UPCOMING SCHEDULE DETAILS:

COURSE SUMMARY

This is the virtual classroom version of International Oil Supply, Transportation, Refining and Trading (SP1) which has been the premier course of its kind for over 30 years by continually evolving and carefully adapting to meet current industry needs.

With that experience, we are pleased to respond to market demand and offer a four-day virtual version of this classic course.  Delegates will garner the knowledge generations of oil professionals before them have relied on, while meeting the current demands on time availability.

This course provides an overview of the oil supply chain - from crude oil source to refinery, processing, trading and the onwards movement of oil products. It is designed for new or recent entrants to the oil industry and is also ideal for use as part of an induction programme or for bringing those transferring disciplines up to speed. Through the medium of a series of progressive, specific exercises, delegates will address day-to-day problems, to understand the relevant commercial driving forces in this area.

After learning about the fundamentals, delegates will cover the valuation of crude oil. Ocean tanker transport and freight will be explored together with an overview of terminals and pipelines. The structure of a refinery will be explained in the context of the need to produce marketable products. Key aspects of product quality will be covered together with the major refining processes needed to achieve them. The course moves on to cover oil markets and pricing, oil trading contracts, and an introductory guide to paper markets and hedging using futures.

COURSE CONTENTS

Prerequisite to Session 1 Self study assignments (2 hours self study)

• Introduction and Industry Fundamentals
• Refining introduction
• Crude valuation
• Tanker freight calculation
• Case study – Gross Product Worth
• Case study – Freight, Netback and Margin

Virtual Instructor-led Session 1 (3 hours live)

• Review of case studies
• Refining units and crude characterisation
• Tankers – key essentials
• Product Quality
• Tanker chartering
• Product blending (linear)

Prerequisite to Session 2 Self study assignments (1 hour self study)

• Tanker chartering mechanism
• Case study - product quality
• Case study - blending

Virtual Instructor-led Session 2 (3 hours live)

• Review of case studies
• Product blending (non-linear)
• Pricing and the crude oil markets
• Refinery units and conversion
• Product markets
• Oil trading contracts

Prerequisite to Session 3 Self study assignments (1 hour self study)

• Case study - product arbitrage
• Case study - trading evaluation

Virtual Instructor-led Session 3 (3 hours live)

• Review of case studies
• Understanding price exposure
• Other logistics – pipelines
• Futures Markets
• Hedging with Futures

Prerequisite to Session 4 Self study assignments (1 hour self study)

• Case study – contract construction
• Case study – pipeline evaluation
• Case study – price exposure elimination in hedging

Virtual Instructor-led Session 4 (3 hours live)

• Review of case studies
• Case study – hedging evaluation
• Oil Stocks and Storage
• Physical losses and loss management
• Derivatives – swaps and options
• Oil trading summary

WHAT YOU WILL LEARN?

• How to value crude oil based on product market prices
• How to evaluate spot tanker freight costs
• How to evaluate crude netbacks and refining margins and alternative crude breakevens
• How tankers are chartered
• How spot oil purchase/sale contracts are structured
• How a refinery is structured
• The significance of non-tanker logistics - pipelines, storage, rail and road
• Key points on product quality; how key specifications are met
• Fundamental economic drivers of the supply chain
• How the international crude oil and products markets are priced
• Futures markets: characteristics and use
• The basic use of hedging within a trading environment

WHO SHOULD ATTEND?

• New entrants to the oil industry, and staff from integrated functions such as supply, trading and logistics
• Managers changing disciplines into the midstream or downstream
• Professional personnel inside and outside oil companies who interface with supply, refining, trading and transportation functions and who need an understanding of this sector, such as legal, banking, insurance, finance and production

MANAGER'S RETURN ON INVESTMENT

Upon completion of this course your employees will understand:

• A full understanding of each element in the oil supply chain – transportation of crude, refining, transportation of products, pipelines, storage, trading and sales – and the economics of each stage.
• “Hands-on” practice in key calculations used in supply and trading, including freight using Worldscale, GPW & netback, refining margins, crude and product pricing mechanisms and logistics costs.
• An appreciation of the interrelationship between crude quality, refinery processes, blending and product market quality requirements.
• An introduction to international oil pricing and the use of paper instruments for handling risk management.
• Recourse to the knowledge and experience of a world-class faculty and the opportunity to interact and work together with other delegates from a large range of organisations and cultures.

FACULTY

Robin A Burley is principal consultant with Kennet Oil Logistics, a company established in 1990 providing expertise in the international supply, trading and transportation sector. During his experience in the oil industry he has worked with BP including Marine and Supply Departments, and Gulf Oil including Trading and Transportation, Refining and Marketing functions. Besides the day-to-day management and negotiation of oil supply, trading and transportation deals, he has been involved in a variety of oil logistics projects throughout the world. He has lived in the USA, Europe and the Middle East, and is a contributing author to the Oil Trading Manual (pub. Woodhead 1995).