Key Management Skills for Oil and Gas Professionals

Introduction:

The oil and gas industry is experiencing unprecedented changes due to increased oil production and decreased demand. This extended period of low oil prices is reshaping the regional balance of power in the industry. The rise of shale oil and gas has necessitated new business models, prompting numerous mergers and acquisitions among international oil corporations across both upstream and downstream sectors. As global petroleum product sales rise, so do the complexities faced by the sector.

Objectives:

By the end of this essential oil and gas management skills course, participants will be able to:

• Grasp the structures and challenges within the current oil and gas sector.
• Identify the main contributors and players in business development within the industry.
• Explore the industry’s architecture through its various segments.
• Understand framing agreements, including joint ventures and production-sharing arrangements.
• Recognize the importance of effective project planning, implementation, risk management, and earned value management.

Training Methodology:

• Case studies
• Group discussions
• Workshops
• Simulations
• Role-playing
• Expert panels
• Scenario analysis
• Interactive exercises
• Project-based learning

Course Outline:

Unit 1: Oil and Gas Industry Commercial Drivers - Overview

• Familiarize with the oil and gas sector.
• Define upstream, midstream, and downstream operations.
• Understand oil exploration, evaluations, and reserve estimates.
• Explore structures and business models, including lifting and production costs.
• Consider strategic imperatives and options available to industry players.

Unit 2: Perspectives in the Oil and Gas Exploration and Production Joint Venture Arrangement

• Fiscal arrangements and contract methods for IOC’s and NOC’s.
• Reward structures and options.
• Understand oil and gas project management training and its industry relevance.
• Address front-end loading, hot spots, and obstacles.
• Learn about capital project planning and controlling.
• Apply a pragmatic approach to project control.

Unit 3: Project Economics, Cost, and Estimation of an Oil and Gas Project

• Examine project opportunities.
• Perform cash flow analysis and understand time value of money.
• Review profitability indicators such as NPV, IRR, UTC, and Payback periods.
• Conduct discounted cash flow calculations.
• Understand cost estimation and its influencing factors.
• Analyze earned value management in relation to project performance and reporting.

Unit 4: Risk Appraisal Application

• Define risk management and its importance.
• Address risk management in capital projects.
• Identify project limitations and technical/non-technical risks.
• Review and analyze the risk register.
• Identify and map stakeholders.

Unit 5: Oil and Gas Capstone

• Case study: The shale gas revolution in the United States.
• Examine world shale gas influences on global oil and gas scenarios.
• Analyze the geopolitics of oil and gas supply and pricing.