Budgeting & Cost Control for Oil & Gas Industry
Budgeting & Cost Control for Oil & Gas Industry
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
WHO SHOULD ATTEND?
- Those responsible for devising budgets, managing and controlling budgets
- Those responsible for making or acting on decisions based on budgets Professionals who require a more in-depth understanding of integrated planning and budgeting techniques
- Financial Planners and Cost Analysts
- Line heads with direct planning and budgeting responsibility
COURSE OUTLINE
Day1 –
- The Case for Budgeting & Cost Control in the Oil & Gas Industry
- Oil Price Volatility – The Causes & Impact
- Major Costs of Acquisition, Exploration, Production, & Development
- Cost Oil & Profit Oil
- The Cost Curve of the Oil Market
- Controlling Gross Margins & Net Margins
- Managing National Fiscal Budgets
Day2 –
- 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 & Cash Flow
- Evaluating & Managing Capital Projects
- Joint ventures; Merger & Acquisition as a solution and growth opportunity
- Finance solutions to growing costs and oil price volatility
Day3 –
- Measuring & Controlling Costs
- Cost Classification & Cost Behavior
- Job Process Costing; Batch Costing & Activity Based Costing
- Statistical Estimates of Costs
- Controlling Fixed & Variable Costs
- Earned Value Management
- Variance Analysis
Day4 –
- Budgeting in the Oil & Gas Industry
- The Benefits & Limitations of Budgeting
- The Essential Features & Types of Budgets
- Preparing Forecasts & Budgets in a volatile Oil & Gas industry
- Using Budgets as a Management Tool
- Sensitivity; What-if & Break-Even; Analysis
- Managing & Controlling Budgets
Day5 –
- 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