Commercial Oil Operations and Logistics

This course offers a comprehensive overview of all operations for the international trading of crude oil and refined products, guiding attendees to make the most cost-effective decisions in areas under their control. Participants gain a thorough understanding of stock management, oil blending, the importance of quality considerations, the interaction between operators and traders, and operational factors that affect profitability and avoid product leakage. They learn the impact of price exposure and price risk management on traders’ decisions and the knock-on effects for operations, and the essential areas of documentation and legal issues surrounding trading. They also gain the skills to use Worldscale to charter a ship.

Additional information

Program Type

Location

Dates

September 27 – 30, 2021

$2,100

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.

Instructional Format and Schedule

IHRDC’s Virtual Courses run with 4 hours of online instruction each day, with a blend of learning formats consisting of live interactive lectures by an experienced industry specialist, group discussions of case studies, team assignments as well as group exercises.

Lecture Sessions

Background Fundamentals

  • Understanding Physical Markets Price Reporting
  • Price Reporting

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