Advanced Crude Oil Marketing and Trading Course

Introduction

This 5-Day accelerated training course is designed to give delegates a comprehensive picture of the crude oil and refined markets, risks, legal and regulatory issues involved in the international trading of crude oil and refined products. It is presented with the wide range of essential practices of petroleum industry spanning, exploration, extraction, refining; and global oil supply, reserves, production & trade flows.

With the overview of these essential upstream and midstream practices, the industry downstream operations dealing with crude oil and refined products trading and its associated risks and uncertainties can be fully understood. Since price volatility always exists, the Price Risk Management appropriate techniques are presented in detail. Sales, Marketing, Trading and Risk Management are crucial and the most dynamic parts of the value chain, and extremely important for managers to stay on the top of these activities. 

This highly interactive Crude Oil and Refined Products Sales, Marketing, Trading and Risk training program is designed to encourage delegate participation through a combination of short videos, group discussions, and business case studies designed to reinforce new knowledge and skills, and discussion of “real life” issues in their organizations.

This course will highlight:

• 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 logistics of global seaborne transportation, pipelines, storage and distribution of crude and refined products
• The understanding the pricing dynamics, benchmarks of crude oil and refined products in the global markets  
• The price-risk management using the hedging instruments such as Futures and Forward Contracts, Swap, and Options 

Objectives

• Gain the business acumen of the wide-ranging subjects of upstream production to the downstream sales, marketing and trading of crude oil and refined products
• Understand the critical crude oil pricing dynamics and the use of crude oil benchmarks
• Develop the price-risk management strategies using the hedging instruments Acquire essential legal and regulatory issues relating to trading in the global markets
• Reduce the overall risk of Petroleum Industry and maximize the value chain profitability

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practice. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

This training course is suitable for a wide range of professionals but will greatly benefit: 

• Business & Development Managers
• Corporate Planners
• 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 moved from elsewhere to Trading

Course Outline

DAY 1: Essential Upstream Practices

• Introduction to Course
• Introduction to How Oil was Formed
• Fundamentals of Oil & Gas Geology and Petroleum Engineering
• Well Logging and Well Completion
• The essence of International Oil Supply – Global Reserves, Production & Trade
• Fundamentals of Oil Economics

DAY 2 Crude Oil Trading

• The Evolution of International Oil Pricing System – The Big Picture
• Trading Physical Crude Oil and its Logistics
• The Dissection of Crude Oil Price
• Oil Price Formula – Time Differential
• Oil Price Formula – Grade Differential
• Price Risk Management - Hedging the Crude Oil Price

DAY 3: Refined Products Trading 

• The Trading Refined Products
• Refining I – Crude Oil Properties and Processes
• Refining II – Conventional Refinery Upgrading
• Oil Products and their Qualities
• Oil Logistics and the Art of Trade
• The Price of Refined Oil Products

DAY 4: Risk Management

• Oil Products Price Risk Management
• Measuring Risk
• The Forward Market
• The Future Market
• The Swaps Market
• The Options
• Crack Spreads

DAY 5: Legal and Regulatory Aspects of Oil Trade

• Legal and Regulatory Issues
• International Aspects of Oil Trading
• Oil Trading, Law and International Petroleum Exchange in:
  • The United States
  • United Kingdom
  • Singapore