Introduction

This training course will provide you with the essential skills to make effective economic decisions in the Energy Sector by evaluating and balancing both the Economic Benefits and Risks. It will focus on the latest economic factors affecting companies in the sector, focusing on how companies may manage changes in major economic variables such as demand, energy prices, interest rates, and exchange rates. The participants will be introduced to the latest tools and techniques, such as financial derivatives relevant to the energy sector. In addition, they will use simulation techniques to model economic returns and risk management.

This training course will not only provide knowledge of the latest tools and techniques; it will also develop the skills so that the participants will be able to transfer those skills to the workplace to make a tangible benefit to your organization.

Course Objectives

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

• Evaluate the economic environment to improve decision making

• Model economic decisions in the energy sector

• Make efficient economic decisions

• Recommend economic methods of finance

• Manage financial and economic risk efficiently and effectively

Training Methodologies

This training course will utilize a variety of proven online learning techniques to ensure maximum understanding, comprehension, and retention of the information presented. The training course is conducted Online via an Advanced Virtual Learning Platform in the comfort of any location of your choice.

Organizational Benefits 

This training course is designed to provide transferable skills which will directly benefit the organization.

As a result of sending employees to attend this course, the organization will gain:

• Staff with economic knowledge and understanding

• Informed staff and engaged with the latest developments

• Improved risk management

• Staff with knowledge of the latest tools and techniques

• Improved performance with staff better able to meet customer needs

• Improved finance and risk management culture.

Personal Benefits

This training course is designed to give participants the skills required to aid their personal development.

As a result of attending this course, the individual will gain:

• Improved analytical skills

• Improved knowledge and understanding

• The ability to apply new skills

• Up-to-date knowledge

• Legal, financial, and risk management knowledge and skills

• The ability to improve their roles and career growth

Target Audience

This training course is suitable for a wide range of professionals. Still, it will significantly benefit those working in the Energy Industry with a desire to improve their knowledge of energy economics.

This course is suitable for a wide range of professionals but will greatly benefit:

• Financial Professionals in the Energy Industry

• Technical Managers (Electrical Power Engineers, Maintenance Technicians, Electrical, Supervisors, Engineering Professionals, etc.) with the need for finance and economics

• Energy Project Managers

• Procurement Supply Chain Professionals

• Risk Manager and Professionals

Course Outlines

Day 1

THE ECONOMIC ENVIRONMENT AND THE ENERGY INDUSTRY

• The Economic Environment

• Economic Challenges facing Governments and the Energy Sector

• Economic Evaluation of Reserves

• Making Economic Decisions in an Uncertain World

• EMV Expected Monetary Value & Decision Trees

• The Probability & Impact of Changes in Economic Variables: Interest Rates, Exchange Rates & Energy Prices

Day 2

ECONOMIC MODELLING IN THE ENERGY INDUSTRY

• Revenue & Revenue Recognition

• The Impact of Energy Price Volatility

• Cost Estimation

• The Impact of Joint Venture & Production Sharing Agreements

• Working Interest, Royalties & Taxation

• Forecasting the Cashflow

Day 3

ECONOMIC EVALUATION OF ENERGY PROJECTS

• Evaluating Accounting Profit and Return on Equity (ROE)

• Cost-Benefit Analysis: Finance V Economic Value Added

• Economic Analysis: Economic Value Added & Sustainability

• Key Economic Parameters - NPV, NPVI, IRR, Payback, Adjusted NPV & Adjusted Payback

• Cost Recovery Method

• Government Evaluation and Value for Money (VfM)

Day 4

ECONOMIC FINANCE & THE ENERGY INDUSTRY

• Types of Finance

• Calculating the Cost of Capital (WACC) and the Capital Assets Pricing Model (CAPM)

• Determining the Economic Hurdle Rate

• Economic Management of Energy Projects

• Earned Value Analysis

• Budgetary Control & Cost Management

Day 5

ECONOMIC & FINANCIAL RISK MANAGEMENT IN THE ENERGY INDUSTRY

• Economic & Financial Risks

• Managing Economic Risk & Uncertainty

• Developing and Using a Risk Model Analysis

• What are Derivatives? - Forwards, Options, Futures & Swaps

• International Derivative Markets & Middle East Derivative Mar