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E&P Companies in Changing Environment

1 day ENE/ICCE
Level
Proficiency
Audience
  • Oil & Gas professionals with already a good understanding of petroleum markets.
Purpose
  • This course provides an understanding of risks and mitigating strategies to adapt to a changing Oil & Gas environment.
Learning Objectives
  • Upon completion of the course, the participants will be able to:
  • identify the main economic, market, environmental and political forces driving Oil & Gas demand, supply, and prices,
  • understand the different Oil & Gas prices scenario (including “Black Swan” scenario),
  • analyze the impact of Oil & Gas prices on projects and areas,
  • apprehend the evolution of E&P companies strategies in uncertain environment.
Prerequisite
  • Basic knowledge in the areas of oil markets.
Ways and means
  • Unconventional LTO project analysis & cost cutting simulation.
  • Discussion on E&P strategies.

HYDROCARBONS IN THE GLOBAL ENERGY MIX
  • Oil & gas in energy demand.
  • Efficiency and consumption: any pic demand in the horizon?
  • Oil & gas prices impact on petroleum demand.
OIL & GAS SUPPLY (per area & types of resources): ECONOMICAL, FISCAL, GEOPOLITICAL, TECHNICAL & SOCIAL ISSUES
  • Oil & gas supply present status and short term prospects.
  • Contribution of “new resources” (conventional, LTO, tar sands, extra heavy oil, deep and ultra-deep).
  • Breakeven and financial specifications of projects (Pay Out time, financial exposure, etc.).
  • Impact of the price collapse on the financials; rent sharing between governments and companies.
  • Beyond the prices, what are the geopolitical, technical and environmental risks?
FUTURE PRICES & PROJECTS: AFTER THE STORM
  • Oil & gas prices scenarios (BP, EIA, EM, IEA, OPEP, etc.).
  • Black swan scenarios.
  • Key issues:
  • Will OPEC lose control?
  • New gas price mechanism?
  • Will Brent and WTI gap narrow?
  • How the financial markets will impact crude oil prices?
  • What is the link between USD and crude oil?
IN THE MIND OF E&P PLAYERS
  • E&P companies’ strategy: being aligned with shareholders (private or public) & lenders.
  • Value creation: Economic decisions & economic assumptions.
  • Oil & gas E&P strategy in evolving environment:
  • Portfolio management,
  • Reorganization, outsourcing, Business Unit strategy, etc.
  • Defensive mergers.
  • Assets mutualisation and partnership.
  • Shareholders satisfaction (dividend, share buyback, split).
  • Cash management.
  • New strategic developments.
  • Cost cutting.