Western Oil & Gas Company: Strategic Financing for Energy Efficiency

This case study describes a scenario where the Western Oil & Gas Company evaluated a $2 million capital improvement project to upgrade motor systems at its Richmond, California refinery to improve energy efficiency and reliability.

• Western Oil & Gas Company considered a $2 million capital improvement project in May 1997 to upgrade motor systems at its Richmond, California refinery. While the project promised to increase energy efficiency and improve equipment reliability, it was initially deemed unwise because the diversion of resources risked disrupting 24-hour plant operations and the project did not compete favorably with other capital expenditures.
• As of 1997, Western Oil & Gas Company was a Fortune 50 company with revenues exceeding $40 billion and a net income over $3 billion. The company produced more than 1.5 million barrels of oil and gas daily, with 250,000 barrels processed at the Richmond refinery, which primarily produced gasoline.
• To address the risks and benefits of the motor system upgrade, Western engaged two external partners: an energy services company (ESCo) called Energy Services and a specialized financing company called ABB Energy Capital. These partners helped the plant manager evaluate financing options regarding the project's costs, benefits, and risks.

APA

Briscoe, F., Sanusi, H., & Archampong, O. (2002). Western Oil & Gas Company: Strategic Financing for Energy Efficiency. World Resources Institute. https://pdf.wri.org/bell/abstracts/case_1-56978-448-8_abstract_version_english.pdf

Chicago

Briscoe, Forrest, Hakeem Sanusi, and Opoku Archampong. Western Oil & Gas Company: Strategic Financing for Energy Efficiency. World Resources Institute, 2002. https://pdf.wri.org/bell/abstracts/case_1-56978-448-8_abstract_version_english.pdf.

Wikipedia

{{cite report |last1=Briscoe |first1=Forrest |last2=Sanusi |first2=Hakeem |last3=Archampong |first3=Opoku |title=Western Oil & Gas Company: Strategic Financing for Energy Efficiency |publisher=World Resources Institute |date=2002 |url=https://pdf.wri.org/bell/abstracts/case_1-56978-448-8_abstract_version_english.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{briscoe2002western, author = {Briscoe, Forrest and Sanusi, Hakeem and Archampong, Opoku}, title = {{Western Oil \& Gas Company: Strategic Financing for Energy Efficiency}}, institution = {World Resources Institute}, year = {2002}, url = {https://pdf.wri.org/bell/abstracts/case_1-56978-448-8_abstract_version_english.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }