Understanding
Global Oil, Gas & LNG Pricing
2-Day Training Course: An Introduction to Pricing & Financial Risk Management
in Oil & Gas
Attend this course to help understand & gain insights into global oil, gas & LNG market dynamics, pricing mechanisms,
their impacts for pricing, spot & futures markets, the role of hedging & speculation in mitigating financial risk
Our Expert Course Director
John Karasinski
John has over 26 years business & academic
working experience in the areas of natural
resource economics & finance, currently
director of the MBA (oil & gas) program
at Curtin University
Key Learning Objectives
—— Review the global oil, natural gas
and LNG industries
—— Review the natural gas markets
in North America, Europe and Asia,
including price trends
—— Recognise the role and importance
of gas storage days, the strategic
petroleum reserve and OGEC
—— Discuss the indexation of the price
of natural gas to the price of oil and
the role played in determining the
final market price of natural gas
—— Discover the concept of Energy
Equivalent Pricing of natural gas
—— Analyse LNG pricing using the
‘S’ curve formula
Image courtesy of Woodside
—— Recognise how hedging and speculation
strategies are used for financial gain or
to mitigate the corporate risk confronting
business and government
ONSITE, CUSTOMISED & COACHING
For tailored versions of this course,
OR for individual coaching, please
contact +61 2 9080 4077
www.informa.com.au/gaspricingweb
Understanding Global Oil, Gas & LNG Pricing
John Karasinski
ABOUT THE EXPERT COURSE DIRECTOR
ABOUT THE COURSE
John has over 26 years business and academic working
experience in the areas of natural resource economics
and finance.
This 2-day intensive course is designed to provide participants
with an applied and working knowledge and understanding of
the current global spot price trends in oil, natural gas and LNG.
He is currently a senior lecturer and director of the MBA
(Oil & Gas) program at the Curtin Graduate School of
Business (CGSB), Curtin University in Perth. At the CGSB,
John teaches international oil and gas markets, natural
resource economics, corporate finance and economics
for managers.
The course begins with an introduction to global oil and
gas industry including production, consumption and
international trade.
John is frequently nominated for faculty teaching awards
for the quality of his teaching, including the Curtin Business
School Teacher of the Year. In 2010 he was nominated for the
Curtin Student Guild Excellence in Teaching Award – which
is the only student-nominated staff awards at the university.
John consults to the Australian Centre for Natural Gas
Management (ACNGM), which is part of the Australia-China
Natural Gas Technology Partnership where he teaches
natural gas and LNG economics. He also acts as an academic
supervisor at the ACNGM.
John also consults to the master of technology (petroleum
technology) program which is only available to employees
of Royal Dutch Shell and its affiliate companies worldwide.
John has a bachelor of arts (economics), a master of science
(economics) and is a member of the International Association
for Energy Economists.
Discussion will centre on existing global reserves as well
as the depletion of reserves. The course then builds the
discussion around the various spot markets including Henry
Hub, the UK’s NBP and the JCC in the Asia Pacific region.
We examine the significance of the indexation of natural
gas prices with the oil price, and examine the Energy
Equivalent Pricing of natural gas. We also review the
current trends in the relationship between oil and gas
prices. The role of the ‘S’ curve pricing model will also
be developed.
The second day of the course is devoted to discussing the
role of the futures market for the purposes of financial risk
management.
While the spot and futures markets operate separately,
we identify the price convergence theory of these markets
which is helpful when seeking to forecast prices. Trading
strategies and the rationale for using one strategy over the
other will be discussed.
This discussion is supported by numerous practical examples
throughout the course to assist with understanding the material.
WHO WILL BENEFIT
Image courtesy of Woodside
A VALUE ADD
—— Those in the oil and gas industry who would like to gain
a working knowledge of oil and gas pricing and financial
risk management
—— Professional services – lawyers, accountants, auditors,
consultants with direct or indirect business in the
oil and gas industry who wish to improve their
understanding of, and service to, their clients
—— Public servants employed by the federal and state
governments in treasury, finance, procurement,
state development, infrastructure and planning
with managerial and oversight responsibility in the
oil, LNG and CSG industries
For those who have a professional status and require Continuing Professional
Development (CPD) to retain your status, you can use this course to fulfil the
educational requirements. Contact your association to learn how.
www.informa.com.au/gaspricingweb
2-Day Intensive Course Outline
Perth
10–11 March
2015
OVERVIEW OF PRICE TRENDS
—— Introduction to recent price trends in oil, natural
gas and LNG markets
—— Global trends in production, consumption and
international trade
—— Spot price indices in oil and gas markets
—— Overview of the spot price trends for Henry Hub,
UK’s NBP and the Japanese JCC and LNG prices in China
—— The Chinese economy and the Rule of 70 and impact
of the BRICS countries on global oil and gas prices
OVERVIEW OF OIL AND GAS RESERVES
—— Overview of oil (conventional and unconventional)
and natural gas reserves
—— Depletion rates and duration to depletion
—— Global status of oil and gas reserves
NEW DEVELOPMENTS IN PEAK OIL AND GAS THEORY
—— Peak oil update
—— The current impact of: Conventional, unconventional
and shale oil reserves
—— Shale in the US
—— Is there a peak gas theory? A case study of the
Indonesian natural gas industry
THE CREATION OF AN OGEC?
