Essentials of the Oil & Gas Industry Course Outline

Date: 21st 25th of October 2013 | Course Leader: Dr Carole Nakhle

Course Description Each day will start at 9.00 and finish at 17.00 apart from Wednesday, which finishes at 14.00. Lunch and two coffee breaks per day are included in the course fee. The course introduces the participants to the essentials of oil and gas markets. It provides a deep understanding of the role of oil and gas in todays global energy scene and underlines the key emerging trends. The course covers a rich range of inter-related topics that offers the participants a holistic overview of the oil and gas sector. In particular, the course addresses the fundamentals of oil and gas (and LNG) across the value chain; their markets; the structure of the industry and the role of core players; international petroleum fiscal regimes; and the impact of major policies on investment decisions and consumption patterns. All along, participants will discuss real case studies from major oil and gas consuming and producing countries.

Learning Outcomes All along, participants will actively engage in discussing case studies applied to each topic. By the end of this course, the participants are expected to apply the acquired knowledge to analyse todays oil and gas related issues and potential developments. More specifically, the course provides a thorough understanding of: The basic economic and finance principles and their application to everyday issues related to the oil and gas sector The evaluation and comparison of investment opportunities The importance of oil and gas in todays primary energy mix The drivers of the demand for oil and gas and the essentials of the supply chain (exploration, appraisal, development, production, transportation, marketing and distribution) The difference between resources and reserves, conventional and unconventional resources The evolution of the oil and gas industry and its existing structure, and the role of key players in shaping the oil and gas markets The determinants of oil and gas prices The central role of upstream petroleum regimes from the perspective of the two main stakeholders the Government and the industry, and the use of fiscal arrangement to reconcile their conflicting objectives The special features of natural gas, similarities and difference with oil, which require specific planning with respect to both upstream and downstream operations The latest trends changing the existing structure of natural gas markets

21st of October: Basic Economic Principles and Financial Evaluation Techniques

Address speech of Capt. E. Adami, President of the Cyprus Shipping Chamber (CSC) Introduction to economics; factors determining Demand and Supply; interaction of market forces to set prices; types of market; government intervention; cost structure; profit determination Investment appraisal and financial evaluation techniques Gala Dinner followed by speech How to break in and succeed in Oil&Gas Industry by Carol Bailey former chairman of Shell Indonesia

22nd of October: Demand, Value Chain and Resource Base

Primary energy mix; role of fossil fuels; major oil and gas consumers and producers Fundamentals of demand; price and income effects; taxing and subsidising oil products The supply chain; upstream and downstream oil and gas activities; costs and supply The resource base; resources and reserves; conventional and unconventional resource; running out of oil?

23rd of October: Industry Structure and Oil Price

Evolving industry structure; International Oil Companies; National Oil Companies; OPEC The determinants and importance of the oil price

24th of October: Upstream Petroleum Fiscal Regimes

Importance of upstream taxation; features of oil and gas activities; Government and international investors objectives Evolution of petroleum fiscal regimes; spectrum of relationships; concessionary and contractual (PSA and service contracts) regimes; desirable features of a fiscal regime Extra free session: Latest Developments in the East Med Region by Gina Cohen, the lecturer on Natural Gas Law and Economy at the Technion University

25th of October: Fundamentals of Natural Gas

Essentials of natural gas; special features and differences from oil; regional markets; pricing mechanisms; uses of gas; unconventional gas Fundamentals of LNG; pricing; emerging trends