NORA Members Provide Value To Generators Regardless of Crude Oil Pricing
Thursday, August 27, 2015
Hacksawed. Crash. Hitting lows unseen since 2009.
This is not the type of news NORA members want to read as it relates to the oil market.
For the second time in less than a year, the overall oil market has dropped quickly. Because the oil recycling industry collects used oil over a long period of time, it is challenging to manage rapid changes in the oil market.
Communicating Value to Generators
When communicating with your generator customers, it is imperative that members promote the value of the environmental service they provide. Oil trading at $40/barrel versus $140/barrel does not change the important and necessary environmental service that NORA members provide to the generator community every day.
The cost to provide responsible collection and recycling services is significant. They include trucks, fuel, staff, testing, tanks, facilities and insurance just to name a few. These costs do not increase or decrease because of how oil is trading.
The value NORA members provide to generators by responsibly recycling their used oil and helping manage their liability should not be underestimated.
Dealing with Falling Oil Prices
As of the writing of this article, the overall oil market is being driven downward primarily by a slowing Chinese economy. Some experts are predicting that the current oversupply could force crude oil prices even lower this fall.
What can NORA members do about this?
First, as mentioned above, continue to aggressively promote the value of the environmental services you provide to your generator customers.
Second, stay informed of the short to mid term market conditions to help you position your company to succeed. The best way to do this is to attend the 2015 NORA Conference & Trade Show in Orlando this November where we will have an industry expert provide the latest market outlook.
Finally, discover the best ways to deal with sharp declines in the oil market. The NORA Conference will have a speaker on how you can use hedging to protect your business and your customers and we will have 400 industry leaders that you can network with to explore other strategies.