Downstream - International Oil Sales & Marketing

5 days 12-16 Dec 2016, London UK £4,495.00 + VAT* Download brochure Add to basket

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Overview

The business of oil and gas is multifaceted, technically complex, highly capital intensive and often confronted with potential risks and uncertainties. The business of crude oil, natural gas and LNG is impacted by global events, world-wide supply & demand depended, and therefore truly international. Today’s oil companies’ are dealing with ever increasing levels of complexity and competition.  The innovative technologies in the recovery of oil and gas are also changing the landscape of petroleum industry. Integration of refining and petrochemicals to achieve greater efficiencies is yet another critical factor in the business. Managing international supplies, refining and trading of oil require several cross-functional skills. The continued low price scenario signals the survival of the fittest in the industry. To achieve maximum effectiveness, managers and professionals must continually expand their business knowledge and sharpen their skills. This programme is specifically designed to provide such business acumen using case studies, technical videos, and interactive participation.  In this programme you will study:
 

  • The basics of oil and gas exploration, production, and its recovery economics to fully understand this global business that fuels the global economy.
  • Fundamentals of oil economics and of crude oil transportation.
  • Basic Refinery operations, economics and the environmental aspects
  • Basic Principles in crude oil pricing and overview of crude oil and refined products markets.
  • Essential elements in crude oil and refined products sales contracts
  • The essential concepts and business practices of the international oil supply, transportation, refining, and trade in oil and gas industry.
  • Supply logistics - major international pipelines, shipping routes, and choke points.  
  • It seamlessly covers the wide-array of critical business functions, processes, and appropriately deals with the business practices and tactics to build the necessary business acumen.

PROGRAMME OBJECTIVES
 

  • Gain broad perspective of   global oil business, supply, transportation, refining & trading
  • Boost your understanding of the fundaments of oil business: quality, blending & valuation of oil for trade, freight and netback calculation & refinery margins calculations, vessel chartering, pipelines & terminals, etc.
  • Master the Total barrel economics, Oil market futures, hedging and futures, and price management considerations
  • Evaluate the technical, commercial, legal, safety and environmental aspects of oil business
  • Confidently discuss the technical terms, concepts and buzzwords with your peers and clients 

TRAINING METHODOLOGY
Participants will learn by active participation throughout the programme through the use of programme materials, case study exercises, quizzes, training videos and discussion of business cases issues in their organizations.


PROGRAMME SUMMARY


This 5-Day accelerated programme provides a wider management perspective of global oil business and highlights the success factors in each of its essential components. It follows the natural order of business, starting with its supply and transportation that fuels the global economy, followed by the critical refining and trading operations.    
The programme provides hand-on business cases to evaluate Crude Oil Value, Netback and Refinery Margin Calculations, Price Management, Transportation Costs, Sales Contracts, Total Barrel Economics, Product Quality, Economic Value of Pipeline, etc.  It simplifies through visual aids and simulation the complexity of several complex operations, such as, drilling, completion, refining, and transportation.  This programme is designed to suite the wide background of delegates.
The programme effectively deals with the core issues,tactics and essential concepts of successfully running the international oil supply, transportation, refining and trading business. 

 

 

Who should attend

  • Business Development managers
  • Corporate Planning professionals
  • Geoscience & Engineering professionals
  • Refinery professionals
  • Supply Planners & Scheduling professionals
  • Government regulators
  • Law professionals
  • Tax & Finance advisors
  • Auditing personnel  
  • Compliance officers
  • Equity analyst and Bankers
  • Joint Venture officers
  • Negotiators and Contracting professionals
  • Trading professionals

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

London
Mohammed Siddiqui

 Mohammed is a marketing manager with Saudi Aramco and has worked in the US, Europe and the Middle East. He has over 32 years of diversified experience in corporate planning, project evaluation, petroleum engineering, Enhanced oil recovery, reservoir management, reservoir simulation, supply planning, and demand forecasting, developing export sales systems for worldwide operations, international sales & marketing. Designed and conducted a corporate-wide course at Getty/Texaco: Planning, Analysis and Modeling System. He has also written several papers in various industry journals, magazines, and a research report for Stanford Petroleum Research Institute on the enhanced oil recovery for the United States Department of Energy (US DOE) Project. Past Program Chairman and Chairman of Society of Petroleum Engineers, Los Angeles Section. Member of SPE, AIChE, IAEE, and ASHRM. Honored as a President’s Scout with the prestigious certificate of merit and good conduct from the President of India, Mr. V.V. Giri.

