Oil and Gas Management

Oil and Gas Management

Introduction:

Welcome to the Oil and Gas Management course. This course focuses on an industry rather than on a theoretical concept. Oil and gas is the dominant source of energy for society as we know it – our heating, our lighting, the electricity to operate our computers, the petrol and diesel in our cars, the jet fuel that powers our flights – all comes from oil and gas. Quite literally, without oil and gas, civilisation as we know it could not function today.

This course considers the basics of how the industry operates – and examines some of the major issues that it faces (such as climate change).

:Program Objectives

The aim of this course is to introduce you to the nature and function of companies and other organisations involved in financial, commercial and contractual activities in the North Sea-UK and worldwide oil and gas industries. This unit involves the practical application of much of the knowledge gained to a major industry.

By the end of the course you should:

• Have a good understanding of the global significance of the oil and gas industry.
• Understand the complex economic and risk management issues that the industry faces.
• Understand the nature of the participants in the oil and gas industry, and the evolving nature of their relationships.
• Be aware of some of the other issues which face and shape the industry, such as decommissioning and global warming.

Course Outline:

Our approach to the module

As this course is about a whole industry, the approach taken is to examine the industry from various perspectives – or through various lenses and angels.

The module is delivered as 10 study topics organised into four main themes:

1. An overview.
2. Economics and risk.
3. Participants and their relationships.
4. General insights.

Theme 1: An overview

This theme provides you with a background to the oil and gas industry. It is designed to bring a variety of candidates up to a similar level of understanding about the industry.

As a result there are no activities within the topic workbooks, and the subject matter is not explicitly assessed. You are recommended to review the material and study it to the depth appropriate to you. If you are already knowledgeable about a subject, feel free to skip or skim-read it – if you don’t know about a subject you should read it in depth.

The basic understanding of the industry that this theme provides is essential to enable you to understand the remainder of the module – so don’t just skip over it!!

A technical introduction to the oil and gas industry

An introduction to the life cycle of an oil field, from before discovery through development to abandonment. The technologies will be outlined, the varied company strategies and tactics will be explored, and the attendant technical and financial risks will be assessed. The uses of oil and gas will also be summarised.

The learning objectives are: 

• To understand the interlocking technical disciplines involved in the oil and gas extraction process.
• To understand the significance of current and emerging technologies to the oil and gas business.
• To understand the critical significance of oil and gas in the global economy – including uses and markets.

A business introduction to the oil and gas industry

An introduction to the size, scope and nature of the oil and gas industry.

The learning objectives are:

• To understand the scale and significance of the oil and gas industry.
• To be aware of some of the major issues which the industry faces.

Theme 2: Economics and risk

Petroleum economics

An introduction to petroleum economics, including the taxation regimes and project finance.

The learning objectives are:

• to understand how economic evaluation is used to evaluate projects in the offshore oil and gas industry;
• To understand the major components of petroleum taxation worldwide.
• To understand the approach financial institutions take to financing offshore projects.
• To understand the current market for oil and gas.

Risk management

A review of the risks in the industry, including the effects of oil price variations, exploration risk, construction risk, operating risk, etc.

The learning objectives are:

• to understand the technical risk and uncertainty associated with the exploration and appraisal process, and the impact this risk has on company strategy;
• to understand the technical risks associated with building and operating the facilities required to produce oil and gas;
• to understand the commercial and market risks that can affect the revenue stream from oil and gas production (and hence the economics!!);
• to understand how economic evaluation is used to manage these risks.

Theme 3: Participants and their relationships

Participants in the oil and gas industry

An examination of the role of the various organizations involved in the oil industry – governments, oil companies, service companies, regulators and external (i.e. non-industry) bodies. The emphasis will be on the UK organizations, although similar organizations elsewhere will be referred to.

The learning objectives are:

• to understand the role of government in the oil and gas industry, including government objectives, philosophies and approach to licensing and taxation;
• to understand the broad role of the oil companies in the industry, considering their core business and expertise;
• to understand the role of service and contracting companies in the industry, considering the implications of specialisation;
• to understand the nature and regulatory bodies in the industry, including their role, mode of operation and their underlying philosophy;
• to understand the significance of external (i.e. non-oil) organisations on the oil and gas industries, e.g. The Paris Commission, Greenpeace, The International Maritime Organisation.

Key relationships in the oil and gas industry

The concept of operators, and how they discharge their legal and commercial obligations, joint operating agreements, legal arrangements, etc.

The varying contractual relationships that have evolved in the industry, including various forms of partnering and alliancing.

The learning objectives are:

• to understand the concept of the operator, their commercial and legal duties and the nature of the agreements which underpin their activity;
• to understand the structure and philosophy of traditional contractual relationships between operators and service/contracting companies;
• To understand recent changes in the structure and philosophy of some contractual relationships, including partnerships, alliancing, etc.

Theme 4: General insights

Decommissioning of oil and gas installations

A review of the technical, environmental, fiscal and economic issues surrounding the process of decommissioning (or abandoning) of redundant oil- and gas-producing platforms.

The learning objectives are:

• to understand the reasons why the decommissioning of platforms has to be done;
• to understand the technical options available for the decommissioning of offshore installations;
• to understand the fiscal and economic implications of the decommissioning of platforms;
• To understand some of the environmental and other political aspects of decommissioning.

Ecommerce in the oil and gas industry

A review of the evolution of ecommerce in the oil and gas industry from the wide range of concepts that were launched in the ‘dot com’ boom to the more mature and practical use of the Internet to streamline commercial processes that we see today.

The learning objectives are:

• to understand the wide range of ecommerce ideas that have been tried;
• To understand the practical use of ecommerce by the oil and gas industry today.

Climate change and global warming

A review of the current state of the scientific understanding, and the ways in which the oil and gas industry is responding. Also includes a review of the current status of international treaties and European/UK national legislation, and the emerging market for carbon.

The learning objectives are:

To understand the impact that CO₂ – a major byproduct of oil and gas usage, is having on Earth.

WHO SHOULD ATTEND? 

• Engineers Oil and Gas
• All workers in the field of Oil and Gas