Economics of the Oil and Gas Industry - November 2020

Training Course
  • London and Home Counties
  • <p>Energy Institute&nbsp;</p> <p>61 New Cavendish Street</p> <p>London, W1G 7AR</p>
  • 23-11-2020
    /
    24-11-2020
  • 09:00 - 17:00
  • Non-Member - £1390.00
    Member - £1290.00
    + VAT
  • Available in-house
  • Book now

A 2-day introduction to the economics of the oil and gas industry. This course is suitable for students who are new to the oil and gas industry.

COVID-19 Update - Please note that this training course will take place either online or at the Energy Institute head office in London, depending on whether the government lockdown restrictions have been lifted.

Instructions on whether the training is taking place online or at the venue will be sent to all bookers nearer the time.

Learning objectives

This 2-day course provides and 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 product and gas – what drives these prices and how can investors 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.

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

Course overview

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

Tutor profile:

This course is delivered by Zoe Young who has over 20 years’ industry experience at companies including ExxonMobil and Gaffney, Cline and Associates.  Zoe has advised governments, oil companies and NOC’s on strategic investments and performed technical due diligence, market studies and economic analysis of LNG investments in Europe, Middle East and Asia .  She is an experienced lecturer, having provided courses and/or technical seminars for the Energy Institute, Cass Business School  (City University London). Japan Oil, Gas and Metals National Corporation (JOGMEC), PetroSA, Mennta (formerly Oxford Princeton Programme) and the Malta Petroleum Training Academy.

CPD hours:

16

Contact details:

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