Independent Refiners and Marketers Spin The Value Wheel

Strategies for Sustaining Long-Term Growth

In the oil and gas industry, independent refiners and marketers are known for being lean, mean operators. However, the past five years have spawned widely varying fates for the independents, despite operating under similar industry conditions.

Independent Refiners and Marketers Spin The Value Wheel outlines A.T. Kearney’s value-building growth (VBG) framework as applied to the independents. Our research shows that the independents must sustain profitable growth. Just one of the independents analyzed for the five-year period from 1999 to 2003 could be classified as a value grower - Valero.

Yet even Valero vacillated among the quadrants from year to year during the period. We believe that U.S. independent refiners and marketers can define and pursue a coherent strategy to achieve consistent value-building growth. This paper discusses how.