Meeting energy demand in a changing market

At Rice University's Baker Institute for Public Policy, Mark Senn discusses the commercial capabilities helping Phillips 66 adapt to evolving global supply

As trade routes, supply sources and market dynamics evolve, companies must be able to adapt quickly while maintaining reliable delivery to customers.

At the Annual Energy Summit at Rice University's Baker Institute for Public Policy, Mark Senn, senior vice president, global trading, described how the commercial team at Phillips 66 uses its capabilities to navigate market volatility while strengthening supply.

He noted that companies are being evaluated on:

• How quickly they can adapt.
• How effectively they can reach customers.
• How carefully they manage risk.

Why it matters

Geopolitical disruption is changing how customers think about energy security.

ADAPT

Crude and refined products

Senn explained how crude and refined-product markets are in different situations - more crude is becoming available, including supplies from Venezuela entering the United States and continued supply from Canada.

Refined products are more difficult to replace as disruptions to the Russian refinery system and reduced Chinese exports tighten supply.

Asset flexibility creates options when supply shifts

These changes make the flexibility of Phillips 66's 2-million-barrel-per-day refining system especially valuable.

"We see our customers saying, look, we want to make sure that we can source the energy that we need for our economies. And so, the US is becoming an increasingly attractive place for that type of business," Senn said.

REACH

Availability is just as important as supply. Senn emphasized how control of shipping helps that energy reach customers.

We're trying to supply energy to the globe, and the ability to actually reach that customer in this market has been vitally important.

Mark Senn

The closure of key supply regions combined with longer transit routes create a critical need for shipping.

"It's very, very difficult at times, unless you control your own fleet to make those movements work economically when that piece in the middle is moving so quickly," Senn said.

Phillips 66 has taken a strategic approach to controlling a large portion of the fleet used to make deliveries to its refineries and customers.

OPTIMIZE

Senn also emphasized the importance of disciplined risk management, explaining that traditional measures such as value at risk, which uses historical market patterns to estimate potential losses, have become more difficult to interpret in today's volatile environment.

That means looking beyond headlines and focusing on what is actually happening in the market. Phillips 66 supports that approach with actions like:

• Carefully monitoring crude and refined product availability.

• Closely analyzing regional loadings.

• Using satellite imagery to track activity.

• Following pipeline flows and supply movements.

Watch the full panel discussion below. For Mark Senn's opening remarks, start at about the 1:52 mark.

The takeaway

Senn's remarks show how Phillips 66 is responding to a more fragmented energy market. Flexible assets, controlled logistics and disciplined analysis help keep supplies moving when routes, products and market signals change.

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