Short Courses and Conferences

Crude Oil Valuation and Pricing

Dates Pending

Course Outline

Day One :: Crude Oil Fundamentals

The first day of the course will present an overview of crude oil supplies and pricing. This is followed with a discussion of petroleum product demand and specifications. The final session will describe crude oil quality since crude oil quality is an important factor in crude oil valuation.

  • Crude oil supplies
    1. Reserves and Production
    2. OPEC and Non-OPEC

  • Future developments

  • Crude oil pricing
    1. Factors that impact oil prices
    2. Benchmark crude oils
    3. Price reporting agencies

  • Petroleum products
    1. Worldwide demand
    2. Product specifications

  • Crude oil quality
    1. Composition
    2. Bulk Properties
    3. Crude oil assays
Day Two :: Refinery Processes that Impact Crude Oil Value

The second day of the course will describe key refinery process technology that impacts crude oil value. The class will describe the refinery technology, the impact of crude oil quality on process unit yields, and illustrations of how crude oil value is influenced by these technologies. The final session will describe various refinery types commonly seen in different parts of the world.

  • Crude oil Separation

  • FCC/Hydrocracking

  • Bottom of barrel conversion
    1. Delayed coking
    2. Visbreaking
    3. Others

  • Hydrotreating

  • Catalytic reforming

  • Petrochemical production

  • Lube oils
Day Three :: Crude Oil Valuation (half day session)

For both crude oil producers and refiners crude oil pricing and valuations are important for profitable operations. Depending on the situation, different evaluation techniques are appropriate. The commonly used evaluation techniques are described in detail during this final half-day session.

  • Refinery types

  • Refinery margins
    1. Gross margin
    2. Variable margin
    3. Net margin
    4. Incremental margins

  • Introduction to linear programming

  • Netback pricing

  • Crude oil valuation
    1. Substitution/breakeven evaluation
    2. Other methods

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