N620 Fundamentals of Petroleum Industry Economics

Event Facts

Date:
13 - 15 Nov. 2019
Event Code:
T620b19CA
Duration:
3 days
Instructors
Gerald Henderson
Location:
Calgary
Booking Status:
Good Availability
Fee:
CAD $2,375 (Exclusive of tax)
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Course Facts

Course Code:
N620
Duration:
3 days
Type:
Classroom
CEU:
2.4 Continuing Education Units
PDH:
24 Professional Development Hours
Certificate:
Certificate Issued Upon Completion

Summary

This three-day course offers an opportunity for petroleum industry employees and related government, financial, legal and service industries to gain an understanding of the unique economic principles that drive the "oil business" to success in the 21st century. The course begins with a presentation of basic economic theory and develops its application to financing, finding, development, transportation and marketing of energy resources. The impact of these on the success or failure of the firm is then considered. The course uses real life examples and experiences and, wherever possible, case studies which allow all to participate in group discussion and learning. Participants are required to bring a laptop, loaded with Microsoft Excel, to the course.

Duration and Training Method

Three classroom days providing 2.4 CEU (Continuing Education Credits) or 24 PDH (Professional Development Hours)

Participants will learn to:

  1. Understand the context and methodology utilized by the industry in analysis, evaluation, selection and monitoring of any project or segment of the organization.
  2. Know and comprehend the elements, data sources, data value boundaries, terminology, tools and processes used in economic evaluation.
  3. Understand the effects of bounding data in consideration of and quantification of risk in project selection.
  4. Have an awareness of the key metrics of the industry and develop the ability to use metrics in analysis.
  5. Develop an initial proficiency in use of economic project modeling through use of spread-sheet financial modeling of multiple real-world problems with outcomes.
  6. Learn how to undertake an analysis and present the results for management review.
  7. Understand the unique language of industry economic analysis and discussion.
  8. Gain an awareness of the external and internal forces, drivers and accuracy limits of cost, price and reserve forecasting.
  9. Learn how to develop an analysis strategy with consideration of physical product markets, hedging, costs, budget constraints, capital markets and corporate goals.

 Course Agenda

Day One

  • Introduction to oil/gas economics and common usage
  • Economic calculations
  • Models
  • Money calculations
  • Profit indicators and their use
  • Case studies 1-4
  • Basics of upstream industry language and nomenclature

Day Two

  • Case study 5
  • Oil price forecasting
  • Gas price forecasting
  • Oil transportation
  • Capital sources
  • Reserve forecasting

Day Three

  • Cost and capital forecasting
  • Valuation and finance
  • Risk considerations
  • Use of futures - hedging
  • Portfolio management
  • Joint ventures
  • Case study 6

Who should attend

The course is specifically designed for those new to the industry or transitioning from one area of the industry to another. Directors, Government officials and investors as well as new hires and those curious about the oil/gas business space should attend to learn not only the language but also the analysis methods and decision processes as the industry uses its capital to return value to shareholders. The course is very much hands-on with practical case studies and applications.

 

Gerald Henderson

Background
Gerald Henderson, a petroleum reservoir engineer, is a global energy executive, trusted advisor to corporate management and boards, educator, energy expert for law firms, trustees in bankruptcy proceedings, and judges.  He is an advisor and principal in numerous merger, acquisition, divestures and public and private financings.  He has created and managed exploration and production companies, special-purpose project companies, and consulting organizations.  He advises on asset valuation and exit strategies.  He has a deep understanding of the world-wide oil and gas value chain from land acquisition and exploration through power distribution and energy marketing in many forms.  He brings a keen awareness of the geopolitical, economic, commercial, operational and technical risks, as well as hands-on experience advising many companies representing multi-billion-dollar capital investments.

Mr. Henderson started his professional career with the Atlantic Refining Company.  His family was involved with the pipeline business and he worked as roustabout, roughneck, and geophysical recorder in the oil fields while completing his undergraduate and graduate education.  He has attended numerous post graduate courses in managerial sciences, operations research, and advanced mathematics.  His publications are in computer application to reservoir management, reserve optimization and the business aspects of the industry.

As an avocation, Mr. Henderson teaches and facilitates adult education short courses in American Literature for the Oshner Institute in association with the University of Denver.

Affiliations and Accreditation
MS Missouri University of Science and Technology
BS Missouri University of Science and Technology

Courses Taught
N603 - Fundamentals of Oil and Gas Property Acquisition and Finance
N620 - Fundamentals of Petroleum Industry Economics
N819 - Working within Joint Venture Partnerships

Alternative Dates for this Course

This course is very useful for those who are looking for general knowledge about the economics in oil & gas. The instructor has a large experience in the oil & gas industry and makes use of real cases during the course.