Genscape. “Now, we need to look at the Gulf Coast and understand in detail what’s happening to the oil and where it’s going. We’re excited to be filling this information gap with granular, measured data on oil fundamentals that will help market participants manage risk and opportunities.”

“The incremental barrel produced is now heading to the Gulf during periods of oversupply or high refinery demand,” said Dominick Chirichella of the Energy Management Institute. “Without the economic incentive to store oil at Cushing, physical and financial players will be making moves based on activity in the Gulf.”

Furthermore, “with more than eight million bpd of refining capacity, the Gulf Coast is quickly becoming the most critical location for crude spot market activity and potential benchmarks to reflect market value for North America,” according to Genscape’s latest white paper, The Evolving Domestic & Global Crude Oil Pricing Landscape: An Inside Look at the Gulf Coast Infrastructure & Supply Chain. The paper argues that the current fragmentation of spot markets in the Gulf is causing market participants to struggle and creates the need for “new, granular fundamental benchmarks to support market efficiency and spur price benchmark evolution.”

To learn more about the new U.S. Gulf Coast Supply Chain Monitoring Service, or to request a free trial, visit: info.genscape.com/gulf-coast-oil-110414

Genscape’s complimentary white paper, “The Evolving Domestic & Global Crude Oil Pricing Landscape,” is available for download here: info.genscape.com/gulf-coast-white-paper-110414

About Genscape

Genscape is the leading global provider of real-time data and intelligence for commodity and energy markets, driven to improve market transparency and efficiency. With thousands of patented monitors strategically deployed worldwide, Genscape is unique in its ability to collect and report proprietary market fundamentals in real-time or near real-time. Genscape delivers innovative solutions across a number of asset classes including: Oil, Power, Natural Gas and LNG, Agriculture, Petrochemical and NGLs, Maritime, and Renewables. Genscape clients often gain a competitive advantage, improve risk management, or increase operational efficiency. For more information, please visit: http://www.genscape.com

For all press inquiries please contact:
Molly (Hislop) Robinson
Marketing Communications Manager
Office: +1 617 790 0903
mrobinson(at)genscape(dot)com

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Genscape, Inc.
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