Baker & O'Brien, Inc.

Clients

Experience

Industry

Clients engaged in every facet of the downstream industry, from the wellhead to the consumer, rely upon Baker & O'Brien's technical expertise and industry experience in solving unique and complex problems.

These clients include companies engaged in oil and gas gathering; pipeline, water, rail, and truck transportation; gas processing and marketing; petroleum refining and marketing; power generation, water purification, and natural gas distribution; chemical, petrochemical, agrochemical, and specialty chemical manufacture; pulp and paper manufacture; and trade association initiatives.

Baker & O'Brien's work for the downstream industry often includes competitive analysis; feasibility studies; operations analysis and optimization; contract auditing; supply chain analysis; best practices management; accident investigation; market analysis; evaluation of trading and risk management issues; and analysis of organizational strategies and issues.

Related Experience

  • Ammonia Plant Insurance Dispute
    Assisted in evaluating insurance claims asserted by a major ammonia manufacturer.  Work included evaluation of the technical basis for claims involving construction defects and warranty work amounting to $3 million.  Assisted in documenting claims, inspected the plant, evaluated project records, and reviewed maintenance records.  
    EPC-related, Industry Practice/Standard of Care, Operations/Maintenance
  • Asian Refinery Study
    Assisted client in building PRISM refinery models of several Southeast Asian refineries.
    PRISM Data or Analysis, Pricing
  • Audit of Gas Contract
    Conducted an audit of the revenue settlement of natural gas liquids and residue gas per the terms of a gas processing agreement. Investigated causes of reduced product yields, and reviewed compressor operation, fuel consumption, and product and fuel allocation procedures.
    Commercial Terms Review, Pricing
  • Bankruptcy Reorganization
    Developed, in conjunction with senior management, reorganization plans for various operating segments of a major trading and transport company. The resulting business plan formed the foundation of the company's successful reorganization and emergence from bankruptcy.
    Operations/Maintenance, Pricing
  • Benzene Production Study
    Studied benzene production economics for inland refiner, including benzene price forecast and transportation cost to USGC.  Reviewed benzene consumers and future market potential.  Estimated the capital cost for benzene production and shipping facilities.
    Pipeline, Pricing, Waterborne/Marine
  • Bitumen Economics/Refinery Reconfiguration
    Using the PRISM refinery simulator, calculated the economics of replacing the current refinery crude slate with Canadian synthetic-bitumen (syn-bit) or condensate-bitumen (dil-bit) blends. Cases were considered with and without capital investments and potential investment costs were also estimated.
    PRISM Data or Analysis, Crude Oil Valuation, Pricing, Product Quality
  • Bitumen Processing Study
    Used our proprietary PRISM refinery model to determine the bitumen processing capability of several U.S. refineries.
    PRISM Data or Analysis, Product Quality
  • Black Oil Storage
    Provided an assessment of terminal facilities in the Long Beach and Los Angeles areas. Assessed historical and projected crude oil supply and demand for California.
  • C4 Upgrade Project Due Diligence
    Conducted preliminary due diligence for a project to upgrade various mixed C4 streams into a range of higher valued butylenes streams and chemical products.
    Pricing, Project Feasibility
  • California Crude Oil Study
    Developed a detailed California crude oil supply, demand, and transportation balance (by refinery) for a mid-size independent California crude oil producer. Results were used in client's annual report for shareholders and security analysts.
    Crude Oil Valuation, Product Quality
  • Carbon Dioxide Forecast
    Using the PRISM refinery simulator, calculated and compared the carbon dioxide emissions for two processing options: (1) a bitumen upgrader in Canada combined with a refinery in the U.S. versus; (2) an integrated upgrader/refinery at the U.S. location.
    PRISM Data or Analysis, Pricing
  • Chemical Pipeline Market Study
    On behalf of an acquisitive client, researched, identified, and characterized chemical pipeline operations in the U.S. to form a database of prospective business opportunities.  The engagement included contacting each prospective target to ascertain an initial level of interest in pursuing commercial arrangements with the client.  The study identified several attractive prospects and provided an overall measure of the market dimensions.
    Pipeline
  • Clean Fuels Studies
    Assisted industry trade associations and government agencies in evaluating issues related to the transition to new clean fuels specifications in the U.S. Work included modeling of refinery operations to determine the impact of the new specifications on manufacturing costs for ultra-low sulfur gasoline and diesel fuels.
    Product Quality
  • Commercial Contract Litigation
    Assisted in a claim related to a force majeure incident related to the recommissioning of a facility after a hurricane.  Examined conformance with standard industry protocols and applicable laws, standards, and regulations.  Assessed whether the facility operator acted in a reasonably prudent manner with respect to the commercial and technical issues necessary to safely restart the facility as soon as possible.
    Expert Witness/Testimony, Industry Practice/Standard of Care, Operations/Maintenance
  • Construction Dispute - Petrochemicals Plant
    Prepared a confidential "Cold Eyes Review" assessment concerning a contemplated claim between an owner and a contractor of a grassroots petrochemical facility.  Reviewed draft claims, researched evidence, and interviewed key personnel in order to produce an independent view of the claim.
    EPC-related, Industry Practice/Standard of Care
  • Contract Dispute Resolution
    Evaluated inter-company petrochemical stream transfers and cost allocations pursuant to the mutually agreeable resolution of a contractual dispute between entities engaged in multiple across-the-fence feedstock and product exchanges.
    Pricing
  • Crude Oil and Refined Products Business Restructuring
    Assessed the viability and financial prospects of a proposed business restructuring designed to eliminate refining operations and develop pipeline supply options. The analysis results facilitated the client's successful efforts to finance and implement the restructuring plan.
  • Crude Oil Evaluation
    Evaluated several processing alternatives and combinations of various refining assets located in the Caribbean and on the U.S. Gulf Coast to process heavy Ecuadorian crude oil production.
    Crude Oil Valuation, Product Quality
  • Crude Oil Evaluation
    Assisted an independent California crude oil producer in establishing a pricing formula for sale of its heavy oil production under a long-term contract. The analysis included a historical review of relative crude values and the key price drivers affecting the value differences between grades.
    Crude Oil Valuation, Pricing, Product Quality
  • Crude Oil Gathering System Evaluation
    On behalf of an independent U.S. refiner, conducted an in-depth study of its crude oil gathering and transportation system.  Our study included  reviews of physical assets and crude oil purchase and transportation agreements, and evaluation of the economics of retention versus disposition.  Our results and conclusions were used by the client in its asset rationalization plans.
    Pipeline, Pricing, Project Feasibility
  • Crude Oil Import Terminal Feasibility
    Examined the feasibility of a deep water import terminal to meet the domestic refining industry's needs for imported crude oil as West Coast crude production declines. The analysis included a review of the history of imported crude oil for West Coast refineries, the current outlook for domestic production declines, crude oil import trends, shipping logistics, refinery capabilities, and future opportunities for moving crude oils to refining facilities east of the Rocky Mountains.
    Pipeline, Project Feasibility, Waterborne/Marine
  • Crude Oil Market Studies
    Prepared several detailed assessments of West Coast crude oil markets for an independent California producer. Studies included preparation of detailed regional balances, identification of target refineries for client's crude oil, and estimation of its value relative to imported and domestic alternatives. Results were presented to client's executive management and at its banker and security analyst conferences.
    Crude Oil Valuation, Pricing
  • Crude Oil Marketing and Trading Reorganization
    Conducted review of crude oil marketing and trading practices of major international oil company operating in Europe. Prepared analysis of the organization, key practices, and operating systems. Recommended changes in structure and practices to increase effectiveness, efficiency, and profitability.
  • Crude Oil Marketing Strategy
    Prepared a marketing strategy for new production in Russia's Sakhalin Island region. The study analyzed potential markets for new production of crude oil, transportation options and costs, and contracting strategies.
    Crude Oil Valuation, Offshore, Pricing, Product Quality
  • Crude Oil Marketing Study
    Provided support to a major Canadian crude oil pipeline transporter in the customization of the PRISM model, Baker & O'Brien's proprietary refining industry analysis tool, the company had licensed from Baker & O'Brien. Support included addition of crude oils of specific interest to the client.
    PRISM Data or Analysis, Pipeline, Product Quality
  • Crude Oil Pipeline Acquisition
    On behalf of an international pipeline company, prepared an assessment of the acquisition of a fifty percent ownership in a pipeline system that transports crude oil from Canada into the U.S. Study included crude oil supply/demand projections for the markets served.
    Pipeline, Pricing
  • Crude Oil Royalty Litigation
    Assisted in a lawsuit between an oil company and a royalty owner of oil company's crude oil production for alleged underpayment.  Work included identification of the various markets for this crude oil to established whether its value in these markets was consistent with the price received.
    Crude Oil Valuation, Pricing, Product Quality
  • Crude Oil Supply Evaluation
    On behalf of a major pipeline and terminal company, prepared a detailed assessment of future crude oil supply and demand balances for the U.S. West Coast, with an emphasis on California. The assessment was used by the client as a key part of its justification for a new crude oil import terminal, capable of handling VLCCs (Very Large Crude Carriers), to be constructed in the Port of Los Angeles. Results were presented to community and state government groups.
    Pipeline, Waterborne/Marine
  • Crude Oil Terminal and Pipeline Study
    Assisted in the site selection study for a new crude oil terminal and a pipeline connecting the terminal to an existing refinery.
    Pipeline, Project Feasibility
  • Crude Oil Utilization Study
    Assisted an Australian crude oil producer in preparing and submitting a "brief" to the Australian Government regarding the impact of large new volumes of Australian crude oil on the domestic refining industry. Analyzed the crude oil supplies available to each refinery and estimated the new investment that might be needed to process crude oils containing increased volumes of light ends. Assisted in making recommendations to the Government on the framing of new regulations to lessen the impact on both the industry and the consumer.
    Project Feasibility
  • Crude Oil Valuation
    Conducted a valuation for a new grade of Atlantic crude oil production, likely to be marketed to refineries in the U.S. East Coast and U.S. Gulf Coast. The study used PRISM for several specific refineries to calculate refinery breakeven values for the target crude in comparison to several competing grades. The analysis also included a historical review of the calculated relative crude refining values and the key price drivers affecting the value differences between grades.
    PRISM Data or Analysis, Crude Oil Valuation, Pricing, Product Quality
  • Crude Oil Supply Study
    Assisted client in constructing a crude oil supply balance for PADD II and developed incremental crude oil valuations for refineries in PADD II using PRISM, Baker & O'Brien's proprietary refining industry analysis tool.
    PRISM Data or Analysis, Crude Oil Valuation, Pricing, Product Quality
  • Damages from Steam Turbine Failure
    Assisted in determining economic damages resulting from failures associated with a new steam turbine that was provided and installed by a turbine manufacturer at a power generation facility. Conducted independent assessment of economic losses suffered by electric cooperative as a result of both short-term and long-term performance shortfalls and outages.
    Business Interruption, EPC-related, Industry Practice/Standard of Care, Operations/Maintenance, Pricing
  • Defective Paint
    Evaluated automotive paint and coatings data. Analyzed survey data for paint and coatings system performance when applied by a "big three" automotive manufacturer to determine liability contribution for coating failures. Required understanding of evolution of automotive paint and coating systems. Assisted in evaluation of economic damages resulting from coating application failures.
    Product Quality
  • Delayed Coker Fire Investigation
    Assisted client in investigating the cause of a coker hydrocarbon release and fire, which resulted in multiple fatalities. Visited refinery and reviewed procedures and events preceding the incident to identify potential areas of causation and liability. Operating experience and knowledge of technical and safety issues and of industry and management practices helped the client in addressing specific claims issues.
