outline overview

• Overview
• Crude Oil and Natural Gas: From Source to Final Products
  • Chemistry of Hydrocarbons
  • Origins of Crude Oil and Natural Gas
  • Petroleum Migration and Accumulation
  • Petroleum Reservoirs
  • Separation and Treatment of Produced Oil and Gas
  • Gas Handling and Processing
  • Crude Oil Refining
  • Petrochemicals
• Measurement Units and Conversion Factors
  • Crude Oil Measurement
  • Oil Quality: API Gravity
  • Natural Gas Measurement
  • Gas Liquids and Petroleum Product Measurement
  • Energy Content and Equivalency
  • Thermal Energy Equivalency:
  • Hydrocarbon Price Equivalency:
  • Conversion Table and Electronic Calculator
• Oil and Gas Value Chain
  • Upstream Sector
  • Negotiation of Upstream Agreements
  • Exploration
  • Field Development
  • Long-term Production
  • Wholesale Hydrocarbon Markets
  • Midstream Sector
  • Crude Transportation
  • Refining of Crude Oil
  • Midstream Natural Gas Value Chain
  • Gas Processing
  • Natural Gas Pipeline Transportation and Storage
  • Downstream Sector
  • Downstream Natural Gas Value Chain
• Main Global Players in the International Petroleum Industry
  • OPEC
  • Vertically Integrated Global Companies
• World Primary Energy Markets and the Role of Hydrocarbons
  • Energy Supply and Demand Fundamentals
  • Energy Demand
  • Energy Supply
  • Crude Oil Supply, Demand and Cross-border Trade
• Natural Gas Reserves
  • Natural Gas Supply, Demand and Cross-border Trade
  • Natural Gas Prices
  • Emerging Commodity Price
  • Final Thoughts
• Important Oil and Gas Statistical References
• Websites of Importance
• Acknowledgments

A comprehensive overview of the industry; learn what petroleum is, where it comes from and how it affects all of our lives on a daily basis. Become familiar with the various phases of the Oil and Gas Value Chain – upstream, midstream and downstream – the key industry players, the basics of oil and gas supply, demand and pricing and the challenges that the industry faces as demand for these important form of energy grows by 50% in the next 25 years.

outline overview

• Overview
• Historical Perspective
• Methods for Obtaining a Host Government Agreement
• Four Types of Exploration Agreements
  • The Concession Agreement
    • US Offshore License Agreement
    • West Africa Concession Agreement
    • Additional Oil Entitlement
      • Participation of National Oil Company: Working Interest Options
      • Training Commitment and Other Forms of Sustainable Development
    • The Production Sharing Contract
    • Fiscal Terms
  • Risk Service Agreements
  • Natural Gas Discoveries: Post-Discovery Negotiations
• Joint Operating Agreements
• Nicola Case Study
  • Agreement Stages
  • Costs During Exploration
  • Work Program and Relinquishment of Blocks
  • Field Production and Development Costs
  • Concession Agreement
• Sandland Business Game
• Summary
• Glossary of Terms
• Model Form for International Joint Operating Agreement

Upstream agreements define the legal, business and working relationships that exist between companies that explore for and produce oil and gas and the government agencies or private parties that own the mineral rights. Learn how an oil and gas lease is negotiated with a landowner in the U.S. and then analyze the two major forms of agreements used by host countries – the Concession Agreement and the Production Sharing Contract.

outline overview

• Overview
• Fundamentals of Petroleum Geology
  • Building of Sedimentary Basins
  • Sedimentary Environments
  • Sedimentary Rock Properties: Porosity and Permeability
  • Formation of Crude Oil and Natural Gas
  • Petroleum Migration and Accumulation
  • Petroleum Reservoirs and Reservoir Traps
  • Reservoir Seals
  • Summary
• The Exploration Process
  • Broad Surveying Techniques
  • Existing Well Data
  • Geophysical Surveying and the Seismic Reflection Method
  • Conducting a 2D Seismic Survey
  • Seismic Survey of the Pam Basin
  • 3D and 4D Seismic Surveys
  • Economics of the Pam Basin Prospect
  • Summary
• References

