David G. Ownby
- Managing Director
- T: +1 713 353 5412
- F: +1 713 353 5456
- First City Tower
- 1001 Fannin, Suite 3950
- Houston, TX, 77002
- United States
- T: +1 800 349 9990
- F: +1 713 353 5459
- Bachelor of Commerce, Rice University
- Expert Testimony
- Litigation Support & Analytical Services
- Energy, Power & Products
David Ownby is a Managing Director in the Oil and Gas Energy practice of FTI Consulting and is based in the Houston office. During his 45-year career in the oil and gas industry, Mr. Ownby has had senior level responsibility for downstream-refined products supply, distribution, and marketing. With in-depth knowledge of oil and gas marketing, trading and processing, and front and back-office management systems, Mr. Ownby has successfully started companies to gather and trade crude oil, refined products, NGLs, natural gas, and coal. His skills include project development management, litigation support, and testimony on FERC regulatory matters. Mr. Ownby was the principal co-founder of Chalkboard, the energy industry’s first electronic trading platform for crude, refined products, and natural gas liquids (NGLs).
From 2006 to 2011, Mr. Ownby was a director at LECG, LLC providing expert witness, litigation support and energy consulting services. From 2004 to 2006, Mr. Ownby was a managing director for FTI Consulting/Lexecon providing mergers and acquisitions (M & A) expertise in the downstream energy sector, in addition to expert witness, energy consulting and trustee services.
From 1990 through 2003, Mr. Ownby owned and operated Ownby & Associates, The Ownby Companies and Ownby Energy Inc., all boutique hands-on energy consulting and marketing firms that specialized in providing services to large and small energy firms to support negotiation of energy contracts, market analysis, master limited partnership strategy, business development, mergers and acquisitions, energy risk management, financial analysis, energy trading, electronic trading platforms and strategy, fuels management and acquisitions, retail marketing, petroleum management systems, and energy sector development. These companies also provided expert witness services and litigation support to both law and energy firms.
The Ownby Companies managed and negotiated crude oil and gas contracts for Coho Resources production sales in Oklahoma, Mississippi and Louisiana as well as assisted in evaluation of acquisitions of reserves. Coho Resources, a public company, was the largest independent producer in Mississippi and one of the largest in Oklahoma. Mr. Ownby provided crude oil trading and marketing services to Adams & Affiliates and Birdcreek Resources, a crude producer in Oklahoma, Texas, and New Mexico, throughout the 1990’s.
In the mid 1990’s Mr. Ownby was the chairman of the board and owner partner of VOG Energy Inc, which with an agreement with The Williams Companies developed Chalkboard the first online electronic trading system for crude oil, refined products, and NGL’s. The Chalkboard platform was the standard in the industry for the electronic physical and paper trading of propane and NGL’s and is now part of the ICE Intercontinental Exchange energy electronic trading platform.
Mr. Ownby began his career in 1971 with Texaco Inc. in retail gasoline marketing in Houston, Texas. At the outset of the Arab embargo in 1974, he moved to OKC Corp., a small refiner, and was responsible for crude and product supply as well as federal regulations compliance. As vice president of marketing, Mr. Ownby was responsible for all sales, purchases and exchanges, scheduling of refined products and acquisitions of feedstock for the refinery. He was additionally responsible for all scheduling, exchange accounting, preparation and analysis of monthly DOE forms, and commercial allocation of the refinery’s production.
Upon leaving OKC Corp. in 1978, Mr. Ownby became executive vice president of Petroleum Trading & Transport, then the largest and oldest reseller and wholesaler of fuels in the mid-continent area. Mr. Ownby performed scheduling and had senior management responsibility for all trading, purchases & exchanges, futures & hedging, scheduling and distribution, legal, financial and credit analysis, data processing, new accounts, and acquisitions including all banking relationships and negotiations. Mr. Ownby had profit and loss responsibility for marketing and was successful in reaching a goal of one billion dollars in wholesale sales.
