Course description
Overview of Physical Oil Operations is a VIRTUAL classroom course presented by the energy training experts at Mennta Energy Solutions.
This workshop provides an introduction to physical oil operations. Learn how operations staff work alongside crude oil and refined products traders to manage the logistics of trading deals.
Topics explored during the course include understanding the role and responsibilities of an operator, the key quality considerations for crude oil and refined products, the main clauses in an oil trading contract, shipping logistics (including chartering, freight calculations and demurrage), and the management of pipeline and storage transactions.
A key element of the course is that you get the chance to put the knowledge learned into practice through a series of educational and enjoyable class exercises. These exercises are designed to reinforce and extend your learning from the class.
This virtual solution is comprised of four live instructor-led sessions hosted on state-of-the-art training software with video, audio, chat, live polls, competitive quizzes, breakout sessions and much more!
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Content
Introduction to Trading Markets
- Key oil trading markets:
- Spot, term and forward physical markets
- Reasons for trading & types of market participant
- Structure of a trading organization
- The roles of traders and operators
Crude Oil & Refined Products - A General Overview
- A general overview of crude oil and refined products (LPG, gasoline, naphtha, jet/kerosene, gasoil, fuel oil), covering what they are, what they are used for, different types and grades
- Measurement and units
- Review of key quality specifications
- Quality specification test methods
- How quality affects value
- Qualities of blendstocks and how they blend together
- Blending considerations and issues, including linear and non-linear qualities and the use of additives and biofuels
Contracts
- The legal requirements of a contract
- Structuring the key terms of a contract
- Using different Incoterms: risks and responsibilities of buyers and sellers
- Pricing mechanisms:
- Fixed and floating pricing mechanisms
- Benchmark pricing in oil trading
- Price reporting
- Sources of price information
- Price reporting methodologies
Contract Operations
- Key documents, including the bill of lading, letter of indemnity
- Reviewing documents used in cargo transactions
Shipping
- Understanding the key terminology, including parts of the ship, different types of vessels
- Freight costs and shipping economics
- Calculation of freight and Worldscale
- Chartering process:
- Factors to consider when chartering a vessel
- Key clauses in charter contracts
- Demurrage – key considerations
Other Logistics
- Key characteristics of oil pipelines:
- Pipeline operations
- Tariffs
- Logistics and scheduling
- Key characteristics of rail operations
- Storage logistics
- Types of storage
- Standard contract terms
- Costs
- Implications of holding inventory (tax, reporting)
Physical Operations
- Operating procedures: nominations, documentary instructions, substitutions
- The loading and discharging process
- The role of the inspector
- Loss and reconciliation
- Quality, sampling & analysis
- Measurements of quantity
- Relevance of product qualities, and significance of reproducibility and repeatability
- Analyzing results and handling problems