Case Study: Midstream Logistics Company

Company Overview

A Fortune 500 midstream logistics and marketing company engaged Rainmaker’s market entry expansion program to gain dominance in the Western Canadian crude oil market. Our client controls the largest terminal networks of petroleum products and renewable fuels in the United States. Their operations and infrastructure have grown in strategic regions throughout the United States and now Canada.

The Challenge


Our client aimed to establish a dominant presence as a go-to pipeline-alternative for Western Canada’s increasingly vibrant oil and gas industry. The company’s objective was to source and transport crude oil from Western Canada into the United States.


Results


1. Became a recognized leader in crude oil logistics and marketing company in Canada
2. Established an active Canadian crude oil marketing office in Calgary
3. Retains an active network of Canadian crude oil producers and partners
4. Strategically located logistics infrastructure, including extensive transportation terminals and storage facilities
5. Built large customer base in Canada, and now serves Canadian producers and oil refineries in the United States

 

Our Process

Phase One: Engage

Rainmaker conducted an in-depth analysis of the crude oil market in Western Canada. Our sources for analysis included, but were not limited to, oil production data, industry activity, producer/operator database, oil and gas marketing intelligence, transportation infrastructure and intelligence, major heavy oil, and oil sands EOR project summaries.

Through executive interviews, Rainmaker identified challenges faced by producers while marketing their crude oil. These insights allowed our team to design the right strategy for our client to provide a differentiated service offering to the industry. We then tested the client’s value proposition with potential producers who would or could consider rail as a mode of transportation to the market.

Phase Two: Design



Phase Three: Launch

Our client made in-market visits on a monthly basis in order to meet and connect with industry stakeholders. Throughout their visit, Rainmaker set up the following meetings for our client:

  • 10 Oil Sands Producers
  • 20 Oil and Gas Producers
  • 3 Pipeline Operators
  • 7 Potential Partners (Marketing Crude Oil Firms)
  • 1 Provincial Marketing Crude Oil Department (BRIK Bitumen Royalty-in-Kind Program)

Connecting our client to a sufficient number of crude oil producers allowed the company to open and staff a Canadian office in Calgary, Alberta. Rainmaker accelerates our clients success through the following: 

  • Conducting high level assessment of Acquisition opportunities
  • Conducting a high level review of crude oil producing areas serviced by rail operators
  • Provide strategic introductions to producers seeking rail transportation alternatives
  • Guidance and assistance in selecting and establishing strategically advantageous locations for rail transportation of crude oil
  • Guidance and assistance establishing a permanent Canadian crude oil marketing business



Phase Four: Accelerate