GRA 8503 The Oil Fundamentals (2017/2018)

GRA 8503 The Oil Fundamentals (2017/2018)

Course code: 
GRA 8503
Department: 
Leadership and Organizational Behaviour
Credits: 
5
Course coordinator: 
Jon Lereim
Course name in Norwegian: 
The Oil Fundamentals (2017/2018)
Product category: 
Executive
Portfolio: 
EMME - EMM specialisation in Energy
Semester: 
2017 Autumn
Active status: 
Active
Level of study: 
Master
Teaching language: 
English
Course type: 
One semester
Introduction

This course is part of the Executive Master of Management in Energy in cooperation with BI Norwegian Business School and IFP School.

The history of petroleum is inseparable from that of the major oil companies (NOCs and IOCs) which formed and grew rapidly in order to seek, produce, transform, transport and sell oil and oil products. The understanding of the key components and the challenges of upstream business will give the participants the ability to build their own vision on the future of oil industry.

Learning outcomes - Knowledge

Participants will receive a comprehensive understanding of the energy scene (international energy outlook) and a clear view of the upstream sector in all its aspects: reserves, technologies, innovations, players (IOCs, NOCs and contractors), investments, costs and taxation systems. This is followed up by sessions devoted to downstream business like refining and petrochemicals economics with a focus on refining margins and demand volatilities. Finally sessions dedicated to trading and risk management of oil products will be provided.

 

Learning outcomes - Skills

Upon completion of this first week, the students will be able to:

  • Describe the key technical, innovative and economic features of the oil industry and its major players
  • Identify and analyse the different components of the crude oil price and the evolution of the by-products prices (petroleum products and chemicals)
  • Analyse the techno-economics of the upstream sector in all its aspects: reserves, players (IOCs, NOCs and Contractors), investments, costs, benchmarking, risk management, etc.
  • Analyse the techno-economic framework of the downstream part of the oil business: refining and petrochemicals
Learning Outcome - Reflection
  • Explain how crude oil is traded in the physical market and how hedging strategies are implemented
  • Evaluate the risk of traded products such as futures, swaps and options in the oil market
Course content

The Global Energy Outlook

  • Global energy production and consumption
  • Future of Energy demand: constraints, challenges, opportunities
  • Oil price, energy price – Influence of supply, demand, futures markets
  • The actors of the energy scene
  • International Energy agency (IEA) Conference : Debate with IEA Experts

Oil Exploration and Production:

  • Key figures in Upstream (challenges & players) & New debates
  • Oil Reserves, Investments and Costs
  • Legal and Fiscal Aspects : Concession, Production Sharing Contract, Service Contract
  • Crisis management in upstream

Downstream Techno-economics

  • Oil refining, refining margins and costs components.
  • Petrochemicals and their economic framework
  • Maritime and Pipe-line transportation

Introduction to Trading & Risk Management:

  • Oil pricing regime & Oil price formation
  • Spot, forward & futures markets
  • Hedging & risk assessment
Learning process and requirements to students

1 ECTS credit corresponds to a workload of 26-30 hours. 

Attendance to all sessions in the course is compulsory. If you have to miss part(s) of the course you must ask in advance for leave of absence. More than 25% absence in a course will require retaking the entire course. It's the student's own responsibility to obtain any information provided in class that is not included on the course homepage/ It's learning or other course materials

Software tools
No specified computer-based tools are required.
Qualifications

Granted admission to the Executive Master of Management in Energy programme.

Exam categoryWeightInvigilationDurationSupport materialsGroupingComment exam
Exam category:
Submission
Form of assessment:
Written submission
Exam code:
GRA 85031
Grading scale:
ECTS
Grading rules:
Internal and external examiner
Resit:
Examination when next scheduled course
100Yes2 Hour(s)
  • No support materials
Individual The students are evaluated through an individual 2 hours exam, counting for 5 credits. Specific information regarding student evaluation beyond the information given in the course description will be provided in class. The course is a part of a full Executive Master of Management in Energy (EMME) and examination in all courses must be passed in order to obtain a certificate.
Exams:
Exam category:Submission
Form of assessment:Written submission
Weight:100
Invigilation:Yes
Grouping (size):Individual
Support materials:
  • No support materials
Duration:2 Hour(s)
Comment:The students are evaluated through an individual 2 hours exam, counting for 5 credits. Specific information regarding student evaluation beyond the information given in the course description will be provided in class. The course is a part of a full Executive Master of Management in Energy (EMME) and examination in all courses must be passed in order to obtain a certificate.
Exam code:GRA 85031
Grading scale:ECTS
Resit:Examination when next scheduled course
Exam organisation: 
Ordinary examination
Total weight: 
100
Sum workload: 
0

A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 5 ECTS credit corresponds to a workload of at least 135 hours.