Fundamentals of Gas Strategy
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Fundamentals of Gas Strategy

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This 1-week gas strategy course has been designed to take its participants a step further in strategic thinking and strategy development. The Fundamentals of Gas Strategy will focus on understanding ...

This 1-week gas strategy course has been designed to take its participants a step further in strategic thinking and strategy development. The Fundamentals of Gas Strategy will focus on understanding the tools of strategy and scenario development, analysing and valuing strategies of players in the gas industry and gaining practical experience, based on case studies and exercises.

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Fundamentals of Gas Strategy Fundamentals of Gas Strategy Document Transcript

  • SPECIFIC PROGRAMMEFUNDAMENTALS OF GAS STRATEGYStrategies alongthe gas value chain
  • SPECIFIC PROGRAMMEFUNDAMENTALS OF GAS STRATEGYAll these developments occurred againsta setting of increased competition.With more and more long-distance importsand the upswing of LNG, gas is no longera local product for a local market... it hasbecome a global product for a global dynamicenvironment with major implications for thebusiness. Today the business is facing moreuncertainty regarding policies, markets andprices than ever before.The huge changes also mean that old strategies,which worked in the past, no longer guaranteesuccess for times ahead. Companies have todevelop completely new strategies. Strengthsand weaknesses have to be analysed and riskmanagement is becoming a factor of increasingimportance. Different scenarios as well asstrategic concepts need to be developed andimplemented. Executive boards need these totake decisions on future business developments– taking the company’s position in the gas valuechain, the supply portfolio, the optimal marketsand future partners into account.Why the Fundamentals of GasStrategy?The 1-week Fundamentals of Gas Strategy(FGS) has been designed to take its participantsa step further in strategic thinking andstrategy development. The FGS will focus onunderstanding the tools of strategy and scenariodevelopment, analysing and valuing strategiesof players in the gas industry and gainingpractical experience, based on case studies andexercises.More specifically...The course will provide an understanding ofthe strategic context in which the gas industryoperates in the global gas markets. It offersthe participant an appreciation of processes ofmanaging uncertainties in a rapidly changingbusiness environment, strategy developmentand assessing business risks and exposurearound strategic choices, providing insight inthe tools available for managing value and risks.The course also offers insight into the manyinterfaces with governments, the relation withenergy policy and the regulatory environmentand the impact of (geo)politics.Upon completion of the course you willbe able to:• Understand the process of businessdevelopment and strategy formulation.• Combine the disciplines of strategic analysiswith insights into gas market developments.• Put your company’s activities in a strategiccontext.• Appreciate the role of scenarios for theidentification of opportunities and risks.• Consider risk management options as part ofstrategy implementation.Your profileThe FGS is intended for managers andprofessionals in the gas business who want toenhance their strategic management abilities.You are a professional who operates in the gasindustry or a related area. You have an academiclevel of education. You also have a workingknowledge of both business and technicalEnglish.The programme structureThe course aims to be intellectuallystimulating and requires all participants tocontribute. The programme is structured tohelp participants identify and develop the beststrategic opportunities for their company(ies)and familiarise with development of strategyconcepts, and the management of businessrisks. Key topics are:• Exploring business strategies along the gasvalue chain.• The role of scenarios as a bridge to the future.• Competitive strategies in a gas market.• Geopolitics, government policies and theirstrategy implications.• Strategic value and risk management tools.• Appreciation of the contracting and pricingstrategies of the principal gas producers.• Competitive positioning in gas markets.The FGS consists of the following elements:• Interactive lectures by experts, discussions,small exercises and case studies.• The introduction of models and tools.• A case study, worked out by groups of threeto six participants. Each group may eventuallypropose a different solution to the same problem.Educational partnersThe key lecturer in this programme isDick de Jong, former Director of Shell’s Gas &Power global business and currently fellow atClingendael International Energy Programme.A carefully selected group of leading experts onthe European and global gas industry will ensurethe high quality of this course.Your roleTo stimulate your learning process, you willbe asked to play an active role during thecourse. Case work will complement lecturesand offer further appreciation of the effects onstrategic decisions, both in a national and aninternational context.CertificationUpon completion of the course the participantwill receive a certificate from the University ofGroningen.LocationThe course will be held in a central location inthe Netherlands. Please check our websitewww.energydelta.org for details.From its start in the early 1960s, the European gas industry has seen a stable and strong development – based on apowerful role for large, vertically integrated gas companies that operated from clear monopoly positions. In the mid 1990sa major change set in, with an enormous impact on the existing players and potential newcomers. Large players wereunbundled into new entities, each with their own focus on transportation or trade, production or providing flexibility.Where vertical integration gave way, horizontal integration appeared as gas companies diverged into power or vice versa.