Mr. Ownby was also a partner in Saddleback Oil and Vance Private Drilling Company in Tulsa Oklahoma in the early 1980's which both successfully drilled and explored for oil & gas in Oklahoma and Texas. In the early 1980's Mr. Ownby was also a partner in Resource System Company, small private oil & gas well logging services company.
Mr. Ownby joined Enron Oil Trading & Transportation (“EOTT”) in 1987 as vice president of refined fuels. He started the refined product trading and wholesale marketing operations for the US and worldwide. EOTT became a shipper in all the major pipeline systems in the US, including the Colonial Pipeline System. His responsibilities included trading, negotiating long and short term supply and exchange agreements, as well as leasing and acquiring pipeline space and terminal and storage facilities. He managed the schedulers and worked with the pipeline companies on nominations and allocations. He also organized the refined products physical and futures trading desk and managed the traders with offices in Houston, West Coast, East Coast, Europe, and Far East. Additionally, he developed and managed Enron’s first alternate fuels division, “Enron Marketing Company”.
Merger and Acquisition Services
- Evaluated petroleum marketing assets for business growth.
- Provided extensive bid analysis and marketing strategies on major purchases for master limited partnerships (MLPs).
- Provided asset management services that focus on long-term growth to MLPs.
Marketing and Trading Services–Crude Oil and Refined Products
- Refinery Crude Oil Supply: Set up and managed purchasing and transportation operations for refinery crude oil supply.
- Crude oil gathering: Owned Ownby and Associates a crude oil gathering company to market crude from the wellhead, including benchmarking and quality controls. Negotiated and managed agreements to relocate crude from the wellhead to the first purchaser—or further downstream when in best interest of producer.
- Crude Oil Marketing: Provided crude oil marketing sales services for crude exploration and production companies in negotiations of sales contracts.
- Refined Product Supply: Managed refined product supply, distribution, and trading operations for a refiner.
- Wholesale marketing: Set up nationwide operations for distributing refined products into selected wholesale markets using common carrier major pipelines and local terminals.
- Retail Marketing: Set up and managed operations and business plan for retail gasoline marketing.
- Alternative Fuels: Established alternative fuels marketing company to sell to utilities, cogeneration companies, commercial accounts, and end-users in 40 states. (Enron Product Marketing Company).
- Trading Companies: Developed trading policy, authority levels and risk management system for domestic and international trading.
- Market Studies: Provided domestic and international studies on world crude oil production, transportation and marketing.
- Refinery Off-take Agreement: Provided consulting services and negotiation support and analysis for large independent refinery in Midwest on renegotiation of long-term off-take agreement with major oil company.
- Provided consulting services for wholesale-refined products marketing and terminal study for selected new markets for major gasoline and diesel reseller, refiner in US.
- Co-Authored Oil-Primer Understanding Today’s Crude Oil and Products Markets undertaken by the American Petroleum Institute (API).
- Provided strategic consulting study, analysis and introductions for a major Japanese conglomerate on possible mergers and acquisitions of US downstream energy assets.
- Foreign Corrupt Practices Act: Reviewed various international crude oil contracts to determine compliance with the Foreign Corrupt Practices Act for a large US refiner.
- Assisted in the marketing analysis and sale of a South Texas crude, condensate and natural gas pipeline right of way located in the Eagle Ford Shale.
- Assisted Motiva with crude and freight cost verification
- Provided expert consulting and economic analysis of proposed minimum allocation requirements for shipments in the Colonial Pipeline.
- Provide expert consulting to Fairway Energy on the connectivity of pipelines to the underground crude storage in the Houston area.
- Assisted in an efficiency study of gas markets for the New York Independent System Operator.
- Provided evaluation services to Penn West on its hedging strategies.
- Accounting Support: Managed supply accounting and inventory reconciliation support operations.
- Processing and Hedging: Managed processing and hedging operations for refined products, crude oil and LPG operations with conventional or NYMEX financial tools and techniques.
- Contract Negotiation: Used extensive supply chain operations experience for contract negotiations with the majors, large national independents, and regional oil companies to provide long term supply management supported by day-to-day spot market trading for inventory balance.
