Increasingly, the energy industry faces complex trades, uncertain economic conditions, more challenging to find resources and evolving technology. Here, the need for reasonable valuations and analyses further becomes prominent. It is only through informed analyses that companies and governments make good decisions and create value. Contrary to common belief, analyses that do not support decisions are by themselves worthless. In this Investment Analysis & Energy Project Management training course, we discuss principles of investment analysis and apply consistent valuation methods to the real problems of the energy industry.
To create value in the energy landscape, we must first appreciate the risks and uncertainties. We then use the knowledge in a consistent decision framework. This Energy Training Centre training course will discuss the theory and practice by using computer models, such as MS Excel spreadsheets, to analyse and evaluate investment opportunities. In addition, we will discuss the evolving uncertainty and the dynamics of energy projects. This will ultimately lead us to value creation from competent managerial decision making.
This Investment Analysis & Energy Project Management training course draws on corporate finance, decision analysis, and investment science to analyse and inform the energy investment ventures. We combine the theoretical knowledge with hands-on analytical tools and use computer spreadsheet models. The training course is a mix of theory and practice, leading to practical critical thinking skills in project appraisals and investment analysis.
By the end of this Energy Training Centre training course, the participants will be able to:
- Understand the basics of investment analysis
- Develop the skills to understand and reason under uncertainty
- Analyse uncertain investment decisions
- Model the decisions using analytical tools
- Generate investment decision insights
The participants of this training course will receive thorough training utilising various proven adult learning teaching and facilitation techniques, including lectures, discussions, and computer applications. The sessions are interactive, and we encourage active engagement in the discussions. At the heart of the informed analysis is clear thinking. This training course promotes economic reasoning and logical thinking through the discussion of real-world case studies.
All energy firms primarily run businesses. For them, creating value is the goal. With the technical and economic uncertainties, those firms that understand good decision making and invest in worthwhile ventures will be poised to succeed.
This Investment Analysis & Energy Project Management training course cultivates individuals that:
- Have gained a general understanding of investments under uncertainty
- Understand the sources of uncertainty, both subsurface and commercial
- Identify key uncertain factors in investment decisions
- Use computer models to analyse risk and uncertainty
- Have the skills to apply quantitative models to crucial organisational decision making
- Generate value-adding decision insights
Gaining knowledge and skills in investment analysis and decision-making opens one’s business perspectives. In the energy investment context, the set of skills and knowledge that this training course offers prepares individuals for a more influential role in corporate decision-making.
- Prepares individuals for a role with a wider perspective
- It gives participants a more informed frame of mind
- Expands the knowledge and skillset by raising awareness about the business environment
- Enables participants to analyse complex investment decisions and generate insights
- Promotes personal skills in valuation and effective decision making
- Develops a clear frame of mind in investment analysis
This training course is beneficial to everyone involved in valuations and investment decision making—likewise, individuals in technical and managerial positions who are interested in the energy business.
This Energy Training Centre training course is suitable to a wide range of professionals but will greatly benefit:
- Analysts working on feasibility analysis of investments
- Engineers involved in the investment decision process
- Managers with responsibility or interest in the investment decision process
- Decision-makers within corporations or government bodies
DAY ONE: PRINCIPLES OF INVESTMENT ANALYSIS
- Introduction to Energy Value Chain
- Analysis for decision making and corporate objectives
- Understanding uncertainty in energy projects
- Modelling Uncertainty
- Using probability to encode uncertainty
- Economic Consideration: Informed Analysis
DAY TWO: COMPARATIVE ANALYSIS
- General discussions about comparison
- Comparison Across Time
- Comparison across various levels of uncertainty
- Risk vs. Uncertainty
- Principles of Discounting
DAY THREE: UNCERTAINTY, RISK, AND PREMIUMS
- A brief discussion of technical and market risks
- The Effect of Diversification
- Risk-Return Tradeoffs
- The Capital Asset Pricing Model (CAPM)
- Discounting Risk Premiums
DAY FOUR: PORTFOLIO ANALYSIS
- Uncertainty, risk, and financial return at the portfolio level
- Financing Leverage and its Effect
- General Investment Analysis
- Estimation of the Discount Rate
- Introduction to certainty-equivalent approach to investment analysis
DAY FIVE: MANAGERIAL FLEXIBILITY AND REAL OPTIONS
- Managerial flexibilities and dynamic uncertainty
- Basics of valuation with effective project management
- Decision trees as a modelling and communications tool
- Commodity prices, their markets, and dynamic uncertainty
- Future Challenges: Environmental Issues, Emission Taxes, and Emission Markets
