Reference no: EM132114432
CASE STUDY
CNG Pipeline Company
At the weekly brainstorming session, John Spychalski, president of CNG Pipeline Company (CNG), suggested that they build a new pipeline from Elizabeth, New Jersey, to the Midwest to move refined petroleum products, gasoline, and diesel fuel. Following some discussion, he asked the strategic planning group to consider the idea before the next brown-bag session.
Skip Grenoble, vice president for strategic planning, thought that John was not considering the cost and impact of this idea. How could CNG obtain land to build the pipe- line, let alone obtain the necessary capital to finance the project? Then there was the question of the existing refineries located in Ohio, Indiana, and Illinois. Skip knew refined petroleum products were being transported from the Gulf of Mexico refineries via barge and pipeline to the Midwest market areas currently.
Skip turned over the project to Evelyn Thomchick, chief strategy analyst, to develop a preliminary analysis of the viability of building a new pipeline. In the span of six days Evelyn found the following strategic issues for the project:
• At least four Midwest refineries were being planned for closure within the next five years because of environmental and cost considerations.
• A number of major refineries were considering building new refineries offshore, closer to the sources of foreign oil. Both cost and environmental considerations suggested this consideration.
• The New Jersey–Midwest corridor was one of the most-developed land regions in the United States with the highest land values.
• The demand for refined petroleum products was expected to increase, but the keen interest in alternative sources of energy, new oil fields in several states, more fuel-efficient cars, and sustainability issues were matters of some concern.
• The project would require approximately 10 years to complete, including the time to obtain land via the eminent domain process.
• The capital requirements for the project were estimated at $800 billion. CASE QUESTIONS
1. Do you feel the project has any merit for further investigation? Why or why not?
2. What likely impact will the new Shale oil fields in New York and Ohio have on the economic viability of this proposal?
3. What is your political assessment of building a pipeline that will traverse five states?
|
What is the significance of each of different types of value
: Valuation of a firm's financial assets is said to be based on what is expected in the future, in terms of the future performance of the firm, the industry.
|
|
Java program that reads two diagonal points
: How do you make a Java program that reads two diagonal points, say p1 and p2, of an up-right rectangle and finds both the smallest circle containing
|
|
What is the theoretical form of the variable
: PSY2040 Human Information Processing - University of southern queensland - What is the theoretical form of the variable - What is the operationalised form
|
|
Describe implementation process of new accounting standards
: Describe the implementation process of new accounting and auditing standards. Your APA paper should be typed.
|
|
Brainstorming session-CNG Pipeline Company
: At the weekly brainstorming session, John Spychalski, president of CNG Pipeline Company (CNG), suggested that they build a new pipeline from Elizabeth,
|
|
Visit several different web sites
: Access your browser's security settings and configure the browser to refuse all cookies or to prompt you before allowing a cookie.
|
|
What the company should do regarding the location issue
: "Of course we want your final conclusion and recommendation on what the company should do regarding the location issue, as well," he says.
|
|
Research and write an analytical paper on the political view
: If you want to choose a philosopher not covered in the course, check first with your faculty member.
|
|
Association for landscape designers and contractors
: Assume that you work for PLANET ( the professional Landcare Network). a professtional association for landscape designers and contractors.
|