Crude Oil Evaluation, Economics & Pricing Course

OG-701

Course Description

This course is designed to give participants an overview of crude oil and its value in refining configuration and pricing assessment in global oil markets. It will give participants a practical knowledge of how various grades of crude oil are worth to different refiners and how they are valued and traded.

During the course, the content will focus mainly on Brent crude covering physical, futures and forward markets including hedging and risk management. Other topics that will be investigated are marketing, supply and trading elements, including marine transportation and freight economics.

Methodology

Filling the gap between theory and practice, this course provides participants with the skills needed to understand the physical and commercial aspects of crude oil. Covering the key factors, participants will learn how to ascertain the true value in a commercial and dynamic environment

Suitability – Who should attend?

Technical and non-technical professionals from oil & gas industry and business and financial institutions, who wish to understand in a simple and jargon-free language the physical aspects of crude oil sales, supply and trading business. Those who want to gain commercial insight of how crude oil is converted into different refined products and how they are priced/valued in open markets for supply and trading.

Oil and Gas Engineers

Planning Engineers / Managers

Oil Marketing Managers / Traders

New Entrants to Refinery or Petroleum industry

Business Analysts

Banking and Government Officials

Finance and Accounting Analysts

Training Course Content

Overview
Introduction to oil industry
Overview of global crude supply/demand
Introduction to crude oil production
Crude Oil Characteristics
Crude oil characteristics
Benchmark crudes
Significance of light/heavy and sweet/sour crudes
Crude, condensate and other feedstocks
Crude Oil Refining
Fundamentals of refining process
Refinery configuration
Refining margins
Refining operations and optimization
Impact of configuration on refining economics
Exercises / Case Study

Evaluating Crudes

Crude oil evaluation, selection and assessments
3-2-1 crack spread
Understanding refined products
Pricing Mechanism
Introduction to crude oil pricing
Introduction to products pricing
Physical markets and regional hubs
Role of Exchange and Benchmark
Understanding Brent and North Sea crude markets
Understanding dynamics of US domestic and Canadian crudes
Crude Oil Trading
Physical, Forward and Futures markets
Price exposure and risk management
Exercise / Case Study

Crude Oil Trading (Cont’d)

Specifics of physical oil trading
International crude oil trading
Crude Oil Transportation
Crude supply and transportation
Marine freight and economics
Backhaul supply economics
Crude processing deals
Crude Oil Contracts
Crude oil contract negotiations
Types of oil contracts – legal and commercial implications
Regional market dynamics
Role of OPEC and geopolitics
Developing crude oil supply plans
Exercise / Case Study

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