Today we’d like to introduce you to Terence Spencer.
Spenergy is the brainchild of its Founder and CEO, Terence Spencer. After spending almost a decade as an executive with Chevron in the Caribbean. He sought to become more, so he started a small oil and gas management services firm called CayOps in 2011 in the Cayman Islands. CayOps provided him with a real-time understanding of the complexities involved as a strategic services provider within the supply chain of a downstream oil and gas business in the Caribbean. Ideally, CayOps served as the precursor to what Spenergy is today.
Terence graduated from Florida International University in Miami, Florida in 2004 with a Bachelor of Business Administration degree where his concentration was business management. Florida International University is highly acclaimed for its academic standards and excellent international business program. In his former years as a corporate executive, he served as the head of the Western Caribbean business operations for Rubis Energie and Chevron. Terence parted ways with Chevron in 2012 and from there, he spent countless hours executing high-level projects for clients in the Oil and Gas industry.
After realizing the true potential that a value-driven, lean oriented, supply chain focused oil and gas products and services organization can deliver to businesses operating within the downstream petroleum market, he came to the conclusion that he needed to holistically upgrade CayOps to adequately position the company as a high value, strategic partner of choice for downstream companies operating in the Caribbean. This upgrade was essential in order for the company to have a successful path towards growth, sustainability and overall profitability. In 2014, he identified Atlanta, GA as the most strategically opportunistic market for the company to plant its roots and ultimately succeed as a global business.
With Atlanta being a world hub in the aviation industry as well as an emerging market for various small, medium and large businesses, it only made sense that the company is re-established there. After dissolving the Cayman Islands-based CayOps business, Terence relocated his family back home to the United States and settled in Alpharetta where Spenergy was born. After investing over 4,000 man-hours, he took his biggest risk and utilized his kid’s college fund to the tune of $100,000 to fund Spenergy in its preliminary stages in order to kick-start business operations, establish the supply chain network and execute an initial direct marketing campaign to develop Spenergy’s customer base.
Since Spenergy’s inception, the company has exponentially grown its revenue year-over-year, established it’s own branded line of lubricants, oils and greases called SpenTech, and most recently been certified by the US Small Business Administration in its premiere 8(a) business development program as Spenergy has successfully been awarded and completed a number of Federal Contracts with the Army and Navy.
Most recently, he added his wife Anthonia as the President and Chief Marketing Officer of Spenergy. Together, their commitment, poise and perseverance to position Spenergy as the most formidable force in the downstream oil industry is inevitable. By providing a broad range of products and services while staying committed to its core values of people, process and performance, Spenergy is ready to achieve success at its highest levels.
Has it been a smooth road?
It definitely hasn’t been a smooth road and the list of obstacles challenges and struggle goes a long way. Some of the most prolific struggles I’ve faced are:
1. Having adequate financing for growth and the lack of access to it.
2. Being a small business in a hyper-competitive market dominated by big players with big wallets.
3. Being an African American in a business in which African Americans don’t participate in as owners.
4. Having adequate time and human resources to tackle the day-to-day issues of running a business.
So let’s switch gears a bit and go into the Spenergy story. Tell us more about the business.
Spenergy offers a comprehensive line of premium high-quality lubrication products and services for marine, automotive, commercial, industrial, aerospace, aviation, agricultural and military applications. Our brands include SpenTech, Chevron, Citgo, Clarion, Mystik, Royco and several specialty brands.
I’m most proud of the fact that we are still here and growing! Although each day is full of surprises, perseverance is key!
Some of the things that make us different are:
• All our products are manufactured in USA in ISO 9001:2015 Quality Management System certified blending facilities Custom packaging and labeling per contract specifications
• Full lot traceability
• Vendor Managed Inventory (VMI)
• Full line of MIL Spec products
• In-house quality control inspection system
• Nationwide shipping of LTL, Full Truckload and Bulk (Oil)
• Technical Expertise with over 25 years industry experience
• Custom lubricant manufacturing and reverse engineering capable
• Premium branded lubricants from your most trusted brands.
Where do you see your industry going over the next 5-10 years? Any big shifts, changes, trends, etc?
I see the industry remaining relatively steady between the next 5 – 10 years, however, environmental factors play a significant role in how the Spenergy will operate in the market whether in the short, medium or long term. A strong economy, in general, proves beneficial Spenergy in how the business can deliver its products and services to its customers. Reason being is that consumption increases with buying power. The current economic climate is relatively strong at the local and national level and if it remains consistent, the business can reap the rewards with a coordinated marketing strategy.
Changes in population only also has a relative impact on consumption of lubricants products and same is said for employment as both can be interdependent upon each other. Spenergy is currently located in North Metro Atlanta area Alpharetta, Georgia. Since Atlanta is a well-populated city with sustainable growth rates and economic outlook, the business has the potential to thrive with the right customer mix.
Interest rates do have a level of impact also, however, it’s also relative to the economy as in times of strong economic growth, spending, consumption and buying powers all increase as well. In times of economic downturn, interest rates can have a stronger role and the climate for small disadvantaged businesses will become increasingly difficult.
Therefore Spenergy’s financial management practices must continue to be prudent, relative and equitable in order to ensure it remains financially viable in times of interest rate instability.
Although factors such as the economy, changes in population, interest rates and employment are considered, they pale in comparison to the impact in which the geopolitical landscape can have on the oil industry, specifically as it relates to price. Price continues to be the dominant driver for a significant amount of small disadvantaged business who operate in the same climate as Spenergy.
Price increases are not unusual in the lubricants business as we typically see two to three a year. In most cases, the increases are somewhat predictable since they are often driven by changes in the price of crude oil and its impact on base oil prices. This is logical since crude oil is the feed for base oil and base oil accounts for about 75 to 99% of the volume of material in finished lubricants and roughly 50 to nearly 100% of its cost. The balance of the cost of goods belongs to performance additives, which are also impacted by higher base oil prices.
Understanding the impact base oil costs have on the lubricant prices is extremely important especially considering the fact that base oil price increases have the potential to dramatically impact margins. Currently, there is somewhat of an uncertainty about how the current geopolitical landscape will affect the price of crude and subsequently lubricants.
However, the industry has already shifted as the base oil price increases have already been seen this year and there will likely be at least one more before year end, all of which will have an effect on margin. The next 5 – 10 years will definitely have elements of uncertainty.
Contact Info:
- Address: 190 Bluegrass Valley Parkway
Alpharetta, GA 30005 - Website: www.spenergycorp.com
- Phone: (770) 369-9195
- Email: info@spenergycorp.com
- Facebook: facebook.com/spenergyllc
- Twitter: twitter.com/spenergyllc
- Other: linkedin.com/company/spenergy-llc
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