  • Sharing the Energy of Knowledge.“...provide participantswith tools to formulatestrategies under differentscenarios... ”Dick de Jong,key lecturerThe programmein more detail1. The gas value chain and international gas market developments. Explore the features of the current gas business, understand the regional differences, and the main drivers behind the evolving business environment and the consequential risks and uncertainties. Also focusing on the market players in the wholesale market, their interaction and their strategies regarding gas supply.2. Fundamentals of business development and strategy. Strategy and strategy formulation are concerned with the allocation of resources to create and sustain a profitable venture. Several schools of thought emerged about how to best achieve this: 1) The Boston Consulting Group (BCG) growth/share matrix, 2) The McKinsey 9-box matrix, 3) Porter’s generic strategies framework, and 4) The Strategic Gameboard. These schools of thought will be explored in detail and applied to the gas industry.3. The role of scenarios as a bridge to the future. Scenario planning is a strategic planning method that sheds light on the political, economic, environmental, social and technological forces that shape the world, regions and industries. Understanding how these forces could play out over time helps top management in the gas industry to set the strategic direction of an organization and helps to improve resource allocation. The course uses the deductive approach to scenario planning pioneered by the Shell Global Business Environment team in the business community.4. Strategic Value and Risk Management Tools. To allocate resources and manage risk in the gas industry a rational valuation framework and portfolio management tools will be introduced. This session illustrates how to manage a portfolio of real options and manage risk in the context of gas strategy development using a variety of techniques, including Monte Carlo simulation. By doing so course participants will learn how to reduce the volatility of cash flows and to manage risk.5. Geopolitics, Government policies and their strategy implications. The role of governments in shaping the international business , both at the producers end and in the markets.6. Competitive strategies in a gas market. Examine business models and cases for market entry and competitive positioning.
  • T +31 (0) 50 524 83 00F +31 (0) 50 524 83 01E info@energydelta.nlI www.energydelta.orgAbout Energy Delta InstituteEnergy Delta Institute (EDI) is an international energy business school, with a primary focus on natural gas. EDI wasfounded in 2002 by N.V. Nederlandse Gasunie, GasTerra B.V., OAO Gazprom and the University of Groningen, laterjoined by Shell, Dong, Eneco, EBN, Taqa and Essent. The energy community has come to appreciate EDI both as aplatform of knowledge exchange between partners and participants alike. The changing energy world is forcing energycompanies to innovate in order to stay competitive. In addition, the energy sector is confronting the possibility of agrowing shortage of qualified personnel in the coming decades. The sector has only one choice: to invest in knowledge.EDI’s main objective is to contribute to the professional development of current and future energy managers.EDI organizes training programmes and network events with a focus on the economic, management, legal andgeopolitical aspects of the energy business.Sharing the Energy of Knowledge.“Basically, the Fundamentals of Gas Strategy is an in-depth course for professionalsfrom the gas industry and government officials that helps them create value for theirbusiness and deal with the growing risks in the gas markets. The gas business has becomeincreasingly complex over the past decade. It has a great future but also one with manyuncertainties. Business models are changing. International and national legislationconstantly change. Every single strategy or policy change may involve new risks. Theseneed to be analysed and managed. Accurate identification and thorough understandingare valuable first steps towards the formulation of an effective strategy and effective implementation.The field experts in this course provide our participants with insights in strategic positioning by theplayers in the industry in response to developments in policies and markets, and an appreciation of thetools to formulate strategies under different scenarios and assess their impact.”Dick de Jong, key lecturer Fundamentals of Gas StrategySenior fellow Clingendael International Energy Institute