The course on International Gas Markets and Trading focuses on examining the dynamics of the gas industry. The section on gas markets provides a comprehensive overview of the industry, including aspects such as the nature of natural gas, the global marketplace, estimation of gas reserves, the petroleum resources management system, the development and economics of shale gas, and the impact of shale gas on the LNG market.

In addition, the course offers practical exercises related to economic analysis cases. This includes the estimation of commodity prices, project costs (CAPEX and OPEX), taxes, royalties, transportation, and depreciation. The course covers both before-tax (BTAX) and after-tax (ATAX) cash-flow analysis. Moreover, it explores international fiscal regimes such as production sharing agreements and concessionary systems.

Course Objectives:

At the end of the International Gas Markets and Trading, you will be able to:

Understand the dynamics of gas market, monetization of shale gas and impact of shale gas on LNG imports
Learn how to reduce exposure and mitigate risks in projects and handling uncertainty
Clarify concepts such as: time value of money, cash-flow models, capital budgeting, IRR, NPV, income producing investments
Maximize the return on investments by good decision-making processes based on the commercial viability of projects
Improve your decision process, investment and opportunity analysis
Practice the hands-on experience in building your own economic evaluation models and solving case study based examples

Who Should Attend?

International Gas Markets and Trading training course, is ideal for:

Planning managers
Oil & gas engineers
Project managers
Analysts
Commercial managers 6. Economists
Government officials
Geologists
Business advisors
Asset managers
E&P managers
Product managers

Course Outlines:

General Industry Overview

The Nature of Natural Gas
The Global Market Place
Estimating Gas Reserves
Development & Economics of Shale Gas
Shale Gas Development
Impact of Shale Gas on LNG Market
Shale Gas Development Costs & Economics
Evaluation of New UG Plays
Problems & Solutions

Why economic evaluation

Typical oil & gas company objectives
Inflation
Types of inflation
Consumer price index (CPI) – USA
Italian consumer price index
Interest
Simple and compound interest
Nominal and effective interest.
The Time Value of Money
Risk factors (simple illustration)
The time value of money
Interest table
Future value of present sum
Present value of future sum
Future value of ordinary annuity
Future value of annuity due
Present value of ordinary annuity
Conditions of annuity
Spreadsheet Applications
Problems & Solutions

Before-Tax (BTAX) Cash-Flow

Cash-Flow (CF) defined
Forecasting cash-flow
Brainstorm session – identifications
Basic data requirements
Forecasting product stream
Revenue stream components
Cost elements
Before-tax net cash-flows
Natural gas processing
Typical oil production facilities
The history of oil price
Capital (front end) costs
Breakdown of facilities’ cost
Economies of scale
Capital costs during production
Breakdown of OPEX
Develop rules of thumb
Transfer pricing
Types of cost estimates
Dependence of cost estimates
Gross revenue
Sample before-tax cash-flow
Schematic of typical cash-flow
After-Tax (ATAX) Cash-Flow
After-Tax – additional variables
Depreciation types
Straight line depreciation
Declining balance depreciation
Declining balance with switch to straight line
Sum-of-the years digits depreciation
Depreciable asset lives

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