JBC Energy Academy Brochure

History and Background 

Content Overview 

Modules 

Contact & Booking Info 

Overview of this Guide 

Academy Programme 2

Since its establishment in 1994 the goal of the JBC Energy 

Academy Training Programme has been to provide participants 

with the knowledge and skills they need to perform in an everchanging 

environment. 

As we conduct our workshops on a single-company basis, we 

can ensure maximum flexibility and absolute confidentiality. 

Hands-on experience and up-to-date content guarantee that our 

range of courses will meet the requirements of all of your 

employees. 

Our modules can be combined in numerous ways according to 

client requirements, while the depth of coverage can be 

adjusted to the skill level of each individual group. 

History & Background 


Our workshops are held at our training 

centre in the heart of historical Vienna, an 

elegant and vibrant city. Wien, as it is 

known to the locals, boasts beautiful 

architecture, excellent hotels as well as a 

warm Austrian welcome. 

As a part of the course, we are happy to 

arrange some of the many cultural 

events/experiences that Vienna has to 

offer. JBC Energy can also assist with 

reservations for airport transportation 

and accommodation on request. 


Venue 



Faculty 

JBC Energy Academy facilitators are 

experienced market participants, 

researchers and analysts who work with 

all aspects of international oil markets 

on a daily basis. This allows our clients to 

benefit from a wealth of up-to-date 

knowledge. 

With each JBC Energy Academy course 

catering for 3 to 5 participants, JBC 

Energy offers an excellent trainer to 

participant ratio. As a result, we ensure 

that all attendees’ questions are 

addressed and that optimal 

understanding takes place. 


Basic Basic Modules 

Modules 

Risk Management Modules Oil Fundamentals 

OTC Markets & Exchanges 

Basic Instruments 

Advanced Instruments 

Applied Hedging Examples 

Crude & Product Pricing 

Shipping Issues & FFAs 

Risk Managment Organisation 

Intermediate Intermediate Modules 

Modules 

Advanced Advanced Advanced Modules 

Modules 

Crude Basics & Fundamentals 

Opec 

Recommended combinations of the above modules can be found in the last section of this brochure 

Structure of the Modules 

Commercial & Strategic Inventories 

Global Supply & Demand Issues 

Regional Analysis 

Market Watch Presentation 

Refining Basics & Economics 

Refined Product Fundamentals 

Alternative Fuels 

Long-Term S&D, Price Forecasting 


Risk Management & Paper Market Modules 



This workshop gives a profound insight into energy trading on exchanges and OTC markets. 

Participants will become familiar with the principles of forward and futures trading. Practical 

examples at the end of the workshop will enforce the understanding of theoretical concepts. 

During the course attendees will: 

• Understand the characteristics of futures and forwards 

• Gain insight into prices: settlement, BWAVE; FrontLine 

• Investigate the role of the clearinghouse 

Paper Market Modules 




• Investigate the development of ICE Brent futures out of the Brent 

Forward contract 

• Learn what swaps are and how they work 

• Gain a basic understanding of options 

• Practise the application of basic derivative instruments 


This module focuses on the basic derivative instruments of trading in the „paper market“. 

Participants will investigate the principles behind swaps, options and futures as well as how they can 

be used for hedging purposes. 



During the course attendees will gain insight into: 

• Contracts for Difference (CFDs) 

• Dated to FrontLine (DFLs) 

• Exchange of Futures for Physical (EFPs) 

• Exchange of Futures for Swaps (EFS) 


This module elaborates further on specialised paper market instruments available for trading and 

hedging. 




• Learn how to apply different hedging instruments 

• Identify potential risks and rewards of various trading tools 

• Understand which instruments are most applicable in each 

situation 

• Examine the principle of arbitrage trades, eg. Cash & Carry 

• Look into hedging of the refinery margin (crack spreads) 

• Gain insight into the combination of options (collar) 

Risk Management Modules 

In this module realistic business cases are discussed, including hedging of crude or products, 

as well as cash and carry arbitrage examples. 




