Refinery And Petroleum Refinery National Case Results

Financial statements could be examined with varied degrees, as part of the client acceptance procedures Paige CPA got to perform a horizontal and vertical analysis, and financial ratio analysis of Vinand Petroleum financial statements. These procedures are not as in depth as other procedures used by auditors on financial statements, but these procedures may show areas of concern for auditors. From 2006 to 2007, Vinand’s long term debt tripled and its interest expense paid for the year did not reflect this drastic increase. This could mean that Vinand has taken on a large amount of debt with a low interest rate, which will not bode well for the financial health of the company in the future. In the same breadth,

Exxon/Mobil, one of the nation's leading oil producers, has its main refinery located in Beaumont, Texas. Each year, the residents of Beaumont/Port Arthur have to contend with the 39,000 pounds of pollution spewed each year by the Exxon refinery. Exxon's emissions are 385%

Legislation to Authorize the Administrator of the Environmental Protection Agency to Accept, as Part of a Settlement, Diesel Emission Reduction Supplemental Environmental Projects : Report (to Accompany S. 2146)." (2008): 1-4. UWSP Library Forward. Web. 01 Jan. 2012.

However, mostly these regulations have affect only those small refineries drastically to the point of a shut down and let only the big and powerful industrial companies’ take over and collect more profit. Jennifer L. Brown author of “The Market Effects of Going Green” states, “Additionally, trends in industry concentrations during the time period reformulated gasoline regulation compliance appear to have favored large refiners as small refiner market share decreased and industry concentration increased simultaneously from 1997 to 1999” (Brown 126). Meaning that regulations in California can be visible from the 90’s and have slowly increased, yet unnoticed to the public until now. While these large corporations have slowly eliminated its small rivals and maintain more of the power of the market in gasoline. Which later can have an effect of market failure.

Pioneer Petroleum Corporation (PPC) has two major problems that are interfering with the goal of the firm to maximize shareholder wealth. The first is that PPC has been calculating their weighted average cost of capital incorrectly, by incorrectly calculating their after tax cost of debt and their cost of equity. This miscalculation has subjected PPC to more risk and has hurt the company’s ability to make appropriate investment decisions. This has also led PPC to accepting investment decisions that should not have been included within their acceptable range. Second, PPC has been using a single company-wide rate for their multi-divisional company. In either instance the company is not

Exxon has agreed to pay $2.5 million to civil penalty and spend nearly $300 million just on pollution control technology along the Gulf Coast. Also along with the Trump Administration. Since this Tuesday, it is supposed to prevent tons of future pollution including benzene, which is a leading cause to cancer. Within ten years, Exxon violated the CAA by releasing harmful pollution in the air in five plants in Texas and three in Louisiana. They claim to fix their problem and pay attention to benzene outside of the plants. U.S officials said it will cut emissions of those toxic pollutants like benzene to $1,500 tons a year. Denver- based PDC Energy Inc will spend up to $20 million on upgrading equipment and pay to the civil penalty about $2.5

In late 1990, the group of Amoco Corporation and Apache Corporation had begun talking regarding the possible acquisition of MW Petroleum from Amoco to Apache. MW Petroleum Corporation is a wholly owned subsidiary of Amoco Corporation which has its own reserves, management team and with full ownership in geologic and engineering data. MW Petroleum, a free-standing exploration company that was even as large as some of independent oil companies. It operated exploration and development for well, approximately working interests in 9,500 wells in 300 production areas. The growth of MW was very attractive to the other investors, which company grows 30%

State courts have also come down on ExxonMobil for not adhering to environmental codes. ExxonMobil agreed to pay $225 million to the state of New Jersey after it was found that its Linden and Bayonne refineries had been polluting the surrounding environment (Snow, 2015). The case initially brought forth an $8.9 billion lawsuit against ExxonMobil for polluting wetlands and bodies of water, but was negotiated and eventually settled between the two parties (Dawsey, 2015). While the financial impact of this lawsuit is clear, it is also important to note that these standards exist to protect the welfare of ecosystems and the people and animals who live in them. Government regulation has been shown to be strict in these matters and the result is a crushing economic loss for ExxonMobil. Moreover, ExxonMobil loses credibility in these regions as residents are made aware of the environmental damages happening in their own backyards.

