International Crude Oil and Natural Gas Markets: Supply, Trades, and Economic Framework (CLASSROOM) - CONGT

International Crude Oil and Natural Gas Markets: Supply, Trades, and Economic Framework (CLASSROOM) - CONGT

Course Summary

Crude oil and natural gas are central components of the global energy portfolio, each contributing differently to economic output, geopolitical leverage, and portfolio risk. Their value chains—from exploration through processing and delivery—are shaped by infrastructure constraints, regulatory environments, and global market forces. 

 This course offers a structured understanding of how supply-demand dynamics, contract specifications, and project design generate value across the energy system. Emphasis is placed on interpreting market signals, evaluating commercial arrangements, and tracing how physical flows align with pricing mechanisms. By framing these topics within decision analysis principles, participants enhance investment appraisal, manage exposure to market volatility, and support informed strategic decisions under uncertainty.

 Upon completion, delegates will be able to:

• Identify key benchmarks for crude oil and natural gas.
• Describe refining and gas processing methods.
• Explain how feedstock quality affects product value.
• Apply Incoterms to shipping and pricing decisions.
• Analyze contracts for managing price exposure.
• Evaluate geopolitical risks in energy markets.
• Design basic hedging plans using derivatives.
• Assess arbitrage across grades based on cost and yield.
• Evaluate oil and natural gas projects with price exposure.

Course Content

Oil and Gas Market Foundations and Value Chains

Focus: Establishing structural understanding of global oil and regional natural gas markets. 

• Crude oil and natural gas value chains: from reservoir to market
• Fundamentals of industry: geoscience, engineering, and exploration economics
• Supply-demand drivers and global trade flows
• Strategic roles of producers, consumers, and OPEC+ coordination
• Project economics: capital structures, cost curves, and investment signals
• Crude transportation systems: pipelines, tankers, and chokepoints
• Pricing dynamics: time, location, and grade differentials

 

Price Behavior, Refining Economics, and Financial Instruments

Focus: Mapping how crude and gas grades interact with refining processes and pricing models under market volatility.

• Benchmark references: Brent, WTI for Oil, and NBP, TTF and Henry Hub for Gas
• Crude oil assays: quality traits and refinery compatibility
• Pipeline economics and regional natural gas hubs
• Refining and liquefaction margins: crack spreads and processing yields
• Storage economics: contango, backwardation, and arbitrage strategies
• Financial instruments: forwards, futures, options, and swaps
• Trading behavior and exposure management in physical and paper markets
• Case study: Transport economics of heavy vs. light crudes




Risk Management, Strategy, and Market Outlook

Focus: Integrating tactical decision-making with strategic foresight in volatile energy contexts.

• Hedging strategies: producers, refiners, traders
• Managing price, basis, and geopolitical risks
• Offtake contracts: spot, term, and long-term structures
• Risk modeling and investment appraisal under uncertainty
• Market instruments: Forwards, Futures, and Options
• ESG shifts, emissions regulations, and policy impact
• Capstone exercise: advising a trading desk on sourcing and hedging