Skip to content
Institute For Oil & Gas Training
OGI-1181 New

Cash Flow Stress Testing Across Price Collapse Scenarios Training Course

Duration
5 days
CPD hours
15
Language
English
Next date
12 Oct 2026
View dates & register Download brochure

We use your details only to answer this enquiry. See our privacy policy.

Overview

Cash Flow Stress Testing is a critical financial analysis capability for oil and gas organisations exposed to volatile commodity prices, production disruption, capital intensity and counterparty risk. The Cash Flow Stress Testing Across Price Collapse Scenarios Training Course from Institute For Oil & Gas Training develops a structured approach to assessing liquidity resilience when adverse market and operational conditions occur simultaneously.

Oil and gas companies operate within financial environments where falling commodity prices can rapidly affect operating cash flow, working capital, investment capacity and funding requirements. A price collapse can also occur alongside a prolonged shutdown scenario, unplanned deferment impact, delayed receivable collections, partner default on cash calls, government payment arrears or escalating operating costs. Financial teams therefore require more than a base-case cash forecast. They need disciplined stress testing that identifies how quickly liquidity deteriorates, which assumptions create the greatest exposure and which management actions preserve cash.

This course focuses on practical cash flow stress testing across multiple price collapse scenarios and translates financial modelling into management action. Participants examine the relationship between commodity prices, production volumes, sales receipts, operating expenditure, capital expenditure, working capital, financing commitments and joint venture funding obligations. The programme develops the ability to model individual shocks and then apply combined shock modelling to determine the cumulative effect on liquidity.

The course addresses the gap between conventional budgeting and decision-ready financial resilience analysis. A static annual budget does not provide sufficient visibility when crude oil or gas prices decline sharply, production is interrupted or customers delay settlement. Effective stress testing requires transparent assumptions, scenario architecture, sensitivity analysis, cash flow forecasting and clear escalation thresholds.

Participants assess how price movements influence revenue and cash generation, how production disruption changes operating cash requirements and how working capital pressures amplify liquidity stress. Particular attention is given to receivable collection delay, government payment arrears and partner default on cash calls because these events can create substantial timing differences between recognised income and actual cash receipts.

The programme also examines management responses to stressed conditions. Participants evaluate capex deferral levers, cost reduction response, working capital controls, funding options and cash preservation measures against the operational priorities of an oil and gas business. The emphasis is on distinguishing actions that genuinely protect liquidity from actions that simply transfer financial pressure to another part of the organisation.

Institute For Oil & Gas Training positions the course within practical financial analysis for petroleum organisations. The programme supports finance professionals, commercial teams, asset managers, treasury specialists, joint venture personnel and senior decision-makers responsible for understanding and managing cash exposure.

The course also addresses scenario governance. Stress testing becomes more valuable when assumptions are documented, scenarios are consistently defined, model outputs are challenged and management responses are linked to measurable liquidity indicators. Participants therefore develop a structured approach that supports communication between finance, operations, commercial, procurement, treasury and executive management.

By the end of the programme, attendees understand how to construct meaningful downside scenarios, quantify cash flow consequences, identify liquidity pressure points and communicate the financial implications of adverse events. They also develop a stronger framework for connecting financial analysis with operational decisions during periods of commodity price pressure.

Objectives

  • Develop a structured methodology for Cash Flow Stress Testing across oil and gas price collapse scenarios.

  • Build integrated downside cash flow scenarios using commodity price, production, cost and working capital assumptions.

  • Assess the financial effect of a prolonged shutdown scenario on liquidity and cash requirements.

  • Quantify the unplanned deferment impact on production receipts and operating cash flow.

  • Analyse exposure created by partner default on cash calls within joint venture structures.

  • Evaluate the liquidity consequences of receivable collection delay and government payment arrears.

  • Apply combined shock modelling to assess simultaneous financial and operational pressures.

  • Identify cash flow sensitivity to changes in commodity prices, production volumes and expenditure.

  • Evaluate capex deferral levers as part of a structured liquidity response.

  • Develop appropriate cost reduction response options under stressed operating conditions.

  • Strengthen cash preservation measures across working capital, expenditure and funding activities.

  • Improve communication of stress testing results to senior management and decision-makers.

  • Establish transparent assumptions and scenario structures that support consistent financial analysis.

  • Interpret cash flow stress results alongside liquidity requirements and funding commitments.

  • Support stronger coordination between finance, treasury, commercial, operations and asset management teams.

Training methodology

Institute For Oil & Gas Training delivers the course through an applied corporate learning methodology centred on oil and gas financial scenarios. The delivery combines facilitator-led technical discussion, financial modelling exercises, case studies, scenario analysis, group exercises and management decision simulations.

Participants work with structured examples involving commodity price deterioration, production interruptions, delayed customer receipts and changes in capital expenditure. These exercises demonstrate how individual assumptions flow through an integrated cash forecast and how the same event produces different outcomes depending on liquidity position, cost structure, production profile and funding obligations.

Case studies are used to examine the financial consequences of a prolonged shutdown scenario and an unplanned deferment impact. Participants analyse the effect on expected production receipts, operating expenditure, working capital and funding requirements before considering management responses.

