Strategic and Commercial Decision Making in Oil and Gas

Protect your bottom-line and exploit opportunities in uncertain times now

Attend this two-day interactive development programme to:

  • Improve your decision-making by gaining a deeper understanding of the recent developments impacting the oil and gas industry and their impact on your bottom line

  • Construct strategies that can withstand the forces of unpredictable prices and supply/demand dynamics

  • Understand the rapidly evolving energy supply and demand landscape and the new challenges facing the industry

  • Gain a deeper understanding of recent developments impacting the oil and gas industry and their impact on your bottom line

  • Expand your knowledge of strategic tools and how they can be used to assess and shape new strategies to survive and exploit the price collapses and explosions

  • Enhance your knowledge of industry business segments from shale oil to Arctic

  • Evaluate the opportunities for new country access and understand the commercial dynamics of bidding and NOC alliances


 

What is the programme about?

The oil & gas industry has been caught napping by the recent collapse in prices and the financial whirlwind that has been unleashed.  What can we learn from these events now? How can we develop strategies that are robust to price volatility and exploit the many opportunities that are created? Shaping strategies into today’s environment has rarely been more challenging and the consequences more extreme – for many competitors it is about survival. The Industry road map to 2030 has been torn up but what will distinguish the performance over the next 5 to 10 years? Strategic planners and commercial professionals have to take the lead now in guiding Boardroom decisions.

This course will equip middle management with many a firmer understanding of indicators they should be aware of – from safeguarding against technology surprises, to realistic project life cycle projection, to learning how to keep an eye on where your competitors are ahead of the game, to what analysts are looking for in your sector’s performance.   This course will teach you effective techniques to manage your stakeholders, be prepared for what governments around the world are currently requiring of foreign energy investors and understand the commercial dynamics of bidding. A carefully selected set of interactive workshops will set smaller groups within the course special tasks to ensure delegates have grasped a firm understanding of the key teachings of the course.


 

Oil and Gas professionals who want to gain a deeper understanding of recent developments impacting the oil and gas industry and their potential impact on your bottom line:

  • General Managers
  • Business Development Managers
  • Commercial Managers
  • Strategy and Planning Managers
  • Principal Analysts
  • Market Risk Managers
  • Product Managers
  • Petroleum Economists
  • Financial Planner and Controllers
  • Portfolio Managers

Also relevant to team members with or in a project team that is working within this area to offer relevant and educated support.

 

DAY 1

LOOKING INTO THE FUTURE – GLOBAL LONG TERM ENERGY SUPPLY/DEMAND

  • What does the outlook tell us up to 2030?
  • The 2014 price collapse, causes and consequences.
  • Global demand trends and competing energy sources
  • Supply trends and remaining resources
  • Renewables – threat or opportunity?
  • The role of technology – the impact of technology surprises, examples of recent newly emerged energy sources and accompanying technology
     
Interactive session: Estimate Oil prices in 2025
Smaller groups will discuss the processes involved in estimating what the oil price will be in 10 years.
 

A CLOSER LOOK AT INDUSTRY STRUCTURE AND DIFFERENT COST STRATEGIC INTENTS

  • IOC’s, NOC’s, Independents
  • Evolving importance of NOC’s
  • Business segments – looking at key basins of the world as distinct separate businesses,  their different challenges and cost structures.  Shaping the risk profile for investors
  • Timescales and project life cycle – competition versus cooperation
  • Investment appraisal – the key concepts and guidance

STRATEGIC THINKING AND UNDERSTANDING THE COMPETITIVE FRAMEWORK OF THE INDUSTRY

  • Competitive dynamics and trends in the oil and gas industry
  • Consequences of the price downturn – how to survive
  • Industry imperatives – value versus volume
  • Portfolio management – keeping your portfolio refreshed via ‘hi-grading’ to ensure sustained supply of attractive and material investment opportunities
  • Competitor analysis techniques – looking over your shoulder, identifying the successful players, what can you learn from them?


Interactive session: Working on a SWOT analysis
Participants will be challenged by a case study of a supermajority and taught how to do a SWOT analysis


DAY 2


GOVERNMENT POLICY AND THE IMPACT ON YOUR BUSINESS

  • Upstream taxation

Interactive session: Evaluating how Tax Regimes affect your bottom line
An exercise to show how different tax regimes work, how unstable they can be and how revenues are split between the government and investor under different types of tax regime.
 
  • Fiscal advocacy – proactive and reactive strategies
  • Ambitions for NOC’s – implications and opportunities for IOCs
  • Licensing policy – how governments award licences, understanding and offering obligations to secure licences; Farm ins and Farm outs
  • Framework for assessing the signature bonus you would pay or the fiscal terms you would offer to secure a licence
     
Interactive session: Exploration Evaluation
Work in groups to study the economics of exploration and how to evaluate potential commercial benefits of a licence.  Learn how this will impact your exploration decision.

Interactive session: Exploration Evaluation
Work in groups to study the economics of exploration and how to evaluate potential commercial benefits of a licence.  Learn how this will impact your exploration decision


MANAGING STAKEHOLDERS – THE TRANSPARANCY AGENDA

  • NGO’s – what you need to disclose to them
  • Transparency changes you need to comply with
  • Industry associations and advocacy – how do you lobby for good change bad change?


CREATING STRATEGIC CHOICES FOR INVESTORS

  • Building the portfolio from a plain sheet of paper
  • Screening and selecting the building blocks of a winning strategy
  • Opportunities in exploration, development, brown field
  • Creating Organic versus non-organic options
  • Decommissioning – is this a threat or an opportunity?
  • Alternate energy and renewables – do you want to invest in this and why? Managing NGO and government expectations
  • Coming up with a distinctive offer to the government to secure the best opportunities
  • Converting the strategy into detailed plans, objectives, monitoring and management intervention to keep on track

Interactive session: Building an E & P strategy
The group will be given a case study on an independent company, it’s portfolio legacy, a list of opportunities and challenges going forward. Participants will be asked to come up with a new strategy based on what they have learned in the course and present to the audience.
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Testimonials for our Courses

“My experience with Clarion Training was pleasant and the facilities were accommodating. It was most useful and interesting to understand the key content of contracts and which areas to pay particular attention to.”
 

Delivered by

Raymond’s experience of the oil & gas Industry spans over 30 years working in private Industr

Dates & Locations



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