Oil, gas and coal are today the most widely used sources of energy and together represent the largest traded energy commodities in the world. These primary resources are almost exclusively never used in their raw state but are transformed into end use products. Oil & gas are ubiquitous in our modern world with uses spanning from energy to shelter and clothing to food and medicines. Our modern society depend on these energy sources and would collapse if these were to be reduced in any way. The supply and distribution of oil and gas are concentrated in certain regions in the world and their price fluctuates in most cases unpredictably.
Oil price instability and hence oil supply and demand have been fluctuating since the early seventies. These fluctuations have been attributed to disruptions in the oil supply either due to regional conflicts or directly by oil producing governments. Other causes for these oil price variations are due to both regional politics but more importantly due geopolitics. OPEC and lately OPEC plus have attempted to stabilize oil prices by adjusting their production. The USA has also joined this price stabilization role, by lifting their oil export ban in2015, that was put in place in the early seventies. USA’s regional surpluses from increasing shale oil production and by releasing their strategic petroleum reserves, have served to both stabilize and to wield a greater influence on world prices.
Natural gas prices have also experienced a similar fate in price fluctuations to those of oil prices, since gas prices are in the most, linked to a crude oil benchmark.
The 10-day accelerated mini-MBA in oil and gas energy management course, aims to explain the reasons behind anergy price fluctuations with a view of reducing inherent industry risks, and hence reduce the likelihood of producers and other stakeholders, incurring financial distress.
This training course will feature:
Understand all the value-added steps from the wellhead through to oil & gas processing, refining, storage transportation and retailing
Gain an understanding of the ways the oil and gas industries have organized to operate effectively and efficiently
Understand the geopolitics of Oil & Gas and the major challenges facing the energy industry
Learn about the important issues facing our industry and strategies used to address these issues
Develop the necessary skills to evaluate and make effective decisions related to the oil & gas industry
Build knowledge as to the nature and challenges facing the oil and gas industry
Examine the industry structure with specific emphasis on the whole value chain
Understand the fundamental economic links concerning the upstream and downstream businesses
Develop the skills necessary to evaluate risks and opportunities and make effective decisions related to oil and gas
Negotiate through the complex environmental challenges and build a robust strategy for the Transition to a Low-Carbon Economy
What are the goals?
By the end of this Coventry Academy training course, participants will be able to:
Analyze and examine the nature and challenges facing the oil and gas industry
Understand the key players and commercial drivers
Examine the complete value chain of the oil & gas industry structure
Grasp relevant economic, technological, environmental, legal and social trends
Understand framing agreements including joint ventures and product sharing contracts
Examine the importance of effective project planning and execution including risk management
Understand the economics and drivers of the oil & gas industries
Build cash flow analyses for various upstream oil & gas projects as well as downstream LNG production facilities and Refineries
Conduct project appraisal and risk assessments for this unique energy industry
Comprehend the environmental issues and challenges of the fossil fuel industry
Strategize the future direction by utilizing the natural gas as the main transition fuel
Grasp how ESG Environmental, Social, and Governance, is attempting to shape the future of the fossil fuel industry and how it fits withing globalization
Who is this training course for?
This Coventry Academy training course is suitable to a wide range of professionals but will greatly benefit:
Planners and Investment analysts
Strategists and Economists
New entrants to the Oil & Gas industry
Oil and Gas professionals:
Engineers
Senior and middle managers
Accountants and finance professionals responsible for financial accounting, treasury, internal audit, budget preparation and management reporting
HR, contracting and procurement and IT professionals
Line managers with strategic planning and operational budgeting responsibility
How will this training course be presented?
This Coventry Academy training course will utilize a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented. This includes expert input, videos, case studies and class exercises.
Course Outline
Day One: Origin and Nature of Petroleum
The oil and gas Industry
Fundamentals of organic chemistry
Definition of Petroleum
Origins of Hydrocarbon Deposits
Basic petroleum geology
Types of Well
Exploration Methods/ activities
Day Two: Hydrocarbon Production Operations
Oil and gas field development
Oil & Gas Production
Surface treatment and storage
Enhanced oil recovery
Logistics of Oil & Gas – Transportation and Storage
World’s Trade Flows
Transportation Agreements
Day Three: Oil Companies, Corporate Relationships and Structures
National and multi-national oil and gas companies
Operating companies and service companies
Major International Oil Companies
Integrated and non-integrated companies
The Energy Information Administration (EIA) and the International Energy Agency (IEA)
Organization of Petroleum Exporting Companies (OPEC)
Day Four: Global Energy Markets & Pricing
History of oil prices and how the benchmarks evolved
The components of the oil price
Benchmarks / Formula Price
Price reporting agencies and their roles
Gas Pricing and evolution of Gas spot pricing
Commercial Structures and Fiscal agreements
Production sharing agreements
Concessions
Tax and Royalty
Farmout Agreement
Day Five: Oil & Gas Processing Operations
Oil refining operations
Refinery complexity and benchmarking
Refining processes
Distillation
Product improvement processes
Product conversion processes
Petrochemical Basics
Benefits of Integrating Refining & Petrochemicals
Day Six: Gas Processing Operations and Economics
Gas processing operations
Inlet separation
Sulfur removal and sulfur recovery
Mercury removal and nitrogen rejection
Dehydration and Dewpoint control
NGL recovery
Production of Liquified Natural gas - LNG
Basic economics and cost of gas production facilities including LNG production
Day Seven: Evaluation of Oil and Gas Opportunities
Estimating the cost of oil and gas facilities
Using historical costs
Cost curves
Adjusting for different sizes
Adjusting for different time periods
Estimating the cost of building a refinery (Case study/ Exercise)
Day Eight: Evaluation of Oil and Gas Opportunities
Building cashflow models to evaluate projects
Key Performance indicators
Net present value
Internal rate of return
Profitability indices
Unit Technical cost
Payback
Effect of Project Delay
Day Nine: Petroleum Project Economics and Risk Analysis
Geopolitics of oil & gas
Risk and Uncertainty
Risk and opportunity analysis
Derivatives and Hedging
The role of probability in decisions
Decision Tree Analysis
Sensitivity Analysis
Day Ten: Environment & Sustainability – Transition to a Low Carbon economy
Sustainable energy: myths and realities
Environmental issues and challenges facing the fossil fuel industry
Transition to a Low-Carbon Economy
ESG - Environmental, Social, and Governance and the WEF
The essence of International Oil Supply – Global Reserves, Production & Trade
The Future of the industry
Course Summary and close
The certificate
Coventry Academy Certificate of Completion for delegates who attend and complete the training course