Mini MBA: Understanding Petroleum Industry Dynamics

5 days 5-9 Dec 2016, London UK £4,495.00 + VAT* Download brochure Add to basket

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Course overview

"All the supporting material is very well adapted and useful, especially diagrams detailing physical illustrations of oil & gas operations"
European Investment Bank

"Very comprehensive and relevant; good focus across technical and business areas"
Deutsche Bank

"Very practical and relevant industry knowledge passed on in a relatively short time"
Bank of Africa

"Overall a very good course. I would recommend for others to attend. The lecturer was good at explaining concepts / terms in simple and understandable words."
Standard Bank

This five day course focuses on the key elements of the petroleum supply chain. It has appeal to attendees from both technical and non-technical backgrounds. However, emphasis is given to the commercial and economic drivers that impact the supply chain. The key activities, processes and terms are presented in clear and jargon-free language that will enable attendees to gain a rapid understanding of the key functions of the supply chain.

The petroleum industry comprises three key sectors that utilise crude oil, natural gas and natural gas liquids through the supply chain.

These sectors are as follows:

  • The upstream that comprises exploration, development and production activities
  • The midstream that comprises transportation of petroleum liquids and gases via pipelines, terminals and marine, rail and road tankers
  • The downstream that involves trading and manufacturing of products through refining and petrochemical processes and the distribution of these products to the various consuming markets

Crude oil and natural gas together currently account for 59% of global primary energy demand. Not only do oil and gas represent important commodities but they are also at the centre of economic activity of societies. They have primary strategic and political significance.

Topic covered:

  • Review of the current petroleum markets; oil and gas supply and demand, future global trends
  • Key concepts and processes in exploration, development and production
  • International fiscal systems, IOCs, NOCs and geopolitics
  • The emergence of expanding natural gas markets, future growth trends, global trade through LNG, inter-regional trade through long distance pipelines, gas to power markets
  • Global trading markets for oil, gas and refined products; physical and derivative markets
  • Transportation logistics, costs and tariffs; marine tankers, pipelines, rail, river and road
  • Refining and petrochemical manufacturing processes; cost, prices and margins
  • The petrochemical industry, its major players, and their key success factors
  • Major gas export supply chains; LNG and pipeline, trends and risks
  • Key gas market sectors; industrial, residential, commercial, gas to power petrochemicals
  • Non-conventional petroleum, shale oil revolution in the USA - future impacts on global markets, and its environmental impacts?
  • Why alternative to fossil fuels are important
  • Renewable energy sources, comparison of costs of solar, geothermal, wind and wave energy, biomass
  • Several business cases dealing with upstream, midstream, and downstream petroleum industry, petrochemicals, emerging renewable energy sources and nuclear energy

The topics are reviewed using PowerPoint presentations, video clips and case studies and interspersed with short exercises and quizzes that will reinforce your understanding and knowledge base.

Benefits of attending

  • Gain a greater insight of the activities of the supply chain
  • Understand the prices, costs, and margins in each of the sectors
  • Recognise the future trends and risks for the petroleum industry
  • Comprehensive understanding of all sectors of the petroleum supply chain
  • Understanding processes, logistics, costs, margins and pricing
  • Familiarisation with key performance indicators


As with all courses, this programme makes use of numerous case studies and exercises to ensure that you leave the course, ready to apply your new knowledge.


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.

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.


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)



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.

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Day 1

The Upstream: Exploration, Development, Production, Value Addition and Measures of Efficiency

The oil and gas industry fundamentals

  • The origin, accumulation and migration of petroleum resources
  • Stratigraphic traps, geophysical prospecting and 3D seismic studies
  • Exploration process; geological, geochemical and geophysical analysis and interpretation
  • Drilling for oil and gas, evaluating wells and well completions
  • Horizontal well technology, efficient multilateral well completions
  • Improving and enhancing petroleum recovery
  • E&P strategies - areas of focus

Global energy statistics

  • Global oil and gas reserves and production by region/countries
  • Classification of reserves, and estimation of reserves by key methodologies

The E&P company cashflow and business model

  • Capital expenditure, CAPEX: Front-end, during development and production
  • Geological and geophysical costs, breakdown of drilling costs, facilities costs
  • Production operations and operating expense (OPEX)
  • Field production curve - cash flow curves for projects
  • Cash flow model for E&P companies

Reserves estimation methods, petroleum economics and value addition

  • Decline curve analysis, forecasting production techniques
  • Measures of efficiency-payback, NPV, IRR, ROE, ROA, PI, LRMC
  • Value addition benchmarks prioritised

Business case studies and exercises

  • Case study 1: The number of years of global oil supply from current reserves
  • Case study 2: Calculating initial oil in place and oil reserves
  • Case study 3: Number of wells required developing an oil field
  • Case study 4: Oil productivity - horizontal well vs. vertical well
  • Case study 5: Crude oil price estimation

Day 2

International Fiscal Systems - Petroleum Contracts, IOCs, NOCs, Geopolitics

The Midstream - Transportation, Distribution and Storage and Crude Oil Characteristics and Trading

Government/investor relationships

  • Historic evolution of relationships between host countries and foreign investor
  • Economic rent and the change of fiscal terms
  • Roles and relationships of IOCs and NOCs
  • Factors that impact investment decisions

Government fiscal terms and agreements with investors

  • Contrast between host government and investor objectives
  • Structure of fiscal contracts
  • Tax/royalty (concession) agreements
  • Production sharing agreements (PSCs)
  • Other service agreements


