Economics of the Petroleum Industry

Overview

This course provides an in-depth examination of the economics of the petroleum industry from exploration and production, through midstream activities including refining and transportation to retailing of downstream products. Understanding the impacts of ever-shifting economics on the entire value chain will allow participants to develop a holistic view of the petroleum industry and a deeper understanding of profitability drivers across the operating segments. This course is an ideal primer for those that are new to the petroleum industry or shifting roles within the industry and need a deeper understanding of the economics.


WHY YOU SHOULD ATTEND

Take your knowledge of the petroleum industry to the next level by enhancing the current value of your role and laying the foundation for that aspirational next move. Stay a step ahead of your competition by developing an understanding of the economic drivers which precipitate operational and process changes across the petroleum industry. Become less reactive in your business decisions as you master the interplay between petroleum industry sectors due to short-and long-term economic shifts.

Topics covered include:

  • The economics of onshore and offshore exploration and production
  • Crude oil logistics — tankers, barges, pipelines, rail, trucking
  • Refinery operations — economics of simple, complex and very complex refineries
  • Refinery capacity optimization
  • Crack spreads and protecting refining margins
  • What is opportunistic refining?
  • Refined product logistics
  • Wholesale vs. retail pricing of refined products
  • Economics of wholesale distribution from the seller's perspective
  • Economics of wholesale distribution from the buyer’s perspective
  • Contango vs. backwardation
  • Current economic drivers in oil and refined products
  • Gross vs. net fuel margins for retailers
  • Economics of commercial hedging
  • Economics of opportunistic trading in oil and refined products
  • How hedgers manage in-transit inventories
  • Economics of the storage trade
  • What is the forward curve?
  • Cash and carry arbitrage