Julie Lerner Appears on Anthony Crudele's Futures Radio Show

“Futures Radio Show, hosted by Anthony Crudele, welcomed Julie Lerner to discuss her background in commodities, her opinions on derivatives markets and blockchain, and more. The episode is available to listen to for free through the following link. (Link to podcast)"

 

 

Blockchain for Physical Commodity Markets - A Realist Perspective

Blockchain for Physical Commodity Markets - A Realist Perspective

People are excited about blockchain. They believe it will solve inefficiencies in everything from stocks and bonds to production and delivery of commodities. Some even claim it will end global poverty.

I am skeptical, however, about the current feasibility of implementing blockchain in commodity trading. I am not a specialist in this new technology, but I have spent my career in the commodity trading business. I know from personal experience that it will be extremely difficult to garner industry-wide support for such a massive change in technology. Below, I’ll outline some of the primary obstacles standing in the way of blockchain adoption in this industry.

(Continued)

PanXchange places first at Barchart Fintech Exchange

PanXchange places first at Barchart Fintech Exchange

We are pleased to announce that PanXchange placed first at the Barchart Fintech Exchange competition in Chicago last week. Sixteen companies from across the globe competed in front of a panel of judges including executive directors from both the CME and CBOE.  The competition was comprised of an introduction section, live demos of the product, and explaining future growth strategies.  

The PanXchange team would like to express gratitude to the Barchart team for putting on a great event.  We look forward to returning to Chicago in 2019!

 
 

Shifting Sands: Prices, Supply, Demand Concerns Remain in Permian

Shifting Sands: Prices, Supply, Demand Concerns Remain in Permian

Originally published in E&P Magazine on February 20th, 2018

Author:  Velda Addison

(Link to original article)

Julie Lerner experienced what she described as a moment reminiscent of an American television drama series while attending a recently held frack sand industry event in Houston. Operations at one sand mine had temporarily gone down in the Permian Basin.

“It kind of reminded me of one of the episodes of ‘The West Wing’ where everybody’s phones start buzzing and everybody gets up and walks fast out of the room. It was kind of crazy,” said Lerner, CEO of the newly launched PanXchange frack sand exchange service. “The next thing we see is a bid for 5,000 tons on our exchange because the supply suddenly wasn’t there. It is tight today. People know it’s going to ease up a little in the future. But it can’t be soon enough for people.”

Life in the Permian, where some operators pump more than 5,000 tons of sand per well to help free trapped hydrocarbons, may not be as cutthroat as it was for characters of the fictional West Wing of the White House. But tight supplies are causing some angst in the basin.

The 100-mesh sand appears to be the most desired.

Additional supplies are expected to come online with sand suppliers such as Badger Mining Corp., Emerge Energy Services, Hi-Crush Partners, Smart Sand, Unimin and U.S. Silica planning to add new capacity.

But there is some consternation in the market about whether all mines planned to come online this year will happen.

“Not all the mines that are permitted will come online this year. The industry has seen this type of sand rush before in Wisconsin,” Todd Bush, principal and cofounder of Energent Group, told Hart Energy in a statement. “Thus far, four Permian sand mines are producing and selling sand. As the new mines come online, spot pricing for Permian sand will likely move the average price per ton closer to $75 per ton.”

That could be considered an improvement given how much sand costs have increased in recent years.

Price uncertainty was part of the reason why Lerner, a commodity trader by background, said PanXchange launched in October 2017, becoming the first known exchange for frack sand in the U.S. The exchange provides aggregate spot, forward physical procurement and sales via a Web-based platform. It has more than two dozen members that comprise E&P, oilfield service and sand supply companies.

The PanXchange benchmark price—which Lerner told Hart Energy is predominantly based on bids, offers and trades in the marketplace—was $112 per ton for the week of Feb. 5 and $120 per ton for the week of Feb. 12. The price, which is for Northern White sand in Odessa, Texas, continues to rise, she said.

