Baker & O'Brien, Inc.

Experience

Experience

 

Article
Acquisition of Crude Oil Gathering System
Conducted technical and economic due diligence on behalf of commercial bank in conjunction with the financed acquisition of a crude oil gathering system from a major oil company.
Pipeline , Pricing
Asian Refinery Study
Assisted client in building PRISM refinery models of several Southeast Asian refineries.
PRISM Data or Analysis , Pricing
Asphalt Market Study
Provided a financial institution with an assessment of the market for paving asphalt in California.  Study focused on current and short-term future markets and included the results of interviews with California paving grade asphalt producers, contractors, and buyers.
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 Valuation
Reviewed historical supply and demand of high TAN crude oil to the U.S. Gulf Coast refineries and addressed future trends which would impact a TAN discount.  Estimated a TAN discount using two methodologies:  Market based approach and Return on Capital investment approach.  Calculated the impact on bitumen value as a result of asphaltenes content.  Calculated the value added by a diluent recovery unit in a Canadian Oil Sands upgrader.
PRISM Data or Analysis , Crude Oil Valuation , Pricing , Product Quality
Bitumen Valuation Study
Developed a methodology using a marker crude oil to value bitumen at the production site.  Methodology addressed differences in qualities (sulfur, acid number) and refining yields.  Transportation costs from the valuation hub to the production site were developed.  Blending methodologies were evaluated to develop bitumen blends for comparison to the marker crude oil.
Crude Oil Valuation , Pricing , Product Quality
Business/Technology Valuation
Conducted a due diligence assessment and preliminary economic valuation of an existing business with proprietary technology designed to significantly reduce crude oil exploration and finding costs.
Pricing
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
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 Plant Fair Market Valuations for Ad Valorem Tax Appeals
Developed fair market valuations for two major chemical plant installations on behalf of the local appraisal district. The engagement included valuation by discounted cash flow, depreciated replacement cost, and comparable sales approaches, as well as a critique of the petitioner's methodologies and assumptions.
Ad Valorem Taxes , Physical Asset Appraisal , Pricing
Condensate Feedstock Contract Dispute
Assisted in a claim between: (1) a European refiner and ultimate condensate supplier, and (2) an intermediary company, concerning allegations that the intermediary company was prevented from obtaining condensate supplies for sale to the refiner.  Studied the potential availability and quality of condensates in the producing region and elsewhere.  Identified potentially suitable condensates for the refinery.  Based on forecasts of oil and petroleum product prices, prepared an estimate of potential economic damages.  Described how term feedstock contracts for condensate are typically concluded.  Testified at an arbitration in London.
Arbitration , Expert Witness/Testimony , Industry Practice/Standard of Care , Pricing
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
Contractual Dispute - Property Tax
Prepared an analysis of property taxes relative to refining complexity for a number of refineries in a particular region, using public information, for hearings with a district appraisal board.
PRISM Data or Analysis , Ad Valorem Taxes , Physical Asset Appraisal , Pricing
Cost Allocation Report
Following a refinery fire incident and rebuild, performed an analysis of all elements of the repair costs, and produced a report that assessed and allocated repairs into three categories:  identical replacement, functional replacement, and upgrade.
Industry Practice/Standard of Care , Operations/Maintenance , Physical Asset Appraisal , Pricing
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 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 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
Assisted the U.S. General Accounting Office in evaluating the potential for marketing of Naval Reserve crude (Elk Hills) in markets east of the Rockies.  Work included evaluation of breakeven refining values, assessment of yield and contaminant penalties, and analysis of the potential for supplying this crude to the Gulf Coast market.
Crude Oil Valuation , Pricing , 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 Processing Contract Dispute
Served as expert witness concerning a dispute between an international oil trading company (Trader) and an independent refining company (Refiner), between whom there was a crude oil processing contract.  The Trader alleged that the Refiner misappropriated products to its own account.  Analyzed the refinery production and product disposition under each processing deal over a period of three years and calculated the damages under the alleged misappropriation.  Prepared an independent detailed damages claim for insurance purposes and defended the claim at trial.  
