International Oil Supply, Transportation, Refining & Trade

INTRODUCTIONThe international oil and gas business is both capital intensive and technically complex. Its value chain is fraught with potential risks and uncertainties both in the upstream and downstream sectors. Traditional oil and gas companies have to conduct their business with escalating levels of complexity and increasing competition. Innovative technologies such as enhanced oil recovery, oil/tar sands, and other unconventional fossil fuels particularly the shale oil boom and hydraulic fracturing are changing the landscape of the industry.International oil and gas suppliers upstream, and refiners and traders downstream, require several cross-functional aptitudes so as to maximize their effectiveness. Managers and professionals, by definition have a need therefore to continually expand their business knowledge and improve their skills and understanding of the market's latest trends.

On completion of this programme the delegates will have developed the following competencies:

The essentials of international oil supply, economics and transportation The key economic drivers of the international oil gas value chain. Primary logistics – tanker freight costs and chartering Supply logistics – major international pipelines, shipping routes, and choke points The configuration and structure of different refineries from simple to complex The value of crude oil based on product market prices retail and distribution Key points on product quality and blending to specification

Who Should Attend?

Personnel needing to gain or improve their knowledge and understanding of crude oil and petroleum products trading and pricing mechanisms

New entrants to the oil industry, and integrated sections such as supply, trading and logistics

Business Development managers Corporate Planning professionals and business analysts switching disciplines who are required to have a better understanding of this stimulating field

Professional personnel such as legal, banking, insurance, finance dealing with oil supply, refining, trading and transportation.

Energy industry journalists and reporters

Programme Objectives

Gain a broad perspective of the global oil business: supply, transportation, refining & trading

Boost your fundamental analysis of the oil business: quality, blending & valuation of oil for trade, freight and netback and refinery margin calculations, vessel chartering, pipelines & terminals, etc.

Understand oil market forwards, futures and hedging Learn the technical, commercial, legal, and environmental aspects of the oil and

gas business Appreciate the causes and impact of the recent price volatility in crude oil and

natural gas markets. Recognize the cause and effect of unconventional oil and gas on the industry from

a financial and environmental perspectives.

Training Methodology

Participants will learn by active participation through the use presentations, case studies, interactive practical exercises, quizzes, training videos and discussion of business cases issues related to oil supply, transportation, refining and trade in their organizations.

Programme Summary

This 5-Day accelerated programme provides a wider management perspective of the global oil and gas business and highlights the success factors in each of its essential components. It follows the natural order of business, starting with exploration, supply and transportation and followed by refining, distribution and trading operations.

Business case studies of crude oil evaluation, netback and refinery margin calculations, transportation and storage costs, sales contracts, total barrel economics, product quality etc. will be examined. The program through the use of visual aids and simulations will consider several complex operations, such as, drilling, completion, refining, and transportation and its designed to suite the wide range of delegates.

Programme Outline

DAY 1 - Global Oil Supply Fundamentals

Introduction to Programme Essence of International Oil Supply – Global Reserves, Production & Trade OPEC & EIA / NOC's & IOC's Oil and Gas Value Chain (I) - Upstream Fundamentals of Oil & Gas Geology and Petroleum Engineering Case Study: - Oil-Field life-cycle, development and management

DAY 2 - Crude Oil Refining and Marketing

Oil and Gas Value Chain (II) - Downstream Basic Refining – Types and Complexity Refinery Utilisation and Refining Margins and Costs Future prospects of Refining Product Exchange Agreements, Sales and Marketing of Petroleum Products Case Study: - Blending to Meet Quality and Reduce Giveaways

DAY 3 - Oil Market Evolution, Transportation, Distribution and Pricing

Crude Oil Markets and Fiscal Regimes Supply and Demand and Economics of Oil and Gas Petroleum Transportation Logistics and Tankers Chartering Pipelines and Storage Terminals, Bills of Lading and Letters of Indemnity Basic Principles in Pricing and Overview of Markets Case Study: - How to value crude oil, reference and netback methods

DAY 4 - Profitability: Oil Trading and Retailing

Introductory Concepts in Oil Trading Essential Elements in Crude Oil Sales Contracts Petroleum Exchanges NYMEX / ICE / Singapore Downstream Supply Chain management Total Barrel Economics and Carbon Capture and Storage Case Study: - Carbon Trading Impact on the Industry

DAY 5 - Risk & Price Management

The Spot Market Oil Markets – The Physical Futures or Forward Markets Limitations of Forwards and Futures Markets Derivative products: Swaps and Options Price Exposure, Hedging & Risk Management Course Evaluation and Close