1. Assume that you have been ask to perform an examination and report on your findings, conclusions and opinions. Assume the following:
2. The industry is oil production (at a well-head), transportation, and refinement.
3. The transporter and refiner are one company.
4. The transporter refused to accept oil at the well-head for three months because of quality issues with oil from that well in previous months.
5. The oil refinery was at 60% of capacity during three months for which oil was refused.

Case Discussion - Consider the following questions:

• Is it appropriate to examine whether the oil producer's actions were justified? Why or why not?
• If oil quality is subjective, is it appropriate to examine oil quality? Why or why not?
• If oil quality is subject to machine testing and objective metrics, is it appropriate to examine oil quality? Why or why not?
• Is profitability and cost analysis of the oil production company during the three month shutdown relevant? Why or why not?
• Is profitability and cost analysis of the oil production company during period before and after the three month shutdown relevant? Why or why not?