Commercial Terms Review , Expert Witness/Testimony , Pricing , Product Quality
Crude Oil Quality Dispute
Acted as expert witness in a dispute between a major oil company and a small crude oil supplier that allegedly delivered "dumbbell" crude into the oil company's common carrier pipeline system.  Prepared a report covering standard industry pipeline practices, crude oil quality acceptance, crude oil trading, and refining values of various crude oils.  Calculated damages incurred as a result of the poor quality crude oil delivered and the impact on refiners receiving crude from the pipeline.
Crude Oil Valuation , Expert Witness/Testimony , Pipeline , Pricing , Product Quality
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 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
Due Diligence of Gas Gathering and Processing Assets
Conducted due diligence on gas gathering and processing assets within the Permian Basin in Southeast New Mexico and West Texas on behalf of lending group and prospective purchaser. Conducted physical inspection of the facilities, reviewed operation and maintenance records, assessed gas supply and competitive position, and reviewed financial assumptions and projections to ensure consistency with current gas supply contracts and asset performance.
Industry Practice/Standard of Care , Operations/Maintenance , Physical Asset Appraisal , Pricing
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 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
Ethanol Terminal Blending Facility Evaluation
On behalf of a private equity firm, reviewed a site development plan for a coastal ethanol receiving terminal and associated gasoline blending facility.  Evaluated the market competition for terminalling services within the local area.
Pricing , Product Quality
Evaluate Biodiesel Production Facility
Provided due diligence review of a biodiesel facility in support of project financing. Reviewed capital costs, operating costs, process technology, and maintenance requirements.
Industry Practice/Standard of Care , Operations/Maintenance , Pricing , Product Quality
Evaluation of Refinery Competitive Environment
Assisted in a dispute between a major oil company and the Federal Trade Commission's claims regarding the anti-competitive nature of the company's proposed acquisition of a West Coast-based refining and marketing company. Prepared a detailed report analyzing the West Coast refining industry. Assessed the competitive position of each West Coast refinery processing Alaskan crude oil and how they might respond to changes in crude oil prices and/or availability.
Pricing
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
Fair Market Valuation of Refinery for Ad Valorem Tax
Fair market valuation of a major US Gulf Coast refinery for the local appraisal district.  Provided a critique of the valuation methodology used by the refinery as basis for lawsuit seeking reduced ad valorem taxes.
Ad Valorem Taxes , Pricing
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
Agrochemicals Manufacturing
Performed due diligence for the purchase of several fertilizer plants on behalf of an investor.  These plants manufactured nitrogen fertilizers, phosphate fertilizers, methanol, and other related industrial chemicals.  Inspected company assets, assessed technology, analyzed feedstock and product markets, reviewed contracts, evaluated capital investment programs, and analyzed comparative manufacturing economics.
Fertilizers , Pricing
Financial Model
Developed a financial model for a large private equity firm to enable estimates of the future financial performance for the major business segments of a large international refining and petrochemical company.
PRISM Data or Analysis , Pricing
Fischer Tropsch (FT) Liquids Market Study
Evaluated potential markets for Fischer Tropsch products, and the logistical requirements to access those markets from a coal-to-liquids facility.  The products included LPG, naphtha, jet fuel, and diesel, and the analysis included expected netback pricing (FOB the plant) to support financial modeling of the capital project.
Gas to Liquids , Physical Asset Appraisal , Pricing , 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 Pipeline Rupture Dispute
Performed an independent assessment of the costs incurred, including the lost natural gas inventory, on a ruptured interstate gas transmission line for which the owner requested a multi-million dollar damage reimbursement.  A report was prepared for mediation which resulted in a negotiated settlement.