    Industry Practice/Standard of Care, Operations/Maintenance, OSHA-related, Safety
  • Electric Incident Investigation
    Conducted a Root Cause Failure Analysis on a power generation facility following the failures of a surge arrester and a backup battery system. Identified required inspection assistance, evaluated failed component inspection results and examined practices and procedures in place at the facility.
    Industry Practice/Standard of Care, Operations/Maintenance
  • Estimate for Fire Rebuild
    Developed a cost estimate for replacing and/or purchasing new equipment and materials after damage from plant fire.
    Industry Practice/Standard of Care, Operations/Maintenance, Physical Asset Appraisal, Property Damage
  • Ethanol Impact on Refinery Margins
    Assessed the impact to U.S. refining margins that would likely result from aggressive growth in ethanol production in the U.S. The study examined the likely distribution of ethanol by PADD under an aggressive ethanol growth scenario, the resulting gasoline supply and demand balances, and the consequent impact on margins over a 10-year period.
    PRISM Data or Analysis, Pricing
  • Ethanol Supply and Demand Study
    Studied and presented the effects of ethanol supply and demand scenarios on regional gasoline supply and demand for a small domestic refiner.
  • Ethanol Supply Demand Evaluation & Pricing Forecast
    Prepared an evaluation of ethanol manufacturing business for a U.S. company considering major capital investments to enter that business.  Developed an analysis which included ethanol supply/demand projections for key gasoline markets, forecasts of future ethanol pricing within those markets, and key sensitivities.
    Pricing
  • Evaluate Biodiesel Technology and Plant Design
    Reviewed and critiqued plant design for prospective biofuels production facility.
    Project Feasibility
  • Evaluate Biodiesel Technology Development and Scale-Up
    Assessed the technology development and commercialization plan for a biodiesel production hydroprocessing facility. Our conclusions helped provide the basis for the formation of a joint business venture to construct and operate a world-scale biodiesel plant.
    Project Feasibility
  • Evaluation of New Crude Production
    Evaluated a new crude oil stream produced by the client from offshore platforms in the West African country of Equatorial New Guinea.  Evaluation included identification of potential markets and the values of this crude oil into these markets.
    Crude Oil Valuation, Offshore, Product Quality, Project Feasibility
  • Evaluation of Refinery Operating Procedures
    Acted as independent advisor in a dispute between a refinery and the Environmental Protection Agency following a period of excess emissions.
    Industry Practice/Standard of Care, Operations/Maintenance
  • Fair Market Valuation
    On behalf of a major U.S. gas power plant developer, estimated the fair market value of a 1,000 MW natural gas-fired electric power project. Evaluated turn key fixed-price contract for engineering, procurement, and construction for the combined-cycle generation facility along with utilities, rights-of-way, and permits. Reviewed the procurement and delivery of four natural gas turbines and two steam turbine generators.
    Pricing
  • FCC NOx Allocation
    Prepared a report of FCC regenerator nitrogen oxides (NOx) production that allowed allocation of FCC NOx from a combined refinery stack.  The report was used to negotiate the allowable corporate average NOx limits with the EPA. 
    Industry Practice/Standard of Care, Operations/Maintenance
  • Feasibility and Economics to Produce CARB Phase 3 Gasoline and Diesel
    Performed independent assessment of a refinery project to produce CARB gasoline and diesel. Assessment included feasibility, cost, and economics of the project. Study was performed for a prospective buyer of the refinery.
    Pricing, Project Feasibility
  • Fertilizer Project Due Diligence Assessment
    In conjunction with a leading upstream consulting firm, conducted a due diligence assessment of gas resources for the purpose of developing a fertilizer complex associated with onshore and offshore gas production under development. The assignment entailed delineating the quantity and quality of gas resources available to support the prospective fertilizer project and estimating costs to deliver natural gas suitable for producing nitrogen fertilizers to the project.
    Fertilizers, Offshore, Pricing, Product Quality, Project Feasibility
  • Fischer Tropsch (FT) Market Study
    Conducted a market study for intermediate and finished products resulting from FT synthesis of a gas source in West Africa. The study assessed the best markets and projected netback prices for FT diesel, jet, and naphtha, as well as a review of the marketability of intermediate (unfinished) FT products.
    Pricing, Product Quality, Project Feasibility
  • Gas Processing
    Performed a preliminary evaluation of the gas processing design, capital costs, and economics for a natural gas liquids recovery and fractionation facility and a condensate stabilization facility in the Republic of Turkmenistan.
    Pricing, Project Feasibility
  • Gas to Liquids Evaluation
    On behalf of a major oil and gas producer, prepared a conceptual design for a Fischer-Tropsch based gas-to-liquids unit using low value associated gas to produce LPG, gasoline, and zero sulfur diesel.  Developed estimates of charge and yield, capital and operating costs, and project development and capital spending schedules.
    Gas to Liquids, Pricing, Project Feasibility
  • Gas Wellhead Equipment Failure
    Performed root cause analysis of a gas well casing hanger which led to a well blow out.
    Forensic Analysis , Industry Practice/Standard of Care, Operations/Maintenance, Safety
  • Gasoline Blending Compliance
    Provided analysis for a refiner that does not produce finished gasoline on the prospects for producing gasoline that meets all API and ASTM requirements. Analyzed the options available to the refinery for blending reformate fractions and whether aromatics or benzene would likely be the constraining specification as it relates to the "anti-dumping" rule. Evaluated potential early compliance with the EPA's mobile source air toxics (MSAT2) program.
    Industry Practice/Standard of Care, Product Quality, Project Feasibility
  • Gasoline Market Study
    Provided an analysis of the gasoline market in several mid-continent cities, including a twenty-year price forecast for a client considering market entry.
    PRISM Data or Analysis, Pricing
  • Global Gasification Feedstock Analysis
    Conducted an analysis of the potential low-cost carbon feedstocks for a grassroots gasification project to produce a combination of synthetic fuels and electricity.  The study investigated sources and delivered costs for various feedstocks, including coal, petroleum coke, and low-valued refinery streams such as residuum and cracked fuel oils.  Historical data was used to assess pricing mechanisms for world petroleum coke prices, including delivered coal prices to Japan and Western Europe.
    Gas to Liquids, LNG, Pricing, Project Feasibility
  • Global Polyethylene Study
    Conducted a global market analysis to determine export market potential for a proposed ethylene/polyethylene complex. The study encompassed development of global supply/demand balances and price forecasts, as well as an analysis of prospective competitors' process economics.
    EPC-related, Pricing
  • Grassroots Refinery Study
    Built a grassroots refinery model using our proprietary PRISM refinery modeling system. Our client (a PRISM licensee) then used the model to evaluate the economics of various refinery configurations.
    PRISM Data or Analysis, Pricing
  • GTL Diesel Blending Study
    Performed several diesel blending studies in different refinery configurations using PRISM to calculate the Green House Gas benefits of using GTL diesel as a potential blendstock.
    PRISM Data or Analysis, Pricing, Product Quality
  • HF Alkylation Restrictions Impact Analysis
    Investigated and analyzed the impact of various potential restrictions on the use of HF alkylation technology in U.S. Refineries.
    PRISM Data or Analysis, Pricing
  • Impact of Gasoline Toxics Regulations
    Quantified the impact of proposed changes in gasoline toxics regulations (MSAT-II) on each individual refinery in the U.S. Using our proprietary PRISM refinery modeling system, calculated investment costs, changes in operating costs and product yields. Our report was presented in testimony before the U.S. E.P.A.
    PRISM Data or Analysis, Expert Witness/Testimony, Pricing
  • Import Terminal Study
    On behalf of four major oil companies, provided a screening study focused on the Port of Long Beach and Port of Los Angeles to determine the future adequacy of the overall port infrastructure and facilities.
    Waterborne/Marine
  • Independent Power Production
    Assisted in the development proposals for two independent power projects in southeastern Japan. One facility, which was successfully implemented, involved a $180 million investment for a petroleum coke-fired 130 megawatt condensing turbine generator. Assisted in the creation of a sophisticated linear program model, which was used to justify the project, based on cash flows and probable rates of return.
    Pricing, Project Feasibility
  • Investigation of Gas Processing Plant Incident
    Assisted in the investigation of an explosion and fire with resulting failure of natural gas supply from onshore crude oil, condensate, and natural gas processing facilities located offshore. Reviewed facility design, operating, and maintenance standards and prepared expert testimony.
  • Isobutanol Valuation Study
    In order to assess the potential value of isobutanol as a gasoline blending component, performed simulations of refinery operations at a select group of West Coast refineries to calculate isobutanol value relative to blending ethanol into gasoline.
    PRISM Data or Analysis, Pricing, Project Feasibility
  • Jet Fuel Underpayment Claim
    Assessed jet fuel supply contracts to see if an overpayment claim was justified.
    Commercial Terms Review, Pricing
  • Long-term Outlook - Global Refining and Light/Sweet Crude
    Completed a study that examined longer-term developments of the worldwide refining industry and strategies for maximizing the sales value of light, sweet crude grades.  The study identified and evaluated a long-term pricing strategy for light/sweet crude oil as a response to expected changes in crude oil quality, environmental legislation and mandates, and regional growth trends in petroleum demand.
    Crude Oil Valuation, Pricing, Product Quality
  • LPG Pipeline Contamination
    Evaluated pipeline contamination and potential sources of contaminants from various sources.
    Industry Practice/Standard of Care, Operations/Maintenance, Pipeline, Product Quality
  • Lube Oil Market Assessment
    Conducted a survey of the potential market for naphthenic lubricating oils in South and Central America. Analysis was used to complete a full feasibility study of a new Venezuelan-based refinery to manufacture these products.
    Product Quality, Project Feasibility
  • Lube Oil Market Study
    On behalf of a major oil company, prepared a forecast of the worldwide supply/demand balance for paraffinic lube oil base stocks to support the development of a new high technology manufacturing facility to be located in Saudi Arabia. Project was a joint venture between the company and the Saudi Arabian government. Output from the project was intended to serve the high growth areas of the Middle East and Far East.
    Project Feasibility
  • Manufacturing Facility and Plant Evaluation
    Performed an on-site assessment of a pipe manufacturing facility to determine operational viability. Key assessments made on mechanical integrity and reliability of the process equipment, technical understanding and organizational strength of facility personnel, and related operational issues.
    Physical Asset Appraisal, Project Feasibility
  • Market Analysis and Term Supply Contracting - Synthetic Crude Oil
    Assisted a Venezuelan joint venture company in developing a marketing strategy for a new synthetic crude oil. The assignment included an evaluation of the potential market for the new production, modeling of refinery values for the new production, detailed assessments of potential supply agreements, and assistance in term contract negotiations.
    Commercial Terms Review, Crude Oil Valuation, Pricing, Product Quality
  • Market Impact of Low Sulfur Fuels Regulations
    Using our proprietary PRISM refinery modeling system, performed a refinery-by-refinery analysis of potential production of low sulfur fuels by U.S. refineries.  Analysis included the seasonal productions of conventional and reformulated gasolines and ULSD and also included jet fuel and high sulfur diesel production.
    PRISM Data or Analysis, Pricing
  • Marketing Effort for Ecuadorian Crude
    On behalf of a major international oil trading company, developed ongoing valuations for Ecuadorian Oriente crude oil in the US West Coast and Gulf Coast markets. Client used the results to achieve maximum values for the Oriente crude that it marketed under a long-term contract.
