Advanced Budgeting for Oil and Gas Management
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Advanced Budgeting for Oil and Gas Management Course
Introduction:
In today's highly competitive oil and gas industry, companies face immense pressure to meet growing market demands, while simultaneously reducing operating costs and delivering improved returns for investors and stakeholders. In this context, it becomes imperative for companies to adopt effective strategies that ensure sustainable growth. Given the substantial capital investments and lengthy exploration-to-sale timelines inherent in the industry, the implementation and management of strategies in oil and gas finance and accounting play a pivotal role in achieving success.
This comprehensive course focuses precisely on developing the essential skills and techniques necessary to make informed strategic decisions in oil and gas finance and accounting. By equipping participants with these capabilities, the course aims to empower professionals to maximize profits, minimize costs, and effectively manage financial risks.
In the dynamic and ever-evolving oil and gas industry, financial professionals must possess the acumen to make strategic decisions that enhance their organization's financial performance. This training course provides participants with the latest financial knowledge and skills through an in-depth exploration of the industry's strategic issues and challenges. Additionally, the course delves into internationally accepted accounting methods and techniques specifically employed in the oil and gas sector for reporting costs, asset values, and profits. It also covers financial evaluation techniques that are crucial in assessing investments and opportunities within the industry.
Join us in this training course to gain the expertise required to navigate the complex landscape of oil and gas finance and accounting. By staying abreast of the latest industry practices and leveraging strategic financial decision-making, you will be equipped to drive financial performance and contribute to the long-term success of your organization.
Course Objectives:
At the end of the Advanced Budgeting for Oil and Gas management course, delegates will be able to:
· Understand the reasons for and impact of oil price volatility
· Identify & evaluate the challenges facing the Oil & Gas sector now & in the future.
· Use skills & techniques to assist with key strategic decisions facing their company.
· Recommend appropriate financing decisions & make capital investment decisions.
· Evaluate the performance of leading Oil & Gas companies to identify areas of best practice.
· Advise on methods to eliminate or reduce financial risks facing Oil & Gas companies.
· Recommend strategic solutions to budget issues and cost control
· Measure and control costs effectively in a competitive environment
· Prepare, manage and control budgets in the Oil & Gas Industry
· Use budgets to make effective decisions to ensure growth, maintain profitability and reduce risk
· Recommend innovative hedging strategies used by leading international companies to control risk and manage budgets effectively
Who Should Attend?
The course is specifically tailored for those working or wishing to work in the Oil & Gas industry. It is particularly suited to:
- Those responsible for devising budgets, managing and controlling budgets
- Those responsible for making or acting on decisions based on budgets
- Professionals who require a more in-depth understanding of integrated planning and budgeting techniques
- Financial Planners and Cost Analysts
- Line heads with direct planning and budgeting responsibility
Course Outlines:
Strategic Issues facing the Oil & Gas sector
- The Nature of the Oil & Gas sector
- Current & Future challenges within the sector – a question of Supply & Demand
- Resources & Reserves
- Financial Issues
- Volatility: Demand, Energy prices, Exchange Rates, Interest Rates
Advanced Strategic Decisions
- Strategic Planning
- Analytical Tools to Aid Strategic Planning
- Balancing Upstream, Midstream & Downstream
- Growth Strategies: Exploration, Diversification, Vertical & Horizontal Integration
- Mergers & Acquisitions, Joint Ventures, Production Sharing Agreements & Strategic Alliances
Financing Strategies in the Oil & Gas Sector
- Sources of Finance – the Optimum Capital Structure and the Cost of Capital
- Capital Investment Appraisal: NPV, IRR, Modified IRR, Payback
- Financial Forecasting and Analysis in Excel
- Managing Uncertainty of Production, Prices, Capital Costs & Construction Delays
- Modelling Energy Prices in Capital Budgeting
Financial Risk Management Strategies
- Developing and Implementing a Risk Management Strategy
- Risk Analysis of Oil and Gas projects using Excel
- Sensitivity Analysis, Sensitivity Charts & Scenario Analysis, Monte Carlo Simulation
- Hedging Energy Prices; Interest Rates & Foreign Exchange Rates using Financial Derivatives
- Accounting for Hedging Under IFRS
Financial Analysis of Oil & Gas Companies
- Analyzing the Performance of International Oil & Gas Companies
- Analyzing and Interpreting ‘Energy Specific’ Ratios
- International Financial Reporting Standards (IFRS) relevant for Oil & Gas Companies
- Determining the proper classification of oil and gas costs: Capitalize, Expense, Exploration costs, Development costs, Production costs
- Analyzing the impact of different accounting methods on financial statements