Informational Interview Assignment

Informational Interview Assignment

1.     Contact Name: Steve Haugenes

2.     Contact Title: Director of Wholesale Natural Gas

3.     Method of Contact:

Cell: 732-750-6000

            Email Address: SHaugenes@hess.com

4.     Company: Hess Corporation

5.     Three bullet points with your takeaways from the informational interview:

·      Mr. Haugenes works in the natural gas specialization of the Hess Corporation. He is the person who organizes distribution for the oil, which comes from different refineries and drill sights such as Texas and the Gulf of Mexico. He told me there were multiple ways in which this gasoline can be brought to the consumers. Either it can be delivered gasoline, which is “delivered” to say New York via pipelines, barges, and trucks or it can be bought in New York and transport is not needed. It is much cheaper to purchase gasoline elsewhere and then transport.    

·      The government regulates the pipeline grid that transports the oil. Pipelines can only make a certain amount of money, as it is a highly regulated business. This guarantees them a rate of return and also makes sure that they don’t charge the oil companies too much. Other companies besides Hess use these pipelines as well, as it is a national grid. Everyone uses a part of the capacity of the pipelines and each company rents the space they need for their oil.

·      Problems can arise, as there are the restrictions on pipelines. Maintenance on the lines and technical problems can cause the oil to not arrive at its set location on time and Hess will not be able to deliver when previously thought. They all deal with firm contracts to the buyers. This basically means that they guarantee the oil to be there and there are no negotiations. They are obligated to get them their gas. This means that Hess has to use other methods in order to get the gas to the consumer on time and must have backups for their backups. These other methods can include barges, tucks, and other pipeline systems that may be more expensive and would eat into profits.


-Ryan Parker