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Project Résumé |
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With over twenty years of consulting experience in the downstream petroleum sector, MJ Ervin & Associates has an extensive résumé of projects. Click one of the following links to jump to a specific area of interest. · Market Monitoring and Analysis · Regulatory Analysis and Consulting · Petroleum Industry Introductory Seminar |
Market Monitoring and AnalysisPetroleum price monitoring and analysis is a core business of MJ Ervin & Associates. Our work in this area includes price data collection, reporting, interpretation and forecasting. We are widely recognized as experts in this area and are frequently called on by national, regional and local media to explain petroleum market price dynamics. Canadian Petroleum Markets Data Service (CPMDS) Our firm operated CPMDS, a web-based market information and data resources service for subscribers (see www.mjervin.com). CPMDS offered our clients up to date petroleum markets information and analysis of crude, wholesale, and retail pump prices and operating margins. Our clients included large industrial buyers, government regulators, market analysts, and petroleum marketers. The Government of Canada purchased our historical price data base in 2006 and we continue to conduct the price data collection, which is the primary source of their “FuelFocus” data. Industry Newsletter From 1999 to 2003, we produced a regular industry newsletter entitled FuelFacts, in collaboration with a leading upstream industry consulting firm. FuelFacts provided subscribers with a twice-monthly overview and analysis of retail, wholesale and crude market activity, aimed at the non-industry observer. New Brunswick Distillate Price Forecast We were engaged by a natural gas marketer to develop a model to forecast wholesale and retail distillate prices in New Brunswick to be used in the determination of market-based natural gas prices. We analysed and interpreted historical price data to provide a recommended formula to determine heating oil prices for each of six customer segments. Our recommendations formed an integral component of the marketer’s application for a rate change to the New Brunswick provincial regulator. We successfully defended our recommendations before the New Brunswick Public Utilities Board. British Columbia Diesel Fuel Price Analysis We provided a Canadian mining company a detailed analysis of diesel fuel prices in British Columbia. Our analysis described and quantified the key constituent price components of diesel fuel and the factors that might affect these components in the future. Our study applied these factors to present a quantitative estimate of future diesel fuel taxes, refining and marketing margins in British Columbia for the years 2009 to 2019. Gasoline Market Economics in Nova Scotia For the Province of Nova Scotia, and in partnership with another consultant, we conducted a comprehensive review of the Nova Scotia retail fuel industry. We documented and analyzed the infrastructure trends in that province, and we identified and assessed the regulatory options for addressing the principal stakeholder issues. We participated in interviews with a variety of industry stakeholders, and we collected, presented, and analyzed a number of price and margin data related to pump prices. Western Canadian Refining Industry Outlook MJ Ervin provided assistance to a Canadian company considering the development of a grassroots petroleum refinery in Western Canada. The project report provided a comprehensive overview of the refining and wholesale marketing sectors in Western Canada and forecasted refined product supply and demand. The study also considered the potential margin impact of expanded refinery capacity in the region and identified customer segments for this new capacity. Our industry outlook was used by our client to assist in formulating their strategic position with respect to participation in the refining industry. Canadian Retail Petroleum Industry Overview We provided a Canadian government agency with a comprehensive overview of the Canadian retail petroleum industry. Our study included an in-depth view in the areas of upstream; petroleum refining; supply logistics; wholesale marketing; retail marketing; gasoline pricing; and price regulation. Our report provided our client a relatively concise overview of an industry composed of several layers of infrastructure, sometimes complex relationships among and within the stakeholder organizations, and in particular, characterized by limited public understanding of the infrastructure and competitive mechanisms that affect prices and profits. Canadian Petroleum Markets Study In 1997 we released a major industry study of competitiveness in the Canadian Petroleum Retail industry, for a consortium of clients which included two federal government departments and the Canadian Petroleum Products Institute. Entitled the "Canadian Petroleum Markets Study", this 105-page document still serves as an oft-cited reference for understanding the petroleum marketing industry in general, and competitiveness issues in particular. The study provided some unique insights into the state of competitiveness and price differentiation in the Canadian petroleum marketing industry, one of the most competitive markets in the industrialized world. A copy of this study can be downloaded at www.mjervin.com. REGULATORY ANALYSIS AND CONSULTINGWe have been directly involved in examining and preparing analytical reports on a number of industry regulatory issues, including: Assisting the