    Crude Oil Valuation, Pricing
  • Midstream Acquisition Due Diligence
    Assisted energy distribution company with due diligence for potential transaction involving gas gathering and processing assets located in the Permian Basin.  Assets evaluated included over 4,000 miles of gas and liquid pipelines, four gas processing plants, and multiple gas treating plants.  Participated in data room reviews and management presentations with a focus on commercial, operational, and technical evaluations of midstream systems.  Developed comprehensive economic model of the integrated gathering and processing assets that was used to determine valuations and evaluate key sensitivities.
    Industry Practice/Standard of Care, Operations/Maintenance, Physical Asset Appraisal, Pipeline, Pricing
  • Modular Refinery Conceptual Study
    Performed a conceptual analysis of a small, skid-mounted refinery operating in the Middle East to serve local markets.  Assessed the likely configuration and capital costs and yields, given an assumed crude slate.
    Pricing
  • Multi-Refinery Synergies
    Analyzed the synergies and economic advantages of companies that operate multiple refineries on the U.S. Gulf Coast.  Analysis included advantages in crude acquisition; turnaround and routine maintenance; feedstock and product transportation; efficient processing of intermediate streams; and optimal capital investment.
    PRISM Data or Analysis, Pricing
  • Natural Gas Asset Strategic Initiative
    Prepared job descriptions and qualifications as part of a new organizational strategy of a fully integrated natural gas division.
    Project Feasibility
  • Natural Gas Pipeline and Processing Plant Due Diligence
    Assisted an electric utility in its merger with a gas transmission and distribution company. Inspected pipeline and processing facilities and reviewed natural gas and natural gas liquids supply and marketing issues. Conducted operations review and an analysis of staffing levels.
    Physical Asset Appraisal, Pricing
  • Natural Gas Production Facilities
    Served as one of two project managers responsible for the engineering, procurement, and construction of a 200 million cubic feet per day natural gas recovery facility in central Algeria to provide the feedstock for a new liquefied natural gas (LNG) plant on the Algerian coast. At the time of installation, the $250-million project was the largest of its kind in the world. Conducted negotiations with local labor, equipment, and utility suppliers. Arranged meetings with local environmental agencies to ensure compliance with all national environmental rules and regulations.
    EPC-related, Industry Practice/Standard of Care, LNG, Operations/Maintenance
  • Oil and Gas Royalty Valuation
    In support of a potential public offering, calculated the net present value of a defined royalty interest payable on all proceeds from the sale of crude oil, condensate, natural gas, and natural gas liquids produced from the Gippsland Basin in the Bass Strait off the coast of Australia. Worked in conjunction with an oil reservoir firm that prepared field production estimates over the next 20 years. Report became part of the offering memorandum submitted in compliance with local Public Securities Commission regulations.
    Crude Oil Valuation, Offshore, Pricing
  • Oil Refining Crude Supply Dispute
    Provided engineering and project management consulting services for litigated dispute between two large oil companies concerning an acidic crude oil supply agreement (high TAN crude, high acid crude). Prepared expert report.
    Commercial Terms Review, Crude Oil Valuation, Product Quality
  • Oil Sands Downstream Integration Venture
    Assisted a producer of Canadian oil sands in assessing potential joint venture partners and refinery acquisition targets for processing diluted bitumen in the U.S.  Conducted modeling and analysis of prospective refineries and advised the client on likely capital expenditures required for processing increasing volumes of diluted bitumen.  Performed technical due diligence, assisted with cash flow valuation analysis, and supported negotiations.
    Pricing
  • Petrochemical Business Privatizations
    Developed market valuations, evaluated strategic business alternatives, and formulated short-term planning objectives for several diversified East European chemical companies undergoing the transition from state control to private ownership. Engagements included marketing efforts directed to attracting investors and joint venture partners.
    Pricing
  • Refinery Evaluation
    Prepared a study of the economics of various alternative operating modes, including expansion through addition of new processing units, for an independent refinery in the United Arab Emirates. Study included assessment and ranking of a variety of feedstocks and processing schemes and utilized a model specifically developed for the refinery.
    LP/Planning Practice, Pricing
  • Refinery Equipment Sales
    Assisted the owner of a 60,000 BPD crude oil refinery in developing a marketing plan and finding potential customers for used process equipment. The assignment generated a sale of several major processing units to a local refiner for use in the manufacture of high-octane gasoline blending stocks.
    EPC-related
  • Refinery Manufacturing Options Study
    Prepared an investment strategy to manufacture transportation fuels. Evaluated yields, investment, and operating economics to produce gasoline and diesel fuel from residual materials. Presented conclusions for consideration by the company's board of directors.
    Pricing, Project Feasibility
  • Refinery Performance Test Evaluation
    Investigated claims of poor performance of a $1 billion refinery project between a refiner and a major EPC contractor. Evaluated charge and yield, feedstock quality, and efficiency issues and assisted in documentation of response to claim.
    EPC-related, Product Quality, Project Feasibility
  • Sulfuric Acid Storage Incident
    Retained to assist in the investigation of a fatality incident at a sulfuric acid processing and storage facility.  Reviewed equipment design, inspection and repair history, operating procedures, training of personnel, and industry practices.  Assisted legal team with on-site investigation and interaction with local, state, and federal agencies.  Reviewed conclusions by root cause analysis for consistency and factual support.
    Forensic Analysis , Industry Practice/Standard of Care, Operations/Maintenance, OSHA-related, Safety
  • Refinery Evaluation
    Used PRISM, Baker & O'Brien's proprietary refining industry analysis tool, to establish relative refinery profitability for Philadelphia refining system. Developed proposal to install instrumentation upgrades and be paid through a percentage of the improved economic value.
    PRISM Data or Analysis, Pricing, Project Feasibility
  • Planning and Scheduling Improvement
    Assisted an integrated oil company in improving its processes and tools for crude oil pipeline scheduling, refinery short-term planning and optimization, refinery scheduling, and performance measurement.  The initiative was part of a large, company-wide implementation of SAP and focused on improving the processes and methods of integrating data between the decision support tools and the data warehouse (SAP BW).  Tools included refinery LPs, refinery scheduling tools, assay systems, and batch pipeline scheduling software.
    LP/Planning Practice
  • Refinery Best Practices
    Analyzed multiple refineries of a major international petroleum firm to determine economic limitations and causes of performance gaps versus competitors. The study reports consisted of analyses of practices, performance targets, and recommendations for improvement initiatives. The work involved site visits, employee interviews, final reports, and presentations to company management and refinery personnel.
    LP/Planning Practice, Operations/Maintenance, Product Quality
  • Project Feasibility and Start-Up Assistance
    Retained by a financial institution to conduct an independent assessment of a refinery project to restart and expand idle equipment to produce transportation fuels and lube base oils.  The feasibility analysis included review of project costs, a product price forecast and margin outlook, as well as an assessment of the competitive market environment.  Provided assistance to the lender in structuring terms for loan agreement and establishing project milestones for the funding.  Monitored construction and revamp progress for the lender and certified mechanical completion of the project.  Following start-up of the units, attended performance test runs and provided certifications to the lender that the units met design throughput capacities and products met required quality specifications.
    Pricing, Project Feasibility
  • Refinery Product Distribution Outlook
    On behalf of a large, publicly-traded master limited partnership engaged in the transportation, storage, terminalling, and marketing of petroleum, we assessed the five-year outlook for refinery production, liquid storage capacity, and major pipeline flows on the USGC.
    Pipeline, Pricing
  • Supply/Demand Forecast
    Constructed PRISM refinery models of all of the Australian refineries for use by a client for its strategic planning efforts.
    PRISM Data or Analysis, Pricing
  • Technology Commercialization
    Performed due diligence on a new gas-to-liquids (GTL) process to evaluate possible routes to commercialization.  The work program included the following steps: verification of mass balance, comparison of laboratory and pilot plant yields, evaluation of alternative technologies, assessment of scale-up issues, review of preliminary commercial design, estimate of capital costs, and the development of an economic model that included sensitivity analyses for capital costs, yields, and prices.
    Gas to Liquids, Intellectual Property, Project Feasibility
  • Refinery and Expansion Project Valuation
    Assisted a refinery owner in establishing a value for an existing refinery, the value of a large expansion project, and the additional value resulting from a guarantee clause associated with the expansion project.  The analysis included cash flow modeling, comparative sales assessments, and an evaluation of expansion project capital requirements and economics.
    Pricing
  • Refinery Valuation Study
    Provided an opinion as to the fair market value of a large European refinery that changed ownership during the 1980s.  Party filed arbitration proceedings against its former partner, claiming that the refinery was sold for well below market value.  Prepared several reports that were submitted as evidence.
    Arbitration, Pricing
  • Review of Facilities Safety Issues
    Assisted in technical review of safety related issues at crude oil production and gathering facilities.
    Industry Practice/Standard of Care, Operations/Maintenance, OSHA-related, Pipeline, Safety
  • Refinery Acquisition Study
    Provided assessment of refinery technical and economic features for prospective buyer, including on-site inspection and projections of potential capital investments for refinery upgrades.
    Pricing
  • Planning and Economics Implementation Assistance
    Made an assessment of the implementation plan and "change readiness" associated with a project to improve the short-term planning, optimization, and decision-making processes for a global refining and marketing company.  Assessed key stakeholder impressions of the improvement project and provided feedback to senior management to ensure a successful outcome.
    LP/Planning Practice, Operations/Maintenance
  • Root Cause Analysis
    Conducted a Root Cause Failure Analysis on a high pressure steam turbine that failed following a planned outage at a cogeneration power plant. Evaluated outage work procedures, actual outage work undertaken, start-up monitoring results, and post-failure turbine inspection results on turbine disassembly.
    Forensic Analysis , Industry Practice/Standard of Care, Operations/Maintenance
  • Refinery Acquisition Planning
    On behalf of an acquisitive client, developed a summary of the U.S. refining business to focus on the supply/demand and competitive forces within the market.  Provided information regarding historical U.S. refinery M&A transactions and a summary of typical due diligence focus items.  Screened several potential acquisition candidates and developed a shortlist of opportunities which appeared to best align with the strategic objectives of the client.
    Pricing
  • Refinery Feasibility Study
    Studied the possible development of a grassroots refinery that included an assessment of the refinery's potential feedstock, refined product yields, operating costs, and earnings capability.  Utilizing Baker & O'Brien's proprietary PRISM refining industry analysis software and data services, developed a ten-year outlook for refining margins/crack spreads, modeled alternative refinery configurations, and conducted a competitive assessment of the proposed refinery compared to key regional competitors.
    PRISM Data or Analysis, Pricing, Project Feasibility
  • RFS Infrastructure Study
    Prepared a report for the American Petroleum Institute (API) that analyzed the potential logistics and infrastructure bottlenecks on a year-by-year basis to 2012 that could result from the industry trying to meet the Renewable Fuel Standard from the Energy Independence and Security Act of 2007.
    PRISM Data or Analysis, Pricing, Product Quality, Project Feasibility
  • Refinery Competitiveness Study
    Analyzed the relative competitiveness of a group of refineries in a specific region.  The study included an analysis of the local supply and demand balance, and a forecast of product movements into and out of the region.  Using our proprietary PRISM system, modeled each refinery in its current configuration and in its expected configurations eight years in the future.  Profit margins were calculated for each refinery under three different product price scenarios.
    PRISM Data or Analysis, Pricing
  • U.S. Refining and Marketing Strategy
    Advised a client on developing strategic options as it relates to future participation in the U.S. refining and marketing sector. Developed scenarios and assessed the medium term outlook for refining and marketing in the U.S. to support client objectives. Prepared short list of potential candidates for acquisition, and developed case studies and recommendations related to post merger integration activities. Advised client on appropriate timing for executing strategic objectives.
