OKLAHOMA CITY, June 24, 2021 /PRNewswire/ -- Stonebridge Consulting, an operations optimization consultancy dedicated to the energy industry, today announced that it's putting its money where its mouth is when it comes to saving oil & gas operators money. The firm is launching a holistic diesel fuel spend assessment program called FuelFilter. The assessment is engineered to deliver net savings on an operator's diesel fuel spend, inclusive of a performance-based contingency fee paid to Stonebridge, or it's free.
"In the same way that a fuel filter screens unwanted contaminants from reaching your car's engine, the FuelFilter program is designed to identify and eliminate hidden costs which unnecessarily raise an operator's diesel fuel spend and negatively impact enterprise performance," said Adam Hutchinson, President of Stonebridge. "On average, we're finding up to 10% savings on annual fuel spends. For companies who spend millions on diesel annually, the savings can be substantial."
Fuel spend, though a significant contributor to CapEx, is often overlooked as a material savings opportunity by oil and gas operators, explained Leo Oei, Vice President of Operations Consulting at Stonebridge. "Stonebridge research confirms that most operators peg fuel pricing to published indexes, then add margin and freight. While this is a generally accepted structure for fuel contracts from a costing standpoint, pricing by index leaves many determinants of price unchecked."
The FuelFilter assessment instead analyzes spending comprehensively, including fuel contracts, invoicing, products, index, freight, margin, ancillary charges, taxes and fees, and field tickets confirming actual fuel delivery. Resulting from the analysis, energy operations experts at Stonebridge are able to identify major contributors to cost and risk—from supply security to safety; and from operational performance to Environmental, Social, and Governance (ESG) compliance. Moreover, the FuelFilter program highlights any/all cost savings opportunities.
"Often, the devil is in the details," Oei said. "In an environment with escalating fuel prices, supply disruptions due to natural disasters or cyber security threats, and tightening ESG requirements, our clients are receiving maximum value from their fuel providers by improving invoicing and payment terms, lowering compliance costs, and discovering value in many other unseen aspects that make up fuel spend.
Stonebridge hatched the idea for the FuelFilter assessment given its 20+ years of experience working with large fuel distributors, oilfield service companies, and operators. In all cases where the FuelFilter assessment has been conducted, clients have discovered significant hidden value.
"We found great undiscovered value in the fuel spend assessment conducted by Stonebridge," said Dan McDonald, Director of Supply Chain at Laredo Petroleum, Inc. "Because Laredo is driven to identify every available opportunity for cost improvement while protecting the quality of our products and services, the FuelFilter program was a natural fit for us. It identified contract, risk, and ESG savings that were sizable."
According to Oei, a FuelFilter assessment can be conducted in 7 to 14 days and requires minimal investment of operator time and resources. "Best of all," he said, "Stonebridge only gets paid a portion of the savings we identify. There is no risk to the customer."
About Stonebridge Consulting
Stonebridge Consulting, a Sierra Digital company, delivers operational excellence to the energy industry, backed by 100% domain focus, deep expertise, and reusable project IP and solution accelerators, including Peloton®Ready, EnerHub™ and EnerPubSM. The firm helps customers deliver projects faster, generating measurable improvements in operational efficiency, and saving delivery time and costs by as much as 50%. Headquartered in Oklahoma City, the firm maintains offices in Houston, Denver, Tulsa, and Sydney, Australia.
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SOURCE Sierra Digital Inc.