COURSE SUMMARY

The Synergies of Refining, Trading and Supply is a four day instructor-led energy trading course presented by the energy training experts at Mennta Energy Solutions. This advanced course is designed to provide delegates with a thorough understanding of the latest business techniques and refining technologies available to the oil supply, trading and refining industries, and highlights how the activities of these sectors may be optimised and synergised to maximise overall profitability. Through a variety of case studies, delegates will learn the principles of refinery planning and economics along with basic principles and techniques involved in trading and supply. Delegates will focus on the synergies between these sectors to maximise corporate profitability. Short-term operations and medium-term planning using linear programming and long-term investment decisions are addressed.

WHO SHOULD ATTEND?

Personnel within the refining sector who have a direct involvement in the efficiency and profitability of the refinery operation and its interaction with the supply trading functions (e.g. planners and engineers). Personnel within the supply trading sector who have a direct involvement with the refinery operations, influencing its efficiency and profitability (e.g. traders and supply operators). Managerial staff within refining and supply trading who have responsibility for the overall profitability of their respective areas and synergistic relationships between these groups to enhance corporate profitability and analysts with refinery finance and investment.

PRE-REQUISITES

It is recommended that delegates should have attended SP1 or have working knowledge of the subjects covered in that course. There are no pre-requisites for this course, nor is any advanced preparation required.

COURSE CONTENTS

Introduction

• Terms used
• Units used

Fundamentals

• Supply/demand
• Refinery utilisation

Crude Oil Valuation

• Crude oil characterisation
• GPW
• Netback and refiners margin

Tanker Markets

• Freight and Worldscale
• Tanker characteristics

Refining

• Products, key qualities
• Overview of processes

Oil Markets

• Physical markets
• Pricing mechanisms
• Price risk
• Understanding long and short positions

Paper Markets

• Futures
• Forwards
• Swaps
• Hedging tools
• Basic risks

Processing Deals

• Exchange deals
• Product quality
• Specifications
• Blending
• Component valuation

Economics of Refining Processes

• Distillation
• Reforming, isomerisation, alkylation
• Visbreaking, coking
• Cat-cracking, hydrocracking
• Lubes, bitumen and petrochemicals
• Utilities

Refining and Supply Planning

• Fundamentals of linear programming
• Interpreting the LP solution
• Trading techniques to lock in the "solution"
• Logistical optimisation amongst refineries
• Medium and long term planning
• Scheduling-planning interface

Refinery Margin

• Hedging the margin
• Capitalising the margin
• Realising a target or budget margin

Project Investment

• DCF analysis
• Strategic decisions
• Trading techniques to lock in the return on capital
• Trading techniques to fund the investment
• Future challenges facing the industry

FACULTY

Dr Ian Holdaway

TESTIMONIALS

"This was very useful, beneficial and full of great content for our knowledge. The lecturers were very kind and friendly; we felt that we were at home!" – A.A., Kuwait Petroleum Corporation

"Some very good and challenging exercises facilitated by experienced tutors!" – L.D., Shell