Introduction to Petroleum Business - IPB

Discipline: Petroleum Business
Level: Basic
Instructors who teach this course:

  • About the course
  • Designed For
  • You will learn
  • Course Content
Creation of shareholder value should be at the heart of every business decision. This course is designed for technical professionals in the petroleum industry who want to understand the nature of the petroleum business and how you will contribute to the financial success of your company. The course will introduce delegates to the structure of the petroleum business including supply and demand, how oil companies are organized and financed and what it takes to be financially successful. Success will be explored through an understanding of how we calculate long-term shareholder value both at the corporate and project level as well as the valuation of competitive advantage and incorporation of risk assessment in our models. Delegates will be introduced to the primary accounting financial statements and what they tell us about a company. Common accounting and economic terms and metrics will be reviewed. Participants should bring a PC with excel software to complete exercises.
Engineers, geologists, geophysicists, landmen, HR and other non-finance and accounting professionals who need an introduction to the business aspects of the petroleum industry including the interplay of finance and economic evaluation in the creation of long-term shareholder value.
  • How the petroleum business is structured and capital is raised
  • What is shareholder value and how it is created
  • The critical importance of seeking competitive advantage
  • Economic and accounting terminology
  • How to make an economic valuation of an investment and assess its competitive advantage
  • How value creation impacts share price
  • How shareholder value is measured
  • What is risk and how is it assessed in economic evaluations
  • The importance of creating value for shareholders
  • History and characteristics of the oil and gas business
  • Introduction to Economic Evaluation including Net Present Value, Internal Rate of Return, and risk
  • Introduction to the key accounting financial statements and terms
  • The need for competitive advantage and how it is measured
  • How to develop spreadsheets to conduct economic evaluations