Course description
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.
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Content
- Market Fundamentals
- Crude Oil
- Types
- Assay
- Yield
- Crude value
- Calculation of gross product worth and netback
- The Refinery
- Structure of simple, upgrading and complex refineries
- Description, function and yields of the various refining processes
- Refining costs and refinery margins
- Product Quality
- Key specifications for main product grades
- How quality specifications are achieved
- Cost implications of quality
- Logistics
- Tanker freight & Worldscale
- Chartering
- Pipelines, terminals and storage
- Oil losses
- Contracts
- Formulation of the contract
- Oil contract purchase and sale terms
- The tanker contract (charter-party)
- Oil Markets
- Nature of pricing mechanisms and price reporting
- Crude oil markets
- Products markets
- Forward markets
- Futures markets
- Introduction to derivatives
- Use of hedging
- Exercises and Case Studies will include:
- Gross product worth
- Freight, netback, refining margin and breakevens
- Quality & specifications
- Blending
- Contacts
- Arbitrage
- Price Exposure
- Hedging