Oil and Refining

IHS Energy Consulting helps clients formulate profitable, fact-based strategies in the face of rapid change and uncertainty. We have 200 experts to provide comprehensive solutions to downstream-related questions for a broad range of industry participants, as well as governments, investors and end-users. Our approach to delivering in-depth analyses of global crude oil and refined product markets relies on the broad industry experience and capabilities of the IHS CERA research team, combined with extensive IHS-wide information resources and analytical tools. These capabilities enable IHS consultants to provide fully-integrated, consistent analyses of the key elements throughout the global oil supply chain, including product demand, refinery production, and trade - utilizing iterations involving all supply and demand segments to achieve a fully-integrated market balance that is reconciled with prices across the supply chain.

IHS Energy Consulting enables you to:

• Understand global energy market fundamentals and driving forces to provide a sound basis for gauging possible paths for prices and the key uncertainties facing the downstream sector
• Anticipate the implications for changes in energy prices for investment profitability, as well as opportunities and challenges facing various segments across the supply chain
• Analyze the interactions between energy and markets and assess the effects on regional prices and profits
• Identify the regional and geopolitical factors affecting energy and chemical opportunities and fiscal terms
• Recognize how corporate strategy will be viewed by host governments, prospective partners and other stakeholders
• Weigh how international companies, national companies and host governments can cooperate to optimize production as well as private and public wealth
• Leverage the various expertise of the broader IHS organization in shipping (IHS Fairplay), economy and finance (IHS Global Insight), security (IHS Jane's) and our extensive databases, project evaluation tools and project, negotiation and licensing round support

IHS Energy Consultants provide energy companies, governments, investors and businesses worldwide with information and forecasts for better decision making and increased competitiveness across the downstream value chain. Our consultants can help you:

• Understand the impact of new technologies
• Evaluate refined product market trends, the implications of demand growth trends and the changing product mix by region
• Determine whether to enter specific markets
• Assess the value of refining companies
• Decide whether to undertake a business expansion
• Determine the cost of building a refinery
• Evaluate the impact of risk and uncertainty on investment strategy
• Compare and prioritize long-term strategic options involving fuel choice and market location

Clients receive customized solutions in support of their top priorities in these key areas:

Energy Market Analysis - Identify the trends, drivers and future energy market scenarios that directly affect your business, investments and sales. 

See Case Studies #1 and #2

Strategic Due Diligence - Gain an independent view of markets and business environments, strategy viability and acquisition tactics and buyer deal value, while identifying and reducing acquisition risk. 

See Case Studies #3 and #4

Energy Resource Assessment - Quickly prioritize energy investments.

See Case Study #4

Strategy Support - Make high-quality important decisions by crafting value-creating alternatives and understanding the impact of risks.

See Case Study #5

Cost Analysis and Forecasting - Monitor the current state of the global refinery cost environment. 

See Case Study #6

Asset Valuation -Negotiate better loans, build support for public bonds, manage your portfolio and ultimately make the most profitable financial planning decisions for your organization.

Case Study #1: Should We Enter Eastern Europe?

Challenge: A refining and marketing company was considering entering the East European market and needed objective, quantitative support for its decision.

Solution: IHS Consulting conducted an analysis of the Eastern European refining and marketing business. The study included detailed supply and demand balances and regional projections, including prices and margins and market and industry structure.

Results: The analysis highlighted the prospects for growth in selected Eastern European markets, noting the opportunities and risks facing companies interested in entering the various regional markets.

Case Study #2: Should We Undertake a Pipeline Expansion?

Challenge: A major US refined product pipeline company needed to make a strategic decision regarding the need for and timing of a major capacity expansion at a key bottleneck along the pipeline route.

Solution: IHS Consulting prepared a detailed regional analysis of the future market for selected refined products in target markets, including demand in all markets served by the pipeline and alternative sources of competing supply.

Results: The analysis indicated that, because of weak market conditions and changing product demand trends in the target market, the pipeline expansion was not an immediate priority, and the client adopted the recommendation that the expansion be deferred.

Case Study #3: Eastern Europe Refining Business

Challenge: A large independent European refining firm needed help with a legal dispute over the value of a refiner it had sold a few years previously.

Solution: IHS Consulting assessed the value of this refinery using multiple methods to point out the weakness in opposing party's valuation.

Results: The refinery market analysis provided compelling support for our client's position, leading the opposition to drop the argument from its petition; our client eventually succeeded in winning the case.

Case Study #4: Where Should We Invest?

Challenge: Our practice has been asked on many occasions to provide studies for financial institutions  considering investing in retail, distribution, refining and E&P assets.

Solution: Our analyses included supply and demand trends, price projections, competitor analysis, industry assessments and evaluation of the target companies.

Results: The clients gained a report that prioritized investments based on optimal resource potential and minimum range of risks.

Case Study #5: What Are Our Long-term Options?

Challenge: A major US mid-continent refined products pipeline company needed an evaluation of its long-term strategic options.

Solution: IHS Consulting conducted a scenario analysis of multiple long-term strategies, based on extensive interviews and scenario-development sessions with senior management.

Results: The client received a robust 20-year strategy for expansion and investment, outlining the range of potential uncertainties and expansion options.

Case Study #6: What Will it Cost to Build a Middle East Refinery?

Challenge: Our consulting team was asked to update cost estimates for two Middle East refinery projects.

Solution: We consolidated changes and continuing engineering work, taking into account layout and location changes and applying country-specific cost escalation factors.

Results: Our team produced a new 2010 overnight cost and provided forecasts of outturn costs based on varying construction schedules and start dates.