Scenario workshops introduce combined shock modelling. Rather than analysing a price decline in isolation, participants examine combinations such as lower commodity prices, production disruption, receivable collection delay and higher operating expenditure. This approach reflects the interconnected nature of financial risk within operating assets and joint ventures.

Group exercises focus on management response. Teams assess capex deferral levers, cost reduction response and cash preservation measures against financial and operational priorities. The exercise reinforces the importance of protecting liquidity while maintaining essential production capability, safety-critical expenditure and contractual commitments.

Simulation exercises place participants in a decision-making environment where assumptions change and management actions must be reassessed. Participants review revised cash forecasts, identify emerging liquidity pressure and determine which actions require escalation.

The methodology also incorporates peer discussion between finance, commercial, operations and treasury perspectives. This cross-functional approach helps participants understand why cash flow stress testing is not solely a finance activity. Effective analysis requires operational assumptions, commercial information, production forecasts, procurement data, receivables intelligence and funding requirements.

Organisational impact

The course strengthens an organisation's ability to understand and respond to liquidity pressure generated by commodity price volatility and operational disruption. Sponsoring companies gain a more structured approach to identifying the financial consequences of adverse events before those events create uncontrolled cash pressure.

Improved stress testing supports earlier identification of liquidity gaps. Management teams gain clearer visibility of how price reductions, production losses, delayed receipts and cost increases interact within the cash forecast. This supports more timely escalation and more disciplined financial decision-making.

The programme improves the quality of financial scenario planning. Instead of relying exclusively on a single budget or forecast, organisations can establish multiple downside scenarios with defined assumptions and documented relationships between operational events and cash consequences.

The analysis of a prolonged shutdown scenario strengthens preparedness for operational interruptions. Finance and asset teams gain a common framework for evaluating the effect of reduced production, continuing fixed costs, delayed receipts and additional cash requirements.

The unplanned deferment impact is assessed from a cash perspective rather than solely through production reporting. This helps management understand how operational changes influence receipts, working capital and liquidity.

Joint venture organisations benefit from structured analysis of partner default on cash calls. Stress testing can help identify how delayed funding from a partner affects the remaining participants and the broader asset cash position.

Working capital analysis becomes more responsive to actual cash risks. Receivable collection delay and government payment arrears receive explicit attention, allowing organisations to distinguish accounting performance from cash availability.

Combined shock modelling strengthens resilience analysis by testing scenarios in which several adverse events occur simultaneously. This provides management with a more realistic view of potential liquidity pressure than isolated sensitivity analysis.

The programme also supports disciplined expenditure management. Capex deferral levers can be assessed against their financial consequences and operational priorities. Cost reduction response options can be evaluated according to their effect on near-term cash preservation and longer-term business requirements.

Cash preservation measures become more structured because participants examine expenditure, working capital, funding and operational assumptions together. This supports better coordination between finance, procurement, operations and treasury.

Senior management receives clearer information for decision-making because stress testing outputs are translated into cash flow consequences, pressure points and potential response actions. This improves the practical value of financial analysis during volatile market conditions.

Personal impact

Participants develop stronger financial analysis capabilities for complex oil and gas operating environments. They gain practical experience in translating commodity price movements and operational disruptions into measurable cash flow consequences.

Finance professionals strengthen their ability to construct, challenge and interpret downside scenarios. They become better equipped to distinguish between isolated sensitivities and genuinely material combined risks.

Treasury professionals gain stronger insight into the operational drivers behind liquidity requirements. Understanding production, receivables, capex and joint venture cash calls improves communication between treasury and operating functions.

Commercial professionals strengthen their understanding of how customer payment behaviour, contractual arrangements and partner funding obligations affect cash availability.

Asset and operations professionals gain greater awareness of the financial consequences of production disruption, deferment and expenditure decisions. This supports stronger integration between operational planning and financial resilience.

Participants also improve their ability to communicate complex stress testing results to senior management. They learn to present assumptions, cash flow impacts, scenario comparisons and response options in a structured business format.

The programme strengthens decision-making capability during periods of financial pressure. Participants develop a practical framework for identifying liquidity drivers, prioritising information and evaluating cash preservation measures.

Who should attend

Finance Managers and Financial Analysts

Designed for professionals responsible for financial forecasting, scenario analysis, management reporting and cash flow assessment across oil and gas operations.

Treasury Managers and Specialists

Relevant for treasury personnel responsible for liquidity forecasting, funding requirements, cash positioning and financial resilience.

Financial Planning and Analysis Professionals

Supports FP&A teams that develop forecasts, budgets, sensitivities and downside scenarios for business units and assets.

Commercial Managers

Useful for commercial professionals assessing customer receipts, contractual cash flows, partner funding and financial exposure.

Joint Venture Finance Professionals

Relevant for personnel responsible for partner cash calls, joint venture accounting, funding exposure and cash flow analysis.

Asset Managers

Supports asset leaders who need to understand the financial implications of production disruption, deferment, expenditure and operational decisions.

Finance Business Partners

Designed for finance professionals working directly with operations and management to evaluate financial consequences and response options.

