This involves a class action case against an oil company that allegedly charged their clients for high-grade fuel product but delivered a low-quality oil blend. A fuel expert was sought to discuss the market value of virgin fuel oil in comparison to the market value of the fuel blend in question and assess how much the adulterated oil product was worth compared to what was requested and paid for.
Question(s) For Expert Witness
- 1. What is your familiarity/involvement with the oil industry?
- 2. Are you familiar with the market value of virgin fuel oil, unprocessed waste lubricating oil, recycled lubricating oil, and/or fuel blend oil?
- 3. How would you calculate damages based on available market information?
Expert Witness Response E-019331
I have had a 25-year career in midstream/downstream with direct responsibility for sales, trading, and depot operations for major oil companies. I have been directly responsible for functions that included product quality – lubricants, fuels, and specialties. I have a strong analytical background and financial acumen gained in securities trading with major high finance houses. I have first-hand experience trading and quoting for delivery of virgin fuels, blended fuels, cracked fuel oil, and intermediate fuels to industrial consumers, marine bunkers, and utility customers. I have been involved in the refined oils and lubricants value chain right from refinery to end users with regard to pricing, multi-modal logistics, and physical trading. I have consulted on cases involving rack delivery pricing disputes, feasibility studies on used oil disposal, and pricing of blended fuel oil grades for industrial and marine use. I am familiar with the pricing of recycled oil and its disposal for either blending with fuel oils or as input into recycling. I will be able to calculate damages from the standpoint of actual product delivered to the client as opposed to the contracted quality grades and standards. For other incidental damages, I will need input from the client and any quality/quantity surveyors they may have had representing them during custody transfer.