Presented by
Falconbury

Commercial Awareness in the Oil & Gas Industry

Gain a clear understanding of the crucial economic, technical and current issues that impact each stage of the industry and how they can be used to achieve commercial success

Find out more

  • Format: Bespoke training
  • CPD: 12 hours for your records (depending on your requirements)
  • Certificate of completion

Course Overview

Understanding the industry you work in on all levels is essential when working to improve both personal and business performances. You need to be able to identify opportunities and threats in the market, understand the constraints of colleagues working in and across the business and realise the full impact of your decisions and actions.

Making effective forecasts and decisions in this industry relies on your knowledge of how the industry works, this two-day programme will boost your knowledge in critical areas including:

  • The full extent of the risks involved in exploration
  • How environmental issues limit opportunity
  • The implications of the decline in production curves
  • Development as an investment decision
  • Future global supply prospects
  • The logistical challenges of transportation and the problems with transit pipes
  • The constraints of the gas industry
  • The profitability of refining and how investment is secured
  • What are the margins, what makes a profitable project
  • The role of energy in the global economy
  • Working effectively in partnership with state oil companies

Delivery style

The programme will consist of a series of lectures, interspersed with syndicate work. Part I will involve lectures which will develop into a workshop situation to allow for increasing discussion when the current issues are discussed. Part II will involve greater discussion plus some syndicate work.

Who should attend?

This practical and interactive programme is designed for all those involved in the oil and gas industries either within, new to or supplying to, who would like to broaden their knowledge including:

  • Managers and key executives
  • Engineers, scientists or technical specialists
  • Heads of departments/directors
  • Project managers

From all areas including production, business development, legal, finance, commercial, HR, admin support, marketing, sales and licensing.

Sample Programme

Part 1: The Stages


Module 1: Exploration

The Technical Dimension

  • Oil is concealed and must be discovered
  • Survey techniques
  • Wildcat drilling
The Economics
  • Risk and uncertainty
    • Prospect risk
    • Contract risk
    • Commercial risk
  • Division of the economic rent
  • Taxes and incentives
The Current Issues
  • Competition for acreage
  • Access to acreage and resource nationalism
  • Competition for oil company investment
  • Concerns over environmental impacts


Module 2: Development and Production

The Technical Dimension
  • Oil pools
  • Gathering systems
  • Production decline curves
  • Reserves
The Economics
  • Development as an investment decision
  • Production costs
  • The bygones rule
  • Technical change
  • Fiscal Issues
  • Project appraisal and uncertainty
The Current Issues
  • Government depletion policies
  • Investment options
  • The obsolescing bargain
  • Peak oil
  • Future global supply prospects


Module 3: Transportation

The Technical Dimension
  • Tankers
  • Pipelines
The Economics
  • Economies of scale
  • Natural monopolies
  • Leads, lags and market implications
The Current Issues
  • Environmental implications
  • Problems with transit pipelines


Module 4: Gas as a Constrained Industry

The Problems Facing Gas in the Past
  • OECD
  • Developing countries
The Current Issues
  • Gas markets – regional versus international
  • Pricing of gas prospects for LNG
  • The shale gas revolution
  • Future demand for gas


Module 5: Refining

The Technical Dimension
  • Primary distillation
  • Upgrading capacity
The Economics
  • Location
  • Cost structures and the security of crude throughput
  • Investment and margins
The Current Issues
  • Environmental pressures
  • Investment requirements
  • Refinery profitability
  • Future product demand


Module 6: Marketing and Distribution

The Technical Dimension
  • Storage
  • Transportation
The Economics
  • Inventories and incentives
  • Margins
The Current Issues
  • The role of energy in the economy
  • The nature of the energy consumption decision
  • Taxation
  • Environmental concerns


Part Two: The total value chain

Module 7: Linkages

Linkages – Their Development

  • Forms of integration in the international petroleum industry
  • Role of markets, horizontal integration and OPEC
  • Role of competition
  • The vertically integrated structure of companies

Linkages – Their Future

  • Private versus state oil companies
  • Global versus regional markets

Issues Common to the Chain

  • Oil and gas prices
  • Sources of investment
  • Managing risk

We don't have any currently scheduled dates for this course but we can customise it to your requirements and deliver it on an in-house basis for any number of your staff or colleagues.

See below or contact us to discuss yor requirements.

Multiple colleagues?
Talk to one of our training experts to discuss how to:

Run this course conveniently and cost-effectively in-house for your staff and colleagues

Aleksandra BEER
Training expert

+44 (0)20 7749 4749

inhouse@ipi.academy