Shell heads online
18 Feb 2000
Shell has become the first of the petrochemical majors to take the leap into the e-commerce field by setting up the basis of a global internet market place for the oil, gas and chemical industry. Established as a joint venture with Commerce One, a business-to-business e-commerce specialist, this `global exchange' will allow smaller companies to compete in the energy market.
The system will be housed on Commerce One's `Global Trading Web', a network which links trading partners in various industries through `vertical and regional portals'. Existing portals serve the automotive and finance industries.
The venture will be controlled initially by Shell, but Commerce One will be paid for its Internet technology. Shell expects it to cut its energy procurement costs considerably, but stresses that the system will be open to any energy companies, their suppliers and customers. `This new exchange is intended as an open gateway,' says Shell md Harry Roels. `There are huge efficiencies to be gained by everyone and the more members we get, the more successful it will be.' The portal will be especially useful to smaller and regionally-based companies, Shell claims, allowing them to `compete globally in a way that was not possible before.' The market is planned to go live in the second quarter of the year.