(Continued)

PanXchange Opens Houston Office

PanXchange Opens Houston Office

PanXchange opens Houston office, and presents at Petroleum Connection on February 2nd, 2018. 

Click here for more details.  

PanXchange enters U.S. market with designs on simplifying movement of frac sand

PanXchange enters U.S. market with designs on simplifying movement of frac sand

Article originally posted by FreightWaves on December 13th, 2017

Written by: Vishnu Rajamanickam (Link)

The enormity of the trucking industry can be realized by looking at the myriad of industries that depend on freight hauling for their sustenance and growth. Quite recently, the fracking industry has joined that list, with frac sand becoming a major commodity that needs to be transported across sites for the hydraulic fracking process.

But the problem of the driver shortage in the fleet sector also holds true in the frac sand market, with fracking companies facing the heat. PanXchange, a trading platform with experience in building commodity marketplaces across East Africa, is looking to help its client base solve this pain point. This move is in line with the company’s launch of its platform in the U.S. for frac sand trading.

“Though PanXchange is not directly involved in frac sand transportation, we know that trucking of sand is a high point of pain for our clients,” says Julie Lerner, the CEO and founder of PanXchange. “Although we launched only this October for trading, we are a market structure solution and thus interested in exploring relationships with trucking companies.”

(Continued)

Going local for supplies sparks new frac sand boom

Going local for supplies sparks new frac sand boom

Article originally posted in the Financial Times on December 6th, 2017

Written by: Gregory Meyer

Link to article



Windblown dunes in west Texas are the latest front in the shale oil industry’s campaign to extract more barrels at less cost.

The industry is excavating dunes for frac sand, which is pumped into wells to crack open rocks and get oil and gas flowing. The deposits are in demand because they lie close by the hot Permian shale region, making them cheaper than sands carried in from older mines 1,000 miles away.

Locally dug sand is influencing the economics of US oil production, helping shale supplies compete in world markets. It is also worrying investors who own shares in railroads that haul sand and in sand miners that may be on the cusp of a glut.

Sand was a critical ingredient of the shale drilling revolution. Without it, US oil production would not have nearly doubled in the past decade to an estimated 9.7m barrels per day.

Between 2012 and 2014, total US demand for “proppants” such as frac sand rose from 34m to 61.5m short tons, according to Rystad Energy, a consultancy. Then oil prices collapsed, bringing down sand consumption as well.

(Continued)

PanXchange Q4 2017 Newsletter

PanXchange Q4 2017 Newsletter

PanXchange went live on October 4, 2017 in the 100 Million ton frac sand market

PanXchange has first-mover advantage in sand as the industry grows by an estimated 30 million tons from 2017 to 2018. It is the only platform available to producers, E&P companies and service companies that aggregates spot and forward physical buying and selling interests. Thus, it is the only source for real-time prices where true supply meets demand.  On the PX system, members can also manage counterpart exposure and post bids and offers anonymously in real time. The PX system is protected by two US patents, with four more pending. 

Over a dozen of the industry’s leading producers and buyers took advantage of our early-bird pricing on annual memberships.  Current members, excluding service companies, represent approximately 35% of total US sand production.

The platform launched with PanXchange’s 2.0 software, which is faster, with more user-controlled optionality and price map functionality. We anticipate optimized mobile phone access within the next 30 days.

Matt Jansen joins PanXchange’s investor pool and Advisory Board

We are extremely pleased to welcome Matt to the PanXchange team. Matt was formerly the CEO of COFCO International ($17B revenue) and the Chief Risk Officer at Archer Daniels Midland (ADM $35B revenue). Previously, Matt held several senior executive roles at ADM overseeing trade divisions in oilseeds, grains and ethanol in the US, Europe and Brazil. Matt is an active advisor to PX as we work on global commercialization strategies.

David Bradley, formerly with Deutsche Bank UK, joins PanXchange as Chief Technical Officer.