  • Petroleum as a strategic commodity
  • Energy security issues
  • Resource nationalism, expropriation
  • Terrorism

Crude oil supply from wellhead to market

  • Marine and pipeline transportation, costs and tariffs
  • Transportation and international commercial terms (Incoterms)

Business case studies and exercises

  • Case study 6: Gross product worth calculation of a petroleum refinery
  • Case study 7: Levelised cost of energy (LCOE) - methodology to compare the costs of power from different renewable sources - discussion
  • Case study 8: Cost of electricity using natural gas
  • Case study 9: Concessionary agreement – oil price change and impact on contractor’s take
  • Case study 10: Production sharing agreement – profit oil government’s take

Day 3

Crude Oil Trading, the Downstream - Refining, Petrochemicals and Market Distribution

Crude oil trading

  • Trading hubs
  • Global benchmarks and references
  • The physical market; term and spot
  • The derivative markets; forwards, futures, hedging and arbitrage

The refining process; technologies, costs and margins

Refined products: Commodities (gasoline, diesel, naphtha and kerosene and specialties (waxes, lubricants)

Refineries and petrochemical plants, processes, performance indicators and trends

  • The crack spread
  • Optimising yield and crude oil selection
  • Petrochemical feedstock and products
  • Global competition, the new super-refineries
  • The current divestment of refineries by IOCs
  • The pure-play refiners
  • Benefits of integrating refining and petrochemicals

Petroleum products, specification, distribution and trading

  • The current global petroleum products picture
  • The key refined products; gasoline, naphtha, diesel and jet kerosene
  • Market dynamics; trading the products
  • Price drivers
  • Swaps and arbitrage
  • Global product tradeflows
  • Storage, distribution and supply logistics

The petrochemical industry: The current global petroleum products picture

  • The petrochemical processes; feedstocks, base chemicals, end-user products, global trends and risks
  • The fuel retail markets: De-integration of the supply chain, changing and evolving market conditions, marketing economics

Business case studies and exercises

  • Case study 11: Analyse profitability in a sliding scale royalty
  • Case study 12: Changing profitability vs. government’s take and the impact of different fiscal tools in oil and gas contracts
  • Case study 13: Types of fiscal regimes to build into an oil and gas contract to encourage investments by an international oil company
  • Case study 14: Application of fiscal tools by host government to manage production from marginal oil and gas fields

Day 4

Crude Natural Gas and Gas Liquids Fundamentals - Characteristics, Gas Processing and Specification, Commercial Contracts in Oil & Gas Investments

Non-Conventional Petroleum, Growing LNG Business, Alternatives to Fossil Fuels, Cost Comparison of Renewables

Defining the natural gas downstream market

  • Overview from wellhead to end-user markets

Natural gas; occurrence and characteristics

  • Major holders and suppliers of natural gas
  • Value considerations
  • Specification, units and thermal value
  • Correlation/indexation to crude oil prices

Gas processing and specification

  • Regional variations in specification
  • Calorific value/commercial value considerations
  • Impurities and inerts-elimination processes

Gas transportation pipelines, LNG and FLNG

  • The LNG supply chain-principles, processes and costs
  • LNG case studies from liquefaction to regasification
  • LNG trends and risks
  • Pipeline processes, LNG technology and costs cost comparisons
  • Major LNG projects worldwide under different categories
  • Challenges in LNG projects

Natural gas trading markets

  • Hub references
  • Indexation to crude oil prices in specific markets
  • Price formation - price-makers and takers
  • Physical and derivative markets

Non-conventional petroleum technology and economics

  • Shale gas, shale oil, tight oil, tight gas
  • Shale gas and coal bed methane
  • Oil sands, bitumen and ultra-heavy oil (UHO)
  • Major technologies in non-conventional oil and gas extraction
  • Evaluation of long range marginal costs
  • Cost curves

Alternative energy sources – green technology economics

  • Alternatives to fossil fuel and why they are important
  • Renewable energy sources and their cost comparison
  • Advantages/disadvantages of renewable sources
  • Levelised cost of energy from different sources

Business case studies and exercises

  • Case study 15: Calculating oil pipeline tariff
  • Case study 16: Calculating net present value (NPV), maximum exposure, payback period, and the internal rate of return
  • Case study 17: Crude oil swap to transfer price risk

Day 5

Petroleum Industry Major Trends, Consequences, Challenges and Solutions, Group Discussion, and Summary of Energy Industry

Petroleum industry major trends

  • Major shifts in petroleum resources – IOC’s/ NOC’s
  • Major trends in oil gas discoveries – onshore/offshore; and conventions/non-conventional
  • Geographic and geologic trends
  • Environmental and legislative trends
  • Geopolitical trends

Energy industry major consequences, challenges and solutions

  • Upstream petroleum industry
  • Downstream petroleum industry
  • Renewables resources
  • Fossil fuels electrical power industry
  • Nuclear power industry

Putting it all together – petroleum industry review, delegates input, and discussion

  • Challenges confronting the petroleum industry
  • New technology trends
  • Environmental, and economic considerations
  • Group discussion and wrap-up

Business case studies and exercises

  • Case study 18: Discussion - Fukushima nuclear disaster and its associated costs
  • Case study 19: Cost of electricity using offshore and onshore wind energy
  • Case study 20: Discussion on conventional/non-conventional petroleum resources
  • Case study 21: Discussion on the safest and cleanest form(s) of energy and its associated costs and benefits

Course summary and close

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