Commercial Oil Operations and Logistics

Duration:3 DAYS

This course provides delegates with a comprehensive picture of the importance of operations in the international trading of crude oil and refined products. Delegates will learn the role of operations in the downstream supply chain and how to make the most cost-effective decisions in areas under their control. Exercises, using real-time data available at Thomson Reuters facilities, will demonstrate the effect that prices and freight rates have on decisions and how profit leakage can be understood and controlled. Delegates will benefit from comprehensive debriefs and discussions of the decisions made throughout the course.

By participating in this course, delegates will understand stock management, oil blending, the importance of quality considerations, the interaction between operators and traders, and operational factors that have an effect on profitability. They will learn the impact of price exposure and price risk management on traders’ decisions and the knock-on effects for operations, as well as the essential areas of documentation and legal issues surrounding trading. Delegates will also gain the skills to use Worldscale to charter a ship.

WHO SHOULD ATTEND

This course is beneficial to those new to oil operating procedures or those with a need to understand the importance of operations on trading profitability. This includes back- and middle-office personnel such as finance, banking, shipping, and others supporting the front-office. Additionally, those managing trading functions wishing to eliminate profit leakage will also benefit from participating in this course.

LECTURE SESSIONS

BACKGROUND FUNDAMENTALS

  • Introduction to the oil supply chain
  • Understanding physical markets
  • Price reporting
  • Product distribution

QUANTITY AND QUALITY MEASUREMENTS

  • Crude oil considerations
  • Refined product considerations
  • Blending activities
  • Importance of inspectors

STOCKS AND STORAGE

  • Need for storage
  • Stock management
  • Problem areas

OPERATING PROCEDURES

  • Importance of operations in trading
  • Role of the operator versus trader
  • Trading costs
  • Impact of operations on trading profit

SHIPPING AND CHARTERING

  • Tankers and chartering
  • Freight costs and Worldscale
  • Documentation requirements
  • Impact of demurrage
  • Losses

PERFORMANCE AND CREDIT

  • Client/counterpart risk
  • Documentation
  • Credit assessment

RISK, EXPOSURE, AND THEIR MANAGEMENT

  • Risks in trading activities
  • Basics of price exposure
  • Concept of hedging
  • Risk management tools

CONTRACTS

  • Interpretation of contracts
  • Legal issues

CONTROL MECHANISMS

  • Controls and authorities
  • Deal conclusion procedures

ACCESS TO REAL-TIME PRICES


INSTRUCTORS

Please note this program was formerly known as "Oil Operations and Logistics." Content has not been modified.