The Big Crude
The nametag on the dame’s chest said Demand – and there was plenty of both. I had to remind myself that this was business. I was just the guy who had to make sure she got what she was looking for. If I couldn’t give it to her, someone else would.
What did she want? What every dame wants: fossil fuels. The grease, the slick, the black stuff, Clampett futures, Texas tea. Let’s face it: diamonds are a girl’s best friend, and they’re just another kind of coal.
If I was going to find it, I had a long night ahead of me. I butted out my cigarette, pulled the bourbon bottle out of my desk drawer, and fingered the smartphone in my breast pocket. I pretended I was making up my mind, but one look at the dame’s eyes had already convinced me.
The Big Look
You have to start with the survey – it’s the only way you can know whether or not it’s worth being there in the first place. You inspect the surrounding areas; conduct sophisticated tests of the site’s underlying geology. You map out an extraction strategy that won’t compromise the safety of your workers or the surrounding community.
You take a nice, long…look. Sometimes that’s the best part of all.
The Big Suck
When you’ve laid down the groundwork, you get drilling. It’s a complex undertaking that requires the oversight of several national and international safety and environmental organizations.
Then you start sucking.
Oil is collected and filtered according to its post-refinery purpose. If you’re lucky, you get a steady flow of quality crude for a long time to come. But luck was never really my thing.
The Big Luck
Fossil fuels range widely in quality. Some, like the tar sands of the Canadian badlands, are mixed in with a variety of other chemicals that require further filtering. It’s an expensive process with an extremely large carbon footprint.
If you’ve done your survey work, or happen to be a Saudi Arabian prince, you might find that the oil is much purer, easier to extract, and less harmful to the environment.
Some of it’s up to you. Some of it isn’t.
The Big Make
“Refineries are some of the most complex, heavily regulated facilities,” Sabrina Fang tells me, Media Relations Representative for the American Petrol Institute. “There are spill prevention, waste, water and air management regulations. These regulations govern releases to air, water and waste management control.”
Turns out the refinery process is the most exhaustive of the steps taken to make use of crude oil. It’s extremely sophisticated, customized to the specific chemical requirements of its market application. Crude oil can be processed into everything from heating oil to plastics, so you can see why things might go down differently, depending.
Refinery work is strictly regulated to prevent accidents, with the industry applying hundreds of self-policing regulations and oversight groups like OSHA and the EPA holding them to a standard.
Still, something I learned from Dr. Freud and Big Tony both is that there are no accidents – just mistakes.
The Big Take
I ride an oil tanker back. I sleep the whole way. The ship’s locked down to avoid spills, which can be a devastating side effect of the industry. Transportation is the most dangerous part of the business. Just ask those pigeons near the Gulf.
I try to imagine Demand waiting back home. I picture her in a sun dress, making me a nice thick steak. It’s nice.
I see myself walking in the door with it. She smiles. She asks me what I’ve got there. By now, I know the answer.
It’s the stuff dreams are made of.
Uber Freight to Acquire Transplace in $2.2bn Deal
Uber Freight is to acquire logistics technology and solutions provider Transplace in a deal worth $2.25bn.
The company will pay up to $750m in common stock and the remainder in cash to TPG Capital, Transplace’s private equity owner, pending regulatory approval and closing conditions.
“This is a significant step forward, not just for Uber Freight but for the entire logistics ecosystem,” said Lior Ron, Head of Uber Freight, and former founder of the Uber-owned trucking start-up Otto.
Uber’s Big Play for Supply Chain
Transplace is one of the world's largest managed transportation and logistics networks, with 62,000 unique users on its platform and $11bn in freight under management. It offers truck brokerage and other capacity solutions, end-to-end visibility on cross border shipments, and a suite of digital solutions and consultancy services.
The purchase is the latest move by parent company Uber, which launched as a San Francisco cab-hailing app in 2011, to diversify its offering and create new revenue streams in all transport segments.
Transplace said the takeover comes amid a period of “accelerated transformation in logistics”, where globalisation, shipping and transport disruption, and widespread volatility are colliding.
Uber Freight plans to integrate the Transplace network into its own platform, which connects shippers and carriers in a dashboard that mirroring the intuitive experience found in its consumer vehicle booking and food ordering services.
“This is an opportunity to bring together complementary best-in-class technology solutions and operational excellence from two premier companies to create an industry-first shipper-to-carrier platform that will transform shippers’ entire supply chains, delivering operational resilience and reducing costs at a time when it matters most,” said Ron.
Frank McGuigan, CEO of Transplace, said the resulting merger will offer enhanced efficiency and transparency for shippers, and benefits of scale for carriers. “All in all, we expect to significantly reduce shipper and carrier empty miles to the benefit of highway and road infrastructures and the environment,” he added.
History of Uber Freight
Uber Freight was established in 2017 and separated into its own business unit the following year. In 2019 the company had expanded across the entire continental US, established a headquarters in Chicago. Later that year it launched its first international division in Europe, initially from a regional foothold in the Nertherlands, and later moving into Germany.
The logistics spinoff attracted a $500m investment from New York-based Greenbriar Equity Group in October 2020, and launched a new shipping platform for companies of all sizes in May, partly in response to a driver shortage in Canada.