International Oil Supply, Transportation, Refining and Trading - SP1 

CPE Credits Awarded: 40
Categories: Trading, Derivatives, Hedging and Risk Management, Oil Industry, Oil Supply and Trading

Course Code Date Duration Venue Price Register

Gold Course

This course provides an overview of the oil supply chain from upstream, crude oil from source to refinery, processing, trading and the retailing of oil products. It is designed for new or recent entrants to the oil industry, and is also ideal for use as part of an induction programme or for bringing those transferring disciplines up to speed. Through the medium of a series of progressive, specific exercises, delegates will address day-to-day problems in order to understand the relevant commercial driving forces in this area.
After learning about the fundamentals, delegates will cover the valuation of crude oil. Ocean tanker transport and freight will be explored together with an overview of terminals and pipelines. The structure of a refinery will be explained in the context of the need to produce marketable products. Key aspects of product quality will be covered together with the major refining processes needed to achieve them. The refining interface with petrochemicals, and retail/distribution will also be covered. The course moves on to cover oil markets and pricing and an introductory guide to paper markets, simple hedging and price management.
32.5 Continuing Professional Development (CPD) credits awarded for this course. Authorised by The Law Society of England and Wales.

What you will learn

  • Fundamental market analysis
  • Supply relationship with upstream
  • How to value crude oil based on product market prices
  • How to evaluate spot tanker freight costs
  • How to evaluate crude netbacks and refining margins
  • How tankers are chartered
  • How oil purchase/sale contracts are structured
  • How a refinery is structured
  • The interface with retail, industrial and transportation markets
  • The significance of non-tanker logistics ? pipelines, storage, rail and road
  • Key points on product quality; how key specifications are met
  • Fundamental economic drivers of the downstream
  • How the international oil markets are priced
  • Forwards and futures: characteristics and uses
  • The basic use of hedging within a trading environment

Manager’s Return on Investment

Upon completion of this course your employees will understand:

  • A full understanding of each element in the oil supply chain – crude production, transportation, refining, trading and sales to the end-user – and the economics of each stage.
  • “Hands-on” practice in key calculations used in supply and trading, including freight using Worldscale, GPW & netback, refining margin, arbitrage valuation.
  • An appreciation of the interrelationship between crude quality, refinery processes, blending and product market quality requirements.
  • An introduction to international oil pricing and the use of paper instruments for handling risk management.
  • Recourse to the knowledge and experience of a world-class faculty and visiting lecturers; and the opportunity to interact and work together with other delegates from a large range of organisations and cultures.

Do you have a question or enquiry regarding this course?

Please contact your local sales team:

Asia Pacific Europe, Middle East, Africa, Central & South America North America

  • New entrants to the oil industry, and staff from integrated functions such as supply, trading and logistics
  • Managers changing disciplines into the midstream or downstream
  • Professional personnel inside and outside oil companies who interface with supply, refining, trading and transportation functions and who need an understanding of this sector, such as legal, banking, insurance, finance and production

Market Fundamentals

  • Supply/demand/refining balance
  • Impact of OPEC
  • IEA
  • Environmental issues affecting the balance
  • The place of oil relative to other energy sources


  • Interface with supply
  • Technology
  • Field life-cycle, development and management

Crude Oil

  • Types
  • Assay
  • Yield
  • Crude value
  • Calculation of gross product worth and netback

The Refinery


  • Structure of simple, upgrading and complex refineries
  • Description, function and yields of the various refining processes
  • Refining costs and refinery margins
  • Processing deals

Product Quality and Logistics

  • Key specifications for main grades
  • How quality specifications are achieved
  • Cost implications of quality
  • Primary logistics
  • Tanker freight costing, Worldscale
  • Chartering
  • Pipelines, terminals and storage
  • Losses

Lubricants and Petrochemicals

  • Feedstock interface with refinery
  • Interface with oil markets

The Domestic Markets

  • The interface with secondary logistics
  • Retail and service stations
  • Exchange and terminalling agreements
  • Industrial, aviation and bunker markets


  • Oil contract terms
  • Tanker contract (charter-party)

Oil Markets

  • Location and nature of pricing
  • Crude oil
  • Products
  • Forward markets
  • Futures markets
  • Derivatives
  • Use of hedging and price management
  • Use of technical analysis

Exercises and Case Studies will include:

  • Gross product worth
  • Freight
  • Netback and refining margin
  • Contracts – negotiation and contract exposures
  • Quality and blending
  • Pipeline economics
  • Price Exposure
  • Hedging
  • Price management


Robin A Burley is principal consultant with Kennet Oil Logistics, a company established in 1990 providing expertise in the international supply, trading and transportation sector. During his 30 years experience in the oil industry he has worked with BP including Marine and Supply Departments, and Gulf Oil including Trading and Transportation, Refining and Marketing functions. Besides the day-to-day management and negotiation of oil supply, trading and transportation deals, he has been involved in a variety of oil logistics projects throughout the world. He has lived in the USA, Europe and the Middle East, and is a contributing author to the Oil Trading Manual (pub. Woodhead 1995).


"Very good and quite intensive for the level I was looking i.e. Perfect Combination!" S.V., ChevronTexaco

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