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Strategic Management in International Oil & Gas Business

5 days ENE/SBA
  • The course is designed for high potential executives with minimum of two years experience. It is suitable to both technical and non-technical professionals who seek to develop good business awareness and understanding of the oil and gas industry
  • The participants will participate actively as well in the various lectures they will have to cover the economics of the oil and gas chain as well as the management tools used in the industry; putting everything back in perspective with their company’s business
Learning Objectives
  • Upon completion of the course, participants will have:
  • seen the main economic, market, physical, environmental and political forces driving energy demand, supply, and prices
  • connected the key links and terms of the oil and gas industry, from the exploration well to the final products
  • understood the fundamental management tools and decision processes in an international oil and gas company
  • applied practical decisions and experienced the risk of doing business in the oil and gas industry on a worldwide scale through a computer “Strategic Management Game”
Ways and means
  • This course is built on interactive presentations, exercises and team games
  • Working in competing teams, participants have to:
  • Evaluate and anticipate the driving factors of oil prices through the “Oil price game”
  • Rebuild the E&P chain of an offshore project
  • Take a quiz on natural gas business
  • Price a cargo of crude oil
  • Calculate refining margins and the main economic indicators
  • Evaluate the economic profitability of an oil field development, gas pipeline & LNG projects
  • Implement business decisions & evaluate its impact through the use of an Excel simulator “Strategic Management Game”

International oil environment 0.5 day
  • Energy demand and supply. Crude oil reserves and production
  • History of the petroleum industry. Role of main actors: OPEC, NOCs, IOCs, INOCs, IEA
  • Oil price evolution and long-term scenarios
  • Present and future constraints of the oil and gas industry (alternative energies, investments, etc.)
Upstream economics 0.5 day
  • Fundamental steps of the upstream business
  • Economic aspects and costs, risks
  • Understanding the E&P Value chain
  • Legal and fiscal framework for exploration-production (concessions, production sharing contracts, service contracts)
Natural gas economics 0.5 day
  • Natural gas reserves and production around the world
  • Main gas markets; their structures and constraints
  • Liquefied natural gas chain, economics and trade
  • Long-term sales and purchase gas contracts. Take-or-pay provisions and gas price formulas
Transport and international oil markets 0.5 day
  • International trade and shipping of crude and products
  • Various types of markets and contracts: long-term contracts, forward and spot markets
  • How to price a cargo of crude oil?
Refining economics & petrochemicals 0.5 day
  • Basic technical aspects. Development in refining capacity
  • Refining margins and costs
  • Evolution of products specifications and structure of demand
  • Inter-relationship between refining and petrochemicals
  • Main petrochemical sectors; environmental and economic trends
  • Coping with economic cycles
Project economics & decision analysis tools 1.5 days
  • Economic criteria for investment project evaluations (NPV, IRR, POT, etc.)
  • Global profitability analysis. Economic cost analysis
  • Introduction to risk analysis
  • Risk management, financial and cost management
Strategic management game 1 day
  • Introduction to strategy & financial management
  • Introduction to the strategic game: participants are introduced to the use of strategic tools
  • Communication workshop:
  • participants analyze their respective situation (SWOT analysis) in each of the branches (upstream, refining, retail & petrochemical)
  • participants have to implement their decisions & evaluate its impact through the use of an Excel simulator