Fundamentals of Oil Gas Business

3 Days
Dr. Qamar Sharif
Oil and Gas Industry Executive

About Course


Participants will gain insight into current issues, industry terminology, how money flows through the business chain, and how different parts of the business interact with each other and with other companies, as well as with external investors.

Skills Gained

On completion of this course you will be able to fully understand the following:

  • Gain a comprehensive overview of oil and gas industry operations
  • Confidently master the technical terms
  • Explore the latest issues in exploration, drilling, production, transportation, storage, product prices, price risk management, world legal systems, economics and much more
  • Understand the energy value chain – from prospect to the burner tip
  • Evaluate the major costs, risks and uncertainties in oil and gas markets and calculate the maximum sustainable capacity
  • Explore future trends and innovations

Who Can Benefit

The following oil and gas company personnel will benefit from the knowledge shared in this course:

  • Planning managers
  • Non-geosciences engineers
  • Analysts
  • Commercial managers
  • Economists, bankers and stock brokers
  • Government officials
  • Business advisors
  • Asset managers
  • IT, HR and HSE personnel
  • Finance, accounting, auditing, taxation and legal personnel
  • Administrative secretaries

Course Outline

The outline can be tailor-made to meet the specific needs

  1. General Industry Overview

    • Meaning of petroleum
    • Typical oil & gas company objectives
    • Typical oil & gas company activities
    • Industry streams
    • Typical organization chart
    • Company structures
    • Petroleum utilization
  2. Oil and Gas Geology

    • Origin and formation of petroleum
    • Migration of oil and gas
    • Requirements for hydrocarbon accumulation
    • Hydrocarbon traps
    • Structural trap
    • Stratigraphic trap
    • Geological time scale
    • Typical stratigraphic column
    • Types of hydrocarbons
    • Classification of crude oil
    • Classification of natural gas
    • Typical natural gas composition
    • Properties of gases
  3. Oil and Gas Prospecting (Exploration)

    • Geological prospecting
    • Geophysical prospecting
    • Seismic (2D & 3D) acquisition
    • Seismic Processing
    • Seismic interpretation
    • Offshore seismic data acquisition
    • Onshore seismic data acquisition
    • A seismic section
    • Stratigraphic cross sections
    • Reservoir mapping
  4. Drilling Operations

    • Exploration, delineation, appraisal and development drilling
    • Drilling contracts
    • Different types of Wells
    • Horizontal well technology
    • Routine drilling operations
    • Components of rotary rig
    • Rig's circulating system
    • Functions of drilling mud
    • Rig equipment
    • Drill pipes versus coil tubing
    • Rotary drill bits
    • Rotary core and casing drilling
    • Schematic of a cased well
    • Classification of casing
    • Functions of casing
    • Functions of cement
    • Offshore drilling
    • Mobile offshore drilling rig
    • Well control
    • Special drilling procedures
    • Breakdown of drilling costs
    • Authorization for expenditure (AFE)
    • Technological advances
  5. Formation Evaluation

    • Evaluating a well
    • Whole core and core plugs
    • Open hole logs
    • Cased hole logging
    • Transient well tests
  6. Well completions

    • Well completions
    • Barefoot and single well completion
    • Dual well completion
    • Perforating a well
    • Reservoir stimulation
  7. Reservoir Depletion Mechanisms

    • Solution gas-drive reservoirs
    • Gas-cap drive reservoirs
    • Water-drive reservoirs
    • Combination drive reservoirs
  8. Oil and Gas Production Facilities

    • Typical oil production facilities
    • Artificial lift systems
    • Purpose of crude treatment
    • Separating & treating well fluid
    • Treating natural gas
    • Gas processing
    • Gas added value products
    • Offshore facilities
  9. Transportation

    • Transporting petroleum fluids
    • Pipeline tariffs
  10. Maintenance of Oil and Gas Facilities

    • Well servicing and workovers
    • Corrosion and how to avoid it
  11. Oil and Gas Reserves

    • Reserves estimating methods and classification
    • Oil and gas reserves estimates
    • Volumetric calculations
    • Decline curve analysis
    • Economic limit
    • Reserves replacement ratio
  12. Maximize Ultimate Oil Recovery

    • Reservoir management
    • Recovery sequence
    • Typical well locations in gas-cap drive reservoir
    • Coning of gas from the gas cap
  13. Crude Oil Refinery Products & Processes

    • Crude oil refinery
    • Refinery configuration
    • Refinery yields by crude type
    • Refinery margins
    • Refinery margin calculations
    • Factors affecting refinery margin
  14. Legal Framework of the Industry

    • The need for collaboration
    • International agreements
    • Parties to petroleum agreements
    • Contractual arrangements
    • Contract documents
    • Upstream project agreement
    • Government take
    • Optimal government take
    • Comparison of fiscal systems
    • Flexible fiscal regimes
    • Why dynamic terms?
    • Joint venture contracts
    • Risk service contracts (Iranian buyback)
    • Concessionary system's cash-flow
    • Production sharing system's cash-flow
  15. Project Economics

    • Data required for economics
    • Cash-flow projections
    • Operating expenditure (OPEX)
    • Typical decision yardsticks
    • Characteristics of ideal yardsticks
    • Sample before-tax cash-flow
    • Discounted payback period
    • Net present value
    • Internal rate of return (IRR)
    • Profitability index and present value ratio
    • Unit technical cost (UTC) or long-run marginal cost (LRMC)
    • Investment types
    • Types of investment decisions
    • Investment decision-making
    • Service producing investments
    • Uncertainties in oil and gas investments
    • Accounting for uncertainties
    • Sensitivity analysis

Class Schedule