Effectively Managing in the Oil and Gas Value Chain

Equip yourself with a broader and detailed knowledge of the oil’s value chain and supply chain management challenges to empower robust decision making for your business

Attend this three-day intensive programme:

  • Understand the oil value supply chain from well-head to petrol pump
  • Examine the different structures and identities of organisations making up the oil industry, and understand their differing business strategies
  • Analyse the impact of each element of the supply chain and the effect on end-user prices
  • Evaluate the evolution from concession agreements to Production Sharing Agreements for equity oil, and the impact on oil company revenues
  • Understand the critical importance of optimal transportation at every stage of the supply chain
  • Analyse the profitability of the refining sector and the factors that affect refining margins
  • Examine downstream distribution for petroleum products and the fundamental factors that affect supply and demand in the marketplace
  • Evaluate the challenges from renewable energy and alternative fuels to the oil industry
  • Participate in interactive exercises and cases focused on real life scenarios to understand the learning in context

What is the programme about?

The supply of oil to the market begins with the ability of exploration to find the oil, production to extract it in commercially-viable quantities, followed by transportation to the refinery to produce the added-value products by which crude oil becomes a valuable asset. These refined products are sold at the downstream end of the oil supply chain.  Without these finished petroleum products, their developed markets and customer needs for the products, there would be no oil industry.The complex network of oil companies and their contractors and suppliers make up the oil supply chain to provide a continuous flow of oil from its crude state into useful end products.

Attend this course to improve your business performance by gaining an enhanced understanding of the interrelationship of each segment of the supply chain, learning to evaluate the risks, examining how costs are minimised and how throughput is maximised to deliver this highly volatile product.This course is essential for anyone working with the oil and gas industry that would benefit from a broader knowledge of the whole value chain outside of the specific function or business in which they operate.

This course is essential for anyone working with the oil and gas industry that would benefit from a broader knowledge of the whole value chain outside of the specific function or business in which they operate:

  • Anyone of middle and senior management experience involved in the oil industry
  • Executive managers from suppliers to the oil industry.
  • Consultants and advisors to suppliers to the oil industry
  • Functional specialists looking to broaden their understanding of this specialist industry
  • Existing oil industry commercial managers and directors looking to expand their knowledge on a broader base across the whole industry spectrum
  • New starters within the industry or those looking to enter

 

 

DAY 1

The Oil industry

Overview

  • Industry size
  • Global statistics
  • Reserves
  • Geography of production and consumption
  • Recent trends in consumption
  • Crude oil & the major petroleum products
  • The oil value chain

Structure

  • Upstream activities
  • Refining & Conversion processes
  • Downstream activities
  • Company structure – IOC & NOC
  • Strategies
  • Vertical Integration
     

Renewables/Alternative Fuels

  • Environmental concerns
  • Alternative transport fuels
  • Threats to existing oil supply chain

Practical Exercise: Exploration & Production Simulation
Designed to demonstrate to participants the huge sums risked by Exploration companies in prospecting for oil, bidding for mineral rights, and drilling for oil. Teams will be challenged by the goal of finding oil in commercial quantities before their money runs out.


DAY 2

Supply & Demand in detail

Market Structure:

  • OPEC production
  • Non-OPEC production
  • Shale oil
  • Likely future trends

Theory of Supply & Demand in the Oil Industry

  • Demand elasticity & seasonal demand patterns
  • Responsiveness of supply chain
  • Fundamental factors of supply & demand prices
  • Headlines & speculation effects on market prices
  • Contango & Backwardated markets    Price-risk management
  • The Derivative markets
  • Oil Futures
  • Swaps
  • Options
  • Hedging

Practical Exercises: NOC governance & Geopolitical issues
Participants will work in groups to review the different governance of Gazprom [an NOC] with interference by the Russian government to that of major IOCs.  A second exercise involves the evaluation of geopolitical issues associated with Venezuelan oil exports which filled the void created by the embargo of Iranian oil exports.

DAY 3

Supply Chain Management & Issues

Upstream

  • Access to oilfields
  • Nationalism
  • Exploration & Production
  • Fiscal systems
  • Royalty/Taxation
  • Production Sharing Agreements

Midstream

  • Refining
  • Margins & Profitability
  • Factors affecting refining margins

Downstream

  • Transportation modals
  • Pipelines
  • Tankships
  • Rail
  • Comparative costs
  • Marketing
  • Service stations
  • Branding and value
     
Case Study: The Baku-Tbilisi-Ceyhan Pipeline
Analyse the costs and complexity associated with the operation of a crude oil pipeline to bring Azerbaijan crude to the Mediterranean export terminal at Ceyhan. The study will study the transit tariff structure needed by the countries through which the pipeline passes.

 

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Testimonials for our Courses

“This is my first experience with Clarion Training. The course was very well organised and I will be recommending both this specific course and institute to my training advisors.”

Delivered by

James has spent the last 35 years in the downstream sector of the oil industry.  Experience was g

Dates & Locations



This course is only available as a custom course tailored for your business, contact us to discuss your requirements.