Topics 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.
- Major gas export supply chains; LNG and Pipeline operations with case studies, trends and risks.
- Key gas market sectors; industrial, residential, commercial, gas to power petrochemicals.
- Non Conventional Petroleum - future impacts on global markets?
Who should attend
- Corporate Planners.
- Senior oil and gas managers.
- Investment bankers.
- Fund managers.
- Investment analysts.
- Media analysts and commentators.
- Government agencies.
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.
Course Overview
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.
The modules focus on the key elements of the petroleum supply chain. The course 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 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.
Day 1
The Upstream - Exploration, Development and Production
- Current status of the petroleum markets; facts, statistics and trends.
- Forecasts for expanding global oil demand against decreasing supply. The ‘peak oil’ challenge.
- The origin and global distribution of oil and gas reserves and production.
Petroleum Quiz.
- Petroleum Reserves: definitions, recovery factors and production profiles.
- The key exploration and production technologies; seismic and drilling.
- Oil and Gas field developments.
Exercise: Planning an offshore drilling campaign in West Africa.
Case Study: The development of a major offshore oilfield.
- Improving and enhancing petroleum recovery.
- Price volatility, costs and margins in upstream activities.
Exploration and Production (E&P) Fundamentals.
- Exploration Process; geological, geochemical and geophysical analysis & interpretation.
- Seismic acquisition and processing.
- Exploratory Drilling.
- Field appraisal and Final Investment Decisions.
- Feasibility, FEED and EPC (CAPEX).
- Production Operations and Operating Expense (OPEX).
The E&P Company Business Model.
- Field production curve - cash flow curves for projects.
- Cash flow model for E&P companies.
- The "Hopper" model; Examples from Shell and BP.
- Strategy - areas of focus- core areas.
Day 2
International Fiscal Systems - Petroleum Contracts, IOCs, NOCs, Geopolitics
The Midstream - Transportation, Distribution and Storage and Crude Oil Characteristics & Trading
Government/ Investor Relationships.
- Historic evolution of Relationships between Host Countries and Foreign Investor.
- Global Case Study Examples.
- Economic Rent and the change of Fiscal Terms.
- Roles and Relationships of IOCs and NOCs.
- Factors that impact investment decisions.
Government Fiscal Terms & 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 (example: Iraq).
- Examples of Fiscal split between Host Government and Investors in each contract type.
Case Study: An Algerian example of Production-Sharing Contracts.
Geopolitics.
- 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).
- Netbacks.
Crude oil market characteristics and dynamics.
- The global oil market; supply and demand-key players OPEC, Non-OPEC.
- Crude oil characteristics, variations and price differentials.
- Impurities in crude oil; sulphur, metals and salts.
- The changing global crude oil slate.
- Benchmark crudes; global reference markers.
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.
Case Study: Brent spot crude sales to a Rotterdam refinery.
Case study: Urals crude oil supply through the Druzhba pipeline system.
The Refining Process; technologies, costs and margins.
Refined Products: commodities (gasoline, diesel, naphtha and kerosene and specialties (waxes, lubricants).
Refineries & Petrochemical Plants, Processes, Performance Indicators and Trends.
- The crack spread.
- Optimising yield and crude oil selection.
- Petrochemical feedstock and products.
Case study; refining hubs; contrasts of costs, prices and margins between U.S Gulf Coast and European ARA refineries.
- Global competition, the new super-refineries.
- The current divestment of refineries by IOCs.
- The pure-play refiners.
Case Study: Refinery Margins at a Rotterdam Refinery.
Petroleum Products, Specification, Distribution and Trading.
- The current global petroleum products picture.
- The key refined products; gasoline, naphtha, diesel and jet kerosene.
- “White” and “Black” products.
- Market hubs; ARA,Med, NYH.
- Market dynamics; trading the products.
- Price drivers.
- Swaps and arbitrage.
- Global product Tradeflows.
- Storage, distribution and supply logistics.
Exercise: Choosing crude oil supply for a Gulf coast refinery.
The Petrochemical Industry.
