ESI does deep research into the entire ethylene/polyethylene (PE) value chain. From the US/Global energy markets to international PE markets, ESI’s fundamental research includes:
- Detailed supply and demand analysis of ethane, ethylene, and polyethylene on a daily, weekly, monthly, and annual basis.
- EO/MEG and PVC on a monthly basis.
ESI produces a series of reports with a standard structure that also include specific areas of interest when there is a possibility of significant impact to our client’s profits. ESI understands the key drivers for its clients’ profitability. Our reports routinely include short and long-term opportunities to enhance a client’s profitability and/or reduce market price risk.
All ESI reports are distributed under a strict bilateral confidentiality agreement. Our clients use ESI’s supply/demand and price forecasts to develop financial and physical strategies to manage risk, increase profits, and/or decrease costs. ESI has no need to know how clients are using ESI research but hold ourselves accountable for the value our view of the market creates. The attention to detail in our forecasts is what separates ESI focused advisory services from broad market consulting services. Following are descriptions of ESI reports included with our standard advisory service subscription. If you are interested in becoming an ESI advisory client, then contact us to get a non-disclosure agreement in place signed to allow you to get samples of ESI reports.
Report Provided to Subscribers of ESI's Basic Advisory Services:
Weekly Ethylene Market Report: Issued every Monday. This report covers all the important issues in the market at the time based on detailed supply and demand analysis and pricing trends. 75% of the report is an update of standard slides information. 25% is other topics ESI thinks are important to its clients.
Monthly Polymers Report: Issued once a month. This report covers supply and demand on Polyethylene and PVC for both US domestic and export markets and the impact on ethylene supply and demand which includes a forecast of markets for the next 6 to 18 months for these major ethylene consumers with a focus on ESI's forecast of things to come.
Monthly Energy/NGL Report: Issued every month. This report covers monthly EIA government data on Crude, Gas and NGLs production starting at the wellhead through NGLs for crackers and exports. The most detailed research is for ethane but we cover propane, butane, and natural gasoline (Lt. Naphtha) as well. The effect of US and global crude oil and natural gas prices on NGL short term and long-term production is also analyzed.
Quarterly AFPM Petrochemicals Statistics Report: Issued every quarter. This report analyzes the petrochemical production statistics reported by the AFPM. ESI is an AFPM Member. ESI also pays AFPM for republishing rights because ESI measures our forecasting performance against AFPM data which we share with our clients.
Flyover Reports: Issued periodically. ESI commissions aerial photograph flights over major industry construction projects. Our flyover reports allow for accurate estimations of new plant start-ups. Public information can oftentimes be inaccurate or misleading. Operational information from these flyovers supports ESI's detailed ethylene and ethylene derivative supply and demand forecasts.
Public Company Call Analysis – Issued quarterly. ESI provides its clients with an analysis of investor call information from public companies in the industry. We synthesize the information down to what ESI believes in important to our petrochemical clients and supports our longer-term research on petrochemical strategies and supply and demand.
Other Topics of Interest: ESI has developed a number of ancillary services that our clients have come to value over the years. While these services are considered non-routine, they are essential to assisting our clients maintain financial success. These services may or may not require additional costs depending of the resources required.
- Operational research from thermal cameras and market participants to monitor events that effect commercial markets.
- Short term and long-term ethylene and ethylene feedstock sales and purchasing strategies.
- Ethylene 101 training; a 3 to 4-hour training session for our client’s new people in this market space. Some clients change olefins/NGL commercial people every year or two so this training get new people up to speed with the complex petrochemicals markets quickly.
Additional ESI Services Available to Advisory Clients for an Additional Fee:
Margin and Price Forecasting Service: ESI provides monthly historic price data and forecasts from 2000 through 2021 and an annual price forecast through 2035 for all the major components of the ethylene value chain from the wellhead to global PE markets. This includes historic data and forecasts for WTI and Brent Crude, Natural Gas, Natural Gas Liquids, US and Asia Naphtha, ethylene production co-products, ethylene production cash costs for the major feedstocks, and US and Asia polyethylene integrated margins and prices. ESI has several pricing options depending if a client wants the price forecast on a monthly basis, quarterly basis, or for annual budget creation.
ESI Cracker Economics Modeling Service: Issued weekly or monthly per clients request. ESI can provides a detailed analysis of the economics of all cracker feedstocks at three different cracking severities to better understand the actual cash costs experienced in the US market. The report also provides a cash cost based ranking of all the crackers in the US from lowest cost to highest cost.
South Texas Ethylene Pipeline Study: This study defines the ethylene pipeline systems southwest of Houston. It covers the Markham Dome area to Corpus Christi with great detail including some flow rate calculations and limitations.
Texas NGL and Petrochemical Salt Dome Storage Study: ESI has partnered with Enkon to write this very detailed report on storage capacities located in Texas and cavern storage contents with a very high degree of granularity. This is a one-time report dated mid 2019 which is for a PowerPoint presentation with a face to face or remote meeting to make sure clients get the full value from the report.
Specific Project Work: ESI provides clients with detailed analysis of specific projects for capital expenditures or commercial strategies an hourly basis.