Budgeting & Cost Control for the Oil & Gas Industry

Day 1:  The Case for Budgeting & Cost Control in the Oil & Gas Industry

• Oil Price Volatility-The Causes and 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 Behaviour
• 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