This 3-day course is designed to give attendees a comprehensive understanding of crude oil, natural gas and refined products markets and the sales contracts that are utilised for transactions through the supply chain.
Sales contracts have evolved significantly over the past 40 years and reflect the major changes that include market liberalisation and globalisation. Whereas physical trades comprise a substantial market position, paper trades that are designed to mitigate price risks and take advantage of opportunities have evolved rapidly over the past two decades. Case studies and short exercises are included to consolidate learning outcomes.
The course will feature:
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Understanding the markets
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Contrasting physical and paper markets
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The major trading centres and commodity exchanges
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Distinct characteristics of crude oil, natural gas and refined products
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Key contract features
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Terminology used in contracts
- Price behaviour and forecasting
Petroleum Sales Contracts Course Overview
An understanding of the trading markets is complicated by the use of technical and commercial jargon and acronyms. This course is designed to clarify and demystify the technical and commercial aspects of standard sales contracts. You will gain an insight into the functions of the markets and the dynamics that shape the petroleum commodities markets in jargon-free language.
Transactions and contracts covering the spectrum from crude oil, natural gas, natural gas liquids and refined products are explained and reviewed through the use of PowerPoint presentations and general discussions.
The key contractual terms in both physical and paper contracts are reviewed and explained and will enable you to appreciate the key drivers that are prevalent in the markets.
Case studies are reviewed and short exercises are run that serve to consolidate learning outcomes.
Benefits of Attending Petroleum Sales Contracts
Day 1
Evolution of the markets
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What drives the petroleum markets?
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1970-2010; from long-term sales to spot contracts
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Global supply / demand dynamics
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The physical markets and global reference markers
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The paper markets; futures, swaps, options
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The petroleum commodity exchanges; ICE, Nymex, DME, Simex
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Reducing risk and exploiting opportunity; hedging and arbitrage
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Price formation
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The forward price curves; backwardation and contango
The crude oil sales contract
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Crude oil characteristics, variations and price differentials
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Key contract terms
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Price references and differentials
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Transportation and International Commercial Terms (Incoterms)
Case Study: Brent spot crude sales to a Rotterdam refinery
Exercise: reviewing options for crude purchases for a U.S. Gulf coast refinery.
Day 2
The natural gas sales markets
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Distinct characteristics of natural gas
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Evolution of gas markets from local to global
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Price formation
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Correlation with crude oil prices
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Transportation; pipelines and LNG
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Market opening and liberalisation
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Market hubs
The Gas Sales Contract Agreement (GSA)
North Sea case study: NGL sales
Exercise: gas purchasing options for an electricity utility.
Day 3
Sales contracts of refined products
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The refined products markets
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The key refined products; gasoline, diesel and jet kerosene
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“White” and “Black” products
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Market hubs; ARA, Med, NYH etc.
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Market dynamics; price drivers
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Global tradeflows
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Distribution and supply logistics
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Wholesale product contracts - key characteristics
Exercise: Wholesale contracts to dealer networks
Putting it all together
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Contract forms and contrasts
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Summarising the key contract issues
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Group discussion with delegates
Recap the course
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William Pyke
Bill Pyke has over 37 years of experience in the international oil and gas business. He has had experience of sales agreements dating back to the early 1970s with ‘life-of-field’ gas sales contracts to the U.K.’s then monopoly gas utility; BGC.
For over 26 years he worked for North American oil companies including ARCO, Marathon and Talisman on operations in Europe, Africa and the Middle East.
Since late 1998 Bill has been an independent oil and gas consultant. Assignments have included projects with a wide range of clients involved in the oil industry. Latterly, he has been involved in sales agreements covering crude, natural gas and refined product sales on behalf of oil company clients.
In 2009 he was a key consultant on a European Commission study into the competitive aspects of crude oil and product markets in the EU-27 member states.
He is also actively involved in delivering training and development programmes to delegates actively involved within the oil industry. He is a fellow of the Energy Institute, London.
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
19-22 Jun 2012 (London, UK)
This Euromoney Energy Training course examines markets, pricing and products to provide you with a thorough overview of the sector. The course will explore mechanisms and tools for both physical and financial oil trading allowing unparalleled access to the world of trading, its role within the oil industry and its importance in the success of oil companies. You will leave this course with a thorough understanding of the workings of crude oil markets and the range of contracts, tools and techniques available to traders.
25-27 Jun 2012 (London, UK)
17-19 Dec 2012 (London, UK)
This Petroleum Company Performance Management training course has been designed to offer personnel from corporations and financial institutions a full compliment of tools to use most effectively in developing and analysing the corporate performance measures for oil and gas companies.
23-26 Apr 2012 (London, UK)
25-28 Sep 2012 (London, UK)
The Commercial and Trading Aspects of Oil Refining course will provide you with in-depth knowledge of the refining business and an understanding of how trading/hedging can improve margins and reduce risk. Discover how to optimise refinery margins and manage the profitability of commercial refining.
