Strategic Advice Case Study

The Challenge: The management at our client company, a transnational integrated energy and utility provider with a paper oil trading business in Asia, had a gut feeling that there was an opportunity to enter the East of Suez physical oil market but needed hard data to provide a buy-in for the idea with Top Management in HQ. Furthermore, the client was looking to identify niche business opportunities rather than an opening in the market that would pit them against the major international oil companies and trading organisations.

The Solution: JBC provided the client with an independent assessment of the East of Suez oil markets for the time period under review. Our consultants assessed the developments of oil demand, oil supply, refining capacity expansions (and closures) and the resulting impact these developments would have on regional and country specific refined product balances and trade opportunities. In addition, the consultants used a peer review to assess feedback from a broad cross section of energy industry perspectives and opinions from Asian-based participants on the current state of East of Suez petroleum markets and trading. This resulted in a report that provided the client with pertinent, non-public information from credible industry sources that was a representative assessment of future market challenges, scenarios and opportunities.

Our Approach: JBC is an industry leader in forecasting developments in global oil and markets. Our ability to perform market outlooks is powered by a proprietary supply, demand and pricing model that has been developed over 20 years. The JBC model allows us to make accurate supply, demand and trade balance assessments on a product-by-product basis including regional and country specific import and export requirements. In addition, among our consultants we have industry veterans that give us access to high level decision makers in the industry that allow us to get inside information not freely available to other consultants.

The Outcome: Basis JBC’s reports the management of the Asian subsidiary were able to clearly identify physical oil market opportunities and challenges. Furthermore, the client was able to back up their initial gut feeling with hard data and put forward their business plan to the company’s Top Management. As a result the company is currently pursuing physical oil trading opportunities in the East of Suez markets.