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BTS • Overview I Business Acumen
www.bts.com • Copyright © 2015 BTS
The Oil & Gas Industry is strategically adapting to a dynamic marketplace. To successfully navigate this complicated environment, industry understanding is critical.
BTS has developed The Oil & Gas Business Simulation, a dynamic experiential learning program designed to provide a holistic perspective of the industry, increase understanding of the profitability drivers and build the foundational knowledge to be effective.
The Program at a Glance
The Oil & Gas Business Simulation enables participating employees to assume the role of senior management at a NRG, a simulated Oil & Gas company with operations spanning the energy value chain from upstream to downstream, acquisition to exploration, production, refining, and marketing oil and gas.
Through the three-round program, small teams collaborate, build fundamental capabilities, and practice real-world decision making in a risk-free environment. In the end, participants receive feedback and analysis of their decisions and strategies and form action plans to apply back on the job. Key Issues Covered in the Simulation
In a one-day board- based simulation, participants compete in teams, draw on their experience, and confront macroeconomic and microeconomic challenges in a number of challenging, realistic scenarios including:
• Decreasing rates of reserve replacement• Pace of technology change
The Oil & Gas Business SimulationUnderstanding the Key Levers in the Oil & Gas Value Chain
BTS • Overview I Business Acumen
www.bts.com • Copyright © 2015 BTS
• Significant risks in capital expenditures• Sustaining production rates in declining fields• Alternate energy sources• Fluctuating oil prices• Worldwide shifts in supply and demand• Low or negative refinery margins
Target Audience
The Oil & Gas Business Simulation is intended for two primary audiences:
• Individual contributor to Director-Level employees within the Oil & Gas business.
• Organizations with major clients operating in the industry. Workshop Objectives
As a result of the high-impact experience, participants are able to understand the competitive industry dynamics, general trends and business challenges; how these factors relate to individual roles, day-to-day operations and the company’s success; and the relating decisions that drive results.
Through The Oil & Gas Business Simulation, participants will be able to:
• Articulate how critical processes differ across the industry segments and the corresponding Key Performance Indicators
• Identify the decisions that Oil & Gas executives make on a day-to-day basis and the inputs, outputs, impacts & implications of those decisions
• Engage in informed discussions about the industry and the business with a true appreciation of the factors that influence various decisions
Implementation and Customization
The Oil & Gas Business Simulation includes know-how sessions, debriefs, group discussions, problem solving exercises and action-oriented team activities for further reinforcement. To maximize relevance and ensure application, the simulation can be highly customized to meet a client’s specific business objectives and strategic priorities. Customization includes nearly all aspects of the simulation including, terminology, business structure and issues, key performance indicators, and learning objectives.
The Oil & Gas Business Simulation can be used as a standalone program or supplemented with additional solutions to reinforce the skills most critical to a company’s specific needs. To achieve the full impact of the design, the recommended implementation process includes pre-work, a pre-meeting with managers, the core workshop, and rigorous post-program coaching.
Experiential Learning that Delivers Key Results
Through The Oil & Gas Business Simulation, participating employees recognize the drivers of key performance indicators and have an overall big picture understanding of the industry, the company and the critical interrelationships. The best practice is for participant’s managers to meet
BTS • Overview I Business Acumen
www.bts.com • Copyright © 2015 BTS
with the participants ahead of the session, so they can draw a line of sight to the intended outcomes and manage accountability for application on the job. Armed with improved capabilities and actionable items, participants accelerate results once back on the job.
Testimonials
The results are profound. One participant commented, “As a result of this program, I now have an improved understanding of the elements involved within the gas and oil supply chain together with an appreciation of the impact of external factors on the business as a whole.”
About BTS
BTS focuses on the people side of strategy, working with leaders at all levels to help them make better decisions, convert those decisions to actions and deliver results. At our core, we believe people learn best by doing. For 30 years, we’ve been designing fun, powerful experiences™ that have profound and lasting impact on people and their careers. We inspire new ways of thinking, build critical capabilities and unleash business success. It’s strategy made personal.
For more information, please visit www.bts.com.
O i l & G a s C u s t O m e r u n d e r s ta n d i n G
HES
100
95
90
85
80
Da
ta Ga
tHEr
inG &
Pr
oc
ESSinG
8
6
3
4
5
1
7
2
rEP
uta
tion
100
90
80
85
70
95
75
Acquire Explore
Initiatives
Development & Production
GEN_OAG_BD_007
Acquire – Onshore
# of licences - Onshore
# of licences - Offshore
Acquire – Offshore
Explore – Onshore
Licenses Explored - Onshore
Licenses Explored - Offshore
Explore – Offshore
LNG
1. No. of approved trains
2. Cost per train
3. Current No. of trains
4. No. of trains Added
5. Total Trains=(#3 + #4)
6. Total Capacity=(#5 * 32 MMboe)
+ =
Initiative 1
Initiative 2
Initiative 3
Initiative 4
Event Options
Event 1
Event 1
Event 2
Event 2
Event 3
Event 3
Event 4
Event 5
Event 4
Development OIL
Development GAS Production GAS
Production OIL
=– =*
New Reserves
a
Reserved Developed
b
Reserves Remaining
c
Reserves in Production
d
Recovery Efficiency ($200MM)
e
Total Production
g
Remaining Reserves
(d-g)
h
=– =*
UpstreamCapEx Acquire CapEx Explore CapEx Dev/Prod Oil CapEx Dev/Prod Gas
Total
Oil Downstream Gas Downstream Total
Total CapEx
Trade – OILSpot Price per bbl
Production Volume (MMbbl)
Revenue
Trade – GASProduction VolumeMMboe
Local DemandMMboe
Local PriceMMboe
Revenue
Remaining Capacity MMboe a > b (0 if b > a)
a.
b.
c.
d.
e.
!
Period 1Option Selected
Period 2Option Selected
!
YEAR 1 : H1
S t r a t e g i c i n i t i a t i v e r e S u l t
c a r d S
T r a d i n g C a r d
YEAR 1 : H1
co n S e q u e n c ec a r d S
YEAR 1 : H1
r e v e n u ec a r d S
YEAR 1: QUARTER 1
ACC_REU_RC_001
C o n s e q u e n C e C a r d
YEAR 1 : H1
o p t i o nc a r d S
YEAR 1 : H1
r e v e n u ec a r d S
YEAR 1: QUARTER 1
ACC_REU_RC_001
o p T i o n C a r d
YEAR 1 : H1
e v e n tc a r d S
YEAR 1 : H1
r e v e n u ec a r d S
YEAR 1: QUARTER 1
ACC_REU_RC_001
e v e n T C a r d
New Reserves
a
Reserved Developed
b
Reserves Remaining
c
Reserves in Production
d
Production Profile
f
Total Production
g
Remaining Reserves
(d-g)
h
+
+
Complexity decision CapEx ($MM)
Current Complexity 1.
600 (MM)
+ +
Increase (Max 3 Levels / Period) 2.
= =
Ending Complexity Level 3.
Crude Requirements
Refining Capacity 4.
100 (MM)
x x
Reliability Improvement 5.
= =
Refinery Crude Requirement 6.
x x
Product Yield 7.
= =
Total Refinery Output 8.
Oil RefineryCapex Budget
