Strategic Management in International Oil & Gas Business



OIL ENVIRONMENT



• Energy demand and supply. Crude oil reserves and production.



• History of the petroleum industry. Role of main actors: OPEC, NOCs, IOCs, INOCs, IEA.



• Oil price evolution and long-term scenarios.



• Present and future constraints of the Oil & Gas industry (alternative energies, investments, etc.).




UPSTREAM ECONOMICS



• Fundamental steps of the upstream business.



• Economic aspects and costs, risks.



• Understanding the E&P value chain.



• Legal and fiscal framework for exploration-production (concessions, production sharing contracts, service contracts).




NATURAL GAS ECONOMICS



• Natural gas reserves and production around the world.



• Main gas markets; their structures and constraints.



• Liquefied natural gas chain, economics and trade.



• Long-term sales and purchase gas contracts. Take-or-pay provisions and gas price formulas.




TRANSPORT & INTERNATIONAL OIL MARKETS



• International trade and shipping of crude and products.



• Various types of markets and contracts: long-term contracts, forward and spot markets.



• Case study: how to price & hedge a cargo of crude oil?




REFINING ECONOMICS & PETROCHEMICALS



• Basic technical aspects. Development in refining capacity.



• Refining margins and costs.



• Evolution of products specifications and structure of demand.



• Inter-relationship between refining and petrochemicals.



• Main petrochemical sectors; environmental and economic trends. Coping with economic cycles.



• Case study: working in teams, participants have to calculate refining margins and the main operating indicators.




PROJECT ECONOMICS & DECISION ANALYSIS TOOLS



• Economic criteria for investment project evaluations (NPV, IRR, POT, etc.).



• Global profitability analysis. Economic cost analysis.



• Introduction to risk analysis. Risk management, financial and cost management.



• Case studies: participants have to evaluate the economic profitability of a gas pipeline project and LNG project.




STRATEGIC BUSINESS GAME



• Introduction to strategy and financial management.



• Introduction to the strategic game: participants are introduced to the use of strategic tools.



• Communication and workshop:



• Participants analyze their respective situation (SWOT analysis) in each of the branches (upstream, refining, retail and petrochemical).



• Participants have to implement their decisions and evaluate its impact through the use of an Excel simulator.