Classroom Dates
18 - 22 Dec 2023 Dubai $5,950
16 - 20 Dec 2024 Dubai $5,950

This Intermediate Energy Trading, Hedging, Portfolio and Risk Management training course is designed to give delegates a comprehensive picture of the crude oil, refined products, and biofuels markets, risks, and legal and regulatory issues involved in the international trading of crude oil and these products. It is presented with the wide range of essential engineering practices of the petroleum industry spanning exploration, extraction, refining, global oil supply, reserves, production & trade flows. With the overview of these essential upstream and midstream practices, the downstream industry operations dealing with crude oil and refined products trading and its associated risks and uncertainties can be fully understood. Since price volatility always exists, the Price Risk Management appropriate techniques are presented in detail. Sales, Marketing, Trading, and Risk Management are crucial and the most active parts of the value chain and extremely important for managers to stay on top of these activities.

This Energy Training Centre training course will highlight:

  • The essential practices of exploration, production, processing, and transportation of crude oil
  • The success factors in the business of international sales, marketing, and trading of crude oil and refined products
  • The logistics of global seaborne transit, pipelines, storage, and distribution of crude oil and refined products
  • The understanding of the pricing dynamics, benchmarks of crude oil, refined products, and biofuels in the global markets  
  • The price-risk management using the hedging instruments such as futures and forward contracts, swap, and options

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

  • Gain the business acumen of the wide-ranging subjects of upstream production to the downstream sales, marketing, and trading of crude oil, refined and renewable products
  • Understand the critical crude oil pricing dynamics and the use of crude oil benchmarks
  • Develop the price-risk management strategies using the hedging instruments
  • Acquire essential legal and regulatory issues relating to trading in the global markets
  • Reduce the overall risk of the Petroleum Industry and maximize the value chain profitability 

This Intermediate Energy Trading, Hedging, Portfolio and Risk Management training course is designed to encourage delegate participation through a combination of group discussion, practical exercises, case studies, quizzes, and extensive use of short videos highlighting the petrochemical operations, environmental and safety considerations to reinforce new knowledge and skills, and discussion of practical issues in their organizations.

By sending their employees to this training course, the organization will gain a broader range of skills that participants gain and henceforth apply in their workspace to benefit their respective companies directly.

  • It recommends a broader management perspective of the global energy business and highlights the success factors in each category of several business models
  • Defines how innovations in oil & gas energy and renewables help drive economic growth and improve living standards worldwide
  • Clarifies how we can achieve these high-efficiency goals while delivering value to shareholders
  • Inculcates the corporate culture of effectively dealing with the core issues, tactics, and essential concepts of successfully running the global petroleum business

Each participant will enhance the Energy Industry's technical knowledge and business skills that will directly benefit his/her career growth.

  • Master the core competencies of the oil, natural gas, LNG Industry
  • Sharpen business skills by learning those techniques that improve capital productivity and operational excellence
  • Understand the value chain optimization in Hydrocarbon Industry and apply at the workplace to enhance stockholders' value
  • Be fully aware of success factors in the oil, gas, LNG, and refined products Industry and how to deal with price risk uncertainties 
  • Hedging the risk at the corporate level, business segment level, and the individual transaction level

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

  • Business & Development Managers
  • Corporate Planners
  • Lawyers & Law Firms' Personnel
  • Geoscientists, Engineers, and Refiners
  • Bankers, Accountants
  • Auditors
  • Media Personnel Who Interface with Traders and Trading
  • Government Regulators
  • Tax & Finance Advisors
  • Compliance Officers
  • Equity and Financial Analysts
  • Joint Venture Officers
  • Negotiators
  • Those Who Moved from Elsewhere to Trading

Day One: Essential Upstream Practices & Sales of Oil 

  • Fundamentals of oil & gas geology and petroleum engineering
  • Well logging and well completion
  • The essence of international oil supply – Global reserves, production & trade 
  • Fundamentals of oil economics
  • Crude oil trading
  • Evolution of oil prices
  • International oil pricing
  • What drives crude oil pricing
  • Crude oil valuation (Netback & quality differentials)
  • Benchmarks / formula price
  • Price reporting agencies and their roles 

Day Two: Refined Products Trading and the Future Refineries 

  • Refining I - Refinery Basics
  • Simple Chemistry for Non-Chemists
  • Crude Oil Properties and crude oil Assay
  • Basic Refining Processes
  • Refining II – Conventional Refinery Upgrading
  • Cat Cracking
  • Hydrocracking
  • Visbreaking
  • Coking   
  • Blending Refinery Economics
  • Oil Products and Quality
  • Markets / Benchmarks
  • Pricing Refining Products
  • Crack spreads
  • Arbitrage
  • Oil Logistics and the Art of Trade
  • Delivering oil products
  • Delivery Term 
  • Other pricing bases for refined products
  • Oil Contracts and its important components
  • Storage
  • The Future of Refineries when the transportation fuels demand decreases 

Day Three: Petrochemicals Business and their Trading 

  • Petrochemical Basics – The family of Seven Groups
  • The various feedstocks for petrochemicals
  • Chemicals from Paraffins Hydrocarbons
  • Chemicals from Olefins Hydrocarbons
  • Chemicals from Aromatic Hydrocarbons
  • Chemicals from Non-Hydrocarbons   
  • The transformation of Refineries when fuel demand goes down 
  • Benefits of Integrating Refining & Petrochemicals
  • Understanding the concept of Oil to Chemicals
  • The widespread use of Petrochemicals
  • Monomers, Polymers Plastics
  • Markets / Benchmarks
  • Pricing 

Day Four: Risk Management 

  • The Price Volatility
  • The benching marking of Refined Oil Products prices
  • History of oil prices and how the benchmarks evolved
  • The components of the oil price
  • Trading the time spread: contango 
  • The value of product grade differential
  • Crude Oil Price Risk Management
  • The types of risks
  • Hedging
  • The Forward Market
  • The Future Market
  • The Options
  • Option valuation
  • Swaps
  • The strategic hedging
  • Operational hedging
  • Risk management considerations
  • Mexico’s use of derivatives to Balance its Budget
  • Crack spreads
  • Corporate fuel risk management policy
  • Common mistakes in hedging 

Day Five: Shipping and its Logistics   

  • World’s Trade Flows
  • Transportation Agreements
  • Contract of Affreightment (COA) 
  • Transportation Logistics
  • Transportations Documents 
  • Different types of tankers
  • Freight Rate (Worldscale)
  • Chartering Contracts


Related Courses