Commercial Oil Operations and Logistics

An Intensive 5-Day Training Course

Commercial Oil Operations and Logistics

Scheduled Dates

07 - 11 Aug 2023 London - UK $5,950
11 - 15 Dec 2023 London - UK $5,950
Enroll Now In-House Options

Are the scheduled dates matching with your needs?

We provide a wider range of training options. Tailored and customized, we can deliver your organization’s training needs anytime, anywhere.

Why Choose this Training Course?

The Oil and Gas operations are multifaceted, logistically complex, highly capital intensive, and often confronted with potential risks and uncertainties. Today’s oil companies are dealing with ever-increasing levels of complexity and competition.  Innovative technologies in the recovery of oil are also changing the landscape of the petroleum industry. Integrating refining and petrochemicals to achieve greater efficiencies is another critical factor in business profitability. Managing global supplies, refining, and oil trading requires several cross-functional skills. To achieve maximum effectiveness, managers and professionals must continually expand their business knowledge and sharpen their skills.

This 5-Day accelerated training course provides a broader global oil business management perspective and highlights its essential components' success factors. It follows the natural order of business, starting with its supply and transportation that fuels the global economy, followed by the critical refining and trading operations.

This Commercial Oil Operations and Logistics training course is designed to suit the broad background of delegates. It streamlines, through utilization of visual aids and simulation, the complexity of several complex operations, such as drilling, completion, refining, and transportation. The course provides hands-on business cases to evaluate Crude Oil Value, Netback and Refinery Margin Calculations, Price Management, Sales Contracts, Transportation Costs, Product Quality, Total Barrel Economics, Economic Value of Pipeline, amongst others.

The course deals with the core issues, tactics, and essential concepts of successfully running the international oil supply, transportation, refining and trading business. 

In this PetroKnowledge training course, you will be able to learn:

  • Basics of oil and gas exploration, production, and recovery economics to fully understand this global business that fuels the global economy.
  • Fundamentals of Oil Economics and Crude Oil Transportation
  • Basic Refinery operations, economics, and environmental aspects
  • Basic Principles in crude oil pricing and overview of crude oil and refined products markets
  • Essential elements in crude oil and refined products sales contracts
  • Fundamental concepts and business practices of the international oil supply, transportation, refining, and trade in the oil and gas industry
  • Supply Logistics: Major international pipelines, shipping routes, and choke points
  • It seamlessly covers various critical commercial functions, logistics & processes, and appropriately deals with the business practices and tactics to build the necessary business acumen

What are the Goals?

At the end of this Commercial Oil Operations and Logistics training course, participants will be able to:

  • Gain a broad perspective of the global oil business, supply, transportation, refining, and trading
  • Boost understanding of the fundamentals of the oil business: quality, blending & valuation of oil for trade, freight and netback calculation & refinery margins calculations, vessel chartering, pipelines & terminals, etc.
  • Master the Total barrel economics, oil market futures, hedging & futures, and price management considerations
  • Assess the technical, commercial, legal, safety, and environmental views/aspects of the oil business
  • Confidently and positively discuss the technical terms, concepts, and buzzwords with your colleagues and clients

Who is this Training Course for?

This Commercial Oil Operations and Logistics training course is suitable to a wide range of professionals, but will greatly benefit:

  • Business Development Managers
  • Corporate Planning Professionals
  • Geoscience & Engineering Professionals
  • Refinery Professionals
  • Supply Planners & Scheduling Professionals
  • Government Regulators
  • Law Professionals
  • Tax & Finance Advisors
  • Auditing Personnel
  • Compliance Officers
  • Equity Analysts and Bankers
  • Joint Venture Officers
  • Negotiators And Contracting Professionals
  • Trading Professionals
  • Business Development Managers
  • Corporate Planning Professionals
  • Geoscience & Engineering Professionals
  • Refinery Professionals
  • Supply Planners & Scheduling Professionals
  • Government Regulators
  • Law Professionals
  • Tax & Finance Advisors
  • Auditing Personnel
  • Compliance Officers
  • Equity Analysts and Bankers
  • Joint Venture Officers
  • Negotiators And Contracting Professionals
  • Trading Professionals

How will this Training Course be Presented?

Participants will learn by active participation throughout the programme through programme materials, case study exercises, quizzes, training videos, and discussion of business case issues in their organizations.

