A feasibility study of investing bunker oil equipment for oil company's customers

Abstract

At present, every company that wants to invest in expensive projects have to analyse and calculate a feasibility of the project before investment. This feasibility study will protect ride that will occur after the project finishes. Same as oil companies, they would like to invest for their customers who need to use fuel oil in production. In this dissertation, the fuel oil grade A is studied. Because each factory consumes high volume of fuel oil per month, so the oil companies would like to offer storage tanks for the customers. This offer will make the customers choose the service from each oil company. There are two sizes of storage tanks that are studied in this dissertation. From the feasibility study, this dissertation studied about factors that affect the investment of the oil companies and studied the feasibility of project. Conservative method is applied in this study. It used the least values of the factors from past records. So, the result from this study is the least values when it is compared with the actual result values from the future records. After study, the result of this dissertation shows that it is economically worth the investment. When the result shows like this, the actual result that calculated from the actual factor values will be covered the investment faster than the result from conservative method. Because this dissertation would like to offer the best benefit for oil companies, the charts of unit margin and volume of fuel oil grade A per month as Net Present Value equal to zero for each storage tank are calculated. These charts can help oil companies set the least margin that can cover the expense of storage tanks at the end of year 5th of the project. Especially, if oil companies set the margin more than the basic margin, it will cover the expense faster.