Industry Practice/Standard of Care , Pipeline , Pricing
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
Gasification Project Assessment
Assisted in the evaluation of a petcoke-to-substitute natural gas facility to support possible equity investment. Assessment included review of technology, commercial issues, and economics.
Pricing , 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 Feasibility Study
Conducted a feasibility study for a grassroots refinery project that included assessment of potential crude oil supplies, various refinery configurations, and a detailed analysis of target markets and product distribution logistics.  The study also included an integrated coke gasification complex to supply hydrogen, power, and steam to the refinery.  Capital cost estimates were prepared and project economics were developed for a range of scenarios.
Pricing , Project Feasibility
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
Independent Engineer
Retained as the Independent Engineer for the "grassroots" Tangguh LNG Liquefaction Project in Indonesia.  Prepared the technical due diligence for the US$3 billion facility on behalf of a financial consortium.
Industry Practice/Standard of Care , LNG , Pricing , Project Feasibility
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
Ion-Exchange Resin Plant
Performed market study and competitive analysis of an ion-exchange resin plant on behalf of a major government agency bank. Study evaluated the financing of an ion-exchange resin manufacturer in the context of possible sale of the plant.
Pricing
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
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
Market Value of Natural Gas
Determined the reasonableness of royalty payments for natural gas by comparing available arm's-length contracts, pricing, and actual costs of gathering, compressing, and processing the gas.
Commercial Terms Review , 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 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 Royalty Dispute
On behalf of several producing companies, demonstrated the reasonableness of royalty payments for natural gas by comparing available arm's-length contracts, pricing, and actual costs of gathering, compressing, and processing the gas.
Commercial Terms Review , Pricing
Natural Gas Royalty Litigation
Evaluated the design and historical capital costs of a natural gas pipeline system in western Oklahoma. Reviewed system material balances and operator's natural gas measurement practices.
Industry Practice/Standard of Care , Operations/Maintenance , Pipeline , Pricing
Natural Gas Tax Dispute
Following the imposition of a new oil and gas taxation regime, a dispute arose regarding the contractual right of local natural gas producers to "pass through" incremental taxes to their customers.  Served as expert witness.  Key work involved the development of a fair mechanism to allocate recovery and distribution costs between "jointly" produced hydrocarbons, including oil, condensate, natural gas, and natural gas liquids.  Prepared and defended specific proposal in the arbitration proceedings.
Arbitration , Commercial Terms Review , Expert Witness/Testimony , Pricing
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 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
Paraxylene (PX) Contract Dispute
On behalf of a major international buyer of paraxylene, prepared an expert analysis concerning damages claimed by a large US based supplier.  Analysis included a detailed evaluation of supplier's paraxylene manufacturing economics.
Business Interruption , Industry Practice/Standard of Care , Operations/Maintenance , 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 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 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
Refinery and Chemical Plant Feedstock Valuations
Identified and developed the financial impact due to the non-compliance with interplant agreements for feedstock and product transfers between a refinery and an adjacent chemical plant. 
Pricing
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
Refinery Finance Litigation
Economic damages were claimed by the sponsors of a refinery project in Russia due to a failure to obtain funding from a financial institution.  Examined claim basis, economic assumptions relied on for the project feasibility study, and actual financial results that would have been realized if the refinery had been built.  Provided testimony concerning the relationship between industry margins and the losses incurred by the project sponsors.
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
Refinery Evaluation
Retained by a financial institution to conduct an independent assessment of an asphalt refinery. In addition to an analysis of the market environment, the assessment included a review of the general condition of machinery and equipment and projected operating performance of the refinery.
Physical Asset Appraisal , Pricing
Supply and Distribution
Assisted in a dispute concerning the effects of Hurricanes Katrina and Rita on jet fuel prices for the Gulf Coast market.  The sequence of events and impacts on individual suppliers were developed, as well as an allocation of outages and price differentials attributable to each hurricane.  Our analysis of pricing activity also considered estimates of normalized versus event-based price movements in the overall market.  