How is the price of crude oil and oil products established? This is the main question that will be 

answered in this module. During this course participants will gain an understanding of the factors 

that are taken into account when setting a price, and what the various procedures are. 


• Identify the main sources for prices 

• Learn the various calculations used in price formation 

• Gain insight into the differing methodologies 

used by pricing agencies 

• Understand the different types of prices 

• Investigate the connections between prices in different markets 


Shipping Issues & FFAs 


This module provides an overview of oil shipping, tankers and freight rates as well as 

possibilities to hedge against risk associated with transportation costs. 

During the course attendees will cover: 

• Tankers 

• Freight Rates – Worldscale 

• Size and classification of vessels 

• Definition of freight forwards 

• Use of freight forwards 

• Underlying markets: 

Baltic Exchange – OTC markets 

• Examples of hedging 



Jumping out of an aeroplane at 30,000 feet above the ground may be very exciting, but few people 

would be stupid enough to do it wíthout a parachute! In oil markets risk is always an issue and finding a 

way of minimising this is essential. This course provides participants with an overview of risk types, and 

organisational issues regarding risk managment. 


• Identify risk types 

• Learn about organisational structure 

• Gain insight into VaR 

• Gain knowledge of volatilities 



Oil Fundamental Modules 



This module is designed to provide participants with a basic 

knowledege of crude oil and its supply. Topics covered include crude oil 

characteristics and their importance to the market. 


• Learn about API and sulphurbased valuation 

• Understand the differences between heavy & light crudes 

• Gain knowledge of NGLs and non-conventional oil 

• Investigate investment in new crude streams 

• Gain insight into the supply outlook for the coming years 

• Review imports and exports by region 

Oil Fundamentals 


Opec 

In the crude oil supply equation, it is the production management of the Organisation of Petroleum 

Producing Countries that effects the price of crude oil. As this is the case, an understanding of Opec is 

essential for anyone working in the petroleum business market. 


• Learn about the history and objectives of Opec 

• Gain insight into the structure of the organisation 

• Understand the group‘s production, pricing and investment policy 

• Investigate Opec‘s reserves 


• Gain knowledge of the group‘s price bands and reference basket 

• Review relationships within the organisation 



Inventories for crude oil and petroleum products often dominate market talk and can have a significant 

impact on the price of oil. In our Commercial and Strategic Inventories module we provide participants 

with a understanding of all aspects of stock data and its relationship with international markets. 



Inventories 

• Learn how to evaulate inventory data 

• Gain insight into sources of key data and its availabilty 

• Understand the relationship between inventories & prices 

• Investigate the psychological effect stock data has on markets 

• Examine minimum operational levels 

• Review the importance of strategic inventories 



Each region of the world offers different opportunities and challenges to the oil industry. China and 

Russia undoubtedly have a very strong impact on fundamentals. These modules, of approximately one 

hour each, provide a concise yet in-depth analysis of developments in these key markets. In addition, we 

also offer a course on Turkey, which is one of the most actively-developing markets in Europe 


• Identify the key supply and demand patterns (crude/products) 

• Learn about strategies in developing the hydrocarbon sector 

• Gain knowledge on relevant export and import infrastructure 

• Gain insight in geopolitical affairs 


Regions 



In this module participants are brought up-to-date on all the factors currently influencing international 

oil markets it can be described as a concise wrap-up of JBC Energy‘s fundemantal reasearch 

The presentation typically covers: 

• Demand 

• Supply 

• Crude 

• Products 

• Inventories 

• Refining 



Global Oil Demand – Facts & Trends 


Oil Demand 

Consumption of oil influences the world more than any other commodity, having been the basis of 

economic development in western nations. But will this relationship hold in the future? What is oil 

actually used for, and how will consumption (growth) patterns change? 


• Review historical oil demand developments 

• Discuss current & likely future trends 

• learn about Split Oil Demand by region, product, sector/use & economy 

• Gain an understanding of oil demand statistics 

• Compare oil demand forecasts and their underlying assumptions 

• Contrast top-down and bottom-up approaches 


Global Oil Supply – Facts & Trends 

Just how much oil is there? How long will it last? What is included in oil supply apart from crude oil? 