Since its industrialization, benzene is produced and used in many industrial processes, for instance, the production of plastics, resins, and dyes uses benzene as solvent. Similarly, chemical synthesis of phenol, cyclohexane, ethylbenzene and other aromatic hydrocarbons creates benzene as part of their production. In 1989, the Environmental Protection Agency of USA estimates the national emission of benzene in a total of 34.000 metric tons/ year. (EPA 1989). Identically, in Canada, the national benzene emissions were reduced from 50.860 metric tons/year in 1995 to 14.560 metrics tons/year, mainly due to regulation by The Canadian Council of Minister of the Environment(CCME 2012).

When entering into contract negotiations, the objective of each side is to obtain a contract of greatest benefit to their organization. This desirable outcome never happens by chance; it is always the result of careful planning. A critical part of this planning is understainding the role of power. This includes determining who possesses the power in bargaining, and establishing strrategies to bargain with individiuals who have more power than you. This power is needed to obtain the advantage in negotiating which will increase the liklihood of obtaining the goal (Lewicki, Saunders & Barry, 2011). Once in the heat of negotiation, it can be too late to try to catch-up on planning which failed to occur before the negotiation process began.

We used two analyses methods to identify background and to evaluate information that we have.

EPA requires domestic refiners to measure non-degradation requirements for conventional gasoline against their individual baselines while importers of foreign gasoline are assigned to the statutory baseline. However, in this programme, the non-degradation requirements apply to all conventional gasoline requirements, and not only to sulphur, olefins and T-90. Requirements must be met on an average annual basis. The Gasoline Rule limits ("caps") the volume of conventional gasoline that is subject to an individual baseline to the volume of gasoline produced in 1990 by that entity; all conventional gasoline produced in excess of the specific volume cap is measured against the statutory baseline. Domestic refiners and importers of conventional gasoline, unlike those of reformulated gasoline, will still be subject to different baselines after the entry into force of the Complex Model in 1998.

The oil and gas industry facilities and systems are broadly defined, according to their use, in the oil and gas industry production stream:

EPA attempted to create a treaty that would better the condition of the environment, “But after members of the powerful International Association of Independent Tanker Owners met with officials in Washington, the E.P.A. regulation was watered down” (The New York Times). They may as well have turned the proposal down. The current regulation for the low-grade-fuel ships will continue to negatively impact the neighboring air, land, and aquatic communities around the ports.

The oil refining industry is the backbone of a modern economy (Senevirante, 2006). Refined petroleum product remain fundamental to our economic life – in everybody’s daily life and economic activities of a nation (Wauquier and Favennec, 2001) ranging from domestic cooking to transportation, employment, etc. In terms of the refining capacity India ranks eighth in the world (U.S. EIA 2009). The private sector owns about 38% of total capacity while the public sector owns the rest. End of 2013, India has 4.35 million bbl/day of refining capacity, making it the second largest refiner in Asia after china. There are projections that there would be an increase in the refining capacity to 6.3 million bbl/day by the year 2017. Indian oil Corporation Limited is the major company which controls most of the refineries in India. In total there are 22 refineries in India. The total refining capacity of India has increased from 175.9 Million metric tons (MMT) in 2007 to 215.06 Million metric tons (MMT) in the year 2014. Reliance industries a private owned petroleum company has the largest refining complex in the world and it is located in Gujarat in India. It has a capacity of 1.24 million barrels per day. Based on the current proposed growth and projections India plans to add 1.6 million bbl/day of refining capacity by the end of 2015. India is steadily emerging as an international destination for oil refining as the investment is less compared to other Asian counterparts. According to