Pricing
Refinery Valuation and Due Diligence
Prepared an analysis of refining and marketing assets for a company that was considering acquisition of shares of a refining and marketing business located in South Korea. The analysis included refining and marketing economics, and due diligence of the facilities.
Pricing
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
Technology Assessment
Working for potential investors, reviewed plans for a grassroots lube oil re-refining facility, and advised our client regarding technology and commercial risks.
Pricing , Project Feasibility
Refinery Feasibility Study
Performed a feasibility study for a small, skid-mounted refinery to be operated in Kurdistan to serve local markets. Reviewed contractor proposal regarding likely configuration, crude slate, capital costs, and yields.
EPC-related , Pricing , Project Feasibility
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
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
Refinery Gasification Study
Identified and ranked refineries as potential candidates for residue gasification projects.  Screened refineries in terms of their crude capacity, crude slate, bottoms products, hydrogen users, and location to neighboring plants.  Also, provided a macro level review of European countries that would potentially have a synergistic benefit from a gasification project.
Gasification , Pricing , Project Feasibility
Substitute Natural Gas Market Study
Developed comprehensive market profile of SNG industry and market in North America, including operating and planned facilities, feedstock outlook, project incentives, and environmental issues.
Environmental , Gasification , Pricing
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
Technical Review
Performed technical review of chlor-alkali and calcium chloride processes and project plan on behalf of prospective lender. Reviewed the process design packages for the chlor-alkali and calcium chloride production facilities and provided opinions regarding the selected processes and their technical compatibility. Reviewed the project schedule and cost estimate for the facilities and provided input to the prospective lender regarding the appropriate level of contingency. Evaluated the contracting strategy and project execution plan and provided opinions.
Pricing , 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
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
Refinery Product Delivered Cost Data
Assisted a client with the historical analysis of refined product supply patterns and costs in the U.S., with a particular emphasis on delivered cost of supply for transportation fuels. Provided five years of delivered product volume and cost data (by calendar quarter), for all major gasoline and distillate grades, for 85 U.S. markets, as produced and transported from over 130 fuels refineries.
Pricing
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 Quality Bank Dispute
Assisted in a dispute involving crude oil quality bank payments demanded by a pipeline consortium transporting a company's oil through Central Asia.  Studied the quality bank calculation procedure in order to demonstrate if the methodology described in the tariff had been properly applied.  Provided examples of methodologies used in other quality banks.  Prepared quality bank calculations based on application of the methodology.  Testified at an arbitration in London.
Arbitration , Crude Oil Valuation , Expert Witness/Testimony , Pipeline , Pricing , Product Quality
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
Refinery Analysis
For a prospective investor, provided analysis and commentary on the relative competitiveness of a targeted refinery, explaining the fundamental basis for its competitive position.
Pricing
Refinery Operations Snapshot
Provided client with an estimate of actual crude runs by grade, product yields, and operating costs for a European refinery in 2007 based on our proprietary PRISM refinery database and simulator.
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
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
Refining Industry Overview
Provided guidance as to opportunities within the U.S. petroleum fuels market for blending isobutanol. Developed a list of target refineries for blending of isobutanol into gasoline. Provided isobutanol gasoline blend valuations versus ethanol for several Midwest refineries.
PRISM Data or Analysis , Pricing , Product Quality , 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
U.S. Gulf Coast Isobutanol Study
Evaluated the gasoline blending economics for isobutanol versus ethanol for a U.S. Gulf Coast refinery. Calculated the value difference between isobutanol and ethanol in a low vapor pressure conventional gasoline.
PRISM Data or Analysis , Pricing , Product Quality , Project Feasibility
Refinery Valuation Dispute
Assisted in a dispute between minority shareholders and company management concerning claims that certain refinery assets were improperly valued when the group's ownership interests were purchased by the company's management.  Prepared a detailed valuation of the refinery assets in question and showed how their location, processing capability, and access to feedstocks contributed to their value relative to the competition.  Prepared an expert report and testified in Federal Court.