    PRISM Data or Analysis, Pricing
  • Refining Economics Course Development
    Developed an outline and course material for a refinery and oil sands upgrading course to be given in-house by an operating company.
    LP/Planning Practice
  • Refinery Oil Sands Processing Capability
    Conducted refinery modeling and developed a preliminary assessment of the current and future capabilities of several U.S. refineries for processing diluted bitumen. Prepared initial screening estimates of likely "Phase 1" capital projects for significantly increasing the capability to process blended bitumen. Conducted analysis of likely future competitiveness of same refineries in the regions of operation.
    PRISM Data or Analysis, Pricing, Project Feasibility
  • Transmix and Biodiesel Processor Valuation
    Developed a business valuation for an entity engaged in transmix processing, biodiesel production, and ethanol terminaling. The engagement entailed analysis of historical, current, and projected cash flows from operations to generate an income-based value for the enterprise. The work included updates to valuations of operations previously assessed by Baker & O'Brien, as well as analysis of new facilities.
    Pricing
  • Pipeline Contamination Dispute
    Assisted in a claim involving an alleged y-grade/NGL pipeline contamination from a gas processing facility.  Examined the following key areas to evaluate the claim: pipeline hydraulics, laboratory records, chronology of pipeline sample data, reasonableness of claimed expenses, gas processing facility operation, and records.   
    Business Interruption, Industry Practice/Standard of Care, Operations/Maintenance, Pipeline
  • Refining Strategic Analysis
    Using PRISM, performed a competitor analysis of over 20 refineries that potentially competed with client refinery. Developed refinery cost curves under multiple crude oil and product price scenarios and identified key characteristics of those refineries which operated at the low end of the cost curve.
    PRISM Data or Analysis, Pricing
  • U.S. Midcontinent Crude Valuation
    Evaluated crude oil refining values and logistics for several targeted refineries in the U.S. midcontinent area.  Evaluated expected price parity points for domestic crude oils versus competing grades delivered to the refineries via pipeline.
    PRISM Data or Analysis, Crude Oil Valuation, Pipeline, Pricing, Product Quality
  • TEL vs. MMT Blending Study
    On behalf of a chemical supplier, reviewed the use of tetraethyl lead (TEL) as an octane enhancing gasoline additive in a Middle Eastern country from 2000 to 2006 compared to using methyl cyclopentadienyl manganese tricarbonyl (MMT).
    Pricing
  • Product Supply Contract Review
    Following the notice of cancellation of a product supply agreement based on crude processing, to be replaced with an agreement where refined product prices were to be supplied based on adjustments to posted prices, evaluated the economics of the proposed supply contract compared with the existing crude processing agreement.  Determined the required level of discount to OPIS prices to match product cost under the existing crude processing arrangement.
    Commercial Terms Review, Crude Oil Valuation, Pricing, Product Quality
  • TEL Usage in Southeast Asia
    On behalf of a chemical supplier, reviewed the use of tetraethyl lead (TEL) as a gasoline additive in a Southeast Asian country from 1999 to 2005 compared to the technical requirement based on the quality of the country's base gasoline and the required octane target.
    Pricing
  • Refinery Competitiveness Study
    Prepared a competitive positioning analysis for a Midwest Refinery that incorporates the impacts of the proposed Cap and Trade legislation in Congress. Addressed the potential financial impacts of Cap and Trade on the refining industry in PADDs 2 and 3.
    PRISM Data or Analysis, Environmental, Pricing, Project Feasibility
  • U.S. Refinery Competitiveness Assessment
    Assessed the expected future competitiveness of U.S. refineries in PADDs 1, 2, 3, and 5.  Developed a base scenario and price outlook to evaluate future relative cash margin performance for over 90 refineries considering large expansion projects.  Examined effects of key sensitivities, such as light/heavy crude oil price spreads, effects of carbon regulation, and the price differential between gasoline and diesel.
    PRISM Data or Analysis, Environmental, Pricing, Project Feasibility
  • Refinery Integration Analysis
    Using PRISM, investigated and analyzed the potential value that two refiners might capture through the consolidation of operations of two neighboring refineries.  The analysis was performed under multiple price scenarios.
    PRISM Data or Analysis, Pricing, Project Feasibility
  • Refinery Equipment Evaluation
    Evaluate suitability of surplus equipment from a shut down refinery crude unit being sold for rehabilitation and then installation overseas.
    Project Feasibility
  • West Coast Refining Strategy
    On behalf of a West Coast refining company, we estimated the cash margin of all PADD 5 refineries under four different price scenarios.  These competitive margin assessments were presented for 2015, 2020, and 2025 and accounted for the cost of compliance with CO2 regulations and other environmental regulations that were applicable to each scenario.
    PRISM Data or Analysis, Pricing, Project Feasibility
  • U.S. Gasoline Study
    Performed an independent analysis to determine the potential supply and cost impacts of a new National Clean Gasoline Standard that would significantly lower the Reid Vapor Pressure (RVP) and sulfur allowed in gasoline. A refinery-by-refinery analysis was performed that considered each refinery's compliance options accounting for technical, strategic, market, and economic factors, and then estimated a likely response based on this information.
    PRISM Data or Analysis, Pricing, Product Quality, Project Feasibility
  • Ultrafines Study
    Provided an analysis of the economic impact of the presence of ultrafines in a Canadian mined bitumen upgrader operation.  Quantified the capital and operating cost mitigation steps required by a mined bitumen upgrader operation to address the impacts associated with ultrafine solids present in the mined bitumen.  Prepared a written report and presented results.
    Product Quality, Project Feasibility
  • Refinery Integration Study
    Undertook a comprehensive study of the local Venezuelan refining industry to identify potential areas of synergy between individual refineries and the possibility of closer cooperation to maximize overall industry profitability.
    Pricing, Project Feasibility
  • Propylene Production
    Studied the feasibility of reconstruction and expansion of a catalytic dehydrogenation plant at a large Gulf Coast refinery for the production of propylene from propane. The study included evaluation of the current technology, development of costs for reconstruction and expansion, estimation of operating costs, and assessments of regional markets for propylene.
    Pricing, Project Feasibility
  • Refinery Crude Oil Supply
    Identified and evaluated feedstocks for a proposed new refinery in eastern Russia. Assessment included contacting potential suppliers and shippers.
    Pricing, Project Feasibility
  • Utility Feedstock Contract Evaluation
    On behalf of a regional utility in central Alaska, evaluated newly proposed long-term feedstock contracts linked to prices on the New York Mercantile Exchange.   The proposed price adjustments were based on quality variations from the fuel specifications.
    Pricing
  • Polypropylene Manufacturing Facility
    Provided a cash flow valuation of a polypropylene complex in support of an ad valorem tax matter. The valuation included analysis of recent historical operations, review of the markets for feedstocks and products, development of operating costs, and analysis of industry trends.
    Ad Valorem Taxes, Pricing
  • Products Terminal Feasibility Study
    Prepared feasibility study and cost estimate to modernize and increase throughput capacity of a petroleum products terminal on the Black Sea.
    Project Feasibility
  • Petroleum Products Terminal Expansion
    On behalf of a worldwide independent storage group, undertook a marketing study to support the expansion of an existing petroleum products and chemical storage terminal. Study addressed the potential growth in Southeast Asian products trade, the demand outlook for independent storage, and likely future terminal rates. Expansion proceeded to successful completion based on study results.
  • Replacement Cost Determination
    Provided a comprehensive estimate of replacement costs for oil and gas producing facilities, offshore production and drilling platforms, gathering systems, storage facilities, and processing plants. These costs were used as a basis for establishing appropriate levels of insurance coverage for a major petroleum corporation.
    Offshore, Physical Asset Appraisal
  • Petroleum Products Market Study
    Based on visits to major markets in the Southwest Pacific area, estimated the future market demand for petroleum products, including residual fuel and asphalt. Also estimated the potential margins that could be obtained through supplying these small market areas versus larger volume customers. Study was used by a major international oil trading company to establish a long-term strategy for greater market penetration in this fast-growing, high-margin area.
    Pricing
  • Refinery Feasibility Study
    Directed a feasibility study into a joint venture "grassroots" export refinery in the People's Republic of China. Advised the Western partner during several "rounds" of negotiation with the Chinese partner over a period of two years. Prepared estimates of anticipated rates-of-return for both parties under different economic and cost-sharing scenarios. Assisted in negotiations with local tax and regulatory authorities. Project was shelved following Gulf War.
    Pricing, Project Feasibility
  • Pipeline Divestiture
    Undertook a comprehensive market analysis and competitive assessment of a major refined products pipeline system and formed various strategic options for asset disposition. The conclusions developed from the engagement supported the client's subsequent decision to divest certain asset segments.
    Pipeline, Pricing
  • Retail Marketing Business Development
    Assessed Mid-Continent petroleum retail markets and competitive environment on behalf of a prospective retail market entrant. Pro forma economics were prepared for various retail business configurations to determine entry strategy options and assess the client's development objectives.
    Pricing
  • Refining and Supply Strategy
    Assisted the European division of a major integrated oil company in the development of a refining and supply strategy for its refining and marketing business in Western Europe.  The assignment included the benchmarking of the client's current performance versus competitors, development of future market scenarios, and projections of financial performance for various strategic initiatives that could be implemented by the refining business unit.
    Pricing
  • Petroleum Supply Planning
    Assisted a major Canadian oil company in identifying improvements to its supply-chain planning process. The assignment focused on improvements that could be realized by an integrated oil company that produces, markets, and refines synthetic crude produced from oil-sands.
    Pricing
  • Refining and Marketing Performance Benchmarking
    Developed and maintained a quarterly benchmarking service for a consortium of refiners and marketers with operations in the U.S.  The publication reported key financial and productivity benchmarks on a quarterly basis to subscribers for use in competitive analysis and strategy formulation.
    Pricing
  • Crude Oil Valuation and Marketing Plan
    Identified target markets, coordinated the assay evaluation, assessed market values, and developed a marketing plan and marketing brochure for a new crude oil to be produced in offshore West Africa.  The initial crude oil sales price was estimated, based on quality and location, and was presented in terms of global crude price benchmark grades.
    Crude Oil Valuation, Pricing, Product Quality
  • Refinery Force Majeure Claims
    Prepared expert reports and testified in an international arbitration involving multiple product supply disputes between a refinery and an adjacent chemical plant. Reviewed force majeure claims related to catalytic cracking technology, product supply contracts, and utility supply interruptions.
    Arbitration, EPC-related, Expert Witness/Testimony, Industry Practice/Standard of Care, Operations/Maintenance
  • Propane Storage Assessment
    Prepared an analysis of an underground propane storage system to determine causes of leakage and potential corrective actions.
  • Study of Planning Processes
    Assessed the monthly planning and optimization process and identified recommendations to address significant limitations to profitability improvement.  Reviewed the linear program model and conducted interviews of key personnel involved in the planning process, including crude selection, refinery processing, LP optimization, product distribution, and product marketing. 
    LP/Planning Practice
  • Review Project Development Costs
    Evaluated multi-million dollar cost overruns of yearly operating budgets of a Central Asian consortium involved with the oil and gas development and production. Costs reviewed included Engineering Support, Operating Costs, Drilling Costs, and Capital Expenditures.
    EPC-related, Operations/Maintenance
  • Gasoline Pricing Dispute
    Analyzed gasoline price anomalies that developed after a major hurricane made landfall on the U.S. Gulf Coast. Provided technical support for the use of Gulf Coast spot market pricing as the basis for gasoline sales contracts.
