EBF 301
Global Finance for the Earth, Energy, and Materials Industries

Lesson 5 Activities


Value Chain Activity

See text alternative below
Figure 1: Value Chain for Energy Commodities
Click here for a text alternative of Figure 1

Flow chart in the shape of an arrow.
Production & Gathering (Wellhead Cost, Gathering Fees, Fuel)

Leads to

Processing/Refining (processing fees, refining fees, inputs/outputs)

Leads to

Transmission (levels of service, tariffs, rates & fuel)

Leads to

Storage (levels of service, tariffs, rates of fuel)

Leads to

Distribution (utilities, end-users, residential, retail)

  1. Take a look at the value chain for energy commodities (Figure 1 above). Review the lesson slides and think about the various parts of the crude oil value chain. Do some research and extract 5 cost items associated with the value chain.

    For example: According to EIA, the transportation cost for shipping crude oil from Cushing, OK to the U.S. Gulf Coast, without pipeline constraints, is estimated to be around $3.50/bbl. (EIA 2017)

  2. We know that the amount of crude oil the US imports continues to decline due to increased domestic production, but, do you see demand increasing or, decreasing, over the next decade? What are your reasons for this stance? Provide charts, reports, and stat for your argument.

Grading Criteria

You will be graded on the quality of your responses. This question is worth up to 20 points on the EBF 301 grading scale; each question is worth up to 10 points.

Fundamental Factors

The Fundamental Factors activity is due as usual this week, at 11:59 pm on Sunday, and is worth 30 points on the EBF 301 grading scale. Please refer to the Fundamental Factors Instructions for additional information and grading rubric.


Return to Canvas to complete the L5 Quiz.

Submitting Your Work

Value Chain Activity: Submit your work as a Word document to the L5 Activity on Canvas.

Fundamental Factors: Submit your work as a single Word document to the Lesson 5 Fundamental Factors Activity in Canvas.

Quiz: Take the quiz in Canvas.