- The Petrochemical Processes; feedstocks, base chemicals, end-user products, global trends and risks, Case Study examples.
Quiz: Refinery and Petrochemicals.
- The Fuel Retail Markets: De-integration of the supply chain, changing and evolving market conditions, marketing economics.
Day 4
Natural Gas and Gas Liquids Fundamentals - Characteristics, Gas Processing and Specification, Trading and end-user Markets
Commercial Contracts in Oil & Gas Investments
Non-Conventional Petroleum
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 and LNG.
- The LNG Supply Chain-principles, processes and costs.
- LNG Case Studies from liquefaction to regasification.
- LNG Trends and Risks.
Pipeline processes, technology and costs, case studies.
Natural Gas Trading Markets.
- Hub references.
- Indexation to crude oil prices in specific markets.
- Price formation- price-makers and takers.
- Physical and derivative markets.
Case Study: The U.K Gas Market.
Global Trends in Gas markets.
- Increased fungibility; from regional to global markets.
Exercise: Purchasing Gas for an Electricity Utility.
Non-Conventional Petroleum.
- Oil Sands, Shales, Bitumen and Ultra-Heavy Oil (UHO).
- Shale Gas and Coal bed Methane.
- Global Impact of Non-Conventional Petroleum.
The Nexus of Commercial Contracts in Oil & Gas Investments.
- Oil & Gas Project Contractual Structure – from investors perspective.
- Contractor Interrelationships.
- Recognition of Risk and Reward in Contracts, Examples.
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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)
4-7 Dec 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.
26-28 Nov 2012 (London, UK)
This Euromoney Energy Training course examines the roles of benchmarking and performance monitoring through key performance indicators and the analysis of business models.
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 complement of tools to use most effectively in developing and analysing the corporate performance measures for oil and gas companies.
24-27 Sep 2012 (London, UK)
15-18 Apr 2013 (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.
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.
8-10 May 2013 (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.
17-19 Oct 2012 (London, UK)
13-15 Feb 2013 (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.
10-12 Jul 2012 (London, UK)
This 3-day Euromoney Energy Training course will give you an in-depth understanding of the problems and solutions in unit formation, negotiation of participation factors and operating agreements. The role of governmental agencies in consent and oversight will also be discussed.
8-10 May 2013 (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.
12-15 Jun 2012 (London, UK)
11-14 Dec 2012 (London, UK)
This practical Euromoney Energy Training course will enable delegates from all technical and commercial disciplines to understand the theories and methods used to value oil and gas prospects. The four-days will reveal the fundamental aspects of upstream petroleum economics and risk analysis. Through computer-based exercises, participants will construct economic models, incorporating relevant cash flow data for case study projects and scenarios.
10-12 Oct 2012 (Singapore, Singapore)
This course explores the structure and mechanisms of production sharing contracts (PSC's) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
17-20 Dec 2012 (Dubai, United Arab Emirates)
This 4 day International Oil & Gas Contracts 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 UK and international scenarios and to improve your techniques and skills in drafting a variety of international contracts.
3-5 Dec 2012 (London, United Kingdom)
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.
23-25 May 2012 (Rio de Janeiro, Brazil)
This course explores the structure and mechanisms of production sharing contracts (PSC's) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
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.
11-13 Sep 2012 (London, UK)
This course explores the structure and mechanisms of production sharing contracts (PSC’s) for upstream oil and gas projects. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
22-24 Oct 2012 (London, UK)
This 3 day Upstream Oil and Gas Acquisition and Divestment course will explain how upstream oil and gas assets are traded from both buyer and seller perspectives.
The course includes references to failed and successful deals and provides valuable insight into how to conclude successful transactions.
The principles of Licensing Rounds, Farm In and Farm Out processes are explored as well as key industry processes underpinning these transactions. It includes assessment of case studies, and an element of group work based on an “acquisition and divestment opportunity” where buyers and sellers meet to consider an opportunity and to “close a deal”.