Diplomas: 

B. Tech in Chemical Engineering with Petroleum Refining Minor (IIT, India)

M.S. in Petroleum Engineering (Stanford University, USA)

M.S. in Business Management (Stanford University, USA)

Certified Supply Chain Manager (CSCM, USA)

Venue

London

Central London Hotel (energy)

All Euromoney Energy Training courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.



We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

 

Day 1

Exploration, Production, Supply and Petroleum Economics

Introduction to Course

Introduction to How Oil was Formed

  • Origin, Accumulation and Migration Of Petroleum
  • Essential Requirements For Hydrocarbon Accumulation 

Fundamentals of Oil & Gas Geology and Petroleum Engineering

  • Introduction To Oil & Gas Geology
  • Simple Anticline Structural Trap
  • Barrier or Closure – Reservoir Traps - Reservoir Mapping
  • Oil & Gas Drilling Techniques
  • Types Of Drilling – Exploration, Delineation, Appraisal, Developmental, Maintain Potential Wells
  • Drilling Circulatory System – Safety And Environmental Impact

Well Logging and Well Completion

  • Tools and Techniques for Evaluating Oil & Gas Wells
  • Open and Cased Well Logs
  • Functions of Well Casing
  • Benefits of Horizontal  Well over Vertical well - Multilateral Well Completions

Essence of International Oil Supply – Global Reserves, Production & Trade

  • Introduction to global oil business - Exploration, Extraction, Refining, Marketing, Transportation
  • Global Oil Resources – World Oil and Gas Reserves, Production of Oil and Gas
  • Industry units – for the USA, Europe and Asia, Conversion factors 
  • Crude Oil Classifications
  • Crude Oil Quality Indictors, crude oil characterization by Assays
  • Crude Oil Distillation – Refined Products
  • Oil Industry Units and Conversion factors

Fundamentals of Oil Economics

  • Delivered price of crude oil  – the concept GPW (Gross Product Worth)
  • Net Refining Margin calculation
  • Value of Crude Oil and the Determining Factors in Crude Selection

Short Videos 
 
Case Studies 

Day 2

Transportation, Refining and Marketing


Fundamentals of Crude Oil Transportation – Tankers and Chartering

  • International Oil Tanker Sizes, Tonnage, and
  • Types of Charters and Charter Parties
  • Freight Payment, Chartering Mechanism, Voyage Charter, Time charter
  • Roles of Shipbroker, Shipping Agent, Bunkering, Arbitrage, Net daily Contribution

Basic Principles in Pricing and Overview of Markets

  • Causes of Oil Price Volatility
  • The History of Oil Price – Real and Nominal
  • The Future of Oil Price - Oil Imports & OPEC’s Production, & Consumption
  • The Future of Oil Price - Global Reserves Replacement Ratio
  • The Physical and Paper – Oil Markets
  • Price Markers of the World – Crude Oil Benchmarks:  WTI, Brent, Dubai/Oman, ASCI, OPEC Reference  Basket
  • Methods of Sale – Spot, Term
  • Regional Pricing – North America, Europe & Asia
  • Price Reporting Methodology – Price Report

Crude Oil Markets

  • History of Crude Pricing
  • Location of Pricing
  • Marker crudes

Refined Products Quality

  • Crude Oil Refinery – Size and Configuration – Skimming, Catalytic, Thermal Cracking
  • Refinery Yields by Crude Type, Refinery Margin Calc., and factors affecting Profitability
  • Key Refinery products and Specifications
  • Need for Blending and blending exercise
  • Prices at Pump, Oil & Gas Earnings Versus Other Industries , Return on Investments 

Refined Products Market

  • Product Pricing Determinants
  • Product Pricing Quotations
  • Product Pricing Spec-base
  • Product Pricing Assessments
  • Fundamentals of Product Trading

Short Videos 
 
Case Studies 

Day 3

Contracts, Sales and Marketing Logistics


Essential Elements in Crude Oil Sales Contracts

  • The Objective, the parts of Contract, and Contract Confirmation
  • Attributes and Buyer/Seller Responsibilities with INCO Terms – FOB, CFR, CIF, DES
  • Important Oil Contracts Clauses
  • Payment and Security
  • General terms and Conditions

Basic Refining II – Conventional Refinery Upgrading

  • Cat Cracking
  • Hydrocracking
  • Visbreaking
  • Coking  

Basic Refining III – Sulfur Reduction

  • Sulfur Reduction Methods – Lighter Compounds and Heavier Compounds
  • Hydroprocessing
  • Sulfur Reduction measures
  • Other Sulfur Reduction Processes