23-25 Apr 2012 (Accra, Ghana)
This Introduction to the Oil and Gas Industry training course will provide you with an understanding of how the industry works from exploration to commercialisation and will introduce you to oil and gas operations and economics.
20-24 Aug 2012 (London, UK)
This Euromoney Energy Training course provides a comprehensive overview of the oil and gas industry from upstream exploration and production to downstream refining, sales and marketing. You will gain an appreciation of industry dynamics and the key issues affecting its development and future. This course will provide a thorough foundation for understanding the changing industry dynamics.
9-11 May 2012 (London, UK)
This course will investigate the mechanisms for trading physical oil, freight, shipping and derivatives to optimise margins and achieve profit targets. The interdependence between oil markets and ship chartering will be extensively explored, revealing links to the derivative markets and the use of trading tools.
15-17 Feb 2012 (London, UK)
17-19 Oct 2012 (London, UK)
This Euromoney Energy Training course provides a comprehensive overview of the oil and gas industry from upstream exploration and production to downstream refining, sales and marketing. Under the guidance of our expert course faculty, participants will gain an appreciation of industry dynamics and the key issues affecting its development and future.
16-18 May 2012 (London, UK)
Euromoney Energy Trainings Petroleum Sales Contracts course is designed to give attendees a comprehensive understanding of crude oil, natural gas and refined products markets and the sales contracts that are utilised for transactions through the supply chain.
29-31 Oct 2012 (London, UK)
This course is designed for professionals who need to develop an understanding of the unique aspects of the energy industry, including the oil and gas commercialisation and business development or facilities evaluation and commercialisation.
The course will focus on the skills required in evaluation (both buyside and sell-side), financing, acquisition, and exploitation planning for an oil and gas entity, a midstream facility or electrical generation plant.
11-15 Jun 2012 (Singapore, Singapore)
A 3-day course designed to provide participants with in-depth knowledge of oil products, oil trading, market participants and fundamentals such as pricing.
17-19 Sep 2012 (London, UK)
23-25 Apr 2012 (Singapore, Singapore)
19-21 Nov 2012 (Singapore, Singapore)
16-19 Jul 2012 (London, UK)
4 days of course modules that focus on the review and examination of the key elements of the supply chain from upstream activities of exploration, development and production through transportation to downstream sector that involves trading, refining, petrochemicals and final distribution to the consuming markets.
28-30 May 2012 (London, UK)
This Fundamentals of Crude Oil Valuation & Pricing course covers everything you need to know about how oil is traded and priced in the international market. The course covers the valuation and pricing of physical cargoes of crude oil, as well as how derivatives such as oil futures and swaps are structured.
18-20 Jul 2012 (New York, United States)
This course will give you an in-depth introduction to petroleum refining technology and economics. The focus is on transportation fuels refineries, however, petrochemical production and biofuels are also discussed. The first part of the program includes an
overview of crude oil supply and petroleum product demand. This is followed with a description of refinery process technology. Key refining technologies are described such as crude oil distillation, heavy oil conversion options, hydrotreating, and catalytic reforming.
12-15 Nov 2012 (Hong Kong, Hong Kong)
4 days of course modules that focus on the review and examination of the key elements of the supply chain from upstream activities of exploration, development and production through transportation to downstream sector that involves trading, refining, petrochemicals and final distribution to the consuming markets.
20-22 Aug 2012 (Hong Kong, Hong Kong)
This course is designed for professionals who need to develop an understanding of the unique aspects of the energy industry, including the oil and gas commercialisation and business development or facilities evaluation and commercialisation.
The course will focus on the skills required in evaluation (both buyside and sell-side), financing, acquisition, and exploitation planning for an oil and gas entity, a midstream facility or electrical generation plant.
25-27 Sep 2012 (Singapore, Singapore)
This Fundamentals of Crude Oil Valuation & Pricing course covers everything you need to know about how oil is traded and priced in the international market. The course covers the valuation and pricing of physical cargoes of crude oil, as well as how derivatives such as oil futures and swaps are structured.
23-26 Apr 2012 (New York, United States)
4 days of course modules that focus on the review and examination of the key elements of the supply chain from upstream activities of exploration, development and production through transportation to downstream sector that involves trading, refining, petrochemicals and final distribution to the consuming markets.
25-29 Jun 2012 (London, UK)
Energy Finance School: Upstream, Midstream & Downstream Oil, Gas & LNG Projects - London
20-22 Aug 2012 (London, UK)
22-31 Oct 2012 (Hong Kong, Hong Kong)
17-20 Sep 2012 (London, UK)
This four day training course is specifically designed for
professionals involved internationally in the oil and gas
industry, it offers a unique opportunity to rapidly
increase your understanding of the legal issues involved
in various international scenarios and to improve your
techniques and skills in drafting a variety of
international contracts.
This course has now expired please email us to find out when the course will next be running.