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Strategic Management in International Oil & Gas Business

Strategic Management in International Oil & Gas Business

5 days
GIP/SBA
Sessions
This course is not scheduled.
Who should attend?

Audience

    • 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.

Level

  • Foundation
  • 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.
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 & 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”.
Course Content

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.
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Ways & 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”.