Examine the geological conditions that make for a good petroleum prospect, and learn why oil and gas are found in some places and not others. Also learn the step-by-step process that exploration teams follow to identify projects, from the initial surface reconnaissance to the drilling of exploratory wells.

outline overview

• Overview
  • Drilling Objectives
  • Surface and Subsurface Environments
  • Rig Counts
  • Drilling Technology
  • Phases of Well Construction
• Well Planning
  • Initial Steps
  • Authorization for Expenditure (AFE)
  • Environmental and Regulatory Considerations
  • Support and Logistics
  • Drilling Rig Procurement
  • Drilling Contracts
• Well Design
  • Subsurface Pressure and Temperature
  • Hole Sections
  • Well Trajectory
    • Deviation Control
    • Directional Drilling
    • Horizontal Drilling
    • Geosteering
    • Multilateral Wells
• Drilling Operations
  • Rig Systems and Equipment
    • Hoisting and Rotating Systems
    • Circulating System
    • Well Control System
    • Power Generation and Transmission System
  • Types of Drilling Rigs
    • Onshore (Land) Rigs
    • Offshore Rigs
  • Subsurface Drilling Equipment
    • Drill String Components
    • Drill Bits
  • Drilling Procedures
  • Drilling Problems
  • Remote Monitoring and Operations Support
• Formation Evaluation and Testing
• Well Completion
  • Completion Design
  • Well Stimulation
  • Production Tubing
  • Wellhead and Surface Flow Control Equipment
• Summary
• References
• Additional Resources
• Acknowledgments

Geological studies and seismic surveys can indicate an oil or gas prospect, but the only way to know if that prospect contains oil or gas is to drill wells. Get an introduction to the basics of the rotary drilling process and learn the dramatic advances in drilling technology that have taken place in recent years.

outline overview

• Overview
• Reservoir Management Objectives
  • Hydrocarbons in Place
  • Recovery Factor
    • Oil and Gas Reserves
    • Primary Recovery
    • Improved Recovery
  • Production Schedule
    • Optimal Design Rate
• Reservoir Description and Characterization
  • Reservoir Parameters
    • Geology and Structure
    • Rock and Fluid Properties
    • Pressure and Temperature
  • Data Acquisition, Interpretation and Analysis
    • Geological and Seismic Interpretations
    • Well Logs and Core Data
    • Well Tests
    • Production Data
    • Integrated Reservoir Characterization
  • Reservoir Mapping and Reserves Evaluation
    • Subsurface Maps and What They Tell Us
    • Reserves Definitons and Classifications
    • Reserves Evaluation Methods
    • Uncertainties in Reserves Evaluation
    • Monte Carlo Analysis / Probablistic Representation of Reserves
  • Reservoir Modeling
    • Objectives
    • Elements of a Simulation Study
• Subsurface Development Plan
  • Reservoir Performance
    • Natural Drive Mechanisms
    • Improved Recovery Processes
  • Well Productivity
    • Production System Overview
    • Flowing Well Performance
    • Artificial Lift
    • Completion and Production Planning
  • Estimating Field Performance
  • Field Development Studies
• Surface Development Plan
  • Surface Facilities
    • General Considerations
    • Onshore Facilities
    • Offshore Facilities
• Economic Evaluation and Field Management
  • Cash Flow Analysis
    • Field Management Example
  • Cost Estimating and Scheduling
    • Field Management Example
  • Operating Cost and Financial Assumptions
    • Field Management Example
• Health, Safety and Environmental Considerations
  • Health and Safety
    • Hazards in Field Operations
    • Safety in Day-to-Day Operations
    • Emergency Preparedness
  • Environment
    • Issues in Field Development and Production
    • Regulatory Considerations
• Summary
• References
• Appendix