 We are excited and relieved to have David oversee our tech developments. David has crossed the pond to join PanXchange and brings in-depth experience. At Deutsche Bank, David was a Credit Risk Solutions Architect. Prior roles include Foreign Exchange IT Architect at HSBC UK and Exchange Connectivity (Development Manager & Architect)for Morgan Stanley UK . 

PanXchange Frac Sand Launch Schedule

PanXchange Frac Sand Launch Schedule

It's here!  The first US open market exchange for frac sand will go live on October 4th, 2017.  Here's what we're doing in preparation: 

Join us in San Antonio, Texas, on August 30th and 31st for the Hart Energy DUG Eagleford conference.  Demos of the system will be available at booth #841. 

September 13th - September 29th:  TRAIL PERIOD FOR NEW MEMBERS.  Get your accounts set up, your counterparts enabled, and practice entering orders and negotiating.  This is the real system we will be using upon live launch, however all the orders during this time are mock trading (non-binding). Leave us your card at one of the conferences, or email us here for account set up.

September 13th - September 14th. Industrial Minerals 5th Frac Sand Conference in Denver, Colorado.  We will be speaking on a panel on supply chain logistics. Demos are available at the PanXchange booth on September 14th to the general assembly.

September 28th - September 29th, join us at our roundtable discussion at Petroleum Connection's 6th annual Frac Sand Supply & Logistics conference in Houston, Texas. PanXchange will be partaking in a discussion about open market trading, versus long term contracts.   For more information on the roundtable discussions, click here.  We will also be giving demos at booth #64.

 

 

Frac Sand: Raw Material or Fungible Commodity?

Frac Sand: Raw Material or Fungible Commodity?

Since its first pilot launch in world market sugar, the PanXchange team has researched many different commodity markets, seeking to apply its aggregated market solution to those with the most inefficiencies, fragmentation and opacity.  Staffed by a team of seasoned commodity traders, they understand the complexities of the sand market.  There are varying qualities, multiple production and wellhead locations and insane logistical challenges.  These challenges are not unique to sand...    

Article originally posted on Petroleum Connection, full article can be found here.

Julie Lerner Speaks at MarketsWiki Education's World of Opportunity

Julie Lerner Speaks at MarketsWiki Education's World of Opportunity

On July 21st, CEO and founder of PanXchange, Julie Lerner, spoke at MarketsWiki Education's World of Opportunity event in Chicago, Illinois.  

Article originally posted on John Lothian News, and can be accessed by clicking here.  

Per John Lothian News:

"You can’t be an entrepreneur until you get that big idea. And that idea needs to be so big it feels like a curse as much as a blessing in the sense that you know you have to go do it.”

In this video from MarketsWiki Education’s World of Opportunity event in Chicago, Julie Lerner, CEO of PanXchange, discusses the convergence of global markets and being a successful entrepreneur. Lerner maintains that not only do you need passion, you need a specific niche. She realized she found hers when she learned how to embed options into cash contracts while working for Cargill trading Latin American sugar. Lerner’s passion is commodities, but her niche is business development. Any entrepreneur trying to develop a business must have the network and reputation to give the endeavor legs. A great idea is useless in a vacuum.

PanXchange Opens London Stock Exchange

PanXchange Opens London Stock Exchange

London Stock Exchange Welcomes the U.S. Fin-tech Mission to the United Kingdom

Today London Stock Exchange welcomes UK’s Department for International Trade (DIT) and their USA FinTech Mission to the UK. Seven top financial technology firms from the United States were selected from a competitive pool by a panel of experts in US financial technology. The mission will highlight the innovative technologies emerging from across the US while also promoting the UK as a destination for FinTech investment.

Vice Consul Maria Deam of the British Consulate New York and Cammila Garcia of the British Consulate Chicago are leading the mission to network the delegates with industry experts and commercial contacts indispensable to international growth, as well as guiding the delegates on the steps needed to expand their growing businesses into the United Kingdom.