Daily Agenda

Day One: Exploration, Production, Supply and Petroleum Economics & Logistics 

  • Introduction to Course
  • Introduction to How Oil was Formed
    • Origin, Accumulation and Migration of Petroleum
    • Essential Requirements for Hydrocarbon Accumulation
  • Fundamentals of Oil & Gas Geology and Petroleum Engineering
    • Introduction To Oil & Gas Geology
    • Simple Anticline Structural Trap
    • Barrier or Closure – Reservoir Traps - Reservoir Mapping
    • Oil & Gas Drilling Techniques
    • Types Of Drilling – Exploration, Delineation, Appraisal, Developmental, Maintain Potential Wells
    • Drilling Circulatory System – Safety and Environmental Impact
  • Well Logging and Well Completion
    • Tools and Techniques for Evaluating Oil & Gas Wells
    • Open and Cased Well Logs
    • Functions of Well Casing
    • Benefits of Horizontal Well over Vertical Well - Multilateral Well Completions
  • Essence of International Oil Supply – Global Reserves, Production & Trade
    • Introduction to global oil business - Exploration, Extraction, Refining, Marketing, Transportation
    • Global Oil Resources – World Oil and Gas Reserves, Production of Oil and Gas
    • Industry units – for the USA, Europe and Asia, Conversion factors
    • Crude Oil Classifications
    • Crude Oil Quality Indicators, crude oil characterization by Assays
    • Crude Oil Distillation – Refined Products
    • Oil Industry Units and Conversion Factors
  • Fundamentals of Oil Economics
    • The delivered price of crude oil – the concept GPW (Gross Product Worth)
    • Net Refining Margin calculation
    • Value of Crude Oil and the Determining Factors in Crude Selection

Day Two: Transportation, Refining, and Marketing 

  • Fundamentals of Crude Oil Transportation – Logistics of Tankers and Chartering
    • International Oil Tanker Sizes, Tonnage, and
    • Types of Charters and Charter Parties
    • Freight Payment, Chartering Mechanism, Voyage Charter, Time charter
    • Roles of Shipbroker, Shipping Agent, Bunkering, Arbitrage, daily Net Contribution
  • Basic Principles in Pricing and Overview of Markets
    • Causes of Oil Price Volatility
    • The History of Oil Price – Real and Nominal
    • The Future of Oil Price - Oil Imports & OPEC’s Production, & Consumption
    • The Future of Oil Price - Global Reserves Replacement Ratio
    • The Physical and Paper–Oil Markets
    • Price Markers of the World – Crude Oil Benchmarks: WTI, Brent, Dubai/Oman, ASCI, OPEC Reference Basket
    • Methods of Sale – Spot, Term
    • Regional Pricing – North America, Europe & Asia
    • Price Reporting Methodology – Price Report
  • Crude Oil Markets – Commercial and Logistics
    • History of Crude Pricing
    • Location of Pricing
    • Marker crudes
  • Refined Products Quality - – Commercial and Logistics
    • Crude Oil Refinery – Size and Configuration – Skimming, Catalytic, Thermal Cracking
    • Refinery Yields by Crude Type, Refinery Margin Calc., and factors affecting Profitability
    • Essential Refinery products and Specifications
    • Need for Blending and blending exercise
    • Prices at Pump, Oil & Gas Earnings Versus Other Industries, Return on Investments
  • Refined Products Market
    • Product Pricing Determinants
    • Product Pricing Quotations
    • Product Pricing Spec-base
    • Product Pricing Assessments
    • Fundamentals of Product Trading

Day Three: Commercial Contracts, Sales, and Marketing Logistics

  • Essential Elements in Crude Oil Sales Contracts
    • The Objective, the parts of the Contract, and the Contract Confirmation
    • Attributes and Buyer/Seller Responsibilities with INCO Terms – FOB, CFR, CIF, DES
    • Important Oil Contracts Clauses
    • Payment and Security
    • General Terms and Conditions
  • Basic Refining II – Conventional Refinery Upgrading
    • Cat Cracking
    • Hydrocracking
    • Visbreaking
    • Coking
  • Basic Refining III – Sulfur Reduction
    • Sulfur Reduction Methods – Lighter Compounds and Heavier Compounds
    • Hydroprocessing
    • Sulfur Reduction measures
    • Other Sulfur Reduction Processes
  • Contracts – Elements of Risk
    • Identify areas of risk
    • Credit performance risk – LOC, Standby LOC, Parent company Guarantee
    • Operational Risks - Vessel nominations, Quantity and Quality, etc.
    • Charter Party Risks
  • Basic Refinery IV – Economics & Environmental Aspects
    • Yields for Different Configurations
    • Value Contributions for Different Configurations
    • Investments costs
    • Environmental Considerations
  • Primary Logistics
    • Pipeline transfers - Advantages and Disadvantages
    • Pipeline Scheduling
    • Pipelines Investment Considerations - Tariffs and Operating Economics
    • Major Pipelines of the World
    • Storages
    • Losses – Net loss, In-Transit Loss, Inturn loss, Outturn Loss