The development and production of an oil or gas field is among the most involved and challenging business undertakings. Learn the steps involved in field development, from its initial planning stages, through reservoir analysis, subsurface design and construction of surface facilities. This module also covers components of long-term production, reservoir management and facilities maintenance.

outline overview

• Overview
• Basic Gas and Gas Liquid Properties and Terminology
  • Gas and gas liquids composition and properties
  • Definition of industry terms: LNG, LPG, NGL’s, CNG
• Gas Industry Value Chain with Emphasis on the Upstream Sector
• Upstream Petroleum Project Management Stages and Workflow
• Background on two gas exploration prospects
  • Location
  • Landowner or Host Country Exploration Agreements
  • Technical Support for the Prospect
  • Potential Gas Markets
    • Demand, Timing, Sale Point, Prices and Contract Terms
  • Project Planning and Economics
    • Exploration and Field Development Plan and Schedule
    • Reserves, Production, Rates, CAPEX, OPEX, IRR
    • Permits and Authorizations Required. HSE Issues
    • Risk Analysis:Exploration, Development, Production, Market, Government
    • Partner Issues
• Exploration of gas prospects
  • Gas Exploration Basics
    • Exploration Plan: Costs and Schedule
    • Exploration well plan, evaluation and expected costs
    • Results of Exploration
    • Review of Reserves
    • Wholesale Gas Markets and Project Market Options
    • Project Economics
    • Authorization to Move to Next Stage
• Planning Gas Field Development
  • Review of Alternative Subsurface Development Plans
  • Optimization of Subsurface Development Plan
  • Preparing Surface Facilities Plan
  • Environmental and Social Impact Report
  • Sources of Project Capital: Debt and Equity
  • Project Partner Agreements
  • Finalizing Gas Sales Contract
  • Obtaining Government and Other Permits
  • Project Management Plans
  • Authorization to Move to Development
• Development of New Discoveries
  • Implementing the Development Plan
  • Project Management Issues: Scope, Schedule, Cost, Quality, Communications, Risks and Procurement
  • Engineering, Procurement and Construction Agreement
  • Final Costs and Timing
• Managing the Production Cycle
  • Managing the Field Production Life Cycle
  • Operations and Maintenance of Facilities
  • Monitoring Well and Reservoir Performance
  • Adding Wells and Compression
  • Reservoir Management
  • Managing Sales and Customer Relations
  • Financial and Partner Reporting
  • Summary of the Outcome of the Two Prospects
• Summary of Case Studies and Drivers of Upstream Gas Success
• References

Devoted to the upstream gas value chain, this module begins with an overview of the significant gas properties and shows how a gas prospect is discovered and then developed into a viable producing entity. Important topics include the estimation of resources and reserves, field design process and surface facilities required to satisfy gas market specifications. It ends with a summary of the nature of the wholesale gas and gas liquids markets in various countries and typical wholesale agreements.

outline overview

• Overview
• Changing Nature of the Crude Oil Market
  • Control of the Market by the "Majors"
  • Shared Control
  • The Opec Transition
    • Price Shock of 1973
    • World Recession
    • Nationalization, Market Transformation and New Discoveries
    • Price Shock of 1979
    • Falling Demand
    • Market-Related Crude Pricing
  • Advent of Spot Markets
• Crude Oil Pricing Today
  • Marker Crudes
  • Crude Oil Assay
  • Price Reporting
  • Pricing of Other Crudes
  • Use of the Futures Markets for Price Formation
  • The Role of OPEC in Price Formation
• Fundamentals of a Physical Crude Oil Contract
  • Seller / Buyer Relationship
  • Title Transfer Arrangements / Point of Sale
  • Other Contract Terms
  • Typical Price Setting
• Negotiation of Physical Contracts
  • Stages in the Negotiation of a Crude Contract
  • Contract Examples
    • Colombia Crude Sale to Unspecified End User
    • Sale of Crude to a Refiner in the Caribbean
    • Nigerian Crude Sale to Trader
• Fundamentals of Financial Derivatives
  • Forward and Future Contracts
  • Crude Contracts Offered by Financial Exchanges
  • How a Futures Contract Works
  • General Features of the Oil Futures Market
• Use of Derivatives in Price Risk Management
  • Hedges: Buy or Sell Crude Oil
  • SWAPS: Convert Variable Price to a Fixed Price
  • Options: Setting a Floor or Ceiling Price
  • Typical Players In The Petroleum Derivatives Markets
• Trading of Crude Oil: Using Both Physical and Financial Contracts
• Summary
• References
  • Exhibits

