Genscape Launches Real-Time Oil Flow Monitoring on Pipelines Connected to Cushing Storage; Sees Market Effects of Its Storage Service
LOUISVILLE, Ky., Sept. 23 /PRNewswire/ — Genscape today launched a new service allowing subscribers to track oil flow into and out of the Cushing facility in real time. The company also said that it is starting to see trading in oil futures reacting to the weekly publication of its Cushing Storage Report on Mondays.
“We’ve had some success in estimating gas flow through a pipeline using this methodology. Oil was in some ways an easier problem because we did not have to worry about compression, or line pack,” said Deirdre Alphenaar, Vice President, Research and Development.
The service relies on proprietary, patented technology to remotely sense power consumption at pumping stations on the monitored pipelines and then translates the power readings to oil flow using a hydrological model. The real-time data tracks flows in and out of Cushing in barrels per day, and a summary view allows subscribers to gauge the net in or outflow from the storage facility. Aggregate monitored inflow capacity is 987,000 barrels per day and aggregate outflow capacity is 579,000 barrels per day. In addition, the service includes oil flow on the 1mn barrels per day Capline pipeline, which carries crude oil from the Gulf Coast to the Midwest.
“Monitoring the pipelines is the next logical step in providing transparency at the Cushing hub. The storage report gives our customers a robust, directly observed tank-by-tank measure of oil in storage. And now the pipeline service allows them to anticipate what the change in the storage level is going to be based on the net flow on the pipelines,” said Abudi Zein, Vice President, Data Resources.
Genscape has collected some anecdotal evidence about the effect of the Monday morning release of its Cushing Storage Report on trading patterns, and this is supported by futures trading volume data. Between May of 2009, when the report was first offered to subscribers, and August, average volume between the hours of 9 am and 12 am, increased by 61%. Tuesday and Wednesday volume also increased but by much smaller percentages. The ratio of Monday morning trading to Wednesday morning trading – the Energy Information Administration Cushing report is released Wednesday morning – increased from 49% in May to 70% in August.
“We thought we were having an effect on the market, but we wanted to make sure. It was encouraging to see the volume data confirming what we heard in the market,” said Mike McAuliffe, VP, Sales.
About Genscape: Genscape Inc. is the originator of real-time power & natural gas supply information to support decision-making for power marketers, regulators, utilities, distributors, and other energy market participants. In addition to real-time power flows, Genscape supplies data on the fundamentals of coal, gas, oil and emissions in the United States and Europe. Genscape’s parent company is DMG Information, the information publishing division of the Daily Mail and General Trust plc.
For more information, contact: Mike McAuliffe at mike@genscape.com, +1.502.583.4315
Source: Genscape Inc.
CONTACT: Mike McAuliffe, of Genscape Inc., +1-502-583-4315, mike@genscape.com