Day Four: Market Structures, Oil Trading and Logistics

  • Introductory Concepts in Oil Trading
    • Players in the Oil Market
    • Success Factors in Trading
    • Risk Factors in Trading
    • Trading Objectives and Price Movements
    • Market Structures – Contango and Backwardation
  • Interface with retailers
    • Competitive Marketing – Primary and Secondary Supply
    • The Value Chain – E&P to the Customer
    • The Retail Market Place
    • Fully Vertically Integrated Oil Company Model
    • The Essential Success Factors in Retailing
  • Downstream Supply Chain management
    • The Essential Success Factors in Supply Management
  • Total Barrel Economics
    • Measures of Profitability
    • Net Marketing Revenue – Refinery Netback
    • The Cost of Supply and Total Barrel Margin
    • Transfer price – An Alternate Value
    • Typical Oil Company, Distribution and Marketing Costs
    • Maximising Corporate Profits
  • Oil Markets – Futures
    • Market differences – Forwards and Futures
    • Characteristics of Futures Contract
    • What is the Futures Market?
    • What is Margin Money?
    • How are Futures used?
  • Price Exposure
    • Trading For-profit
    • Taking Buy or Sell Position – Long vs Short
    • Priced Vs Unpriced Exposure
    • What is Unpriced Purchase and Unpriced Sale
  • Case Studies: Pricing, Contractual Terms, Total Barrel Exercise

Day Five: Petroleum Dynamics and Risk Management

  • Hedging – Risk Management
    • Use of Futures and Forward Markets
    • Example of Hedging
    • Removal of Absolute Risk – Introduction of Basis risk
  • Pricing Management
    • What is Price Management?
    • Price Management Example
    • Price management Outcome
  • Derivatives
    • What are Swaps?
    • Example of Swap Transactions
    • What are the Options?
    • Example of Option Transactions
    • Attributes of Swaps and Options in the Oil & Gas Industry
  • Examples of Oil & Gas Futures Contracts, Swaps, and Options
  • Common mistakes by Oil & Gas Companies in Hedging
  • A Guide To Developing A Corporate Fuel Risk Management Policy
  • Challenges to Petroleum Industry and Trends in New Technology

Certificate

  • On successful completion of this training course, a PetroKnowledge Certificate will be awarded to the delegates

In Association With

GLOMACS Training

Our collaboration with GLOMACS aims to provide the best training services and benefits for our valued clients

Visit Website ›

Frequently Asked Questions

How can I register for a training course?

  • To register online through our website, please click “Enroll Now” on the course page, complete and submit the form. A confirmation e-mail and instructions will be sent to the participant’s e-mail.
  • You may also get in touch with our Registration Team on
    +971 50 981 7386 | +971 2 557 7389 or send an email to reg@petroknowledge.com

When and how do I arrange payments?

  • Payments can be made in USD or UAE local currency AED (Arab Emirates Dirhams) either by Bank Transfer or by Credit Card. Our Bank Account details will be provided on the invoice.
  • Course fees are payable upon booking unless a valid, authorized Purchase Order is provided and accepted.
  • Invoices will be sent via email/courier to the ID/name and address provided.
  • The course fee shall be settled prior to course start date. Corporate payments with existing payment policy shall be relayed to us in advance.

When should I expect to receive confirmation of registration?

Upon successful registration online, enrolment on the respective training course will be confirmed by Registration Team by e-mail along with the invoice and joining instruction.

Is there a discount for more than one registrant/course?

For corporate fees and group registration, please send your query to info@petroknowledge.com.

Download PDF

© 2023. Material published by PetroKnowledge shown here is copyrighted.

All rights reserved. Any unauthorized copying, distribution, use, dissemination, downloading, storing (in any medium), transmission, reproduction or reliance in whole or any part of this course outline is prohibited and will constitute an infringement of copyright.


Sending your message. Please wait...

Close

There was a problem sending your message. Please try again.

Please complete all the fields in the form before sending.