Like other commodities, the market determines the value of crude oil. Examine how crude oil markets and pricing are established based on global and regional supply and demand, how organizations such as OPEC affect these markets on a wholesale level.

outline overview

• Overview
• Crude Oil Pipelines
  • System Components
  • Examples of International Pipelines
  • Phases of Pipeline Development
    • Pipeline Operations
    • Pipeline Tariffs
    • Batching
  • Pipeline Maintenance
    • “Pigging”
    • Pipeline Inspection
    • Corrosion Prevention
  • Pipeline Safety
• Crude Oil Storage
  • Temporary Storage of Crude Oil
  • Strategic Storage of Crude Oil
• Nicola Case study: Pipeline and Storage Decisions
• Oil Tankers
  • Tanker Sizes
  • Tanker Classifications
  • Trade Routes
    • Chokepoints
  • Demand and Supply
  • Development of the World Tanker Trade
  • Ownership and Hiring of Tankers
  • Tanker Rates
    • Worldscale Calculation
  • Tanker Safety
• Nicola case study: Shipping Decision
• Other Forms of Crude Oil Transportation
• References
• Acknowledgments

Every day, some 85 million barrels of crude oil are transported from producing fields to major refining centers, many of which are located hundreds or thousands of miles apart. Learn how, and at what cost, crude oil is transported in pipelines and tankers – the two most practical and economical methods for moving large volumes of crude oil over long distances.

outline overview

• Overview
• Gas Processing
  • Gas Processing Terminology
  • Properties of Natural Gas & Natural Gas Liquids
  • Surface Facilities
  • Key Products of Natural Gas Processing
    • Ethane
    • Propane
    • Iso-Butane
    • Normal Butane
    • Natural Gasoline
  • Gas Processing Options
  • Gas Processing Systems
  • Markets for Gas Liquids
  • Global Supply and Demand
• Natural Gas Pipelines
  • Gas Pipeline History and Milestones
  • Global Pipeline Infrastructure
    • North America
    • South America
    • Europe
    • Former Soviet Union
    • Asia
    • Australia
  • Pipeline Design
    • Wall Thickness
    • Composite Reinforcement
    • Capacity vs. Diameter
    • Capacity vs. Operating Capacity
  • Transmission System Design
  • Pipeline Economics Development Process
    • Onshore
    • Offshore
  • Pipeline Tariff Structure
    • Regulated Market
    • Deregulated Market
    • History of the United States
    • History of the United Kingdom
• Liquified Natural Gas
  • LNG Value Chain
  • LNG History and Milestones
  • LNG Process
    • Liquifaction
    • LNG Trains
    • Transporation
    • Regasification
  • LNG Economics
  • LNG Markets & Trade
• Load Balancing & Underground Gas Storage
  • Load Balancing Applications
  • Load Duration Curve
  • Winter Flow Pattern
  • Underground Storage Options
    • Underground Storage Capacity & Trends
    • Thomas Corners Gas Storage Case Study
  • Surface Storage Options
  • LNG Peakshaving
  • Interruptible Customers
  • Pore Storage Withdrawal
• Summary
• References

