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EDO - Economics of Downstream Oil  

2011 Course Dates:  TBC

Singapore

This course is designed to identify the key economic driving forces of the supply chain through the downstream oil business and show the inter-relationship of the various activities.  It covers operations and logistics from the crude oil loading port through shipping, refining and product delivery, the markets for these activities and the management of the risk involved.

Through the case studies delegates gain hands-on experience of how profits are made in the individual activities and in optimisation of downstream oil as a whole.  They will practise valuing crude oil in different markets and the calculation of freight using Worldscale.  Delegates will also consider the measurement and improvement of product quality before going on to look at the purchase and sale of products on the international markets.  The concepts of price exposure and hedging with futures will be introduced.

The course will also cover the principles of oil refining and refinery economics and explain the development of world markets and how the downstream oil industry fits into them.

Course fees:  TBC

Course Timetable

Day 1  Crude oils and their evaluation, world crude oil markets and refined products markets; chartering of ships and how to use “Worldscale”; freight and freight economics

Day 2  Refining –distillation, reforming and conversion processes; quality specifications; international trading and profit calculation; introduction to price risk management.

Day 3  Negotiation of purchase and sales contracts; principles of identifying and managing price and different hedging instruments.

What will you learn?

On completion of this course you will be able to:

• Value different types of crude oil
• Calculate freight costs using “Worldscale”.
• Assess the economic impact of upgrading the refinery
• Perform blending calculations on the main oil fractions
• Calculate a trading margin
• Understand basic hedging
• Construct a purchase and sale contract
•  

You will understand:

• How world crude oil and refined product markets are structured and operate
• The principles of chartering a ship
• Basic refinery economics and margins
• The basics of oil refining
• Product quality considerations
• Physical and paper markets
•  

Who should attend?

• New entrants to the downstream oil function
• Those changing from an unrelated oil function to a supply chain activity
• Personnel changing disciplines from non oil to oil related functions
• Back office, finance, operations and other supply and trading support staff
• Key staff in government, banking and regulatory authorities requiring a general insight
• Refinery schedulers and engineers wanting an insight into the overall economics