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Portfolio Management of Oil and Gas Assets

Energy Institute
Course summary
Length: 3 days
Language: English
Location: London
Course home page: Link
Course type: Open / Scheduled

Course description

Risk management, stochastic modelling and optimization are essential requirements for upstream oil and gas decision making. The information provided by modern portfolio modelling techniques and tools also leads to improved insight and understanding of the potential contributions assets can make to specific portfolio combinations. A quantified corporate strategy, with clearly defined goals and constraints, integrated with portfolio models leads to more robust upstream portfolio decisions.

This course includes presentations, exercises and case studies focused on the upstream oil and gas sector. It also addresses the involvement of midstream and downstream assets and other non-petroleum energy assets in the context of achieving balanced portfolios. The materials presented are designed to provide delegates with knowledge of portfolio management issues and modelling techniques and how they are applied.

9 - 11 October 2018
4 - 6 June 2019

Training Course Content

Course overview:
Day One – E&P portfolio characterization considerations
• Benefits of a portfolio approach to oil & gas valuations and decision making
• Key criteria to measure performance of upstream asset portfolios
• Strategic goals and constraints are essential for portfolio decision making
• Advantages of balanced and diversified upstream asset portfolios
• Budget constraints and influences on portfolio capital allocation decisions
• Applying the principles of financial asset portfolio theory to E&P assets
• Distinguishing asset risk and portfolio risk
• Efficient frontiers and feasible envelopes aid portfolio selection
• Correlation among E&P assets and its influence on portfolio risk

Day Two – Portfolio modelling and optimization
• Developing a portfolio model in combination with a quantified strategy
• Factoring in asset limitations and synergies
• Expected monetary value approach to quantify upstream asset risk
• Competitive bidding for upstream assets
• Considering an asset portfolio independently of corporate constraints
• Recognising the influence of corporate financial and strategic drivers
• Different methods to quantify portfolio uncertainty and downside risk
• Benefits of stochastic (probabilistic) portfolio valuation models
• Probability of achieving key strategic and corporate targets
• Risked portfolio simulation models: inputs and outputs
• Portfolio optimization: Linear, non-linear and evolutionary algorithms
• Applying optimizers to simulation model outputs
• Enhancing portfolio understanding and decision making using optimizers
• Portfolio modelling software considerations

Day Three – Organizational and business development factors
• Organisational issues associated with portfolio management teams
• Human factors and constraints to portfolio model implementation
• Utility factors, preferences and biases of portfolio decision makers
• Enterprise risk management constraints to portfolio management
• Establishing short-, medium- and long-term planning horizons
• Recognizing the value of optionality associated with certain assets
• Influences of long-term and infrastructure assets on portfolio risk
• Asset acquisitions and divestments evaluated with a portfolio model
• Performing gap analysis with the aid of a portfolio model
• Using a portfolio model to assess strategic options and quantify goals
• Integrating global and long-term considerations with portfolio selection


Non-Member - £2,550
Member - £2,350

About provider

Energy Institute

Energy Institute - Open and Online Courses in Oil and Gas - Bespoke Training

The Energy Institute (EI) is the professional body for the energy industry, delivering good practice and professionalism across the depth and breadth of the sector. The EI is the leading chartered professional membership body for the energy industry, supporting over...

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Energy Institute

61 New Cavendish Street

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