Oil Price Volatility and Risk Management

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

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

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.

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

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.

This Oil Price Volatility and Risk Management training course is suitable for a wide range of professionals, but will greatly benefit:

• Business & Development Managers
• Sales, Marketing, and Trading Managers
• Lawyers & Law Firms' Personnel
• Geoscientists, Engineers, and Refiners
• Bankers, Accountants
• Auditors
• Media Personnel who interface with traders and trading
• Government Regulators
• Tax & Finance Advisors
• Compliance Officers
• Equity and Financial Analysts
• Joint Venture Officers
• Negotiators
• Those who are into Trading

DAY 1

Introduction to Crude Oil: A Finite Resource

• Introduction to the Upstream Oil & Gas Industry
• Fundamentals of Oil & Gas Geology and Petroleum Engineering
• Oil & Gas Reserves, Production, Consumption & Trade
• The Impact of The Shale Industry
• Trends in Carbon Emissions, Carbon Capture, Utilization, and Storage
• Basic Refining and Refining Complexity
• Refining Economics

DAY 2

The Market Price Volatility of Crude Oil

• The Driving Factors of Oil Price Volatility
• Different Strategies
• International Oil Trade
• Anatomy of The Crude Oil Pricing System
• Prices on The Oil Markets
• The Importance of Energy Security and Geopolitics

DAY 3

Introductory Concepts in Oil Trading

• The Technical Analysis of Trading
• The Fundamental Analysis of Trading
• Trading on The Oil Markets
• The Spot Markets
• Spot Crude Oil Prices
• The Brent Market
• Indexing Crude Oil Prices

DAY 4

Petroleum Products Price Setting Mechanism using Financial Derivatives

• Hedging – Risk Management
• How are Prices Reported?
• The Physical Futures Markets
• The Financial Futures Markets
• The Historical Development of The Petroleum Exchanges
• Futures Contracts
• Pricing Structures: Backwardation and Contango
• The Limitations of The Futures Markets

DAY 5

Risk Management using Financial Derivative Swaps and Options

• The Definition of An Option
• The use of Options Contracts to protect the National Income of NOCs
• The Definition of a Swap
• The Historical Development of The Petroleum Exchanges
• USA, UK, Singapore

In Association With

PetroKnowledge

Our collaboration with Petroknowledge aims to provide the best training services and benefits for our valued clients

© 2023. Material published by GLOMACS shown here is copyrighted.
All rights reserved. Any unauthorized copying, distribution, use, dissemination, downloading, storing (in any medium), transmission, reproduction or reliance in whole or any part of this course outline is prohibited and will constitute an infringement of copyright.

P.O. Box 74653, Dubai, United Arab Emirates
Tel : +971 - 04 - 425 0700, Fax : +971 (04) 425 0701, Email : info@glomacs.com