Budgeting & Cost Control for Oil and Gas Industry

INTRODUCTION
Budgeting & Cost Control for the Oil & Gas Industry training course provides the essential knowledge and skills to enable delegates to successfully control costs; prepare, manage and control budgets effectively in the Oil & Gas industry. It also provides solutions to the strategic issues facing the Oil & Gas industry, recommending sustainable growth strategies in an effective cost control manner.

OBJECTIVES
• Understand the reasons and impact for oil price volatility
• Recommend strategic solutions to budget issues and cost control
• Measure and control costs effectively in a competitive environment
• Prepare, manage and control budgets in the Oil & Gas Industry
• Use budgets to make effective decisions to ensure growth, maintain profitability and reduce risk
• Recommend innovative hedging strategies used by leading international companies to control risk and manage budgets effectively

TRAINING OUTLINE
Day 1:
• The Case for Budgeting & Cost Control in the Oil & Gas Industry
• Oil Price Volatility – The Causes & Impact
• Major Costs of Acquisition, Exploration, Production and Development
• Cost Oil and Profit Oil
• The Cost Curve of the Oil Market
• Controlling Gross Margins and Net Margins
• Managing National Fiscal Budgets
Day 2
• Finding Strategic Solutions to Cost Control
• Re-assessing the Strategic Plan in the light of recent developments
• The need for Growth whilst managing costs
• Managing Working Capital and Cash Flow
• Evaluating and Managing Capital Projects
• Joint ventures; Merger and Acquisition as a solution and growth opportunity
• Finance solutions to growing costs and oil price volatility
Day 3
• Measuring & Controlling Costs
• Cost Classification and Cost Behavior
• Job Process Costing, Batch Costing & Activity Based Costing
• Statistical Estimates of Costs
• Controlling Fixed and Variable Costs
• Earned Value Management
• Variance Analysis
Day 4
• Budgeting in the Oil & Gas Industry
• The Benefits and Limitations of Budgeting
• The Essential Features and Types of Budgets
• Preparing Forecasts and Budgets in a volatile Oil & Gas industry
• Using Budgets as a Management Tool
• Sensitivity, What-if and Break-Even, Analysis
• Managing and Controlling Budgets
Day 5
• Hedging Costs to Manage the Budget
• Defining Hedging and Identifying Costs / Risks to Hedge
• Determining the Hedging Strategy
• Hedging Oil Price Volatility
• Hedging Exchange Rate Risk
• Hedging Interest Rate Risk
• Controlling the Hedge to avoid Speculation