Given the impact that the shale oil and gas revolution is having on the US energy industry, there is a role for a new nimble player to define how the industry reacts to constantly changing markets across the globe. Javelin Hydrocarbon will focus on developing opportunities within the swift changing energy landscape to bring value to its customers and partners.
The Shale Oil revolution has increased energy production in the US significantly since 2009 as well as processing with the US becoming a net exporter of gasoline and diesel
US oil and natural gas production has risen to over 9 MMBPD and 74.7 BCFD and refinery runs have increased to over 16 MMBPD in 2015 with gasoline and jet/diesel production of 9.6 MMBPD and 6.5 MMBPD
Overall net refined product exports have risen to 2 MMBPD primarily driven by increased gasoline and diesel production
Javelin offers its energy and refining clients short-term and long-term refined product off take or supply agreements. This gives the energy and refining clients access to our global network of clients. With our customer focus, we offer pricing structures tailored to the customer's needs whether they are short or long-term structures with index-linked or fixed prices. When required we are also willing to provide capital for the delivery chain. This allows us to enhance access or reduce our clients' logistic costs as well as open new supply or offtake opportunities. Our hydrocarbon business will trade in all of the barrel, from crude oil to natural gas liquids, naphtha, gasoline and gasoline components, distillates, vacuum gas oil, fuel oil and petcoke.
Javelin can provide delivered station gate offtake or supply contracts. As a result, we manage all aspects of the physical delivery including ocean freight, barge, truck or rail delivery.
For processors, we are able to combine multiple supply sources at low cost to move the commodity to export. We manage regular monthly shipments by rail or barge which allows our clients to benefit from economies of scale when it comes to logistics.
With our extensive balance sheet and low cost access to funding, we are able to invest capital to support customer activities. This can be as simple as prepayments or delayed payment terms to investing capital to open markets to our customers or suppliers. We can also offer more complex structures such as customer inventory financing or more sophisticated debt and equity products. Our hydrocarbon business will be looking to develop long term investments in assets within the US with either existing industry players or standalone in response to the changing global energy landscape.