Expert Witness/Testimony , Pricing
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
Refinery Feasibility
On behalf of a major Indian industrial organization, prepared a feasibility assessment for a world-scale "grassroots" refinery on the western coast of India.  The refinery started up in 1999.
Pricing , Project Feasibility
Refinery Fair Market Value Dispute
On behalf of one of the interested parties in a bankrupt oil refinery, conducted a technical and economic evaluation of the facility to determine if the plant was economically viable and had value as a "going concern."  Study was submitted into evidence before an international arbitration tribunal established to determine the ultimate disposition of the facility.
Expert Witness/Testimony , Pricing
Refinery Feasibility Study
On behalf of a financial institution considering the financing of a "grassroots" refinery project, prepared a detailed feasibility study for the refinery.  The proposed facility was to be based outside of Phoenix, Arizona, where it was to serve the fast growing Phoenix/Tucson area with new "clean burning" fuels.  Analyzed regional product markets, existing and potential competition, alternate crude oil sources and availability, optimum refinery configuration, and by-product disposition.  Attended meetings with potential crude suppliers and product customers.  Feasibility study was also used in negotiations with equity participants.
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
Valuation of Refineries
Performed valuation of three Russian mini refineries located in Western Siberia.  Work involved market analysis for crude oil and products, logistics infrastructure, refinery configuration and yield, and construction costs.
Pricing , Project Feasibility
Refinery Construction Dispute
Assisted law firm representing Russian refiner in dispute with U.S. engineering firm that provided a refinery for a location in Russia.  Ascertained construction status of units and reviewed issues in dispute regarding design basis, scope of work, and costs for a modular refinery constructed in the U.S.
EPC-related , Pricing , Project Feasibility
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
Refinery Feasibility Study
On behalf of a crude oil transportation company in Western Australia, investigated the feasibility of establishing a small refinery to process local crude production. Evaluated the technical and economic considerations involved in a range of alternative projects to refine crude oil and market products to local industries and other consumers throughout the region. Conducted negotiations with crude oil suppliers and commercial customers. Project was eventually terminated due to inability to obtain satisfactory financing.
Crude Oil Valuation , Pricing , Product Quality , 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
Process Plant Leasehold Settlements
Assessed the market value of residual operating interests held by a major financial entity in several leased chemical processing facilities. Each engagement included an ongoing advisory role pursuant to successful negotiations for sale of the institution's ownership interests.
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
Refinery Feasibility Studies
Assisted an engineering and construction firm in preparing feasibility studies for two projects in Russia.  One of the projects was a new "grassroots" refinery project, and the other project was to build a new FCC gasoline complex in an existing refinery.  Work included modeling of refinery operations and yields, analysis of feedstock and products markets, and evaluation of project economics.
Pricing , Project Feasibility
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
Arbitration - Refinery Valuation
In support of a valuation dispute, developed an economic model to assess the value of a fuels refinery.  Submitted an expert report and provided testimony.
Arbitration , Expert Witness/Testimony , Pricing
Asphalt Refinery Valuation
Concerning an owner's capability and obligation to pay a prior arbitration award, determined a retrospective fair market value of an asphalt refinery and provided testimony regarding the estimated value of the refinery assets.
Expert Witness/Testimony , Physical Asset Appraisal , Pricing
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
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
Review Refinery Feasibility Study
Conducted a detailed review of a feasibility study to construct a new refinery (oil sands feedstock) in Canada.  Reviewed capital costs, crude oil and product pricing assumptions, and several other key inputs that were used in an integrated financial model.
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 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
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
Petroleum Terminal Valuation
Updated valuation of petroleum terminal and trans-mix processing facility completed previously in order to reflect changes in the business environment, and to reflect specific transaction scenarios designated by the client. 
Pricing
Offshore Oil Lease Development Dispute
Provided an assessment and expert report that determined estimates of the economic value for an undeveloped oil block in offshore Sierra Leone.  The analysis synthesized an FPSO development approach and various scenarios of reserve volumes, development timelines, and oil prices to arrive at an indicative value for lease development.