- Petroleum Purchasing: Provided purchasing and hedging cost control strategies (cement industry, convenience-stores, wholesale jobbers, and distributors).
Information Systems and Software Development
- Pricing: Developed Internet marketing model that compiled daily rack prices for Downstream Energy’s pricing strategy services.
- E-trading: Evaluated international electronic trading platforms for petroleum products marketing for Red Meteor.com.
- Entrepreneur: Co-Founded and designed Chalkboard, a joint venture with the Williams Companies, the energy industry’s first electronic trading platform for crude oil, refined products and NGLs.
- Coral Petroleum/Shell. Developed short and long term electronic trading strategies for energy commodities.
- Appointed as trustee to carry out FTC mandated orders to which multimillion dollar asset acquisitions/sales are subject to, e.g., Shell/Magellan Oklahoma City Terminal Held Separate order.
- Provided mediation services that enabled compliance with federal agency orders by assuring that terms needed for a divestiture approval were met by the respondents named in the order.
- Hudson Oil Refining v. Bear Stearns. Expert testimony support on refinery economics. (Glast, Phillips, and Murray).
- OKC Corp v. Department of Energy. Provided Grand Jury testimony for the Department of Justice.
- Oxy v. DOE. Testimony support on industry standards for old / new crude oil claims.
- Williams Companies and Santa Fe Pipeline. Testimony support to Federal Energy Regulatory Commission that supported market-based pipeline rates.
- North Sea Platform Case. Expert support for a venue change from Great Britain to the United States.
- Class Action Complaint for Equitable Relief and Damages Litigation. Advised law firm on industry standard operations practices for royalty evaluation disputes.
- Board of School Commissioners of Mobile County vs. Union Oil Company of California et al. US District Court for Southern Texas, 1998, Civil Action No. 98-0103-RV-C. Testimony and litigation support to law firm that represented Unocal (Armbrecht, Jackson, DeMouy, Crowe, Holmes and Reeves, LLC).
- Federal Trade Commission vs. Paul L. Foster and Western Refining, Inc. and Giant Industries, Inc. Provided Expert Report and testimony for FTC on merger.
- US Commodity Futures Trading Commission v. BP Products North America, Inc. Provided expert services for BP in settlement.
- BP Products North America, Inc Propane Direct Purchaser Antitrust Litigation. Provided expert consulting services toward settlement.
- ConocoPhillips Petrozuata B.V., ConocoPhillips Hamaca B.V., ConocoPhillips Gulf of Paria B.V. and ConocoPhillips Company Claimants vs. The Bolivarian Republic of Venezuela. Provided expert consulting in determining fair market value of client stake in expropriation of oil assets in Venezuela. Arbitration Case No. ARB/07/30.
- Turner Gas Company vs. Mark A. Harris, an individual; Services Group, Inc.; Kamps Company; Kamp’s Propane, Inc.; Economy Transport, Inc.; Wholesale Services, Inc;. and Kiva Energy, Inc., corporations; Provided export report pertaining to the wholesale propane industry.
- SemCrude, L.P. et al. Expert support and report to provide an overall explanation of the production, marketing, distribution and transportation of crude oil and natural gas from the wellhead producer to, eventually, the service station, including the commingling that occurs as the oil and gas are gathered and transported from the well-head producer.
- Lion Oil Trading & Transportation, Inc. vs. Statoil Marketing and Trading (US) Inc. Provided expert report on purchase and sale agreements and pricing.
- Morgan Stanley Capital Group, Inc. vs. Trafigura AG. Provided expert report on scheduling and book transfers related to petroleum products.
- Shell Trading (US) Company vs. Lion Oil Trading & Transportation, Inc. Provided expert report on purchase and sale agreements and pricing.
- BP Oil Supply Company vs. ConocoPhillips Company. Provided a preliminary report on pricing of contracted crude oil bbls that were not delivered.
- Exempla, Inc. vs. Spark Energy Gas, L.P. Provided expert report on natural gas retail contracts.
- Tesoro Refining and Marketing Company vs. EnMex, Corp. Provided expert analysis for wholesale marketing and refining in California.