    Pricing
  • Tennessee Gasoline and Ethanol Blending
    Provided an expert report and expert testimony on the production and distribution of ethanol and gasoline, particularly branded gasoline, in the state of Tennessee.  Provided a refiner perspective of the impact of the Renewable Fuel Standard on gasoline blending, distribution, and marketing operations.
    Expert Witness/Testimony, Pricing
  • Feasibility Assessment
    Developed a feasibility study for a large, potentially stranded, natural gas discovery. Constructed an economic model to evaluate potential options for gas monetization, including pipeline natural gas sales, gas-to-liquids (GTL), and liquefaction (LNG). Performed market assessments for the LNG and GTL products.
    Gas to Liquids, LNG, Pricing, Project Feasibility
  • Refinery Contractor Indemnification Dispute
    Provided expert opinion concerning an indemnification dispute between a refiner and contractor, as well as the standard of care and practice in the industry concerning the design and construction of a piping relief system.  Also opined on the refinery owner’s responsibilities concerning the acceptance and maintenance of completed piping systems.
    EPC-related, Industry Practice/Standard of Care, Operations/Maintenance
  • Crude Quality Analysis
    Assisted with crude oil quality analysis from new production field in order to establish initial valuation estimates.
    Crude Oil Valuation, Pricing, Product Quality
  • Lube Oil Re-Refining Assessment
    Prepared an assessment of lube oil re-refining plant to determine causes of problems related to reliability and operating performance.
    Operations/Maintenance
  • U.S. Gasoline Study
    Performed an independent analysis to determine the potential supply and cost impacts of a new National Clean Gasoline Standard that would significantly lower the Reid Vapor Pressure (RVP) and sulfur allowed in gasoline. A refinery-by-refinery analysis was performed that considered each refinery’s compliance options and likely response considering technical, strategic, market, and economic factors.
    PRISM Data or Analysis, Pricing
  • Bitumen Diluent Study
    Developed a market study regarding diluent to be used by Canadian Oil Sands bitumen producers. This included projected supply and demand balances, logistics requirements, and impact from unconventional natural production.
    Pricing
  • Refinery Marketing Study
    Surveyed existing and potential customers regarding proprietary slurry oil separation.  Evaluated responses to determine the industry's perception of the technology and quantified the potential value for refinery customers. 
  • Wellhead Value - Natural Gas
    Provided opinion with respect to effect of capital recovery of production facility costs on wellhead value of natural gas.
    Industry Practice/Standard of Care, Pricing
  • Refinery Strategy Meeting
    Conducted a kick-off session for a day-long senior level strategy meeting. Discussed the client's competitive position and the attributes of top performers.
  • NGL Pipeline Due Diligence
    Reviewed data presented by a potential NGL pipeline seller on behalf of a potential buyer. The review focused on mechanical integrity and other safety issues.
    Operations/Maintenance, Physical Asset Appraisal, Pipeline
  • HF Alky Study Sensitivity Case
    Investigated and analyzed the impact of various potential restrictions on the use of HF alkylation technology in U.S. Refineries.
    PRISM Data or Analysis
  • Isobutanol White Paper
    Evaluated the economic impact of blending isobutanol in place of ethanol for finished gasoline in various U.S. markets. Also evaluated isobutanol as a substitute for purchased alkylate in gasoline blending. Determined the highest value options for blending isobutanol into gasoline. Summarized the results in a White Paper style report.
    Pricing, Project Feasibility
  • Review Project Development Costs
    Evaluated multi-million dollar cost overruns of yearly operating budgets of a Central Asian consortium involved with the oil and gas development and production. Costs reviewed included Engineering Support, Operating Costs, Drilling Costs, and Capital Expenditures.
    EPC-related, Operations/Maintenance
  • Shale Oil Market Study
    Prepared market study for upgraded shale oil in several refining centers over extended project life. Estimated refining value and ocean freight in selected refineries to yield netback value at upgrader dock. Compared estimated refining value for upgraded shale oil to estimated refining value of typical swing crudes for each region.
    Crude Oil Valuation, Pricing, Product Quality
  • Refinery Valuation
    Provided an assessment and valuation for potential U.S. refinery candidates for a client considering a refinery acquisition. Analysis included price scenario development and financial modeling to determine indicative offer price.
    Pricing
  • Biodiesel Plant Construction Dispute
    Evaluated engineering and construction practices in a dispute between an owner and EPC contractor due to cost overruns.  Issues included engineering and project management practices which required rework, and construction practices which created safety and operability issues.  Cost estimates were prepared for correcting the deficiencies.
    EPC-related, Industry Practice/Standard of Care
  • Due Diligence of a Lube Re-Refining Facility
    Conducted a due diligence analysis of technical and economic features of a lube oil re-refining plant involving a potential acquisition.
    Pricing
  • Refining Margin Forecast
    Prepared a ten-year price forecast for a petroleum refiner for use in its long-range plan development.  Reviewed current downstream refining industry trends, including supply and demand balances, environmental regulations, and shifts in regional crude oil pricing to develop a future downstream industry outlook.
    Pricing
  • Cause and Origin Analysis
    Conducted a cause and origin investigation of a fire at a natural gas combined cycle generation plant.  Investigation included in-plant interviews and review of operational data, as well as metallurgical investigation to determine the probable cause and origin of the fire.
    Forensic Analysis , Operations/Maintenance, Safety
  • Refinery and Pipeline Systems Valuation
    Provided values of a refinery, crude oil gathering, and products marketing system to be recorded as fair values for purchase price allocation purposes.
    Pipeline, Pricing
  • Refinery Technical Review
    Provided a technical review and forecast of cash flows for a refinery acquisition candidate.
  • Refinery Cash Margin study
    Provide a comparison of cash refining margins for PADDs 1 through 4 versus expected cash refining margins when inland crude oil transport bottlenecks to the USGC have been relieved.
    Pricing
  • Review Infrastructure Assets
    Assisted client in evaluating infrastructure spending to support ongoing operations and maintenance activities.  Our review evaluated whether  the infrastructure assets were integral to the overall technological complex.
    EPC-related, Industry Practice/Standard of Care
  • Chlorine Contract Dispute
    In a lawsuit involving a long-term chlorine supply contract, provided litigation support relating to a series of force majeure events. Analyzed the chlorine producers options to mitigate the loss of contracted sales volumes.
  • Condensate Gathering System Due Diligence
    Assisted client with engineering due diligence on a Texas condensate gathering system focusing on pipeline mechanical integrity issues.
    Industry Practice/Standard of Care, Physical Asset Appraisal, Pipeline
  • Monterey Shale Oil Study
    On behalf of a California refiner, reviewed the potential for production of Monterey shale crude oil in the San Joaquin Valley and the accessibility of this crude to the client's refining system.
    Crude Oil Valuation, Pricing, Product Quality, Project Feasibility
  • Price Forecast - Northwest Europe
    Prepared a five-year price forecast for Northwest Europe, considering global and regional supply/demand fundamentals and the relationship between oil and gas pricing, among other factors.
    Pricing
  • Market Study for Crude Oil Rail Unloading Terminal
    Provided an update to a previous report on U.S. light crude oil supply/demand and implications for a new crude oil unloading terminal in a large refining center on the USGC. Supplemented the report with an analysis of heavy crude oil rail transport opportunities.
    Pricing, Project Feasibility
  • PADD 1 Refining Study
    Provided a competitiveness analysis of refineries located in U.S. PADD 1, U.S. Virgin Islands, and Eastern Canada. Developed a price forecast and historical supply and demand balance. Provided a competitive ranking of a prospective acquisition of a refinery in the region being considered by the client.
    PRISM Data or Analysis, Pricing
  • Canadian Downstream Petroleum Outlook
    Evaluated the cumulative effect that regulations and policies may have on the Canadian downstream petroleum sector over the next 20 years.
  • Crude oil and Product Price Forecast
    Developed a crude oil and product price forecast for a client's use in evaluating an investment in a new refinery.
    Pricing
  • Refining Market Forecast
    Prepared a ten-year price forecast for a petroleum refiner for use in its long-range plan development.  Reviewed current downstream refining industry trends, including supply and demand balances, environmental regulations, and regional crude oil  pricing to develop the outlook.
    Pricing
  • Crude Oil Pipeline System Due Diligence
    Supplemented the client's team performing due diligence as part of a potential transaction regarding a crude oil gathering and mainline pipeline system.  Our focus was on the engineering aspects of new facilities and facilities under construction.  We provided an opinion on whether the new facilities, and the facilities under construction, appeared to be designed to applicable industry specifications.
    EPC-related, Operations/Maintenance, Pipeline
  • Refinery Venture Development
    Performed economic evaluation and developed comprehensive financial models for a West Coast refinery restart and upgrade program.  The engagement included market analysis, evaluation of investment options, and support of project financing efforts.
    Pricing, Project Feasibility
  • Refinery Yield and Hydrogen Balances
    Provided client with yield and hydrogen balance estimate for a group of Canadian refineries using our proprietary PRISM modeling system.
    PRISM Data or Analysis, Pricing, Product Quality
  • Refining and Marketing Privatization
    Assisted a state-owned integrated oil company in Central Europe in completing a strategic planning study for its downstream refining and marketing business. The study considered potential markets and pricing for crude oil and refined products. Opportunities to optimize the operation and logistics of the company's refining and marketing system were evaluated in view of maximizing the value of the assets prior to privatization.
    LP/Planning Practice, Physical Asset Appraisal
  • Refining Assessment
    Analyzed the profit improvement potential for an asphalt and naphthenic lube specialty refiner, which focused on the existing operating and planning practices of several refineries in the network. Recommended several zero capital cost improvements to be implemented.
    LP/Planning Practice, Pricing
  • Reformulated Gasoline Study
    Provided a large independent Southern California refiner an assessment of their existing processing equipment, outside feedstocks to be purchased, and new capital investment necessary to produce reformulated gasoline for consumption in the most regulated gasoline market in the world.
    Physical Asset Appraisal, Product Quality, Project Feasibility
  • Reorganization of Crude Oil Trading Business
    Analyzed crude trading business for potential reorganization.
    Project Feasibility, Waterborne/Marine
  • Review of Power Development Projects
    Evaluated the economic value of five interim power projects in various stages of development for an international power project developer.
    Project Feasibility
  • Strategic Sourcing: Refining Materials and Services
    Assisted a major, integrated oil and gas company in implementing a strategic sourcing initiative for its refining and petrochemical businesses. The initiative focused on developing a strategic and low cost supply of sulfuric acid, process chemicals, and maintenance services to the client's various refining and petrochemical facilities, which achieved cost savings of up to 25%.
    Operations/Maintenance, Pricing
  • Supply/Demand Forecast
    Prepared a forecast of U.S. refined product consumption and production using our proprietary PRISM refinery modeling system for the year 2012.
    PRISM Data or Analysis, Pricing
  • Terminal Facility Valuation
    Reviewed the operating results and management projections for a terminal and transmix processing facility to develop an income-based valuation for the business enterprise. This engagement was one of a series of valuations prepared by Baker & O'Brien to support the financing requirements for this business since its inception.
    Physical Asset Appraisal, Pricing
  • Wholesale Trade Practices
    Assisted a South American national oil company in reviewing trade practices for the wholesale marketing of petroleum products. Advised the client on wholesale price formation and marketing practices in free markets.
    Pricing
  • LNG Project Development
    Commercial responsibility for the upstream development of a number of non-operated gas fields associated with a world-scale LNG project.  Involved in numerous gas purchase and sale agreements associated with managing the project’s upstream gas portfolio ahead of first LNG in 2015.
