Thinking Big and Starting Small by Optimizing Quality and Logistics

Quality drives hydrocarbon prices and determines where barrels can be delivered. Product quality significantly impacts the oil & gas industry; however, as products move through the supply chain, maintaining a quality record is challenging. Validere’s Emily Schubert shared with Hart Energy how the Validere Edge marketplace can add liquidity to the industry.

Validere tackles transparency of product quality by building models that act as a digital copy of a site. By having the complete product composition as it moves through the facility, Validere Edge can provide insights on operations, capabilities, and production qualities. As Validere has grown, the ecosystem has been able to foster mutually beneficial connections between clients. From creating efficiencies in transportation to blending, Validere Edge continues to increase value for its users. 

Validere Edge saves significant time to find barrels outside of existing marketing relationships to tap into the upside for crude buyers and sellers. An added feature provides free insurance for disruptions, shut-ins and operational downtime. With the software, clients can consider opportunities unavailable to them, increasing buyer’s netbacks with the optimal logistics and fail-safes integrated into their operations. 

Also, Validere Edge can act as a source of truth in conversations about quality as it can verify and validate current pricing arrangements. In terms of risk management, Validere reduces the dependence on a single party to purchase the barrels through diversification of buyers and end markets. 

By streamlining the shipment of crude and reducing emission from transportation, Validere also provides ESG value. 

As for adding liquidity in the industry, the key is connectivity to a wide range of facilities. Over 50 companies use the platform across North America with 443 producer sites, 79 midstream terminals and four marketers. Most recently, 383,283bbl/d are logged on Validere.

To read more about the upside for crude buyers and sellers, as well as how Validere is connecting clients to streamline production, click here

Tamara Teofanovic