Strategic Management in International Oil & Gas BusinessGIP/SBA

Who should attend?

  • 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.
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

Course Content

  • INTERNATIONAL OIL ENVIRONMENT

      • 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

      • 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

      • 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

      • 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

      • 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

      • 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 and LNG project.
  • STRATEGIC BUSINESS GAME

      • Introduction to strategy and financial management.
      • Introduction to the strategic game: participants are introduced to the use of strategic tools.
      • Communication and workshop:
      • Participants analyze their respective situation (SWOT analysis) in each of the branches (upstream, refining, retail and petrochemical).
      • Participants have to implement their decisions and evaluate its impact through the use of an Excel simulator.

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”.

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”.