Key Business Challenges Facing Today's Petroleum Leaders

This two-unit program responds to the famous axiom that “The industry is constantly changing and if you do not keep up, you fall behind!” In the daily sessions, you and your peers will discuss the key challenges facing the petroleum industry today and develop strategies that you can use to respond to the changing energy industry landscape upon completion of the program.

In Unit 1, we will review the global energy supply, demand, prices, and potential sources of growth along the oil and gas value chain; and then turn to recent performance and strategic objectives of majors and national oil companies considering the recent pandemic. In Unit 2, we will focus on strategies that can be adopted in both energy supply and demand to meet a low carbon future. You will also learn the aspirational goals that the various stakeholders, including governments, corporations, advocates, and energy supply companies have set and the actions they have and could still take to achieve these important goals. Discussion will center around the assumptions made in an “energy future” projected in the IHRDC Energy Transition Base Case Plan through 2050, adopted from DNV, that leads to a low-carbon future.

Additional information

Program Type

Location

Unit

Full Program, Unit One, Unit Two

Dates

October 18 – 29, 2021

$4,750$8,700

Clear

Who Should Attend

This program is ideal for those managers and executives who wish to develop a strategic understanding of the evolving trends including energy transitions that are occurring today in the energy industry that could impact their organizations today and in the near future. The overarching objective is to allow you to return home with strategic “rational plan” objectives that you, your company and, perhaps, your government can adopt as part of the evolving energy trends and transitions.

Learning Format

  • The learning format consists of a combination of lectures by experienced industry practitioners, case studies, discussion sessions, and team participation in practical assignments.
  • In Unit 1, teams will participate in workshop to develop a strategic plan for an international investor group that would like to enter the energy industry by investing in a portfolio of promising opportunities.
  • In Unit 2, teams of participants will participate in designing a low-carbon energy development plan for a country that is undergoing rapid population and economic growth.
  • The teams will be asked to present their respective recommendations on the last day of each Unit.
Accordion Content

Unit 1: Current Trends along the Oil and Gas Value

Industry Overview and Financial Topics

Oil and Gas Industry: Supply, Demand, Pricing and the Trends

Review of recent global supply, demand, reserves additions and pricing trends; impact of COVID.19, geopolitics among producers and the demand growth of China and India.

Recent Financial Performance of Majors and National Oil Companies

Reviews of the recent performance of the larger petroleum companies, capital investment and their near-term strategic goals.

Oil & Gas Industry Trends

How is the move to digital technology impacting the industry: data analytics, the digital oil field, and cryptocurrency and blockchain exchange platforms?

Oil and Gas Value Chain Topics

Host Country Agreements: Terms that Create and Avoid Potential Disputes with the Host Countries

Major host country agreement topics with focus on those that generate disputes with host governments; the recent development of the Flexible Gross Split Sharing arrangement being used in Indonesia to avoid these potential conflicts.

Recent Developments in Conventional Exploration and Field Development

Development of higher resolution seismic methods to delineate deeper horizons; improvements in drilling, formation evaluation and field development planning; The return of deep-water offshore development.

Unconventional Oil and Gas Challenges: What Difficulties are They Facing?

Recent developments in unconventional oil and gas development in US and elsewhere; how are the operators increasing productivity and reducing costs; is this production sustainable and economical?

LNG Business and Recent Market Trends

The LNG market is growing faster than expected with China contracting for one-half the annual growth; US LNG exports are exceeding expectations. Where are the drivers? How is the price set for LNG cargoes?

Gas-to-Power: Where are We and Where are We Going?

Combined-cycle power plants are replacing many oil and coal-fired plants and new plants tend to be gas-fired and supplied by LNG. What trends are evident and are they sustainable?

Growing the Midstream Business: What is Driving Refining and Petrochemical Growth?

The industry midstream has seen major investments from gas processing to refining and petrochemicals in the US as well as many Middle East and Asian countries. What are the drivers behind these investments? Do opportunities still exist?

Sustainability, HSE and Manpower Trends

Sustainability

What does it mean to an oil company? The 17 UN Sustainable Goals; Measuring and Reporting Sustainability; Review of several company-specific reports.

Enhanced Pipeline Safety Practices

Recent gas pipeline explosions in the US have resulted in the issuance of API Recommended Practice 1173, a major new corporate-wide set of practices that must be adopted and implemented by all pipelines and distribution companies. We will review the Recommeded Practice and participants can discuss whether it should be adopted by their countries.

Industry Recruitment, Training and Development Trends

Our industry is currently looking for graduates who are more process focused, with backgrounds in digital technology, and who are trained with recent advances in digital learning. What trends are evident and what does that mean for undergraduate curricula and postgraduate training programs?

