Course description
Economics of the Oil and Gas Industry
This 2-day course provides an introduction to the economics that drive the oil and gas industry. Participants in this course will learn about the oil and gas value chains and will consider the costs, revenues and risk associated with various stages in the chains. Basic economic principles such as Net Present Value and Internal Rate of Returns will be introduced and illustrated with examples from the oil and gas industry. The course will also consider the pricing of oil, oil products and gas – what drives these prices and how investors can hope to make good returns in markets where the commodity prices are so volatile.
The training course is highly interactive with a mix of lectures, case studies, group exercises, quizzes and competitions.
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Upcoming start dates
Suitability - Who should attend?
This course provides an introduction to the economics of the oil and gas value chains suitable for students who are new to the oil and gas industry. It is also useful for those from a technical background who are looking to learn about commercial and economic aspects of the industry.
Training Course Content
Overview of Oil and Gas Value Chains
- Introduction to the Oil Value Chain
- Introduction to the Gas Value Chain
- Capital and Operating Costs
- Major Projects
- Commodity Financing/Project Financing
Project Economics – NPV’s, IRRs and others
- Introduction to economic terms – NPV, IRR, DCF etc
- Introduction to cash flows
- Project examples
Economics of Exploration and Production
- Typical Project Costs
- Risks and Rewards
- Typical Contracts and Fiscal Terms – Concessions, PSA’s, Service contracts and more.
- Reserves and Reserves Certification
Pricing of Oil and Natural Gas
- Influences on world oil price
- Marker crude oils
- Crude oil characteristics and quality differentials
- Crude oil trading (overview)
Refinery Economics
- Introduction to Refining
- Refining margins and GPW
- Typical Project Costs – review of CAPEX and OPEX for refineries
- Risks and Rewards
The Economics of Gas Monetisation
- Introduction to Gas Monetisation – Pipelines, LNG, Petrochemicals and GTL
- Typical Project Costs – review of CAPEX and OPEX for gas monetisation projects
- Risks and Rewards
Valuation of Oil and Gas Assets
- Valuation methods for oil and gas assets
- Mergers and Acquisitions in the oil and gas industry
Expenses
- Non-Member - £1,430
- Member - £1,330