Synergies, in the context of energy commodities trading, refer to the benefits and efficiencies that arise when two or more entities collaborate or combine their resources, capabilities, or operations. It occurs when the combined result of such collaboration is greater than the sum of the individual parts. The concept of synergies is prevalent in various aspects of the energy industry, including mergers and acquisitions, joint ventures, partnerships, and collaborations.
Synergies can manifest in multiple forms, such as cost savings, increased operational efficiency, economies of scale, shared expertise, enhanced technological capabilities, improved market reach, and access to new markets or resources. By leveraging each other’s strengths, entities can create a mutually beneficial relationship that amplifies their competitive advantage and profitability.
1. Energy Global: “Unlocking Synergies: Mergers and acquisitions in the energy sector”
2. Harvard Business Review: “How to Capture Synergies”
This A.I.-generated glossary is intended to provide a convenient means to understand terminology used on this website in the context of physical commodities trading. Some terms may have alternative and/or expanded definitions that may not be relevant here and thus not included. Sources provided are for reference and not intended to be an endorsement of the broader content on that website. Suggestions, questions, or corrections can be provided in the comment box on definition pages.