—— Mr Putin’s tacit support for the establishment
of an OGEC
—— The role of OPEC
—— Current OPEC developments
ACTIVITY
Using provided data, identify and graph the oil and natural
gas production of the US and member nations comprising
the so-called BRICS group of countries
OIL AND GAS PRICE COUPLING
—— Oil – natural gas price coupling
—— Energy Equivalent Pricing (EQP) and natural gas
spot pricing
—— Coupling ‘rules’ for natural gas pricing
ACTIVITY
Recent coupling trends and its impact on the price
of natural gas
STRATEGIC AND NATIONAL SECURITY
—— Importance of security of oil and gas supply and impact
on price
—— Case study: Impact of Varanus Island incident in Western
Australia: June 3, 2008
—— Economic necessity of strategic petroleum reserve
and gas storage days
CORPORATE RISK MANAGEMENT
—— The types of risk confronting different corporates:
Financial, price, market, foreign exchange, reputation
and so on
—— Who uses risk managed strategies?
—— What tools are used to manage corporate risk?
SPOT AND FUTURES MARKETS
——
——
——
——
The difference between a spot market and a futures market
Trading commodities in the spot market
NYMEX futures contracts for oil and natural gas
Price convergence theory and forecasting spot prices
OIL AND GAS TRADING STRATEGIES
ENERGY COMPANY TRADERS
—— The rationale for hedging and speculation
—— Numeric examples detailing the activities of oil traders
—— Numeric examples showing the activities of natural
gas traders
INVESTMENT BANKS AND INTERNATIONAL AIRLINES
—— The rationale for hedging and speculation
—— Numeric examples detailing the activities of oil traders
—— Numeric examples showing the activities of natural
gas traders
HOW GOVERNMENTS HEDGE
—— Background to the reason for hedging the oil production
—— Detail and overview of put and call options
—— Numeric examples detailing the activities of oil traders
IMPACT OF HIGH OIL PRICES ON THE ECONOMY
—— Assessing the impact of high oil and natural gas prices
on the macroeconomy
—— Reviewing the data since 1970
—— How oil price shocks impact the macroeconomy
—— Did oil traders cause the GFC?
LNG PRICE DETERMINATION
——
——
——
——
Determining the price of LNG and CBM to LNG
The role and application of the EQP
Simple ‘S’ curve LNG price models
Developing more complex LNG price formulas
ACTIVITY
CBS 60 Minutes 14 April 2009: Did Speculation Fuel
Oil Price Swings?
A more plausible explanation: the role of the BRICS countries?
WHY CHOOSE INFORMA CORPORATE LEARNING?
UNDERSTANDING
GLOBAL OIL, GAS & LNG PRICING
An Introduction to Pricing & Financial Risk Management
in Oil & Gas
Attend this course to help understand & gain insights into
global oil, gas & LNG market dynamics, pricing mechanisms,
their impacts for pricing, spot & futures markets, the role of
hedging & speculation in mitigating financial risk
Informa Corporate Learning has a 30+ year track record of delivering very successful learning
solutions achieving real and measurable value for our clients by matching training needs to
our portfolio of senior subject matter experts. Together with you, we will identify the very
best blended learning solution for your culture, your people and your business objectives.
Quality Assured
——
——
——
——
Our customer satisfaction rating averages over 95% – unparalleled in our field
We design market-leading training, with an evolving 400+ product portfolio
Our hand-picked 900+ instructor faculty are recognised experts in their field
Quality of content and delivery methods is assured through regular auditing
www.informa.com.au/training
OUR EXPERT COURSE DIRECTOR
Level 18, 347 Kent Street, Sydney, NSW 2000, Australia. ABN: 66 086 268 313
John Karasinski
John has over 26 years business & academic working experience
in the areas of natural resource economics & finance, currently
director of the MBA (oil & gas) program at Curtin University
HOW TO REGISTER
Online: www.informa.com.au/gaspricingweb
Telephone: +61 2 9080 4050 – Quoting P15GR27
Email: [email protected] – Quoting P15GR27
Location and Dates
“He was able to convey messages in a way that
was simple to understand. He was passionate
about his subject matter”
Lawyer,
Woodside Energy
Perth 10–11 March 2015
Venue
Course venues will be confirmed to registered participants 2 weeks prior to the event
via email
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