Contracts  – Elements of Risk

  • Identify areas of risk
  • Credit performance risk – LOC, Standby LOC, Parent company Guarantee
  • Operational Risks -   Vessel nominations, Quantity and Quality, etc.
  • Charter Party Risks

Basic Refinery IV – Economics & Environmental Aspects

  • Yields for Different Configurations
  • Value Contributions for Different Configurations
  • Investments costs
  • Environmental Considerations 

Primary Logistics

  • Pipeline transfers - Advantages and Disadvantages
  • Pipeline Scheduling
  • Pipelines Investment Considerations -  Tariffs and Operating Economics
  • Major Pipelines of the World
  • Storages
  • Losses – Net loss, In-Transit Loss, Inturn loss, Outturn Loss

 Short Videos 
 
Case Studies 

Day 4

Market Structures and Trading


Introductory Concepts in Oil Trading

  • Players in the Oil Market
  • Success factors in Trading
  • Risk Factors in Trading
  • Trading Objectives and Price Movements
  • Market Structures – Contango and Backwardation

Interface with retailers

  • Competitive Marketing – Primary and Secondary Supply
  • The Value Chain – E&P to the Customer
  • The Retail Market Place
  • Fully Vertically Integrated Oil Company Model
  • The Essential  Success factors in Retailing  

Downstream Supply Chain management

  • The Essential Success factors in Supply Management

Total Barrel Economics

  • Measures of Profitability
  • Net Marketing Revenue – Refinery Netback
  • The Cost of Supply and Total Barrel Margin
  • Transfer price – An Alternate Value
  • Typical Oil Company, Distribution and Marketing Costs
  • Maximizing Corporate Profits 

Oil Markets – Futures

  • Market differences – Forwards and Futures
  • Characteristics of Futures Contract 
  • What is Futures Market?
  • What is Margin Money?
  • How Futures are used?

Price Exposure

  • Trading For profit
  • Taking Buy or Sell Position – Long  Vs Short
  • Priced Vs Unpriced Exposure
  • What is Unpriced Purchase and Unpriced Sale 

Case Studies: Pricing, Contractual Terms, Total Barrel Exercise

Day 5

Petroleum Dynamics and Risk Management


Hedging – Risk Management

  • Use of Futures and Forward Markets
  • Example of Hedging
  • Removal of Absolute Risk – Introduction of Basis risk

Pricing Management

  • What is Price Management?
  • Price Management Example 
  • Price management Outcome

Derivatives

  • What are Swaps?
  • Example of Swap Transactions
  • What are Options?
  • Example of Option Transactions
  • Attributes of Swaps and Options in Oil & Gas industry

Examples of Oil & Gas Futures Contracts, Swaps, and Options

Common mistakes by Oil & Gas Companies in Hedging

A Guide To Developing A Corporate Fuel Risk Management Policy

Challenges to Petroleum Industry and Trends in New Technology  

Short Videos
 

  • Oil & Gas Exploration and Production Success Factors
  • Horizontal Drilling & Hydraulic Fracturing that changed the landscape
  • Petroleum Refining and Simulation of Manufacturing Processes
  • Global Transportation of Oil, Refined Products, and LNG
  • Future Energy Trends
  • Pricing & Market Data Reporting
  • Major Risk Factors – BP Macondo Accident   

 
Case Studies

  • The number of years of global oil supply from current reserves  
  • Calculating Initial Oil in Place and Oil Reserves
  • Number of Wells Required Developing a Gas Field
  • Crude Oil Price Estimation
  • Gross Product-Worth Calculation of a Petroleum Refinery
  • Calculating oil pipeline tariff
  • Calculating Net Present Value (NPV), Maximum   Exposure, Payback period, and the Internal Rate of Return
  • What are Derivatives?
  • What is a Forward Contract?
  • What is a Futures Contract?
  • What is a Swap Agreement?
  • What is an Option? Where are these Options utilized?
  • Where are these Options utilized?

 

  • Price Risk Management Natural Gas Hedging by "locking" in the price in Futures Contract
  • Price Risk Management through Hedging crude oil price risk with swaps Contract
  • Crude Oil Swap to Transfer Price Risk 
  • Price Risk Management through Options Contract to mitigate exposure to declining prices 
  • Identifying Oil & Gas Common Hedging Mistakes
  • Developing a Corporate Fuel Risk Management Policy 

Supplementary Data

  • Glossary & Abbreviations in Oil & Gas  Industry
Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product