Strategic Analysis & Planning

Kent Group Ltd can add an outside, knowledgeable and experienced perspective to your existing strategic planning process, one aided by a wealth of data and other analytical resources familiar to us.

Project Portfolio

Overview of Western Canadian Refining & Product Markets

We were approached by a private company focused on the petroleum refining and marketing business in the United States, to undertake an examination and analysis of the current and future supply/demand balances for refined products in western Canada. Our report provided a deep understanding of the unique attributes that characterize the refining markets in western Canada including an overview of the supply/demand infrastructure and balance for both current and projected periods.

Diesel Crack Spread Analysis

We were engaged by a Canadian crude oil refining company to provide an independent review of the historical crack spread between the crude benchmark (WTI) and the wholesale price for diesel in western Canada. Our report provided analysis of the diesel crack spread including a projected five-year diesel outlook in western Canada.

Western Canadian Refining Industry Outlook

A Canadian company enlisted us to provide assistance to 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.

Strategic Petroleum Reserve Study

Natural Resources Canada engaged us 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

A bio-diesel producer contracted us 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 bio-diesel into the existing conventional middle distillate logistical and marketing infrastructure.

Assessment of Proposed Advanced Renewable Fuels Production Facility

We were enlisted in the due diligence process of an application for funding in the development of a second-generation ethanol plant in Canada. Our report provided a detailed assessment of the application and a general overview of the renewable fuels markets under consideration.

Various Site Assessments and Forecasts

Various parties have engaged us to provide comprehensive evaluations of proposed retail fuel site builds or proposed investments in existing petroleum sites. Our comprehensive analysis involves a thorough examination and modelling of the site trade area, area demographics, traffic flow analysis, site configuration and offerings to produce projections of expected fuel sales.  In some instances we are asked for forecast site projections. Our approach for volume projections uses a proprietary multi-variable regression model and index out over the forecast period using a proprietary demand forecasting model which regresses regional demand against a variety of factors including economic markers, area price data, and other information.

Strategic Review of Marketing Operations

A fuels marketing company contracted us to explore a strategic initiative that evaluated their marketer/associate relationships. We were able to provide a detailed report with a comprehensive analysis of existing asset mix parameters for other Canadian marketers and an assessment of their advantages.

Report on Retail Diesel Trends in Canada

A fuels marketer engaged us to provide a brief report on recent trends in the diesel market and provide an outlook for diesel fuel demand in the retail sector over the next decade.

Petroleum Industry Value Chain Infrastructure Overview

For a large North American fuel supplier, we conducted a comprehensive survey and review of Canada’s refining, products pipeline, fuels distribution terminal, commercial cardlock and wholesale bulk plant infrastructure. The resulting report was the first of its kind, providing a useful understanding of the 5 linkages between the various elements of petroleum logistics, and as a means of determining the challenges and opportunities for new enterprises such as biofuels producers, as to how to integrate into this infrastructure.

Market Potential for Distillate Fuels

For a multinational integrated oil company, we conducted an analysis and made recommendations regarding the market potential, logistics and price impacts in the case of introducing a new source of supply of distillate fuels as a result of a proposed new refining facility in the Canadian Oilsands region.

Western Canadian Diesel Market Analysis and Outlook

We were engaged to assist in exploring the market opportunities of producing refined products, specifically diesel, in western Canada. Our report examined the current (and future) markets for ULSD throughout western Canada, and provided a comprehensive overview of supply, demand, and the price/margin potential of ULSD in the western Canadian market.

Commercial Cardlock Infrastructure and Sales Performance

We undertook a broad survey of Canadian commercial cardlock sites and associated volume sales performance. Participating companies from all regions provided volume and outlet counts by province and in turn received a comprehensive benchmarking report of the Canadian cardlock industry.

Report on Canada’s Downstream Logistical Infrastructure

We were engaged by the government of Canada and two national industry associations to provide an update to a 2007 report on Canada’s downstream logistical infrastructure. Through industry research and the development and distribution of industry survey material, we produced an updated comprehensive report providing a complete overview of Canada’s downstream logistical infrastructure associated with the manufacture, transport, storage and sale of petroleum products in Canada. The report contains a complete inventory of Canada’s downstream petroleum logistical infrastructure, including: refineries, fuel terminals, bulk plant facilities, cardlock sites, as well as distribution of petroleum products by pipeline, rail, sea, and road. This report also includes detailed information on refineries, biofuel production facilities, biofuel blending, trans-shipment facilities, and airport fuel storage in Canada.  The full report is available using the link, “Canada’s Downstream Logistical Infrastructure“.