International Gas Markets and Trading

Oil and Gas

Course Info

Duration: 1 Week

Available Dates

Venue

  • June-21-2021

    Paris

  • June-28-2021

    Madrid

  • July-05-2021

    Kuala Lumpur

  • July-05-2021

    London

  • July-12-2021

    Istanbul

  • July-12-2021

    Dubai

  • July-19-2021

    Paris

  • July-26-2021

    Madrid

  • Aug-02-2021

    Kuala Lumpur

  • Aug-02-2021

    London

  • Aug-09-2021

    Istanbul

  • Aug-09-2021

    Dubai

  • Aug-16-2021

    Paris

  • Aug-23-2021

    Madrid

  • Sep-06-2021

    Kuala Lumpur

  • Sep-06-2021

    London

  • Sep-13-2021

    Istanbul

  • Sep-13-2021

    Dubai

  • Sep-20-2021

    Paris

  • Sep-27-2021

    Madrid

  • Oct-04-2021

    Kuala Lumpur

  • Oct-04-2021

    London

  • Oct-11-2021

    Istanbul

  • Oct-11-2021

    Dubai

  • Oct-18-2021

    Paris

  • Oct-25-2021

    Madrid

  • Nov-08-2021

    Kuala Lumpur

  • Nov-08-2021

    London

  • Nov-15-2021

    Istanbul

  • Nov-15-2021

    Dubai

  • Nov-22-2021

    Paris

  • Nov-29-2021

    Madrid

  • Dec-06-2021

    Kuala Lumpur

  • Dec-06-2021

    London

  • Dec-13-2021

    Istanbul

  • Dec-13-2021

    Dubai

  • Dec-20-2021

    Paris

  • Dec-27-2021

    Madrid

  • Jan-03-2022

    Kuala Lumpur

  • Jan-03-2022

    London

  • Jan-10-2022

    Istanbul

  • Jan-10-2022

    Dubai

  • Jan-17-2022

    Paris

  • Jan-24-2022

    Madrid

  • Feb-07-2022

    Kuala Lumpur

  • Feb-07-2022

    London

  • Feb-14-2022

    Istanbul

  • Feb-14-2022

    Dubai

  • Feb-21-2022

    Paris

  • Feb-28-2022

    Madrid

  • Mar-07-2022

    Kuala Lumpur

  • Mar-07-2022

    London

  • Mar-14-2022

    Istanbul

  • Mar-14-2022

    Dubai

  • Mar-21-2022

    Paris

  • Mar-28-2022

    Madrid

  • Apr-04-2022

    Kuala Lumpur

  • Apr-04-2022

    London

  • Apr-11-2022

    Istanbul

  • Apr-11-2022

    Dubai

  • Apr-18-2022

    Paris

  • Apr-25-2022

    Madrid

Course Details

Course Outline

5 days course

 
General Industry Overview

 

  • The Nature of Natural Gas
  • The Global Market Place
  • Estimating Gas Reserves
  • Development & Economics of Shale Gas
  • Shale Gas Development
  • Impact of Shale Gas on LNG Market
  • Shale Gas Development Costs & Economics
  • Evaluation of New UG Plays
  • Problems & Solutions

 

Why economic evaluation
 
  • Typical oil & gas company objectives
  • Inflation
  • Types of inflation
  • Consumer price index (CPI) – USA
  • Italian consumer price index
  • Interest
  • Simple and compound interest
  • Nominal and effective interest.
  • The Time Value of Money
  • Risk factors (simple illustration)
  • The time value of money
  • Interest table
  • Future value of present sum
  • Present value of future sum
  • Future value of ordinary annuity
  • Future value of annuity due
  • Present value of ordinary annuity
  • Conditions of annuity
  • Spreadsheet Applications
  • Problems & Solutions

 

Before-Tax (BTAX) Cash-Flow
 
  • Cash-Flow (CF) defined
  • Forecasting cash-flow
  • Brainstorm session – identifications
  • Basic data requirements
  • Forecasting product stream
  • Revenue stream components
  • Cost elements
  • Before-tax net cash-flows
  • Natural gas processing
  • Typical oil production facilities
  • The history of oil price
  • Capital (front end) costs
  • Breakdown of facilities’ cost
  • Economies of scale
  • Capital costs during production
  • Breakdown of OPEX
  • Develop rules of thumb
  • Transfer pricing
  • Types of cost estimates
  • Dependence of cost estimates
  • Gross revenue
  • Sample before-tax cash-flow
  • Schematic of typical cash-flow
  • After-Tax (ATAX) Cash-Flow
  • After-Tax – additional variables
  • Depreciation types
  • Straight line depreciation
  • Declining balance depreciation
  • Declining balance with switch to straight line
  • Sum-of-the years digits depreciation
  • Depreciable asset lives
  • Sample after-tax cash-flow
  • Spreadsheet applications
  • Problems and Solutions

 

Capital Budgeting Techniques
 
  • Decision yardsticks/profitability indicators
  • Payback period
  • Discounted payback period
  • Net present value calculation
  • Misuse of NPV
  • Internal rate of return (IRR)
  • Limitations of IRR
  • Multiple rates of return
  • Economic solution for projects with multiple IRR
  • Profitability index (PI)
  • Unit technical cost (UTC)
  • Long-run marginal cost of gas
  • Cash-Flow Discounting Frequency
  • Funds flow and discounting frequency
  • Common cash-flow & discounting frequency
  • Spreadsheet functions Discrete probability distributions
  • Cost of Capital and Cash-Flow
  • Cost of capital relationship
  • Defining cash-flows
  • Equity cash-flow (ECF)
  • Free cash-flow (FCF)
  • Capital cash-flow (CCF)
  • Combining cash-flow and WACC
  • Netback Value & Pricing
  • Netback value (NBV)
  • Base year and ROR approach
  • LRMC approach
  • Indexed netback pricing
  • Sample gas netback from LNG
  • Problems & Solutions

 

International Petroleum Economics
 
  • Global energy consumption
  • Why collaboration
  • The need for collaboration
  • Parties to upstream agreement
  • Typical contract terms
  • Contractual arrangements
  • Fiscal systems
  • Concessionary system’s cash-flow
  • Production sharing system
  • Dynamic terms of contracts
  • Main objectives of these contracts
  • Investment Selection Decision Making
  • Types of investment decisions
  • Investment decision-making (screening)
  • Investment decision-making
  • Revenue producing investments (NPV)
  • Revenue producing investments (IRR & PI)
  • NPV/IRR conflict
  • Incremental investment analysis
  • Ranking investments (non-mutually exclusive)
  • Ranking investments under budget constraints
  • Service producing investments
  • Service producing investments (unequal life)
  • Lease versus buy decision-flow
  • Introduction to Decision Analysis
  • Detailed Case Study
  • Problems & Solutions