There are new companies looking to enter the business of trading physical crude oil and / or refined petroleum products, petrochemicals or LNG e.g. small or mid-sized oil and gas producers seeking to trade their own equity production; commodity trading companies seeking to broaden their trading portfolio or financial institutions seeking to grow a commodity trading business. In these cases, FalconMere and it associates are well positioned to advise these aspiring companies of what it might take to establish a trading enterprise – cost, set-up time; capital requirements and sources of capital, anticipated operating budgets, required risk management systems, etc.
FalconMere is also able to offer strategically and economically attractive alternatives to these companies looking to set up their own marketing or supply and trading organisation including the possibility of outsourcing the entire marketing or trading to FalconMere in a formal or informal joint venture arrangement. This outsourcing option is particularly attractive to small and mid-sized equity producers as FalconMere, working as the in-house marketing or supply and trading team, offers a cost effective specialist service focussed entirely on optimising the value of the commodity for the producer.
Aside from the obvious support services described above, FalconMere is also able to offer commercial advisory and training services across a wide range of supply and trading services including the following:
• Review and / or manage and / or negotiate crude oil / refined products / commodity supply contracts.
• Review and manage complex Strategic Inventory Management for Governments.
• Capturing Time-Value in Energy Commodities and Assets
• Manage the Mark-to-Market Control of Complex Structured Energy Trades
• Advise on general supply and trading matters (shipping, trade finance, risk management, etc.)
• Advise and / or provide pre-production finance to commodity producers
• Advise on hedging strategies for commodity users and / or producers to stabilise cash flow
• Optimise trading netbacks relative to contractual and other risks
• Develop structured multi-commodity product trades e.g. crude oil for refined products (diesel/gasoline)
FalconMere and its associates have also developed a more formal commodity supply and trading training course comprising 11 modules which is offered as a 12 month course or adapted to satisfy specific corporate needs.
• Module 1 – General Oil Market Orientation
• Module 2 – Claims
• Module 3 – Financing and Risk Management
• Module 4 – Financing and Risk Placement
• Module 5 – Oil Trading
• Module 6 – Risk Identification
• Module 7 – Price Risk Management
• Module 8 – Deals Desk
• Module 9 – Storage Business Case Study
• Module 10 – Backwardation Business: Case study
• Module 11 – Combined Contract Storage and Backwardation Business: Case Study.