Global Perspectives in Energy
This lead-off session provides a statistical and economic overview of global energy markets, emphasizing those topics that a practicing manager needs to understand to plan and manage effectively. We survey the trends that are driving demand for oil, natural gas, coal, and renewable energy, and discuss how energy companies are organized and financed to provide energy--in appropriate forms and amounts--to a global population that is growing in size, wealth, and demand for environmental quality.
Financing Energy Projects
The global energy industry is, by far, the world’s largest in terms of total revenues and routinely accounts for more than one-quarter of all capital investment spending worldwide. Financing energy companies and specific energy projects can be challenging, even for integrated oil companies such as ExxonMobil, Chevron, Total and Shell. Financing domestic oil and gas exploration and production is even more challenging and cyclical, while the financing of renewable projects often depends on capricious tax provisions and regulations. This session discusses the various forms of capital funding available to energy companies and describes when use of each form is most appropriate.
Energy Accounting and Financial Performance
This session will cover a brief overview of accounting in general, a review of certain financial statements and performance measures, and unique accounting requirements of the oil and gas industry. Also discussed will be performance metrics used by the industry for comparison between companies and for incentive calculations.
Energizing People, Enhancing Performance
In contrast with most of the sessions during this conference, this session focuses on people – including you, your coworkers, and your supervisors. The world of work is increasingly a social phenomenon, so it is critical that you develop effective interpersonal and team skills. As you advance in your career, you will find that your greatest challenges involve the management of people.
In this session, Professor Razook will focus on those psychological biases that often encourage poor ethical decisions and some effective strategies for recognizing and overcoming those biases.
Innovation and Technology
Provides an overview on the role of disruptive innovation changing the nature of both supply and demand forces shaping the oil and gas sector as well as how technology is reducing production costs, increasing production efficiency, supporting exploration, and ensuring that decommissioning is carried out effectively.
Energy Value Chain and Commodity Pricing
This session's purpose is to develop a broad understanding of the global energy business, supply demand balance, value chain and the potential impact to commodity price outlook. Students will be challenged to think broadly about supply and demand of oil and natural gas and the short-term and long-term implications for commodity prices.
Corporate Risk and Hedging
This session explores the questions, “Why hedge?” and “Is it always necessary or even desirable?” We will also examine the instruments and mechanics of hedging, as well as handling basis risk and constructing optimal hedges.
Cost of Capital, Valuation of Energy Firms & Real Options
This module is organized around three broad themes that relate to the creation of financial value in energy firms. We will begin by discussing the cost of capital in energy firms, its relation to the riskiness of the firm’s business, and how it can be reduced by (1) optimizing the firm’s financing mix to minimize corporate taxes and financial distress costs, and (2) using hedging. Second, we will discuss the valuation of energy firms using a variety of metrics, including fundamental valuation and market benchmarks. We will conclude by discussing the role of real options in creating value in energy firms.
Sustaining Long-Term Asset Stability and Combatting Financial Distress
Discussion of best practices for upstream capital programs which can provide 1) short-term volume growth and 2) maintenance of future development inventory. We will also discuss how to best manage through financial distress while best preserving equity value.
Best Practices for Communicating with the Investment Community
Topics will include best practices for 1) communicating a strategic vision, 2) keeping messaging consistent and 3) investor guidance on costs, growth and balance sheet management.
Renewable Energy: Current Status & Perspectives
Given the current movement of capital and talent to the renewable energy space, this course will provide energy executives with a current and historical overview of technologies, tax/regulatory policy and capital formation. The instructor will provide examples as well as relevant experiences related to each of these topics. Most importantly, the course will provide the student a framework from which each can develop their own perspectives on the future of renewable energy in the overall mix of supply in the global energy portfolio.
Oil and Gas Law and Contracts
Review of nature of property interests in oil and gas; conveyancing of interests in oil and gas; legal interests created by oil and gas leases; validity of leases; habendum, drilling, and rental clauses; assignment of interests of lessor and lessee; rents and royalties; and conservation of oil and gas. Review of contracts used in the oil and gas industry for exploration, production, and development of oil and gas properties and for investment; the nature of the relationships created by such contracts; and the rights and duties of the parties.