Offshore , Pricing , Project Feasibility
Refinery Economics Update
Utilized Baker & O'Brien long-term price forecast to update the project’s economics. Our analysis considered various options for refinery size and petcoke gasification.
Pricing
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
Petroleum Refinery Due Diligence
Prepared a due diligence report on a full conversion refinery, including a review of regional crude oil supply and regional products markets.  Reviewed refinery operations, including high level assessments of refinery safety and environmental performance.  Developed economic model of refinery and estimated market value.
Pricing
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
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
Refinery Acquisition Study
Provided client with five years of operating and financial data from the PRISM refinery database for use in evaluating a potential acquisition.
PRISM Data or Analysis , Pricing
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 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
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
Refinery Due Diligence
Assisted financial client with a due diligence study of a European Refinery.  Visited the site and received briefing from refinery management.  Developed cash flow model of historic and projected operations.  Tuned cash flow model to match past four year's of operations and cash flow results.  Developed five year price forecasts for crude oil and refined products in Europe.  Reviewed operating and maintenance expenses.
Operations/Maintenance , Pricing
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
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 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
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
Trans-Alaskan Pipeline (TAPS) Quality Bank
Provided expert testimony before extended hearings of both the Federal Energy Regulatory Commission (2004) and the Alaskan Public Utilities Commission (2007) with respect to the methodology used to value various Alaskan crude oil streams entering TAPS.  Issues included how to calculate the refining values of such crude oils in U.S. West Coast refineries and how changes in the indicated market values of crude oils should be handled from a retrospective basis.  
Crude Oil Valuation , Expert Witness/Testimony , Pipeline , Pricing , Product Quality
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
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
Independent Planning Consultant
In the early 1990s, a major oil company agreed to purchase a former Soviet block country’s refining and marketing assets. Additionally, there was an agreement to build a state-of-the-art grassroots refinery. Until the streaming of the grassroots refinery later in the decade, the oil company operated the existing refining assets on behalf of the national office of privatization. The role of the independent consultant was to ensure that the operation was not “optimized” at the expense of the country’s taxpayers. Participated in the preparation of monthly operating plans with the operating company and presentations to the national office of privatization over a two-year period.
LP/Planning Practice , Pricing
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
Industrial Gas Contract Evaluation
Evaluated a contract for supply of nitrogen to petrochemical facilities. Specifically assessed the nitrogen pricing terms and interpretations.
Commercial Terms Review , Pricing
Wholesale Supply Contract Dispute
Reviewed supply contract dispute and claims that customer was overcharged for product delivered to customer's retail locations. Completed an analysis of refinery gate prices, regional wholesale pricing, and transportation charges for deliveries to each location to determine if overall charges to customer were consistent with transportation logistics and contractual obligations.
Commercial Terms Review , Pricing
Alberta Bitumen Valuation Study
Evaluated various approaches to valuing Canadian Oil Sands bitumen blends (DilBit). Approaches for valuation at a Hardisty, Alberta basis included: differential to a marker crude oil, refinery return on investment, parity to Mexican Maya and other approaches, including statistical regression. Evaluated approaches and potential marker crude oils and provided recommendations to client.
PRISM Data or Analysis , Crude Oil Valuation , Pricing
Refinery Crude Oil Losses following Fire
Estimated the losses (if any) incurred by a refiner in disposing of its crude oil purchases following an extended shutdown of its refinery as a result of a fire. The results were used by management to gauge the effectiveness of its crude oil supply and trading organization.
Commercial Terms Review , Crude Oil Valuation , Pricing
Isobutanol Value in Gasoline
Prepared initial screening study to assess the potential benefits and issues associated with marketing isobutanol as a gasoline-blend component within the U.S. Provided isobutanol gasoline blend valuations versus ethanol/alkylate for a list of target refineries.