New Brunswick Department of Energy as an intervener in the province’s review of its pump price regulations. Our assistance involved a critical review of a third-party report recommending changes to the existing regulations. Assisting the State of Hawaii’s Division of Consumer Advocacy during the pre-implementation phase of Hawaii’s price regulation statutes. Our assistance consisted of performing detailed reviews of the statutes and intervener submissions, and providing the Consumer Advocate with assistance in preparing its own position and submission to the state regulator. Assisting a major Eastern Canada marketer with their submission to the Québec Regie de l'Energie, concerning the setting of below-cost selling laws. Helping a national industry association make representations to several regional municipalities on the matter of regulating retail petroleum service offerings. Preparing a government briefing package to provide an overview of the background, issues, merits and drawbacks of a range of regulatory options pertaining to petroleum marketing and pricing. PERFORMANCE BENCHMARKINGEssential Indicators Since 1991, MJ Ervin & Associates has worked with Canada's top petroleum marketers to conduct a comprehensive annual performance benchmark analysis of their bulk plant, retail and commercial cardlock operations. We take in detailed, confidential operating data on thousands of marketing facilities across Canada, and provide our clients with detailed analysis (over 50,000 data measurements) of their overall site performance relative to the industry in general. Our clients have used this information to set strategic goals, and to identify "performance gaps" in their operations. Our reports have become an intrinsic part of strategic planning processes at companies like Shell Canada and Imperial Oil. We have also conducted intra-organizational benchmarking for Shell UK and Shell Canada, using this exclusive benchmarking tool. Retail Associate Business Opportunity Benchmarking We were engaged by a major Canadian oil company to design and conduct a survey to assess the competitiveness of their retail associate business opportunity relative to other participants in the retail petroleum industry in Canada. Our survey provided a detailed description of the elements that comprised the associate business opportunity at retail petroleum outlets including supplier/associate contractual relationship, associate financial investment, income opportunity and fees. INFRASTRUCTURE STUDIESPetroleum Industry Infrastructure Survey In 2004, MJ Ervin & Associates developed an annual National Retail Petroleum Site Census, in order to provide an accurate and comprehensive overview of Canada’s retail petroleum infrastructure. This annual report is the definitive source of information about the numbers of retail gasoline outlets in Canada. It also provides important insights into the trends in the industry with respect to brand diversity, types of marketers, types of dealers, corporate control of retail pricing, average throughputs, and the emergence of non-traditional petroleum marketers and outlets. Strategic Petroleum Reserve Study We were engaged by Natural Resources Canada to conduct an assessment of establishing a strategic petroleum reserve in Canada. Our assessment provided a comprehensive description of the issues associated with the logistics, implementation and maintenance of a strategic reserve of crude oil and furnace oil. Our report formed part of a discussion paper that provided background facts and a conceptual framework for a workshop involving a range of government and industry stakeholders. Canadian Middle Distillate Infrastructure Study We were engaged by a biodiesel producer to conduct a comprehensive evaluation of the Canadian middle distillate production, supply, distribution and marketing infrastructure. Our analysis assisted our client in identifying the opportunities and challenges that would present themselves in the course of developing a strategy and plan to integrate biodiesel into the existing conventional middle distillate logistical and marketing infrastructure. Biodiesel Distribution Study We conducted an assessment for a national industry association to determine the challenges associated with the integration of biodiesel into the conventional distillate fuel distribution infrastructure in Canada. Our assessment considered the potential impact of a biodiesel blend mandate on overall distillate supply in Canada. PETROLEUM INDUSTRY INTRODUCTORY SEMINARWe have provided a hundreds of individuals and dozens of organizations across North America with a comprehensive two-day familiarization workshop into the Canadian and US petroleum refining and marketing industry. Clients have included petroleum employees, lawyers, investment analysts, and third-party vendor organizations. CIVIL LITIGATION EXPERT OPINION AND TESTIMONYWe have appeared and/or prepared submissions in support of a variety of civil litigation matters relating to petroleum marketing. In all cases, we have succeeded in bringing clarity to often-clouded issues. GOVERNMENT BRIEFINGSWe have conducted well over 20 comprehensive briefings to governmental organizations at ministerial and senior departmental levels, on the issue of petroleum marketing competitiveness. This has included briefings to Federal caucus committees, task forces, provincial governments, and several municipal governments. |
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Unique Perspectives on the Petroleum Industry |
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MJ Ervin & Associates / Kent Marketing Services |
