Value Creation in the Global Marketplace
Select Other "city & date"
Value Creation in the Global Marketplace Course
Introduction:
The oil and gas industry is characterized by its significant capital requirements and inherent risks. However, as the saying goes, "fortune favors the bold," as taking calculated risks often leads to rewarding outcomes. In this course, we delve into the process of value creation within the global energy value chain. We demonstrate that while every energy project possesses unique technical features, it is still subject to the global dynamics of energy markets and the economies of international trade.
The energy value chain is a complex and interconnected system, and it is crucial to consider both threats and opportunities when making major investment decisions. Throughout the course, we explore the fundamentals of value creation in the upstream, midstream, and downstream sectors of the industry. We emphasize that in international partnerships, financial value and risk play a significant role in negotiations, and the long-term outlook ultimately determines the success or failure of these partnerships. We highlight the importance of prudent investment and partnership decisions in creating value and mitigating adverse effects.
Furthermore, we provide participants with an introduction to analytical tools that support effective business decision-making. These tools enable participants to evaluate risks, identify opportunities, and make informed choices that drive value creation. By leveraging these analytical frameworks, participants will enhance their ability to navigate the challenges of the industry and make strategic decisions that lead to success.
Join us in this course to gain a comprehensive understanding of value creation in the oil and gas business. Through an exploration of the interconnected energy value chain, global market dynamics, and the significance of prudent investment and partnership decisions, participants will be equipped to make informed choices that contribute to value creation. Additionally, the introduction of analytical tools will further enhance participants' ability to make sound business decisions in this dynamic industry.
Course Objectives:
All business decisions have uncertain outcomes. International collaborations have multi-fold risks. Our goal is to convey the message that value creation involves risks and opportunities. Learning about the market mechanisms, and the goals of the international corporations, leads to insights that supports good decision making.
At the end of this Value Creation in the Global Marketplace training course, you will learn to:
- Explain the challenges of the energy industry and international finance
- Analyze the financial risk and rewards in energy markets
- Develop an overall understanding of the markets and features of energy project that exploit these opportunities
- Develop and shape effective strategic alliances with international partners
- Apply the understanding about international laws and regulations to create value
Who Should Attend?
This Value Creation in a Global Marketplace training course is useful for middle and senior managers, as well as analysts, engineers, and consultants that support the process of decision making. Professionals interested in the practice of pricing and risk management also find this course useful.
This training course is suitable to a wide range of professionals but will greatly benefit:
- Management team interested in understanding market mechanisms and international business
- Commercial staff interested in gaining in-depth knowledge of international partnership
- Decision makers involved in investment and strategic alliances
- Analysts interested in learning about global landscape of energy business
- Researchers and practitioners who aim to broaden their knowledge of international petroleum industry
Course Outlines:
Oil Market as the World Market
- Basic understanding of energy commodities
- Global crude oil markets, volatility as a measure of risk
- Regional gas markets: the value of long-term agreements
- Oil as a fungible commodity, price differentials in grades and locations of crude oil
- Benchmarks of crude oil, why markets are nearly efficient and what drives prices?
- Brent Crude or West Texas Intermediate? How about other benchmarks?
- Why natural gas is considered a “transitional” source of energy?
Value Creation within Energy Industry - The Strategic View
- The outlook of the business, strategic decisions, and long-term forecasts
- Principles of corporate finance for the oil and gas companies
- Behavioral finance and international business
- Forecasting for international business: valuation, project finance, and strategy
- Interwoven uncertain factors of the business: subsurface and above the surface
- A first discussion of international financial management
Risk, Uncertainty, and Techno-Economic Valuations of Business Opportunities
- Oil Prices, the role of markets, corporate prices, and capital budgeting
- Market risk and the company’s discount rate
- The effect of time and risk discounting
- A brief introduction to the Capital Asset Pricing Model
- The weighted average cost of capital (WACC)
- Practical aspects of petroleum business decisions
International Business, Risk Management, and Forming Partnerships
- Commodity markets and arbitrage opportunities
- Currency exchange and political risks: two features of international business
- Partnerships could be win-win once they create an economic advantage
- Emerging environmental concerns and the emission markets: CO2 and NOx
- Insurance to cover risk
Implementation of the Concepts
- Decision quality: how to model key aspects of business opportunities
- Decision trees: analytical tools that support communications and appraisals
- Simulation studies: an overall view of the uncertain factors
- Value of Information: how information potentially changes the decisions?
- Corporate governance: how to incentivize managers to make good decisions?
- Value of appraisal wells, cluster exploration campaign, and real options