Mastering Oil & Gas KPIs Training Course
Course Highlights and Agenda
This highly intensive two-day course:
- Identifies and specifies the practical benefits of a wide range of KPIs
- Illustrates how KPIs are analysed and used as part of ongoing performance benchmarking
- Considers financial and non-financial KPIs along the supply chains
- Includes case studies and exercises to demonstrate the practical applications of KPIs
- Reviews the use of KPIs within the upstream, midstream and downstream sectors
- Highlights the crucial role of KPIs in merger and acquisition analysis
Scroll down for agenda or book onto this course.
Agenda
Day One
KPIs Appropriate for the Industry
Measured Management in an Oil & Gas Context
- Why measured management is important
- Benchmarking to improve performance
- Components required to perform successful benchmarking
- GAP analysis
- Triple and quadruple bottom line strategies
Financial KPIs
- Absolute values (e.g. net income, earnings)
Exercise: Analysing a funds flow through a generic upstream company
- Shareholder values – (e.g. earnings per share, return on capital employed)
- Debt to equity ratios; gearing
- Depreciation of capital invested
- Unitised values
– (e.g. value/barrel of oil equivalent) - Land and property values
- Values ratios to share price
– (e.g. price to earnings ratio)
Non-Financial KPIs
- Reserves replacement ratio
- Reserves and resource categories to consider
- Reserves growth
– annual and rolling average - Production replacement and growth
- Reserves to production ratio (R/P)
– reserves life index - Oil and gas considered as Barrels of Oil Equivalent (BOE)
Cost, Tariff and Margin KPIs
- Finding and Development (F&D) costs per BOE
- Distinguishing capital, operating and overhead costs
- Lifting costs
- Costs of supply
- Types of refining margins and crack spreads
- Shipping and pipeline cost and tariff measures
- Storage cost measures
Community, Employee, Environmental, Energy Efficiency and Safety KPIs
- Assessing community relations and employee commitment/motivation
- Emissions and spills versus industry and corporate targets
- Land restoration and decommissioning measures
- Sustainability assessments
Case Study: Canadian tar sands extraction
- Lost time, near misses and recorded accidents and incidents
- Gas flaring and carbon dioxide emissions minimisation initiatives
- Energy efficiency and carbon efficiency measures
- Life cycle (well to wheels) emissions analysis
Day Two Using KPIs to Benchmark Performance
Large International Oil & Gas Company (IOC) Performances Compared
- Selecting appropriate peer groups to compare
- Establishing appropriate time periods to compare
- Reserves and production replacement
- Reserves versus net assets
- Production versus net income
Exercise: Multi-year balance sheet valuation KPIs of major IOC
Mid-Sized Oil & Gas Company (IOC) Performances Compared
- Reserves growth versus production growth
- Pitfalls of percentage measures
- KPIs as indicators for acquisition targets (historic KPI review)
- Debt to capitalisation ratios
- Depreciation, depletion and amortisation as a KPI
Exercise: DDA, reserves replacement and finding and development calculations
Upstream Operational KPIs
- Measures used to benchmark drilling operations
- Measures used to benchmark field development projects
Video: Offshore platform and subsea development benchmarked
Exercise: Analyse annual performance review of large offshore gas condensate field
Downstream and Gas to Power KPIs
- Gross Product Worth (GPW) of refinery products
- Gross and net refinery margins versus crack spreads
- Refinery and plant utilisation rates
- Gas to power spark spreads
- Netback prices achieved by gas supply chains
- Facility uptime, planned and unplanned downtime
Strategy and KPIs
- Monitoring oil & gas asset portfolio performance against strategic targets
- Assessing National Oil Company (NOCs)
– strategies
– partial privatisations - Strategic alliances and alignments focused on enhancing performance
- Issues of branding and public relations
- Monitoring enterprise risk exposures
- Analysing risk management capabilities
- Long-term planning cycles and future scenarios
What You Will Learn
You will establish how crucial KPIs are in the success of oil and gas companiesand also understand how to apply them in practice so they can be used to their full advantage. The key issues are:
- What to measure
- How to interpret the measurements
- How to respond to the information provided
The programme is packed with current real-life examples, exercises and case studies designed to help put the theory into practice so participants will return to work with a practical understanding of how KPIs work and how to apply this to their sector.
