Crude Oil

Who We Are:

The history of our energy trading business in the USA dates back to the early 80’s where we started trading in petroleum products such as fuel oil and clean products under the company name Westport Petroleum.

Following that very successful start-up and in the wake of US shale oil horizontal drilling emergence, Mitsui made additional capital investments across business sectors and commodity lines. Specifically, Mitsui invested in the marketing and trading platform for crude oil. In 2019, we consolidated Westport into MEMS and now run a global platform alongside our sister company and affiliate, Mitsui & Co. Energy Trading Singapore Pte Ltd. (METS). By leveraging Mitsui’s presence, primarily in Asia, MEMS has grown the US domestic and cargo business in Americas to where it is today, as a leader in client serving solutions.

In addition to the crude oil desks initiatives, over the last decade Mitsui built a sizeable portfolio with assets in the USA to include investments in E&P, Chemicals and Infrastructure. To support those business lines, MEMS operates as the trading and marketing extension of Mitsui. MEMS continues to explore strategic transactions and establish relationships and long-term business opportunities across multiple commodity lines. As a conglomerate group company, MEMS has positioned itself with a strong balance sheet and as a unique global trading entity with robust business development, trading and marketing capabilities.

While MEMS remains focused on growth in upstream marketing, pipeline and storage related trading business, we are making enhancements in supporting the firm’s global objectives in new business lines such as biofuels, hydrogen and other “New Energy “initiatives in North America.

What We Do:

Our teams primary objective is to provide effective and transparent client-focused solutions that allow for the purchase, sale and movement of crude oil in North America and also position varying grades of crude oil for supply to our clients around the world.

Mitsui was one of the first companies to support and export condensate from the USA when the export bans were lifted. We worked with regional producers, our global markets and global freight team to conduct that movement. Since 2016, MEMS has been an active exporter of a variety of grades out of multiple terminals for delivery worldwide. We have purchased and transported heavy grades from Canada, light sweet common streams such as WTI, WTL, Bakken and lighter grades such as Condensate from Utica and Eagleford basins. We have loaded these grades out of a variety of US gulf coast terminals and shipped on different vessel sizes such as Afra, Suez, MR as required to meet draft loading and discharge requirements for our clients.

The global crude oil market is highly dynamic and is continuously evolving. Our team is constantly assessing the many relevant factors affecting how we procure, transport, store and deliver oil for our clients, be it in North America or on ships for destinations around the world.

Domestically, our team is always evaluating as many grades of crude and basins as possible to best determine where the supply balances are now or can be projected to be. We keep a close watch on domestic leading indicators such as rig counts, well production yields, refinery utilizations, storage levels in each of the PADD’s, seasonal requirements for heavy grades and light grades that could influence price and locational values.

We are in constant discussion with our producer clients on their activities to best understand supply balances, locational issues such as pipe constraints and we work on solutions with our clients to ensure their oil gets to markets. In addition to the domestic balances, our team is in communication with our colleagues and clients around the world. We work closely with our regional desks out of London, Tokyo, and Singapore where we collectively evaluate market influences and fundamentals to best determine the grades and routes we would choose to provide a bespoke energy supply solution for our end use markets.

Our team purchases crude oil at a variety of receipt points including first purchaser wellhead, into and off of regional gathering systems and we can then transport into storage or transportation systems for delivery into market centers or for export.

Wellhead

Midstream Pipelines

Downstream
Terminals and Export