The 5-Day Oil and Gas MBA

Gain an economic, commercial and strategic insight into the essential workings of the oil and gas industry. All you ever wanted to know about the industry in just five days.

Course Highlights

During this intensive five-day residential course you will:

Gain a comprehensive understanding of all aspects of the energy value chain
Get to grips with the challenges that will have the greatest impact on your industry now and in the future
Reinforce and strengthen your knowledge in the areas you know whilst also broadening your knowledge in other areas and industry issues you are less confident in
Learn the latest developments in petroleum geology, supply chain, exploration and recovery, foreign participation, transportation, refining and trading
Confidently master the relevant commercial factors key to the negotiation of oil and gas contracts
Develop a comprehensive strategy for decision making, especially under conditions of risk and uncertainty

For details of the course trainer, please download the course brochure

Course Programme

Petroleum Geology

Basic geology
"The Magic 5"
Risk factors (risk versus uncertainty)
STOOIP and reserves
Monte Carlo simulation

Structural Characteristics of the Oil and Gas Industry

Supply, demand and oil price
Oil production, consumption and growth
OPEC
Competition
The economics of non-renewable resource depletion

Instructor Led Case Study:" Oil price movements after the Iraq invasion of Kuwait"

Oil Supply Chain and Gas Supply Chain

Oil: From exploration to the consumer
Gas: From exploration to the consumer
Differences between gas and oil

The Basics of Oil and Gas Exploration and Recovery

Exploration
Appraisal
Development
Drilling
Production
Decline and decommissioning
The challenge of unconventional oil and gas

The Life Cycle of a Project

Oil and gas industry road map

Oil and Gas Project Development Concepts

Project control versus expenditure
Project stages
Concept selection

Peak Oil

Exercise: Peak Oil

Methods of State and Foreign Participation

Examples from around the world
The traditional role of NOCs and IOCs
Factors that impact investment

BP in Angola

Case Study: "BP in Angola"

Government Fiscal Terms and Agreements with Investors

· Economic rent and how to collect it

Optimum tax systems
Government versus investor objectives
Designing a licence or contract system
The concession system
Production sharing contracts
Joint ventures with national oil companies
Criteria for award of licences and contracts

The Changing Role of the NOCs, IOCs and Service Companies

Control of global oil reserves
NOCs from around the world and their differing strategies
NOCs outside their home country
Service companies
IOCs in the current environment

The IOC Response

Case Study: "The IOC Response"

Geopolitics

Instructor Led Case Study: Venezuela and its nationalisation efforts.

Mexico and Pemex

Case Study: "Mexico and Pemex".

The E&P Company Business Model

Field production curve – cash flow curves for projects
Cash flow model for E&P companies
The "Hopper" model
Strategy – areas of focus
The role of M&A
Diversifying sources of income

Project Investment Appraisal Techniques

Payback
Cost of capital
Net present value
Internal rate of return
Profitability Index
The economic model

Decision Making Under Conditions of Risk and Uncertainty

Exercise: Typical decisions made by O&G executives

Exercise: Risks and uncertainties facing oil and gas investors and governments

Exercise: "Gamblers Ruin"

Definitions of risk and uncertainty
Evaluating and analysing risk and uncertainty tools:
Sensitivity Analysis
Expected Monetary Value
Decision Trees

Exercise: Decision Tree examples

Simulation and Probabilistic Tools
Managing risk and uncertainty
The value of information and the value of flexibility

Midstream: Transportation Options

Oil infrastructure ownership considerations
Offshore development and transportation options
Economic considerations
Pipelines and shipping

Refining and Trading Interfaces

Refining: processes, products and business model
Refining competitiveness criteria
Crude oil value and marketing
Oil trading

Gas and Markets

Introduction
Gas production, consumption and growth
Gas contracts
Gas markets and pricing
Gas price versus volume risk

Stranded Gas and Monetisation

The challenge of stranded gas
Technologies to transport gas long distances
Bringing stranded gas to market

Liquefied Natural Gas

The LNG supply chain
LNG sales
LNG export capacity and growth

Gas to Liquids and Other Monetisation Methods

The GTL processes and technologies
Gas to wire
Compressed natural gas
Gas to solids

Joint Ventures in the Oil and Gas Business

Exercise: Why are joint ventures used?

How joint ventures are set up
The various types of joint venture
Legal aspects
Effective joint ventures
The national oil company as a partner
Major issues
Joint Operating Agreements

Safety, Environment and Decommissioning

The economics of decommissioning
The economics of environmental action: Global warming
Safety in the oil and gas industry

The Nexus of Commercial Contracts in Oil and Gas Investments

Oil and gas project contractual structure – from the investors' perspective
Negotiating an oil and gas contract: Hierarchy of agreements
Managing a negotiation – structure

Transportation and Processing Agreements

Exercise: Identify the major terms on a T&P term sheet.

Summary

Exercise: 9 key features of the oil and gas industry will be identified.