Overview of Petroleum Economics

TRT/OPE

Who should attend?

  • This course aims to provide an overview of the petroleum sector so that participants may understand the oil operations and business, from upstream to downstream, and identify economic challenges.
Audience :
  • This course is geared towards people from the energy and petroleum sectors, industrial partners, business men and financiers, as well as public administration staff.

Level : Foundation

Course Content

  • INTERNATIONAL ENERGY SCENE

      • Energy resources: definition, characteristics, conversion factor.
      • Energy demand and supply: evolution factors (reserves, technology, etc.) and scenarios.
      • History of the oil industry.
      • Determinants impacting crude oil prices today.
      • Strategies of actors: producer and consumer countries, national, independent and international oil companies, international organizations (OPEC, IEA, etc.).
      • Financial and political stakes, geographical and environment constraints.
  • UPSTREAM

      • Stages and technico-economic aspects of the Exploration-Production.
      • Reserve evaluation.
      • Economic criteria and evaluation method of an oil project.
      • Oil contracts and principle of the oil rent sharing.
  • MIDSTREAM

      • Business practices and pricing.
      • Physical markets (spot, forward): operation, reporting agencies.
      • Introduction to incoterms.
      • Pricing a cargo, freight rates.
      • Financial markets (futures): operation, hedging.
  • DOWNSTREAM

      • Refining processes and units.
      • Refining capacities, projects, strategies of actors.
      • Economic aspects of the refining sector: investments, costs and margins.
      • Environmental constraints, alternative fuels.
      • Petroleum product markets and marketing.

Learning Objectives

  • Upon completion of the course, participants will be able to:
  • describe the different types of energy resources (conventional, unconventional, renewable & fossil),
  • interpret the evolution of the factors affecting the energy supply and demand (crude prices, technology, reserves, geopolitics, geography, environment, etc.),
  • identify the actors of the energy scene and their strategic guidelines,
  • describe the main steps of the upstream sector,
  • distinguish the different types of oil contracts and explain the main economic criteria to evaluate a project,
  • summarize the operation of the physical and financial oil markets,
  • explain the evolution of the refining sector and of the petroleum product markets.

Ways & Means

  • Quiz and serious game on the fundamentals of the energy sector,
  • Case study on the economic evaluation of an E&P project,
  • Exercises on cargo transportation costs, hedging, and refining margins,
  • Team games on factors affecting crude prices, the upstream sector, and oil trading.