Introduction

This Energy  training course will provide you with the essential skills to make effective economic decisions in the Energy Sector by evaluating both the Economic Benefits and Risks. The course will focus on the latest economic factors affecting companies in the sector, focusing on how companies may manage changes in major economic variables such as demand, energy prices, interest rates and exchange rates.  In addition you will use simulation techniques to model economic returns and risk management. This training course will not only provide you with knowledge of the latest tools and techniques it will also develop your skills so that you able to transfer skills to the workplace in order to make a tangible benefit.

This training course will highlight:

  • The major features, benefits and risks of the economic environment
  • Economic modelling to simulate risk and return
  • The methods to evaluate the economic value of projects
  • Finance methods and costs
  • Economic and financial risk management

Objectives

By the end of this training course, participants will learn to:

  • Evaluate the economic environment to improve decision making
  • Model economic decisions in the energy sector
  • Make efficient economic decisions
  • Recommend economic methods of finance
  • Manage financial and economic risk efficiently and effectively

Training Methodology

Participants to this training course will receive a thorough training on the subjects covered by the seminar outline with the Tutor utilising a variety of proven adult learning teaching and facilitation techniques. Seminar methodology includes:

  • The evaluation of real world Case Studies from the Energy Sector
  • Video presentations
  • Lectures and group discussions
  • Exercises
  • Customized delivery methods

Delegates will be encouraged to participate actively in relating the principles and skills of the course to the particular needs of their workplace.

Organisational Impact

As a result of sending employees to attend this course the organisational will gain:

  • Informed staff, engaged with the latest developments
  • Improved risk management
  • Staff with knowledge of the latest tools and techniques
  • Improved performance with staff better able to meet customer needs
  • An improved finance and risk management culture

Personal Impact

As a result of attending this course the individual will gain:

  • Improved knowledge and understanding
  • The ability to apply new skills
  • Up-to-date knowledge
  • Legal, financial and risk management knowledge and skills
  • The ability to improve their roles and career growth

Who Should Attend?

This training course is suitable to a wide range of professionals but will greatly benefit:

  • Managers responsible for financial and economic performance
  • Professionals whose role involves economic or financial decisions
  • Professionals with an interest in economic change
  • Line managers and supervisors with an interest in the economic performance of their organisation
  • Professionals who aspire to become active decision makers

The Course Outline

Day One: The Economic Environment

  • The Economic Environment
  • Economic Challenges facing Governments and the Energy Sector
  • Economic Evaluation of Reserves
  • Making Economic Decisions in an uncertain world
  • EMV Expected Monetary Value & Decision Trees
  • The Probability & Impact of Changes in Economic Variables: Interest Rates, Exchange Rates & Energy Prices

Day Two: Oil & Gas Economic Modelling

  • Revenue & Revenue Recognition
  • The Impact of Energy Price Volatility
  • Cost Estimation
  • The Impact of Joint Venture & Production Sharing Agreements
  • Working Interest, Royalties & Taxation
  • Forecasting the Cashflow

Day Three: Economic Evaluation of Projects

  • Evaluating Accounting Profit and Return on Equity ROE;
  • Cost–Benefit Analysis – Finance V Economic Value Added
  • Economic Analysis: Economic Value Added & Sustainability
  • Key Economic Parameters - NPV, NPVI, IRR, Payback, Adjusted NPV & Adjusted Payback
  • Cost Recovery Method
  • Government Evaluation and Value for Money (VfM)

Day Four: Economic Finance

  • Types of Finance
  • Calculating the Cost of Capital (WACC) and the Capital Assets Pricing Model (CAPM)
  • Determining the Economic Hurdle Rate
  • Economic Management of Energy Projects
  • Earned Value Analysis
  • Budgetary Control & Cost Management

Day Five: Economic & Financial Risk Management

  • Economic & Financial Risks
  • Managing Economic Risk & Uncertainty
  • Developing and Using a Risk Model Analysis
  • What are Derivatives ? – Forwards, Options, Futures & Swaps
  • International Derivative Markets & Middle East Derivative Markets
  • Derivatives – Risk Management Tool or Economic Risk

The Certification

Certificate of Completion will be provided to delegates who attend and complete the course

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