UNIT ONE
May 10 - 14, 2010
October 11 - 15, 2010
LECTURE
UPSTREAM GAS BUSINESS
Overview of the International Gas Industry
Gas measurements and units; the gas chain; market structures; worldwide natural gas economics; regulation and deregulation; major players; evolution of the integrated gas-power business.
Host Government Agreements
Typical host country exploration agreements: summary of the history and key provisions, including bonus payments, royalties, taxes; production sharing; participation arrangements.
Exploration Methods
The exploration process: petroleum geology, exploration geophysics, well logging, developing exploration prospects, preparing and interpreting geological maps; case studies.
Drilling and Well Completions
Planning the well; logistics; drilling functions; drilling procedures; formation evaluation methods; horizontal wells; improvements in drilling.
Energy Project Economics
Economic yardsticks; project cash flow before and after tax; tax expenses and benefits; net cash flow stream and payout; time value of money; opportunity cost and present value of net cash flow; discounted cash flow analysis and internal rate of return; risk assessment and sensitivity analysis; examples of the economic analysis of energy projects.
Gas Field Performance and Reserves Estimation
Overview of production and reservoir management in the gas system; production technology; well testing; reservoir performance; reserves estimation.
Gas Processing: Technology, Economics, LPG and Ethylene Markets
Overview of gas processing systems; liquid separation processes; LPG fractionation options; compression; engineering design and contracting methods; the market for LPGs; project feasibility/economics; ethylene processing, economics and markets.
Gas Pipeline Systems
Major considerations in the cost-effective design, construction, and operation of gas pipeline systems; system design variables: impact on cost and capacity; estimating project costs; pipeline load factors; typical pipeline tariff; examples of recent pipeline construction costs.
Load Balancing Systems and Tariffs
Needs for load balancing and system/customer benefits; storage options, capital and operating costs: underground, cavern and LNG facilities; operational procedures; new options for marketing storage service; case examples.
Gas Sales Contracts
Typical terms in gas sales contracts; pricevolume; risk allocation; from gas contracts to tariffs; indexing; re-openers; typical contract examples.
Measuring Financial Performance
Review of financial statements: income statement, balance sheet, cash flow and shareholders equity; capital and operating costs; measurements of financial performance; benchmarking; utility accounting methods; taxation; the accounting and audit process.
International Gas Economics
Overview of natural gas in world energy markets: worldwide gas supply, demand, exports and reserves; economics of gas supply and gas transportation; role of gas in regional energy markets: the U.S. and Japan as examples.
WORKSHOP
ATLANTIC BASIN GAS
BUSINESS GAME: EXPETRA
This "business game" is an integral part of the learning process. Participants, divided into teams, make real-life technical, financial and market decisions that commonly confront managers in the international gas business today. Team performance is measured on a financial basis and is catalyzed by healthy competition.
The challenging Atlantic Basin business game takes place in "Expetra," a small island country in the Caribbean, north of Trinidad. Gas and condensates are expected to be discovered in the deep offshore. Teams enter into exploration agreements, explore for and discover hydrocarbon resources, and then decide on the best way to market them over a 15-year production period. Markets include LNG exports to the U.S. and Europe, LPG and ethylene plants, gas pipeline to Miami, gas distribution and storage operations in the U.S., power plants in the U.S. and Expetra, and export-focused ammonia, methanol and gas-to-liquid plants in Expetra.
WORKSHOP SESSIONS INCLUDE:
- Introduction to the exploration opportunity
- Negotiation of the exploration and development agreement
- Seismic exploration and mapping of seismic results
- Exploration drilling and reserves estimation
- Gas processing, LPG and ethylene market decisions
- The gas field pipeline decisions
- Integrating load balancing and pipeline facilities
- Gas-fired power plant market decisions
- Acquiring a gas distribution business in the U.S.
- Assessment of methanol, ammonia & GTL markets
- Export pipeline from Expetra to Miami
- Assessing two LNG market opportunities
- Integrated field development and market decisions
- Decisions during the project life-cycle