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 & Gas industry.
- The participants will participate actively as well in the various lectures they will have to cover the economics of the Oil & Gas value chain as well as the management tools used in the industry; putting everything back in perspective with their company’s business.
- 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 & Gas industry, from the exploration well to the final products,
- understood the fundamental management tools and decision processes in an international Oil & Gas company,
- applied practical decisions and experienced the risk of doing business in the Oil & Gas industry on a worldwide scale through a computer “Strategic Management Game”.
- Participants need to be comfortable with the use of Microsoft excel.
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 & 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 & 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.
- Case study: How to price & Hedge 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.
- Case study: working in teams, participants have to calculate refining margins and the main operating indicators.
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.
- Case studies: participants have to evaluate the economic profitability of a gas pipeline project & LNG project.
STRATEGIC BUSINESS 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.