Baker & O'Brien Releases Third Quarter Edition of Energy Expert: Issues in Focus
November 18, 2021
This quarter’s Energy Expert newsletter profiles recent Baker & O’Brien engagements of a helium market pricing matter, a ship that struck a refinery dock, and a personal injury dispute.
Global helium resources are concentrated in only a few countries with limited suppliers and market off-take users, which results in an opaque fair market value. When privatization of a government-owned helium resource was mandated, we were asked to evaluate the market structure and the benchmark pricing basis as a reasonable contracting basis. This article describes our analysis of the helium market volatility in relation to the theory of using auction results to establish a commercially viable pricing basis.
Damage to a refinery dock caused an extended interruption for repairs, resulting in lost production and costly non-routine logistics to meet customer needs. We were requested to evaluate lost profits and mitigation costs which, as monthly operating plans were no longer available, was a challenge. Therefore, we presented expert opinions based on an alternative approach using historical refinery operating results.
During a maintenance turnaround at a large refinery, which required the services of multiple contractor companies for a single complex modification, multiple company interfaces were necessary to conduct the work. After an incident resulted in a personal injury, we were retained to assess the activities and work practices of each party and its respective responsibilities. Our conclusions were submitted in an expert report.
The complete newsletter can be accessed as follows: Energy Expert Newsletter - November 2021