PRISM Data or Analysis , Pricing
Ethanol Contract Dispute
Assisted in a dispute between gasoline marketing firm and an ethanol producer in arbitration over a long -term ethanol supply contract from a new production facility.  Testified in arbitration regarding the development of the contract pricing formula, how it was to be applied, and the shortcomings associated with it. 
Arbitration , Commercial Terms Review , Pricing
MidWest U.S. Crude Oil Study
Identified the factors that likely contributed to a significant widening of the price differential between Light Louisiana Sweet Crude oil (LLS) at St. James, LA and WTI crude oil in Cushing, OK. Developed a three-year outlook for U.S. PADD 2 crude oil supply and disposition, and the expected price differential between LLS and WTI crude oil.
Crude Oil Valuation , Pricing
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
Petroleum Revenue Override Dispute
Reviewed contract, evaluated contract terms and key definitions and analyzed royalties related to a large West African oil, gas, LNG and petrochemical complex.
Pricing
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
Methanol Contract Dispute
Provided an expert opinion on several aspects related to a methanol supply contract dispute.
Commercial Terms Review , Expert Witness/Testimony , Pricing
Refinery Feasibility and Economics Study
Conducted an economic feasibility study for a proposed refinery in Central America. The study evaluated indigenous crude oil supply and imported crude oil, as well as expected product netback prices compared to the status quo of imports.
Pricing , Project Feasibility
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
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
Owner's Engineer for New Refinery Project
Reviewed key project assumptions and provided guidance on various aspects of project development, including: transportation infrastructure; refinery design basis; EPC strategy and contract; refined product markets and pricing basis; crude oil sources, quality, and pricing assumptions; project financial model and economics.
Commercial Terms Review , Pricing , Project Feasibility
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
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
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
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
Northwest Europe Price Forecast
Developed a five year outlook for crude oil, refined products and petrochemical prices for a European refining company.
Pricing
Residual Fuel Oil Valuation
Provided an assessment of the quantity, quality, and value of fuel oil recovered during demolition of storage tanks at a power plant.
Commercial Terms Review , Expert Witness/Testimony , Pricing , 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
Propane Pricing Analysis
Evaluated the historical development of propane prices in a key North American market, and developed a report that assessed propane supply-demand dynamics and price response, given the increasing availability of supply.  Evaluated the evolution of company price postings and compared independently-assessed, third party prices to these postings.  Provided opinions on the best propane price reference points to be used in commercial supply contracts. 
Arbitration , Commercial Terms Review , Pricing
Pipeline Quality Bank Dispute
Reviewed claims by a crude oil refiner to adjust the valuation of the residuum cut in the TAPS Quality Bank.  Reviewed the residual fuel markets and the delayed coking capacities and operations for several West Coast refiners.  Provided written and oral testimony before a FERC Administrative Law Judge.
Crude Oil Valuation , Expert Witness/Testimony , Pipeline , Pricing
Needle Coke Price Dispute
Provided an opinion on the market price of needle coke in connection with a dispute submitted to the International Centre for Expertise of the International Chamber of Commerce.
Arbitration , Commercial Terms Review , Pricing , Product Quality
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
Refinery Economic Losses Due to Fire
Prepared an assessment to quantify the economic damages resulting from a refinery fire that caused damage to equipment and a lengthy shutdown of a refinery distillation and conversion train.  Prepared a detailed report that documented both business interruption losses and repair costs for damaged equipment.  Provided testimony in deposition and district bench trial.
Business Interruption , Commercial Terms Review , Expert Witness/Testimony , Pricing , Property Damage
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
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
Ethanol Plant Business Interruption Dispute
Reviewed an insurance claim for an ethanol plant "opportunity loss" due to a power outage resulting from repair work on main electrical feed cables after being damaged by a construction contractor. Reviewed operating expenses and ethanol pricing during the subject period and provided an opinion on the reasonableness of the size of the claim.
Business Interruption , Pricing
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 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