- John B. Manning vs. Rio Energy International, Inc. Review and evaluation of an energy trading company involved in a shareholder oppression matter.
- Macquarie Terminal Holdings, LLC. vs. The Voting Trust for IMTT Holdings, Inc. and IMTT Holdings, Inc. Provided industry expertise in the determination of dividends to be distributed.
- PEMEX Exploracion y Produccion vs. BASF Corporation, et al. and PEMEX Exploracion y Produccion v. Big Star Gathering LTD L.L.P., et al. Provide industry expertise regarding the production, marketing, distribution and transportation of crude and natural gas condensate including the commingling and/or blending of crude oil and condensate as the crude oil and condensate are gathered, purchased, and transported from the well-head until the end user.
- Glencore, Ltd. vs. Copape Produtos de Petroleo LTDA. Provide expert report on hedging related to light reformate contracts and the alleged hedging losses associated with the cancellations of the contracts.
- Energy Transfer Partners vs. Enterprise Products Partners, LP, Enbridge (US) Inc. and Enterprise Products Operating LLC. Provide expert report on crude production, pipelines and storage in North America.
- Linden Holding Corp. vs. NuStar Terminals Operations Partnership, L.P. Provide expert report on the petroleum terminal storage marketplace and the general industry practice regarding connections to third party bulk liquid storage terminals.
- Gulf Coast Energy LLC vs. Bank of America Corporation, etc. Provide expert report related to spot contracts and the blending, trading and marketing of refined products at a storage facility.
- U.S. Commodity Futures Trading Commission vs. Byrnes, et al. Provide expert consulting to USFTC on trading practices including disclosure of information on specific trades by traders to other third parties.
- Pluspetrol vs. Blue Oil Trading. Provide expert report on losses incurred resulting from the alleged breach of contract due to disputes regarding product type and specifications for international cargoes.
- Plains All American. Provide expert consulting regarding the construction right of way of a crude pipeline through the state of Arkansas and the benefits of the proposed pipeline for companies or customers located in Arkansas.
- Federal Trade Commission vs. Paul L. Foster and Western Refining, Inc. and Giant Industries, Inc.; Case No. 1:07-cv-00352-JB-ACT; in the United States District Court for the District of New Mexico.
- Turner Gas Company vs. Mark A. Harris, an individual; Services Group, Inc.; Kamps Company; Kamp’s Propane, Inc.; Economy Transport, Inc.; Wholesale Services, Inc;. and Kiva Energy, Inc., corporations; Case No. 050905087; in the District Court of the Third Judicial District in and for Salt Lake County, State of Utah.
- Lion Oil Trading & Transportation, Inc. vs. Statoil Marketing and Trading (US) Inc.; Case No 08-11315 (WHP); in the United States District Court for the Southern District of New York.
- Morgan Stanley Capital Group, Inc. vs. Trafigura AG; Case No. 09 Civ. 1073 (GEL); in the United States District Court for the Southern District of New York.
- Shell Trading (US) Company vs. Lion Oil Trading & Transportation, Inc.; Cause No.2009-11659; in the District Court of Harris County, Texas; 270th Judicial District.
- PEMEX Exploracion y Produccion v. BASF Corporation, et al. and PEMEX Exploracion y Produccion v. Big Star Gathering LTD L.L.P., et al; Cause No. 410-CV-01997 and Cause No. 411-CV-02019, respectively; in the United States District Court for the Southern District of Texas, Houston Division.
- Energy Transfer Partners vs. Enterprise Products Partners, LP, Enbridge (US) Inc. and Enterprise Products Operating LLC; Cause No. 11-12667, In the District court of Dallas County, Texas 298th Judicial District.
- Linden Holding Corp. vs. NuStar Terminals Operations Partnership, L.P.; Case No. 14-198-000043-13, In the American Arbitration Association Commercial Arbitration Tribunal.
Understanding Today’s Crude Oil and Product Markets (Copyright 2006 Undertaken by API) [coauthored, 27 pages].