Oil Price Volatility and Risk Management

Introduction

The Oil & Gas industry is essential and decisive in steering the global economy. The Oil & Gas business is diverse, technically 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.  Purchase, Sales, Marketing, Trading, and Risk Management are crucial and the most active parts of the hydrocarbon value chain, and extremely important for managers and industry leaders to stay on top of these activities.

This 5-day accelerated Oil Price Volatility and Risk Management training course is designed to give delegates a thorough picture of crude oil, refined products, biofuel markets, risks, and legal and regulatory issues involved in the international crude oil trading and these products. It is presented with the petroleum industry's wide range of essential engineering practices spanning exploration, extraction, refining, global oil supply, reserves, production & trade flows. The associated risks and uncertainties can be fully understood with an overview of these essential practices. Since price volatility always exists, how Price Risk Management is conducted utilizing appropriate financial derivatives and techniques is presented in detail in this training. 

This GLOMACS Oil Price Volatility and Risk Management training course will highlight the following:

• The essential practices of exploration, production, processing, and transportation of crude oil
• The success factors in the business of international sales, marketing, and trading of crude oil and refined products
• The essential logistics of global seaborne transit, pipelines, storage, and distribution of crude oil and refined products.
• The understanding of the pricing dynamics and benchmarks of crude oil, refined products, and biofuels in the global markets 
• The price-risk management benefit from hedging instruments such as Futures and Forward Contracts, Swap, and Options

Objectives

This Oil Price Volatility and Risk Management training course will give delegates a comprehensive image of the global energy obtained through fossil fuels – crude oil, refined products, natural gas, LNG, and biofuels. The supply-demand dynamics of fossil fuels, price volatility, and the associated geopolitics explain the global energy industry's overall dynamics. The issues to be considered are sales, marketing, trading, and a particular focus on price risk management and reducing corporate risk.  

• Gain business acumen in the wide-ranging subjects of upstream production to the downstream sales, marketing, and trading of crude oil, refined and renewable products
• Understand the critical crude oil and refined products pricing dynamics and the use of pricing benchmarks
• Develop price-risk management strategies using hedging instruments
• Acquire essential legal and regulatory issues relating to trading in the global markets.
• Reduce the overall risk of the Petroleum Industry and maximize the value chain profitability

At the end of this Oil Price Volatility and Risk Management training course, you will be able to:

• Fully understand the business of upstream, midstream, and downstream oil, refined products, and biofuels
• Comprehend refining processes, compute refinery margins, manage refined products and biofuels price risks
• Master the essential practices of sales, marketing, and trading of crude oil and refined products 
• Learn to develop and negotiate general sales contracts, term contracts, and spot contracts
• Understand the International oil supply dynamics and geopolitics and effectively reduce the business risks

Training Methodology

This training course is a highly interactive program that is designed to encourage delegate participation through a combination of group discussion, practical exercises, case studies, quizzes, and extensive use of short videos highlighting the petrochemical operations, environmental and safety considerations to reinforce new knowledge and skills, and discussion of practical issues in their organizations.

Organisational Impact

By sending their employees on this training course, the organization will gain a broader range of skills that participants gain and henceforth, apply in their workspace what was learnt and will be beneficial to their respective companies.

• It recommends a broader global energy business management perspective on the international energy business and highlights the success factors in each category of several business models
• Defines how oil & gas energy and renewables innovations would help drive economic growth and improve living standards worldwide
• Clarifies how we can achieve these high-efficiency goals while delivering value to shareholders
• Inculcates the corporate culture of effectively dealing with the core issues, tactics, and essential concepts of successfully running the global petroleum business

Personal Impact

Each participant will enhance the Oil and Gas, Energy Industry's technical knowledge and business skills to benefit their career growth.

• Master the core competencies of the Oil, Natural Gas, and LNG Industry
• Sharpen business skills by learning those techniques that improve capital productivity and operational excellence
• Understand the value chain optimization in Hydrocarbon Industry and apply it at the workplace to enhance stockholders' value
• Be fully aware of success factors in the Oil, Gas, LNG, and refined products Industries and how to deal with price risk uncertainties
• Hedging the risk at the corporate, business segment, and individual transaction levels.