Unit 2: Energy Transition through 2050: Climate Science, Impact of Low Carbon Policies and Corporate Strategies

The Science and Impact of Global Warming

Coverage includes historical scientific discovery of global warming, greenhouse gases, the growth of CO2 emissions and climate change; the six steps that link CO2 emissions to global warming and climate impacts; evolving studies of greenhouse gases and global warming; IPCC activities and reports, measuring temperatures on land and in the oceans; climate simulation models; current state of global warming, projections of future temperature increases and its impact on the climates of the world.

Drivers and History of Energy Demand, Supply and Emissions through 2020

Historical growth in population and economic activity; recent and current energy supply and demand mix by region and sector, the historical growth of GHGs by region and the impact of fossil fuels on emissions. Four major ways to reduce GHG emissions: Conservation and Increased Efficiency, Decarbonization, Carbon Capture and Storage, and Evolving Technologies.

IHRDC Energy Transition Model, Assumptions and Analysis

Basis for using the DNV-GL Energy Transition Outlook for 2020 and underlying model as the IHRDC Base Case Plan to monitor future energy transitions; summary of its assumptions and 10 geographical sub-regions for projecting energy supply-demand profiles.

Projections of Energy Demand through 2050

Underlying assumptions in the projections through 2050 of energy demand in three major areas through 2050: Transport, Buildings, Manufacturing and their 11 sub- areas. Global energy demand projections and summary of the 10 geographical sub-regions.

Projections of Energy Supply through 2050

Summary of assumptions and energy supply projections though 2050 are provided for the major energy carriers the energy in the form delivered to the end users which include the fossil fuels, biomass, and electricity. Projections of the sources of electricity are provided in the next section.

Electrification, Power Supply, and the Growth of Renewables

Electricity demand will grow substantially through 2050. Coverage includes electricity supply projections by source, including model assumptions on levelized cost of generation and evolving technologies, will be provided for fossil fuels, nuclear, geothermal, biomass, solar and both onshore and offshore wind. Projections of electricity supply for both global and 10 geographical sub-regions will be included in the analysis.

Energy Efficiency and Expenditures

Increased energy efficiency is a key attribute of energy transition and should be a key priority for stakeholders. In this session we define Primary Energy Intensity as Primary Energy Consumption per unit of GDP and show that it has recently been flat for various sectors and is projected to remain so in the future. We also provide background and projections for Primary Energy Expenditures, including both OPEX and CAPEX, for the various energy supply sectors through 2050.

Government and Other Stakeholder Policies to Stimulate Energy Transition

Review of government aspirational policies and mandates to reduce carbon footprint in the context of a rising demand for energy: developed vs. developing countries, multinational associations; governments at various levels; business and other organizational entities and advocacy groups.

Energy Transition of the Worlds 10 Regions

Global review of the 10 world regions, North America, Latin America, Sub-Sahara Africa, Europe, North Africa and Middle East, India, North East Eurasia, China, South East Asia, OECD Asia regions in terms of their unique situations and challenges with respect to Energy Transitions. The major factors studied include drivers of energy demand, population and GDP growth, energy demand-supply and GHG emissions. Comparison of regions.

Strategic Options Oil & Gas Company Energy Transitions

Discussion of the various policies and strategies that have or may be adopted by oil and gas companies to achieve aspirational emission reduction levels; methods adopted, and reports published that measure each entitys actual performance; case studies of unique and/or laudable achievements.

Bringing It All Together Bridging the Gap

Our forecast suggests that by 2050 we will reduce GHGs significantly but will reach the 1.5oC carbon budget by 2028, and the 2.0oC budget by 2051. In fact, we fall short of our target. In this session we summarize our performance and suggest ways to bridge the gap to extend the 2.0oC budget to occur in 2100.

Along with the daily lectures, participants, working in teams will also be evaluating case studies and the business simulation assignments.

Project Simulation: Epic Equity

Epic Equity has accumulated a substantial amount of cash by making investments in big pharma, especially COVID.19 vaccines. It wishes to invest it in the energy industry by making a strategic portfolio of investments. It has commissioned your team to advise it and become a 10% owner in the fund.

Project Simulation: Managing the Republic of ENTRANS’ Roadmap to Carbon Neutrality 2050

An East African countrys energy demand is expected to increase substantially driven by a population that doubles between 2020-2050 and GDP/person that is expected to grow from $3900 to $8100/person. Your team is asked to review the current energy supply and demand portfolio, estimate the expected future demand for energy and recommend priorities in both supply and demand areas to achieve the countrys carbon neutral commitment through 2050. Greenhouse gas emissions, its impact on global warming, along with levelized cost of energy calculations will be used to evaluate the value proposition of energy supply alternates over longer term, including projected life-cycle costs.