12-15 Nov 2012 (Singapore, Singapore)
The Energy Risk Management: Mastering Volatile and Complex Markets course is a comprehensive and systematic introduction to risk management for complex energy markets. The course will detail why and how risks in energy – particularly gas and electricity - are more acute than in other traded market sectors, and how classic risk management techniques must be adapted and extended to meet these demanding conditions.
1-5 Oct 2012 (Singapore, Singapore)
This 5-day course is a comprehensive review of the key features of upstream management ranging from exploration and development through to production and transportation. The course will benefit attendees who wish to broaden and deepen their upstream management skills
16-19 Jul 2012 (London, UK)
People coming to energy risk management for the first time are taken aback by the extreme market conditions that are commonplace in the complex markets of oil, coal, and above all, gas and electricity. Levels of volatility and basis risk are unprecedented: and there are additional risks that are unique to energy. This course shows delegates how to deploy traditional risk management tools in the challenging context of volatile energy markets, and to extend these techniques to master the unique risk characteristics of gas and electricity.
19-21 Sep 2012 (London, UK)
This 3 day course concentrates on a review and analysis of energy trends over the next 20 years. While predicting future energy trends can be fraught with uncertainties, attention is given to reviewing and analysing a variety of key market drivers, applying sensitivities and discussing probable outcomes.
11-15 Jun 2012 (Singapore, Singapore)
A 5-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)
21-23 Nov 2012 (Lagos, Nigeria)
Attend this practical and interactive three-day training course and enhance your knowledge in the following key areas: The fundamental economic principles underpinning production sharing contracts (PSC’s); The history and evolution of production sharing contracts (PSC’s); The PSC structure, content and flowchart; Cost recovery, profile share, bonuses, sliding scales; Royalty and Taxation; Ringfencing; Key economic issues in PSC negotiations and bidding, featuring: Nigeria PSC economic modelling workshop, The economic impact of the Petroleum Industry Bill (PIB) and Global case studies
19-21 Nov 2012 (Singapore, Singapore)
11-14 Jun 2012 (London, UK)
For operator drilling contractor and service company personnel that desire a specialised familiarisation, understanding and comprehension of Deepwater Drilling Operations, equipment, processes, systems and activities.
25-29 Jun 2012 (London, UK)
This 5-day course is a comprehensive review of the key features of upstream management ranging from exploration and development through to production and transportation. The course will benefit attendees who wish to broaden and deepen their upstream management skills.
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.
5-8 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.
8-10 Oct 2012 (Singapore, Singapore)
This Euromoney Energy Training course examines the roles of benchmarking and performance monitoring through key performance indicators and the analysis of business models.
25-29 Jun 2012 (London, UK)
Featuring 3–individually bookable modules:
- Upstream development & production
- Mid-stream pipelines & LNG projects
- Downstream oil refineries & petrochemical plants
- Including: 16 key industry case studies to improve your understanding
20-22 Aug 2012 (London, UK)
24-27 Sep 2012 (London, UK)
22-31 Oct 2012 (Hong Kong, Hong Kong)
20-23 Nov 2012 (Singapore, Singapore)
For operator drilling contractor and service company personnel that desire a specialised familiarisation, understanding and comprehension of Deepwater Drilling Operations, equipment, processes, systems and activities.
12-14 Nov 2012 (Hong Kong, Hong Kong)
This 3 day course concentrates on a review and analysis of energy trends over the next 20 years. While predicting future energy trends can be fraught with uncertainties, attention is given to reviewing and analysing a variety of key market drivers, applying sensitivities and discussing probable outcomes.
12-15 Nov 2012 (Singapore, Singapore)
14-16 Nov 2012 (Almaty, Kazakhstan)
This course explores the structure and mechanisms of production sharing contracts (PSC’s) and the economic principles that underpin them. Studying the underlying processes and commercial drivers, participants will examine case studies to illustrate the economic structure of these complex agreements.
17-21 Sep 2012 (London, UK)
This 5-day course is designed to introduce both lawyers and nonlawyers alike to the theories and practice of international commercial and investment arbitration in the oil & gas industry.
This course has now expired please email us to find out when the course will next be running.