The module covers the midstream gas value chain; essentially, the transportation of gas in pipelines and LNG ships and the balancing of market swings through the use of gas storage facilities. The pipeline section focuses on design, operations and tariffs, the LNG section centers around the design and economics of the LNG value chain from liquefaction to receiving terminals and the load balancing section summarizes the various options available to manage the pipeline swings between gas supply and market demand and their typical costs.

outline overview

• Overview
• Crude Oil Characteristics
  • Crude Oil Chemistry
    • Paraffins (Alkanes)
    • Olefins and Aromatics
    • Naphthenes
    • Heating Value of Hydrocarbons
    • Boiling Points of Hydrocarbons
  • Volume Changes during Refining
  • Crude Quality: API Gravity and Sulfur Content
    • API Gravity
    • Sulfur Content
    • Marker Crudes and Pricing Benchmarks
  • Crude Quality: Yield of Petroleum Fractions
• The Refining Process
  • Crude Yields and Product Demand
  • Functions of a Refinery
  • Hydroskimming Refinery
  • Cracking Refinery
  • Deep Conversion Coking Refinery
  • Refinery Complexity
  • Non-Refined Petroleum Supply/Blend Streams
    • Ethanol
    • Bio-Diesel
    • Gas-to-Liquids
• Refining Economics
  • Cost of Crude Oil and Value of Petroleum Products
  • Impact of Refining Complexity on Refining Margins
  • Impact of Refining Capacity on Refining Margins
  • Refinery Case Study: Addition 100,000 b/d Delayed Coker
  • Future Trends
• Health, Safety and Environmental Considerations
  • Health and Safety
  • Environment
• Summary
• References

Crude oil, like other raw materials, has few practical uses in and of itself. Its value lies in the products that can be extracted from it. Learn how crude oil is processed into commercial products through various refining processes. Also explore why some refineries are more complex than others and what business decisions go into each day’s refinery run.

outline overview

• Overview
• Petroleum Products and Services
  • Fuels for Transportation and Heating
  • Gasoline and Diesel
    • Composition
    • Performance Characteristics
  • Kerosene (Aviation)
  • Fuel Oils (Marine)
  • Heating Fuels
  • Liquefied Petroleum Gases (LPGs)
  • Developments in Fuels, Bio-Fuels and Fuel Cells
  • Non-fuel Specialty Products and Streams
    • Lubricants and Greases
    • Engine Lubricants
    • Transmission Lubricants
    • Industrial Oils
    • Greases
  • Bitumens
  • Chemicals and Solvents
  • Other Products
• The Marketplace for Petroleum Products
  • Retail Customers
  • Commercial Customers
  • Basics of Marketing Petroleum Products
  • Marketing Segmentation and Customer Focus
    • Retail Sector
    • Commercial Sector
  • Mobil Case Study Synopsis
  • Worldwide Demand and Pricing for Petroleum Products
    • Products Markets in Europe
    • Product Markets in North America
    • Products Markets in Asia Pacific
• The Downstream Value Chain: From Refinery to Final Sale
  • Manufacturing of Petroleum Products
  • Product Transportation, Storage and Distribution
    • Importing Products Using Product Carriers
    • Intermediate Bulk Storage
    • Regional Transportation, Additives and Branding
    • Product Pipelines
    • Barges
    • Rail Transportation
    • Truck Transportation
    • Market Outlets:Wholesale, Commercial and Retail
  • Downstream Petroleum Examples – Spain and New England
    • CLH Distribution System
    • Global’s Value Chain
• Pricing Along the Downstream Value Chain
  • Product Market Complexity and Competition
  • Petroleum Distribution Costs and Margins
  • Profit Margins at the Retail Service Station
  • The Modern Gasoline Station
• Health, Safety and Environmental Considerations
• Summary
• References