    LNG, Pricing, Project Feasibility
  • Joint-Operating Agreements
    Responsible for joint venture management with a mandate to ensure operator compliance within operating agreements (JOAs).  Responsible for overseeing non-operator audits with a goal to bring about greater operator accountability and transparency.  
    LNG, Operations/Maintenance
  • Commercial Contract Negotiations
    Assisted with supply contract disputes relating to “take-or-pay” type obligations and “price adjustment” provisions.
    Operations/Maintenance, Pricing
  • M&A in the Cement Industry
    Performed acquisitions (share and asset) with hands on accountability for economic valuations, financial and market analysis, development of strategic rationale, approval documentation / presentations, deal negotiation, due diligence, legal agreements, and management and integration planning.
    Pricing
  • Project Management
    Executed several mid-to-large pipeline and facility projects in multiple international locations, overcoming challenging cultural and language differences.  Performed feasibility studies, detailed design, procurement, construction, inspection, hydrotesting, risk assessments, and pipeline integrity.
    EPC-related, LNG, Offshore, Pipeline, Project Feasibility
  • Performance Improvement Initiatives in Worldwide Refineries
    Helped design and direct a consulting project to identify the most successful profit improvement initiatives at top performing worldwide refineries. Audited and examined company culture, energy usage, refinery losses, personnel training, safety practices, environmental controls, process operations, technical services, administration, planning and economics, capital investments, maintenance, and reliability factors. Identified and documented those initiatives, which proved most successful, including their duration, need, and value added. Assignments were in the U.S., U.K., Romania, Korea, and West Africa.
    Industry Practice/Standard of Care, LP/Planning Practice, Operations/Maintenance, Pipeline, Pricing
  • Terminal and Pipeline Studies
    Managed several competitive assessments of major crude oil and refined products logistics systems, including pipeline transportation and inland and coastal storage terminals.
    Operations/Maintenance, Pipeline
  • Maintenance and Reliability Improvement Program
    Managed the development of a client’s routine maintenance and reliability improvement program that identified areas of concern and implemented new work practices aimed at improving competitiveness. Efforts reduced maintenance costs and improved operating performance.
    Industry Practice/Standard of Care, Operations/Maintenance, Pipeline
  • Turnaround Optimization Studies
    Performed numerous turnaround optimization studies and execution reviews for refineries and petrochemical companies worldwide. Areas of focus included analyzing the work selection process, reviewing work execution schedules, evaluating the facilities preparedness to perform the turnaround, and optimizing turnaround cycles or start dates.
    Industry Practice/Standard of Care, Operations/Maintenance, Pipeline
  • Maintenance Contracting Strategies
    Worked with international clients to analyze existing maintenance and turnaround contracting strategies, contractor availability, and local cultures to identify areas of concern and develop strategies for improvement.
    Industry Practice/Standard of Care, Operations/Maintenance, Pipeline
  • Reliability and Maintenance Continuous Improvement Initiatives
    Improved efforts to eliminate equipment defects and unscheduled outages by developing and incorporating the use of reliability indices to identify problem equipment. Reliability teams were then able to prioritize concerns to focus reliability improvement initiatives in areas of highest risk to safety, operational performance, and profits. This defect elimination program was utilized as the cornerstone for the plant’s continuous improvement initiatives.
    Industry Practice/Standard of Care, Operations/Maintenance, Pipeline
  • Performance Improvement - Petrochemicals
    Assisted in a global study focused on analyzing the operating performance of steam crackers.  Participated as a member of a multi-disciplined team responsible for: reliability and operations data gathering, analysis, plant personnel interviews, and industry benchmarking of performance.  The study concluded with numerous recommendations to company senior management aimed at improving worldwide plant operational availability.
    Industry Practice/Standard of Care, Operations/Maintenance
  • Product Pipeline and Terminal Valuation
    Prepared a valuation of a pipeline and related terminal associated with client's refinery. The valuation was used by the client for accounting and tax allocation purposes.
    Physical Asset Appraisal, Pipeline
  • Fuel Contamination Investigation
    Investigated an occurrence of contaminated diesel fuel at a mine facility, as well as the claimed property damage and business interruption claims.  Assessed the root cause of the fuel contamination and prepared a presentation of our findings.  
    Product Quality
  • Pipeline Pigging Incident Investigation
    Following a plant incident caused by the ingress of water, we investigated upstream pipeline activities and operating records to determine the root cause of the incident.  
    Pipeline, Safety
  • Terminal Hurricane Damage Repair and Claim
    Assisted in a dispute concerning a rebuild estimate for a terminal damaged by a hurricane.  
    Property Damage
  • Hydrogen Pipeline Construction Cost Dispute
    Assisted client in a dispute concerning settlement costs in regards to a canceled construction contract for a hydrogen pipeline. 
    EPC-related, Pipeline
  • North Carolina Gasoline and Ethanol Blending Analysis
    Provided an expert report on the production and distribution of ethanol and gasoline, particularly branded gasoline, in the state of North Carolina. Provided a refiner's perspective of the impact of the Renewable Fuel Standard on gasoline blending, distribution and marketing operations, considering the options, alternatives and risks of selling gasoline without ethanol.
  • Refinery Demurrage Claims
    Reviewed ship demurrage claims regarding refinery force majeure issues. Developed report on issues including residual fluid catalytic cracking (RFCC) operations and prudent operating procedures.
    Commercial Terms Review, Waterborne/Marine
  • Pump Failure Investigation: Maintenance Shop
    Reviewed rotating equipment maintenance shop's pump maintenance and rebuild procedures. Provided written report describing potential causation of power plant rotating equipment failures and recommendations to improve maintenance shop quality control.
    Industry Practice/Standard of Care, Operations/Maintenance
  • Refinery Valuation and Synergy Analysis
    On behalf of two international refining companies, investigated and estimated the potential value of synergies that might be realized upon the combination of the two refineries. Provided indication of value capture, based on criteria provided by companies.
    PRISM Data or Analysis
  • Isobutanol Valuation Versus Ethanol
    Prepared isobutanol vs. ethanol valuations for gasoline blending at several U.S. refineries. Assessed blend values for refineries producing reformulated gasoline, low vapor pressure gasoline, and California Air Resources Board (CARB) gasoline.
    PRISM Data or Analysis, Pricing
  • Power Transmission Fire Investigation
    Investigated the cause of major fire that resulted in a fatality.  
    Safety
  • Crude Oil Terminal Study
    Assisted client in identifying new crude oil business opportunities for a large off-shore oil terminal that it had recently acquired. Analyzed regional crude oil supply and demand patterns and expected trends, and considered other opportunities such as crude oil blending.
  • Shale Oil Market Study
    Developed target markets, estimated values for upgraded shale oil in various U.S. refineries, and expected price netbacks to the project site. Developed crude oil supply and demand balances to determine which crude oils would be displaced and the expected pricing impacts.
    PRISM Data or Analysis, Crude Oil Valuation, Pricing
  • Refinery Valuation: Ad Valorem Tax Support
    Developed income and cost indications of value for a refinery in an ad valorem tax dispute. 
  • Process Plant Fire Protection Review
    Reviewed fire protection recommendations by other firms and assisted client in understanding API and NFPA standards that are generally applicable in the process industry.
  • Refinery Business Interruption Assessment
    Estimated the lost profit (business interruption claim) stemming from a contractor incident which caused an extended refinery outage.
    Business Interruption
  • Polypropylene Plant Due Diligence Support
    Provided technical due diligence support for a moth-balled polypropylene plant. Evaluated capacity, historical utilization and mechanical availability and other factors.
    Operations/Maintenance, Physical Asset Appraisal
  • LNG Liquefaction Capital and Operating Costs
    On behalf of a confidential client with a proposed world-scale LNG liquefaction plant, prepared high-level cost estimates for two phases of the project: 1) the engineering, procurement, and construction (EPC) phase and, 2) the operating phase.  Provided cost data for client’s financial model to help assess the risks and viability of the project.
    EPC-related, LNG, Operations/Maintenance
  • Shale Oil Prefeasibility Study
    Assisted client with determining the economic optimum product quality for Synthetic Crude Oil (SCO) to be produced from retorted shale oil. Determined the potential impact of various SCO qualities on refining customer process units and estimated the potential revenue changes that would result from adjustment of these qualities.
    Product Quality
  • Refinery Competitive Assessment
    Conducted a refinery assessment for a natural gas supplier that was considering investing in infrastructure to enable one of their refining clients to increase capacity. The assessment included a refinery competitive analysis and cash flow forecasts under multiple scenarios.
    PRISM Data or Analysis
  • Strategic Review of Ethanol Plants
    Provided a strategic review of an ethanol production business, including the analysis of ethanol plant operating costs compared to regional and ethanol industry competitors. Provided ethanol production margin forecast and made recommendations on whether to continue operations, invest in plant improvements, or exit the business.
    Pricing
  • Prepare Northwest Europe Price Forecast
    Prepared a five year price forecast for crude oil, refined products and petrochemicals in Northwest Europe.
    Pricing
  • Crude Oil Rail Transport Study
    Provided an assessment of refinery crude oil processing capability and crude oil pipeline receipt options to enable client to assess crude-by-rail options that might be available to U.S. refiners.
  • Refinery Olefins Production Model
    Developed a refinery olefins model that has the capability to predict propylene and butylene production and consumption for the U.S., at the individual refinery level. The model provides the user with an ability to toggle between different FCC conversion levels and to adjust several other key parameters.
    PRISM Data or Analysis
  • Storage Tank Foundation Failure
    Following the failure of a storage tank foundation, we reviewed the applicable documentation and prepared an affidavit concerning the standard of care used during its construction.  
  • Refinery Screening and Evaluation
    Provided cash flow forecasts and indicative transaction values for select target refineries using PRISM charges and yields and client price forecasts.
    PRISM Data or Analysis, Pricing
  • Natural Gas Midstream Due Diligence
    Conducted due diligence on gas gathering assets in East Texas for a prospective purchaser. Inspected facilities, reviewed pipeline and facility construction records, confirmed regulatory status, evaluated pipeline integrity management program, and assessed process safety.
  • Strategic Review of Refining Portfolio
    For a large integrated refiner and marketer, assessed the historical performance of each refinery in the company's system, and evaluated key benchmark metrics against various selected peer groups. Reviewed each refinery's competitive position and highlighted the key factors that differentiated its performance. Quantified the performance gaps on a dollar-per-barrel basis, attributed the gaps to controllable or structural factors, and made recommendations for improving the controllable gaps.
    PRISM Data or Analysis, Physical Asset Appraisal
  • Ethanol Plant Operating Cost Study
    Compared the estimated cash operating costs for approximately 50 U.S. ethanol plants to the costs for a client's potential ethanol plant acquisition target. Ranked the acquisition target on six separate cash cost metrics and presented the results.
  • GTL Technology and Cost Evaluation
    Evaluated the technology, cost estimate and financial model for a small scale GTL project to convert natural gas to liquid specialty products. The project evaluation included a review of the synthesis gas process, Fischer-Tropsch (FT) reactor technology, product recovery and product separation. The project definition and stage of development were evaluated for technology risk, cost estimate range of accuracy and suitability of the financial model assumptions.
    Gas to Liquids
  • Refinery Valuation for Ad Valorem Taxes
    Developed a cost approach estimate for the valuation of process units at a U.S. Gulf Coast Refinery.  Calculated a replacement cost new for the process units and adjusted for physical depreciation, functional obsolescence, and economic obsolescence to arrive at a physical asset value for the refinery's process units. 
