Development Prospects and Strategy
MCW Energy Group Energy Corp. is aimed to become one of the world’s leading vertically integrated oil & gas companies. Main activities of the Company are exploration and production of oil & gas, production of petroleum products and petrochemicals, and marketing of these outputs. Most of the Company’s exploration and production activity is located in USA, and its main resource base is in Utah and distribution in California. MCW Energy Group Energy plan to acquire it’s own refinery, gas processing and petrochemical plant.
- MCW Oil Sands Recovery LLC (“MCWOSR”) in partnership with Amerisands is established to commercialize a proven, solvent-based extraction process for Utah oil sands. Through execution of this business plan, MCWOSR will become a profitable supplier of oil to one or more of the major refiners.
- McWhirter Distributing Company, a long-standing distributor of gasoline and diesel with a substantial presence and share of market in Southern California, has business relationships with all of the major refiners. McWhirter’s strategic intent is gain scale to access economies of scale in purchasing, transportation and administration. Sustainable pricing advantages gained through MCW Energy Group holdings, beginning with the Utah oil sand operation, create opportunities to gain market share and achieve the desired, larger-scale operation.
- Because it will sell oil to, and buy fuel from, some of the same refiner(s), MCW will create commercial leverage for both its oil production and fuel distribution businesses. The Company can guarantee markets for the oil it sells to refiners, and it can strongly influence the supply and pricing of the fuels it buys from refiners for sale to its retail customers. In essence MCW is positioning itself to outsource refining to the lowest bidder.
- MCW will also be in a position to reduce cost of goods by swapping quantities of oil and fuel across supply and delivery contracts to optimize transport costs.
At the beginning of 2010 the Company’s marketing network encompassed several countries, including Russia, the near-abroad and European countries (Azerbaijan, Ukraine).