Course Overview

Day-by-Day Outline

Day 1 – Overview of the Oil Supply Chain

• - Introduction to upstream, midstream, and downstream segments
• - Key activities, players, and logistics in each segment
• - Value creation opportunities across the supply chain
• - Major global oil supply chains and trade flows
• - Exercise: Map the supply chain for a barrel of oil from reservoir to end-user

Day 2 – Cost Structures & Economic Drivers

• - Capital and operating cost components in upstream, midstream, and downstream
• - Breakeven price concepts
• - Transportation and storage cost analysis
• - Refining margins and their impact on profitability
• - Workshop: Analyze cost breakdowns for an example integrated oil project

Day 3 – Pricing Mechanisms & Trading

• - Crude oil pricing benchmarks: Brent, WTI, Dubai
• - Refined products pricing fundamentals
• - Spot, forward, and futures markets
• - Oil trading instruments: swaps, options, hedging basics
• - Exercise: Evaluate the impact of crude price fluctuations on refinery economics

Day 4 – Supply Chain Optimization & Logistics

• - Balancing supply and demand across value chain stages
• - Pipeline, shipping, and terminal economics
• - Inventory management and its financial impact
• - Strategies to optimize oil supply chains for cost and efficiency
• - Workshop: Develop an optimized logistics plan for a regional oil distribution network

Day 5 – Global Oil Markets & Case Studies

• - Macroeconomic and geopolitical factors influencing oil supply and demand
• - OPEC+ strategies, sanctions, and trade dynamics
• - Case studies of disruptions and their economic impacts
• - Long-term energy transitions and future challenges for oil economics
• - Capstone Project: Create an economic analysis of a hypothetical integrated oil supply chain responding to a market shock

Expected Learning Outcomes

•  Understand the full oil supply chain and economic relationships
•  Analyze cost drivers and pricing mechanisms in upstream, midstream, and downstream
•  Evaluate supply chain logistics for economic optimization
•  Interpret the impact of global market dynamics on oil prices and supply chains
•  Apply best practices to improve profitability and efficiency in oil operations