Introduction

Oil and gas are considered among the world’s most significant assets. The oil and gas industry plays a vital role in driving the global economy. Petroleum itself is used for numerous products, in addition to serving as the world’s primary fuel source.

The processes and systems involved in producing and distributing oil and gas are exceptionally complex, capital-intensive and require state-of-the-art technology.

As the oil business faces challenges related to environmental change, alternative energies, energy substitutions and adverse changes in the quality of available downstream feedstocks, it recognises the need for managers who have a comprehensive and broad comprehending of the industry, including economics, evaluation and decision-making skills and who comprehend the problems that face the oil and gas industries in the future.

This course will provide a basis for functional managers and those whose experience has been limited to a particular area of the industry, to prepare for additional responsibilities by providing a broad base of knowledge covering the total spectrum of the oil and gas business and specific skills related to the evaluation of opportunities and enhanced decision-making.

Objectives

– Comprehend all of the value-added steps from the well to the consumer.
– Get an understanding of the ways the oil and gas industries have organised to operate effectively and efficiently.
– Acquire the details of gas processing.
– Learn how crude oil is processed into transportation fuels.
– Comprehend the fundamental economic calculus of both the upstream and downstream oil and gas industries.
– Improve the skills needed to assess opportunities and make effective decisions related to oil and gas operations.

Course Outline

Day 1

Sources, Origin and Nature of Petroleum

– Fundamentals of organic chemistry.
– Definition of Petroleum.
– The Oil and Gas Industry.
– Basic petroleum geology.
– Origins of Hydrocarbon Deposits.
– Exploration activities.
– Exploration Methods.
– Drilling Proposal.
– Types of Well.

Day 2

Sources, Origin and Nature of Petroleum (Contd.)

– Oil and gas field development.
– Production.
– Well fluids and surface production operations.
– Transportation.

Day 3

Oil Companies, Corporate Relationships and Structures

– Operating companies and service companies
– Local, national and multi-national oil and gas companies
– Major International Oil Companies
– National Oil and Gas Companies
– Integrated and non-integrated companies
– Integrated Companies
– Non-integrated Companies

Day 4

Oil Companies, Corporate Relationships and Structures (Contd.)

– Organization of Petroleum Exporting Companies (OPEC).
– Other international and multi-national organizations.
– International Energy Agency (IEA).
– Production sharing agreements.

Day 5

Processing Operations and Economics

– Oil refining operations.
– Distillation.
– Product improvement processes.
– Product conversion processes.
– Other operations.

Day 6

Processing Operations and Economics (Contd.)

– Gas processing operations.
– Inlet separation.
– Sulfur removal and sulfur recovery.
– Dehydration.
– Dewpoint control and byproduct recovery.
– Gas compression.
– Basic economics of the oil and gas industries.

Day 7

Evaluation of Oil and Gas Opportunities

– Estimating the cost of oil and gas facilities.
– Using historical costs.
– Cost curves.
– Adjusting for different sizes.
– Adjusting for different time periods.

Day 8

Evaluation of Oil and Gas Opportunities (Contd.)

– Building cash flow models
– What is financial modeling?
– Who does Financial Modeling?
– What are the steps in building a financial model?
– Using cash flow models to evaluate projects.
– Internal rate of return.
– Net present value.
– Benchmark indicators.

Day 9

Making Decisions under Conditions of Certainty and Uncertainty

– Certainty.
– Risk.
– Crisis problem.
– Uncertainty.
– The role of probability in decisions.
– Mathematical modelling of business processes.

Day 10

Making Decisions under Conditions of Certainty and Uncertainty (Contd.)

– Making management decisions under conditions of certainty.
– Optimization of the model and interpretation of results.
– Making management decisions under conditions of uncertainty.