Once crude oil has been refined into transportation fuels, heating oil, lubricants and other products, it must be marketed and distributed to commercial and retail customers. In this module you will learn how refined products make their way to pipelines, terminals, service stations and other outlets where the profits are being made in this downstream sector of the industry and the economics of the modern gasoline super-station.

outline overview

• Overview
• Gas Distribution
  • LDC Distribution System
    • Regulation
    • Deregulation
    • LDC Supply System Model
    • Distribution Operations
    • Gas Service Functions
    • Technologies in Gas Distribution
  • LNG
    • Receiving & Vaporization Facility
    • LNG Truck
    • Local LNG Storage
• Gas Distribution Markets
  • Identification of Markets
    • Major Classes of Gas Markets
    • Assessing Market Demand
    • Sources of Market Information
  • Gas Supply Economics
    • Natural Gas Pricing
  • Direct Markets
    • Power Generation
    • Industrial
  • Retail Markets
    • Residential
    • Commercial
    • Vehicle Fuel
    • Petrochemicals
    • Power Generation
    • Industrial
• Gas Trading
  • Regulation
  • Deregulation
  • Convergence
  • "Open Access"
    • Henry Hub
    • Gas Daily Index
  • Basic Deal Types
    • Physical Gas and Measure Exposure
    • Hedging Fixed-Price Risk
    • Hedging Basis Risk
    • Exchange and OTC Trading
• Summary
• References

This module covers the downstream gas value chain including gas distribution, the key gas market sectors and the manner in which gas supply is managed and sold into the retail market. Emphasis is also placed on the nature of the gas markets in different regions of the world. The gas distribution coverage includes the design of a typical gas distribution system, the services it provides, typical distribution tariffs and billing structure. Gas markets discussed include residential, commercial, industrial, power generation, vehicle fuel and petrochemicals. Gas marketing and trading is introduced through the strategy that a "typical" gas distribution company follows in managing its gas supply in an "open access" gas industry environment.

outline overview

• Overview: What are Petrochemicals?
• Characteristics of the Petrochemical Industry
  • Global Nature of the Industry
  • Common Specifications for most Products
  • Readily Available Technology
  • Large Scale, Capital Intensive
  • Key to Success
• The Seven Basic Petrochemical Building Blocks
  • Product Families and End-Uses
  • Methane
    • Ammonia
    • Methanol
    • Gas-to-Liquids (GTL)
  • Olefins
    • Ethylene
    • Propylene
    • Butadiene
  • The Aromatics
    • Benzene
    • Toluene
    • Xylenes
• Petrochemical Plant Economics
  • Components of Capital Investment
    • Owner’s Project Costs
    • Total Fixed Investment
  • Components of Production Costs
    • Variable costs
    • Fixed Costs
    • Cash Cost of Production
    • Depreciation
    • Total Cost of Production
    • Return on Capital Investment
    • Required Plant Gate Price
  • Economics of a Mega-Methanol Project
  • Why Invest in Petrochemical?
    • Price Setting Mechanisms
    • Demand Limited Scenario
    • Production Limited Scenario
• Profitability Cycles
  • Major Industry Issues
    • Feedstock Costs
    • Globalization and International Competitiveness
    • Environmental Regulations
• Case Studies and Project Decriptions
• References
  • Books
  • Associations
  • Selected Petrochemical Consulting Companies
  • Selected Internet Sites with Petrochemical Industry Information
• Acknowledgments

Petrochemicals, which are derived from crude oil and natural gas, add a unique dimension to the Oil and Gas Value Chain. Learn how oil and gas feedstocks are converted into petrochemical products ranging from fertilizers to plastics, and from clothing to pharmaceuticals. Also, the economics of petrochemical plants and see why a petrochemical plant in Trinidad has done so well in recent years.

Nicola, a dynamic Business Simulation Game, is used to integrate the subject matter of each "Content Module" to recreate the challenge of discovering, producing, and marketing oil and gas to learn where value, in the form of financial performance, is created along the value chain.