Product Terminal Storage Fees
Performed market studies of prevailing commercial fees and terms at refined product terminals in the northeast U.S. for storage, throughput arrangement, additive injection and truck and rail racks. Provided report to client who was considering marketing expansion and acquisitions in the northeast U.S. market.
Crude Oil Supply Options and Sale of Crude Gathering System
Performed economic and strategic evaluation of existing crude oil gathering system for possible sale and alternate crude supply options for a domestic refining company.
Chemical Market Research
Investigated historical market pricing for specialty chemical products in support of litigation over economic damages from petrochemical plant dispute in FSU.
Natural Gas Liquids Supply/Demand Study
Prepared an analysis of the demand for NGL products as feedstock to the petrochemical and refining industries, the availability of NGL supplies in the U.S. and Canada, and the level of current and future NGL fractionation capacity.
Crude Logistics Improvement Study for Refinery
Led study to improve refinery crude oil logistics for short and long term. Immediate results included adding a short connection to a major Gulf Coast crude pipeline allowing the company to reduce third party storage and working capital in excess of $5 million and to reduce crude oil transportation costs. Long term modeling identified the optimal amount of refinery storage and dock space required for economic flexibility and refinery growth requirements.
Crude Oil Marketing and Trading Reorganization
Provided reviews of crude oil marketing and trading practices of a major international oil company operating in Europe. Prepared analysis of the reorganization, key successful practices, and operating tactics. In the final report, recommendations were made to restructure the organization and change a number of operating practices to improve effectiveness and profitability.
MTBE Contamination Disputes
Assisted in defense of oil companies charged with supplying gasoline containing the additive MTBE, which alleged to have contaminated water supplies. Led the preparation of a comprehensive report on refinery supply, pipeline distribution, and retail marketing of gasoline in the area subject to the dispute.
Domestic Major Refinery and Marketing Analysis
Reviewed publicly available quarterly and annual data for major domestic refining and marketing companies. Analyses included margin and operating expense comparisons for the purpose of relative performance reconciliation and identification of initiatives to support and sustain competitive advantage. The results led to identification of multiple refinery site margin improvement and cost reduction projects.
National Petroleum Council (NPC) Committee on Refining
Served as committee member of the NPC and DOE sponsored study to assess the future viability of the domestic refining industry due to the impact of continued environmental regulations, including low sulfur gasoline and diesel.
Refining Economic Analysis and Forecasting
Participated in the development of monthly, quarterly, and annual financial analysis and forecasting of refining business unit’s financial and operating performance for communication to executive management and corporate investor relations.
Watson Millican & Company consultants have assisted owner/operators, investors, legal firms and financial institutions by preparing market studies of many segments of the hydrocarbon based industries.
Our analyses are client specific and address a variety of different questions regarding crude oil and natural gas, transportation, refining, marketing, natural gas liquids, petrochemicals, and specialty chemicals.
In-depth assessments are often made on supply and demand balances, product pricing, total and marginal costs of production, and alternative outlets for a wide range of hydrocarbon based materials.