Economics of Downstream Oil

This course is designed to identify the key economic driving forces of the supply chain through the downstream oil business. By showing the interrelationship of the various activities. It covers operations and logistics from the crude oil loading port through shipping, refining and product delivery. The markets for these activities and the management of the risk involved.

Through case studies delegates gain hands-on experience of how profits are made in the individual activities and in optimization of downstream oil as a whole. Delegates will also consider the measurement and improvement of product quality before going on to look at the purchases and sale of products on the international markets. The concepts of price exposure and hedging will be introduced.

Suitability - Who should attend?

  • New entrants to the downstream oil function
  • Those changing from an unrelated oil function to a supply chain activity
  • Personnel changing disciplines from non-oil to oil related functions
  • Back office, finance, operations, other supply and trading support staff
  • Key staff in government, banking and regulatory authorities requiring a general insight
  • Refinery schedulers and engineers wanting an insight into the overall economics


Key Issues to be covered:

  • The principles of chartering a ship
  • Basic refinery economics and margins
  • The basics of oil refining
  • Product quality considerations
  • The mechanics of physical and paper markets


Training Course Content:


  • Crude oils and their evaluation
  • Oil product quality
  • Refinery distillation
  • Reforming and treating
  • Characters of oil tankers
  • Chartering of ships
  • Blending
  • Introduction to trading
  • International oil pricing
  • Refinery margins
  • Oil Stocks
  • Storage and losses
  • Processing deals
  • Oil products
  • Inland distribution

1st - 12th June 2015 / 30th May - 10th June 2016: Dubai
10th – 21st August 2015 / 8th – 19th August 2016: London
12th – 23rd October 2015 / 10th – 21st October 2016: Cape Town - South Africa

Two weeks training: £3,850
One week course: £2,200