    Ad Valorem Taxes, Physical Asset Appraisal
  • U.S. Crude Oil Study
    In response to increasing production of U.S. light crude oil, estimated a range of light crude oil prices that would be required in order for moderately complex refiners to break-even versus processing medium crude oil. Developed a forecast for North American crude oil production by major producing basin in order to understand the point in time at which essentially all light crude oil imports would be displaced from the North America market.
    PRISM Data or Analysis
  • PRISM Refinery Data
    Provided refinery capacity, throughput, product yield, and cash flow estimates for two European refineries in support of preliminary acquisition discussions.
    PRISM Data or Analysis
  • Refinery Strategic Review
    Provided a strategic review of a client's refinery with a focus on the potential opportunities and threats related to evolving crude oil supply dynamics and competitor expansions.
    PRISM Data or Analysis, Pricing
  • Crude Oil Market Study
    Provided a forecast of North American crude oil production through 2030 by quality and by major producing region. Evaluated the extent to which the North American refining industry could accommodate a lighter crude oil slate. Identified expected change in crude flow patterns and imports.
    PRISM Data or Analysis
  • Refinery Study
    Prepared margin reports for four refineries to be used by the client for screening potential acquisition targets. Developed the yield and prices based on publicly-available data. Evaluated options to process Eagle Ford crude oil at one refinery and also build a distillate hydrocracker.
    PRISM Data or Analysis
  • Refining Margin Forecast
    Prepared a ten-year price forecast for a petroleum refiner for use in their long range plan development. Reviewed current downstream refining industry trends including supply and demand balances, environmental regulations, and WTI/LLS pricing to develop a future downstream industry outlook.
    Pricing
  • Refinery Scenario Development Workshop
    Facilitated a workshop with the senior management of a refining company to develop scenarios which would be used in deciding whether to install a hydrocracker or retrofit an existing FCC. Developed crude oil and refined product price sets corresponding with each of the scenarios.
    Pricing
  • Refinery Competitiveness Study
    Conducted a study of the competitiveness of a refining company's three refineries for a client contemplating the establishment of a partnership with the refining company.
    PRISM Data or Analysis
  • PADD 4 Products Supply/Demand Study
    Forecasted PADD 4 refined products supply and demand through 2020 considering potential refinery expansions, refining economics, logistics and product consumption trends. Outlined the potential implications of changing supply/demand patterns on PADD 4 refined product prices.
    Pricing
  • Refinery Acquisition Screening and Valuation
    Provided refinery modeling, valuation and M&A support for a client that was considering a refinery acquisition.
  • Refinery Due Diligence Support
    Provided due diligence support for potential refinery acquisition. Developed cash flow models for valuing the refinery. Developed price forecast used in cash flow model. Evaluated key drivers and their impact on the refinery valuation.
    PRISM Data or Analysis
  • Isobutanol Blending Study
    Evaluated the gasoline blend value of isobutanol versus ethanol for a Midwest refinery. Calculated isobutanol blend values for summer and winter and for constrained and unconstrained gasoline production.
    PRISM Data or Analysis, Pricing
  • Crude Oil Pipeline Due Diligence
    Provided technical, commercial, and market due diligence for acquisition of pipeline transportation rights in Latin America. Carried out a technical review of the oil pipeline and pump station facilities. Reviewed the tariff setting mechanism and analyzed key inputs. Developed a tariff model and ran sensitivity scenarios to predict future pipeline tariffs. Carried out regional market study to compare alternate transportation modes (pipeline versus truck) and reviewed forecasts for crude oil production and transportation.
    Pipeline
  • Crude Oil Valuation Study
    Estimated the value of various crude oil grades in a number of refineries that compete for the acquisition of local crude oil production in the U.S. mid-continent.
    Crude Oil Valuation
  • Northwest Europe Price Forecast
    Developed a five year outlook for crude oil, refined products and petrochemical prices for a European refining company.
    Pricing
  • Leadership Development Program
    Provided a leadership development program for an international refining and marketing company executive. Areas of focus included U.S. refining, marketing, crude oil and transportation practices and trends.
  • Refinery Hydrogen Demand Study
    Quantified the hydrogen demand impact due to Gasoline Tier 3 regulations, the changing crude supply, and product demand in the USGC over a ten-year horizon.
    PRISM Data or Analysis, Environmental
  • Refinery Feasibility Study
    Evaluated the economic feasibility for constructing a new grassroots refinery in the U.S. Mid-Continent. Developed a forecast for the feedstock and product prices. Utilized preliminary process design data to construct an economic model for two different refinery configurations. Identified the major variables which impacted the refinery economics.
    PRISM Data or Analysis, Project Feasibility
  • Black Wax Crude Oil Market Study
    Reviewed qualities of Utah Black Wax crude oil versus other sweet crude oils to determine key criteria which would lead a refiner to process to Utah Black Wax crude oil. Used criteria to screen existing U.S. refineries for their ability/incentive to process the Utah Black Wax crude oil.
  • Crude Oil Terminal Study
    Surveyed existing crude oil storage costs on the U.S. Gulf Coast. Evaluated current and future crude oil storage capacity on the U.S. Gulf Coast, and developed an outlook for near-term crude oil storage costs. Provided input to client's greenfield crude oil terminal project.
  • Ethanol Blending Lawsuit
    Working on behalf of a petroleum industry trade organization, in defense of major gasoline branded companies, provided analysis and opinions related to the potential impact on brand quality from allowing ethanol splash-blending by third parties. Provided expert testimony at trial.
    Commercial Terms Review, Expert Witness/Testimony, Product Quality
  • US Crude Oil Market Analysis
    Conducted an analysis of U.S. crude oil production growth and imports, and the impact on U.S. crude oil and refined products markets.
    Pricing
  • European Refinery Competitiveness
    On behalf of a large industry participant, evaluated the relative competitiveness of refineries operating in Western Europe.  Utilized our proprietary PRISM modeling and database system to extract individual refinery margin and cost metrics and projected the likely future positions of the client's refineries on the cost and margin curves.
  • LNG Due Diligence
    On behalf of potential offtakers and equity investors of train one, performed a technical due diligence and risk assessment of a two-train liquefaction project, including common use of certain existing regasification facilities.  Work completed during the development phase of the project involved the evaluation of pre-completion risks and post-completion risks, including a review of planned and existing facilities.  CAPEX, contractor capabilities, construction schedule duration, and OPEX were reviewed for appropriateness and risk of overrun.  Subsequent follow-up work included a review of an Open Book Estimate (OBE), a project risk evaluation (reviewed and quantified pre-FID and post-FID cost and schedule risk), and an assessment of the project’s draft environmental impact statement (EIS).  
    LNG
  • Refinery Fire Claim
    Provided litigation support for a valve supplier with regards to an insurance subrogation claim associated with a refinery fire.  Determined extent of damage, cost and time to repair, and estimated business interruption if refinery facility had been designed per normal industry standard.
    Business Interruption, Expert Witness/Testimony, Property Damage
  • Tank Collapse Assessment
    Assessed contractor work practices associated with the collapse of  a storage tank that occurred during cleaning operations.
    Expert Witness/Testimony, Industry Practice/Standard of Care, Operations/Maintenance, Property Damage, Safety
  • Refining Company Financial Analysis
    Prepared a financial analysis of an independent U.S. Refiner and Marketer in support of a valuation for a prospective buyer.
  • Crude Oil Storage Study
    Supported various feasibility studies related to development of a crude oil storage project on the U.S. Gulf Coast.  Activities included a survey of Houston and Port Arthur-area crude oil storage costs, an assessment of medium term lease rates, and an evaluation of days of crude oil storage, both historically and projected, given the changing crude oil flow dynamics from the Eagle Ford and Permian regions.
    Project Feasibility
  • Gas Plant Due Diligence
    On behalf of a developer's due diligence process, provided an independent review of a gas plant project in the U.S.  Reviewed documents and consulted with the developer regarding the process design, engineering, major systems and equipment, procurement, construction, schedule and CAPEX. 
    EPC-related, Industry Practice/Standard of Care
  • Logistics services company assessment
    Provided an independent financial and commercial assessment of a logistics services company that our client was considering purchasing.
  • Condensate Splitter Due Diligence
    Conducted asset due diligence activities:  inspected facility under construction; provided market incentives, operating costs, risk overview, and staffing recommendations for successful acquisition of condensate splitter and associated logistics. 
    Crude Oil Valuation, Operations/Maintenance, Project Feasibility
  • Crude Oil Marketing Study
    Evaluated options for marketing light tight crude oil (LTO) including calculating the breakeven refining value in specific refineries and its value as diluent in a diluent-bitumen blend.
    Crude Oil Valuation
  • Refining Margin Forecast
    Provided a 10-year refining margin and price forecast for use by client in developing their long-range plan.  Provided historical trends and identified drivers which could impact future refining margins.
    Pricing
  • LNG Capital Cost Review
    On behalf of potential offtakers and equity investors of one train, Baker & O’Brien performed a follow-up review of the updated Open Book Estimate (OBE) of a two-train liquefaction project, including common use of certain existing regasification facilities. 
    EPC-related, LNG
  • Refinery Due Dilgence Assessment
    Provided an initial assessment of a Gulf Coast refinery for possible acquisition by the client.  Provided estimated refinery yields and profitability.
  • Environmental Impact Support - Rail Terminal and Refinery
    Prepared an expert report on behalf of a local government agency, as part of an environmental impact process, to address the key technical changes resulting from a project to construct a crude oil rail terminal and modify an existing refinery to allow it to process increased amounts of light domestic crude oil.   
    Crude Oil Valuation, LP/Planning Practice
  • Refined Products Terminal Study
    To support a client's due diligence efforts for a potential petroleum products terminal acquisition, undertook a market study to evaluate the current refined products supply and demand balance on the U.S. Gulf Coast.  Key market drivers were identified which could impact future market growth.
  • Permian Basin Market Review
    Analyzed Permian Basin crude oil production, production forecasts, infrastructure projects, and price differentials for a midstream company.  Provided input for annual investor presentation.
    Pipeline
  • Crude Oil Flow Projections for Pipeline Acquisition
    Evaluated the current regional supply and demand balance for crude oil and developed medium-term forecasts, given expectations for area refinery expansions and crude oil production changes.  Developed projections for crude oil transportation volumes in an existing crude oil trunkline that was considered for acquisition.
    Pipeline
  • Terminal Due Diligence
    Provided technical due diligence support for a large terminal acquisition opportunity involving approximately 50 terminals, 700 tanks, and 30MMbbls of storage.
    Operations/Maintenance, Physical Asset Appraisal, Pipeline, Waterborne/Marine
  • Condensate Splitter Due Diligence
    Conducted asset due diligence activities:  (1) inspected facility under construction; (2) provided market incentives; (3) operating costs; (4) risk overview; and (5) staffing recommendations for successful acquisition of condensate splitter and associated logistics.
    Operations/Maintenance, Pricing, Project Feasibility
  • Condensate Splitter Market Study
    Developed market study and economics for a "grassroots" Eagle Ford condensate splitter located in Corpus Christi.  Evaluated alternate locations and presented to CEO and management.  
    Crude Oil Valuation, Pricing, Project Feasibility
  • Oil Disposition Study
    Developed economics of crude disposition alternatives for producer's growing production of light tight oil.  Alternatives included local and distant refining values with appropriate logistics costs.
    Crude Oil Valuation, LP/Planning Practice, Pipeline, Pricing
  • Nitroparaffin Manufacturing Evaluation
    Evaluated technology and patents related to the production of nitroparaffins.