These are just two of the questions that will be answered during this module. In this exciting course 

participants cover all of the issues that surround global supply and demand. 


• Investigate global reserve figures 

• Identify the key factors that influence global crude supply 

• Learn about Opec & non-Opec supply 

• Gain insight into the world oil balance 

• learn to understand regional supply issues 

• Gain knowledge of natural gas & LNG supply 

• Review the political risks concerning supply 

• Examine the future expansion plans of NOCs and IOCs 

• Assess current and future technology 

• Discuss investment costs 


Oil Supply 



Believe us, you don’t need an engineering degree to understand the fundamentals of petroleum 

refining! This stimulating programme is designed to introduce non-technical oil industry members to 

the fascinating field of petroleum refining. Participants will learn how a refinery works and how refinery 

operations interact with oil prices and supply/demand balances. 



Refining 

• Learn about typical refining set-ups and processes 

• Investigate refinery units and their suitability for different products 

• Discuss current challenges in the refining sector 

• Examine refinery margin calculations and their limitations 

• Understand the impact of changing product quantity & quality 

• Review refinery expansion and construction projects 




Refined Products 

This comprehensive module provides an in-depth look at refined products, including naphtha, gasoline, 

jet/kero, gas oil/diesel and fuel oil. Backed by JBC Energy‘s SuDeP TM model, supply/demand 

developments as well as trade flows in the past, present and future will be analysed. 


• Define different products and learn about their applications 

• Investigate recent and future specification changes 

• Understand the relationship between different products 

• Identify current trends, their reasons and implications 

• Detect main consumers and producers of refined products 

• Examine product imports, exports and trade flows 






Many newspaper inches have been devoted to the subject of alternative 

fuels in the recent past, but true insight into supply/demand prospects and 

technological process is rare. In this eye-opening module participants will be 

given a broad overview of the alternatives to petroleum, with a main focus 

on biofuels. 

• Examine the different alternative fuels available 

• Identify the pro‘s and con‘s of alternative fuels 

• Learn about 1 st & 2 nd generation biofuels, plus BTL, GTL and CTL technologies 

• Gain an understand the factors that drive alternative fuel demand 

• Investigate the cost of producing alternative fuels 

• Review the outlook for alternative fuels in the coming years 

• Analyse the impact of alternative fuels on the oil sector 



Determining just how much we will be paying for a barrel of oil in the future is not a simple task, but it 

is an interesting one. Many quantitative and qualitative factors must be taken into account, starting 

with a broad range of fundamentals and ranging to market psychology, policies and politics. In this 

module, JBC Energy will unveil some of its methods. 


• Review main oil market fundamentals 

(basic academy modules) 

• Identify primary non-quantitative factors 

• Analyse historical determinants of prices 

• Appraise standard concepts of forecasts 

• Collate a multitude of information into one projection 

• Compose price forecasts based on differentials 

• Integrate short-, mid- and long-term outlooks 


Price Forecasting 


Recommended Academy Structures 


Recommended Workshop Structure 

Overview 

Day One 



Global Supply Issues 

Day Two 




Oil Fundamentals Focus 

Day Five (half day) 

Day Three 


Global Demand Issues 


Day Four 





Introduction 

Day One 



Day Two 



Risk Management Focus 

Day Three 




Day Four 






Introduction 

Day One 



Opec & Global Supply Issues 

Day Two 



Oil Fundamentals Only 

Day Three 


Global Demand Issues 


Day Four 






Introduction 

Day 1 


Basic Instruments (incl. FFAs) 

Day Day Day 22 

2 2 



Risk Management Only 

Day 3 




If you have any further questions about our 

Academy Programme 

or booking a workshop please do not hesitate to contact us 

JBC Energy GmbH 

Wollzeile 6-8 . . . 1010 Vienna . Austria 

Tel: +43-1-513 49 22 . . Fax: +43-1-513 49 66 

ISDN VC: +43-1-513 49 22 66 

E-mail: academy@jbcenergy.com 

www.jbcenergy.com 

Research . Energy Studies . Consulting . Training

JBC Energy Academy Brochure

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