Global Management in Oil and Gas

Introduction:

The oil and gas industry is complex, technical, and often surrounded by significant capital along with a plethora of uncertainties and risks. The petroleum business faces increasing complexity, pricing instability, and heightened competition.

In this course, participants are exposed to various managerial challenges currently faced by both upstream and downstream sectors. They enhance their understanding of business management through the integration of modern business tools.

U.S. recessionary factors may not support upstream industries when crude oil prices decline, while refinement industries adopt biotechnological processes that allow for adjustable refinery margins. Outsourcing petrochemicals also boosts refining efficiencies.

There is a growing demand for functional cross-development managers to effectively manage exploration, drilling, production, refining, and petrochemical processes, as well as oil and gas trading, marketing, and distribution across integrated upstream and downstream segments. This course covers all these essential multi-functional skill sets and business strategies.

Objectives:

At the conclusion of this oil and gas management course, participants will:

• Understand all the steps in the oil, gas, and liquefied natural gas (LNG) value chain, from exploration and production to marketing and trading.
• Advance their corporate knowledge to further their careers on the leadership ladder.
• Facilitate comprehension of Upstream and Downstream technical and economic efficiencies through new technologies.
• Understand the financial aspects of the petroleum industry, including investment appraisal, risk management, and project evaluation.
• Critique fiscal terms versus fiscal regimes to deepen their understanding of business.
• Identify important agreement types in upstream and downstream businesses, such as sales and distribution contracts, marketing, and trading agreements.
• Augment their knowledge of downstream business perimeters, including product quality, pricing, refinery margins, and logistics.
• Comprehend foreign total netback, petroleum futures, oil/tank hedging, and price control mechanisms.
• Review the technical, commercial, legal, safety, and environmental features of the oil industry.
• Engage in conversations with clients and colleagues using industry-specific terminology.

Training Methodology:

• Classes
• Case studies
• Open class discussions
• Interactive sessions
• Simulation exercises
• Animation

Course Outline:

Unit 1: General Industry Overview and Basic Concepts:

• Introduction to the oil and gas sector
• Petroleum industry dynamics and future trends
• Knowledge in oil and gas geology
• Oil and gas prospecting (exploration)
• Drilling operations

Unit 2: Upstream Success Factors:

• Technological advances
• Well evaluation
• Management of well completions
• Time-lapse reservoir depletion mechanisms
• Oil and gas surface facilities
• Logistics
• Oil and gas facility servicing
• Oil and gas reserves

Unit 3: Profitably Managing Upstream Business:

• Reservoir management
• Crude oil refinery products and processes
• Legal framework of the industry
• Project economics
• Oil price risk management

Unit 4: Upstream Production Contracts and Fiscal Systems:

• Relationships between oil companies and host governments
• Understanding petroleum fiscal systems
• Identification of different types of fiscal terms and their application
• Concession (royalty/tax) contracts
• Production sharing contracts
• Service contracts and joint venture contracts
• Review and comparison of different fiscal systems in the world for the petroleum industry
• Fiscal options and trends for liquefied natural gas (LNG) projects

Unit 5: Petroleum Economics, Risk Analysis, and Project Evaluation:

• Petroleum dynamics in global, regional, and OPEC production scenarios
• Profitability indicators for the oil and gas business
• Investment selection criteria and corporate portfolio management
• Risk and uncertainty analysis in capital investments
• Project evaluation based on risk economics
• Fundamental considerations in petroleum project evaluation
• Investment decision-making techniques

Unit 6: Petroleum Refining, Refined Products, and Petrochemicals:

• Introduction to the petroleum downstream industry
• Crude oil physical and chemical properties
• Criteria for selecting crude oil for refineries
• Importance of petroleum refining
• Major refinery processes and refinery units
• Simple hydroskimming refinery
• Deep conversion coking refinery
• Refinery optimization

Unit 7: Global Oil Supply and Petroleum Economics:

• Additional downstream links with upstream industry
• Core of international oil supply: reserves, production, and trade
• Introduction to oil economics
• Transporting crude oil: tankers and chartering
• Price structure outline and pricing regions
• Crude oil market
• International crude oil supply-demand equations and price determination
• Evolution of crude oil pricing over the last 50 years
• Marker crudes and crude oil benchmarks

Unit 8: Downstream Logistic Value Chain Optimization:

• Key issues in crude oil sale and purchase agreements
• Crude oil refining basics and refinery modernization
• Importance of petrochemicals and their implications
• Integration of refining and petrochemicals for value chain optimization and ROI maximization
• Addressing risks associated with contracts and environmental issues
• Pipeline, storage, and transportation of crude oil and petroleum products in the downstream
• Economic and financial analysis of refining and downstream optimization

Unit 9: Market Structure and Trade Transactions in the Downstream Sector:

• Fundamentals of oil trade
• Retailers interface
• Management of downstream value chains
• Barrel economics and value maximization
• Options, swaps, futures, and forwards in oil market derivatives
• Defensive strategies and measurement of price risk exposure

Unit 10: Petroleum Downstream Perspective and Risk Mitigation:

• Risk management and hedging
• Pricing management
• Derivatives in oil and gas futures
• Hedging pitfalls for oil and gas companies
• Formulating a corporate fuel risk management policy
• Challenges in the petroleum industry and the evolution of space technologies

Conclusion:

Upon completing the global course on oil and gas management, participants will possess valuable skills and knowledge regarding industry operations, strategy, and finance. Pursuing a master’s degree or certificate in oil and gas management will provide detailed insights into global oil and gas production as well as the analytics surrounding the industry.

Studying oil and gas management equips specialists with the understanding necessary to operate in the global oil and gas field using modern, evidence-based decision-making. This course emphasizes acquiring management strategies that yield results in this critical sector, ensuring preparedness to address challenges and seize opportunities in the global oil and gas market.