    Project Feasibility
  • GTL Technology Assessment
    Assisted company in evaluating a larger equity investment in a GTL technology company by visiting the prototype unit, reviewing process data, and assessing the potential market.
    Project Feasibility
  • GTL Commercialization Study
    Performed due diligence on a new GTL process to evaluate possible routes to commercialization.  The work program included the following steps:  (1) verification of mass balance; (2) comparison of laboratory and pilot plant yields; (3) evaluation of alternative technologies; (4) assessment of scale-up issues; (5) review of preliminary commercial design; (6) estimate of capital costs; and (7) the development of an economic model that included sensitivity analyses for capital costs, yields and prices.
    Project Feasibility
  • Waste to Liquid Process Evaluation
    Performed an economic and technical screening evaluation for a client-provided process for conversion of animal waste to hydrocarbon products.  Researched current patented technology as well as investigated theoretical mass balances for feed/products.
  • Refining Alternative Crude Study
    Prepared an evaluation of the economics of processing alternative crude oils in a Midwest refinery. 
    Crude Oil Valuation
  • Light Tight Oil (LTO) Refining Capacity
    Conducted a study to assess the ability of the United States (U.S.) to absorb incremental light tight oil (LTO) production.  Evaluated potential for crude oil import substitution, refinery expansions, heavy oil blending and other means for increasing U.S. absorption of LTO.  Results were compared to various forecasts of domestic oil production growth.
    PRISM Data or Analysis
  • Jet Fuel Market Study
    Analyzed historical jet fuel prices in PADD 1 to show how interruptions in supply impact the market price.  Prepared a supply and demand balance for jet fuel in PADD 1.  Developed a jet fuel supply curve for Gulf Coast and PADD 3 refiners into PADD 1.
    PRISM Data or Analysis, LP/Planning Practice, Pricing
  • Refinery Feasibility Study
    Prepared a feasibility study for a client considering a greenfield refinery investment.  Developed a price forecast and expected product netback prices and crude oil costs.  Calculated the cash flow, NPV, and IRR for the project.  Evaluated a crude oil railcar loading facility option for the refinery.
    Project Feasibility
  • Pipeline Contractor Business Interruption Claims
    Reviewed business interruption claims made by welding contractors related to a pipeline incident that resulted in damage to the contractors' equipment.  Prepared a report documenting our findings of the business loss claims.
    Business Interruption, Operations/Maintenance, Pipeline
  • PRISM Refinery Data
    Provided historical refinery cash flow estimates for use by the client's credit department in assessing counterparty risk.
    PRISM Data or Analysis
  • Crude Marketing Study
    Prepared a crude marketing study for a Utah black wax crude oil producer.  Evaluated refineries outside of Utah which could receive crude oil via railcars and the expected netback price to the crude oil producer.  Identified and ranked the refineries which would yield the highest netback value to the producer.  Provided contact information and initiated meetings with the crude oil producer and potential refinery candidates for processing the Utah black wax crude oil.
    Crude Oil Valuation
  • Gas Plant Mediation Support
    Provided mediation support in relation to a helium supply agreement dispute.  
    EPC-related, Operations/Maintenance
  • Refinery Environmental Review
    Reviewed and reported on potential environmental solid waste issues associated with a large idled refinery in support of a client's bid for the facilities. Performed an on-site inspection of the refinery to identify potential environmental risks.
    Environmental, Operations/Maintenance, Physical Asset Appraisal
  • Fertilizer Complex Economic Model
    Constructed an economic model to analyze the financial performance of a fertilizer complex that produced ammonia and other nitrogen chemicals.  Evaluated expected operations and financial performance subsequent to the completion of an ongoing capital expansion project.  
    EPC-related, Operations/Maintenance, Project Feasibility
  • Refinery Acquisition Assessment
    Prepared an initial profitability assessment of two refineries for possible acquisition.  Identified key drivers to profitability and the strengths and weaknesses of each refinery.
  • Crude Oil Storage Support
    Surveyed industry sources to develop an estimate of the current crude oil storage costs in the Texas Gulf Coast area.  Developed an estimate of the current crude oil storage capacity and petroleum refinery capacity in the Houston area.
    Project Feasibility
  • Pacific Northwest Market Study
    Prepared a market study of the Pacific Northwest U.S., which included the refined products supply and demand balance and logistics systems.  The emphasis of the study was on current and future jet fuel supply and demand in the region.  Evaluated jet fuel logistic systems for Pacific Northwest.
  • Refining Margin Forecast
    Provided a ten year refining margin and price forecast for use by client in developing their long-range plan.  Provided historical trends and identified drivers that could impact future refining margins.
    Pricing
  • Refinery Yield Data
    Provided refinery yield data and variable operating costs for developing generic refining margins.  Refinery yield data sets included generic refineries located in the Midwest, U.S. East Coast, and U.S. Gulf Coast, with varying configurations.
  • Refinery Design Review
    Grassroots refinery was to be a modular-fabrication with an on-site assembly on a greenfield site in North East Africa.  Due to the characteristics of the crude oil (heavy, waxy and high naphthenic acid content), process design included Visbreaker-type technology.  An evaluation was made of the process design and the project economics. 
    Physical Asset Appraisal, Pipeline, Product Quality, Project Feasibility
  • GTL Technology Assessment
    Provided a fatal flaw analysis, evaluated the technology application and integration, reviewed the cost estimate accuracy range, and assessed the financial model for a natural gas to wax proposed project.  Particular emphasis was placed on the ability to scale-up the process, the assumptions for plant capacity and availability, and the project schedule.
    EPC-related, Intellectual Property, Operations/Maintenance, Project Feasibility
  • Refinery Economic Study
    Evaluated various strategic options for a small Rockies area refinery, including an evaluation of a new diesel hydrotreater, refinery crude and product slate optimization, operating cost evaluation, and exit strategy and shutdown costs.  Refinery was shut down due to the small refinery ULSD exemption that was expiring.  Client wanted to evaluate the impact on the competitiveness of the refinery of adding a new diesel hydrotreating unit.
    Physical Asset Appraisal, Project Feasibility
  • Refined Products Pipeline Market Study
    Developed a supply and demand forecast by market area for a major refined products pipeline from the Gulf Coast to the Midwest.  Project involved analyzing historical supply trends and demand by market area and forecasting expected pipeline flows under various refinery utilization scenarios.
    Pipeline
  • Pipeline Specifications Dispute
    A new pipeline owner was seeking to impose tighter diesel specifications on a pipeline. Provided an expert report and testimony regarding common carrier pipeline diesel product specifications in a regulatory hearing.  The dispute was ultimately settled prior to the hearing.
    Expert Witness/Testimony, Operations/Maintenance, Product Quality
  • Refinery Acquisition Assessment
    Provided initial due diligence for a potential refinery acquisition. Evaluated refinery profitability and strengths and weaknesses. Developed forecast for future refinery profitability. 
    PRISM Data or Analysis
  • Pipeline Operating Practices
    A lawsuit was filed against a major U.S. pipeline company stating that its operating practices during maintenance at a gas gathering line resulted in a fire and the injury of two contract workers who were the plaintiffs. We were asked to opine on the cause of the fire. The matter was settled out of court prior to reports being issued or testimony being presented.          
    Expert Witness/Testimony, Industry Practice/Standard of Care, Operations/Maintenance, Pipeline
  • Crude Oil Quality Bank Study
    Recommended a crude oil quality bank methodology for the different types of crude oil to be stored in a new USGC crude oil storage facility.  Reviewed other existing quality banks and developed recommendations and methodology for managing a crude oil quality bank.
    Product Quality
  • Refinery Assessment for Acquisition
    Developed a cash flow model for valuation of a potential refinery acquisition.  Used PRISM data to estimate the refinery yields and operating costs.  Evaluated several refineries as part of acquiring the entire refining assets.
    Pricing
  • Refiner Acquisition Study
    Developed cash flow models of a U.S. refiner for a client interested in a potential acquisition.  Developed a price forecast and cash flow model for each refinery under consideration.  Utilized PRISM and publicly available data to model the charge and yield and economic performance of each refinery.  Cash flow models were used for valuation of the potential acquisition.
    Pricing
  • Refinery Acquisition Study
    Developed a cash flow model of a U.S. refinery for a client interested in a potential acquisition.  Utilized PRISM and publicly available data to model the charge and yield and economic performance of the refinery.  Cash flow model was used for valuation of the potential acquisition.
    Pricing
  • Canadian Refinery Competitiveness Study
    Evaluated the competitive position of several Canadian refineries located in Eastern Canada and Ontario.  Evaluated refinery configurations, crude oil slate and product yield, and profitability versus a group of regional competitor refineries.  Presented the crude oil and product logistics systems for each of the Canadian refineries being studied.  
  • Oil Company Due Diligence
    Retained to visit data room and prepare due diligence report summarizing facilities and environmental information for multiple oil fields and an oil processing and export terminal. 
    Industry Practice/Standard of Care, Physical Asset Appraisal
  • St James Louisiana Crude Supply Study
    Analyzed crude supply sources and pipeline flows for the Southern Louisiana refining market in conjunction with a potential pipeline acquisition.  Forecasted crude supply availability by grade in the St. James trading hub and analyzed impact of new crude oil pipelines in the market.
    PRISM Data or Analysis
  • California Terminal Due Diligence
    Assisted midstream buyer with valuation of a large Northern California petroleum terminal.  Delivered market study presentation to company management to assist in due diligence and valuation using market metrics.
    Physical Asset Appraisal
  • Permian Basin Crude Oil Supply and Logistics
    Provided supporting material related to Permian Basin crude oil production growth and logistic infrastructure for a pipeline owner's annual investor presentation.
  • Refinery Acquisition Screening Study
    Developed a refinery acquisition matrix comparing quantitative and qualitative aspects of various refineries.  Utilized PRISM data to compare relative profitability and charge and yield results for various refineries under consideration.
    PRISM Data or Analysis, Pipeline
  • RIN Balance Study
    Utilized publicly available data and PRISM to estimate the RIN balance for 20 U.S. refiners.  Calculated RIN cost impact to a merchant refiner versus an integrated refiner with marketing and product blending.  Prepared a report summarizing results.  Report used by client for a public website.
  • Project Feasibility - LNG
    On behalf of the major oil company project sponsor, prepared a capital cost estimate for a proposed world-scale, “grassroots” liquefaction plant.  The cost estimate was used to evaluate competing Front-End Engineering and Design (FEED) technology packages from engineering, procurement, and construction (EPC) contractor/licensors.  
    LNG, Project Feasibility
  • LNG Due Diligence
    Provided technical support to the sponsor of a multi-train liquefaction project.  The scope of work included:  preparation of a technical due diligence report; in-depth review of the Open Book Estimate (OBE), schedule, and project execution plan; assessment of the EPC contractor’s capabilities and experience; high-level review of geotechnical issues; assistance in the development of an Operating and Maintenance (O&M) plan; input into the formation of sponsor’s project management team; and input into the development of owner’s costs, including appropriate levels of cost and schedule contingency.  Provided support to the sponsor with EPC contract negotiations.  
    Environmental, LNG, Operations/Maintenance, Pipeline, Project Feasibility
  • Ammonia Plant Project Finance
    Served as independent engineer on behalf of the financial advisor for the construction of a new small-scale biomass to nitrogen fertilizers complex.  Prepared a technology assessment, analyzed feedstock supply, reviewed contracts, reviewed site and infrastructure considerations, and advised with negotiation of contracts.  
    Commercial Terms Review, Environmental, Fertilizers, Gasification, Intellectual Property, Project Feasibility