Senior Finance Leaders

Provides a structured framework for executives responsible for liquidity oversight, financial planning and strategic response to market pressure.

Risk and Financial Risk Professionals

Relevant for specialists assessing commodity price exposure, operational disruption, working capital pressure and combined financial scenarios.

Operations and Production Managers

Helps operational leaders understand how production decisions, shutdowns and deferments translate into cash flow consequences.

Procurement and Cost Management Professionals

Supports professionals involved in expenditure control, supplier commitments and cost reduction response during stressed conditions.

Course outline

This module establishes the foundations of Cash Flow Stress Testing within an oil and gas financial environment. It examines the relationship between commodity prices, production volumes, operating costs, capital expenditure, working capital, receivables and funding requirements. Participants establish a structured baseline cash flow before introducing adverse scenarios.

The module distinguishes between conventional forecasting, sensitivity analysis and formal stress testing. It also examines how assumptions should be documented and linked so that financial models remain transparent and decision-ready.

  1. IAS 7 Cash Flow Statements

    • Provides the recognised accounting framework for cash flow information.

    • Distinguishes operating, investing and financing cash flows.

    • Supports consistent interpretation of cash movements when analysing financial resilience.

    • Provides an important foundation for connecting reported cash flow information with stress testing analysis.

    Learning Outcomes

    • Build a structured oil and gas cash flow baseline.

    • Identify the main operational and financial cash flow drivers.

    • Distinguish stress testing from routine forecasting.

    • Establish transparent assumptions for downside analysis.

    • Interpret operating, investing and financing cash movements.

    • Identify early indicators of liquidity pressure.

This module examines the effect of severe commodity price deterioration and operational disruption on cash generation. Participants assess price sensitivity alongside production changes and develop scenarios involving a prolonged shutdown scenario and unplanned deferment impact.

The focus is on understanding how operational events alter expected receipts while expenditure continues or changes at different rates. Participants assess the difference between revenue reduction and the wider cash consequences of production disruption.

  1. IFRS 7 Financial Instruments

    • Requires relevant disclosures concerning financial instrument risks.

    • Addresses exposure to liquidity and other financial risks.

    • Provides a recognised framework for considering risk information associated with financial instruments.

    • Supports disciplined analysis of liquidity exposure within financial reporting.

    Learning Outcomes

    • Model commodity price deterioration within cash flow forecasts.

    • Assess the cash consequences of production disruption.

    • Quantify the unplanned deferment impact on expected receipts.

    • Analyse a prolonged shutdown scenario.

    • Identify the relationship between lower production and continuing costs.

    • Communicate price and operational downside exposure clearly.

This module focuses on cash flow risks that arise after revenue is generated but cash collection is delayed or funding commitments are not received as expected. Participants examine receivable collection delay, government payment arrears and partner default on cash calls.

The module demonstrates how timing differences can create liquidity pressure even when underlying sales or accounting revenue remain significant. Participants assess working capital movements and joint venture funding exposure within integrated stress scenarios.

  1. IFRS 9 Financial Instruments

    • Establishes requirements for financial instruments and credit-related considerations.

    • Provides a recognised framework for assessing credit risk associated with financial assets.

    • Supports structured analysis of receivables and counterparty exposure.

    • Provides relevant context for understanding expected credit loss considerations.

    Learning Outcomes

    • Model delayed customer receipts within a cash forecast.

    • Assess the financial effect of government payment arrears.

    • Evaluate partner default on cash calls.

    • Identify working capital-driven liquidity pressure.

    • Connect receivable and counterparty risks with cash requirements.

    • Strengthen communication between finance, commercial and treasury teams.

This module develops the capability to apply combined shock modelling across several simultaneous adverse events. Participants move beyond isolated sensitivities and assess scenarios involving commodity price deterioration, production disruption, delayed collections, higher costs and partner funding pressure.

The module then connects stress results with management response. Participants assess capex deferral levers, cost reduction response and other cash preservation measures while considering operational priorities and financial commitments.

  1. ISO 31000 Risk Management

    • Provides principles and guidelines for structured risk management.

    • Supports systematic identification, analysis and treatment of risk.

    • Provides a recognised framework for integrating risk considerations into decision-making.

    • Supports consistent approaches to scenario-based financial risk assessment.

    Learning Outcomes

    • Construct integrated combined shock modelling scenarios.

    • Assess the cumulative effect of multiple adverse events.

    • Identify the principal drivers of liquidity deterioration.

    • Evaluate capex deferral levers against cash requirements.

    • Develop appropriate cost reduction response options.

    • Establish practical cash preservation measures.

    • Link stress testing outputs with management action.

This module brings together the course methodology and focuses on converting stress testing results into management decisions. Participants review scenario outputs, identify liquidity thresholds and assess response options within a structured decision-making process.

The module also addresses management communication and scenario governance. Participants learn how to present downside results clearly, explain key assumptions and establish an ongoing approach to monitoring cash flow resilience.

  1. IAS 1 Presentation of Financial Statements

    • Provides requirements concerning the presentation of financial statements.

    • Establishes principles relevant to financial information and management assessment.

    • Provides important context for communicating material financial information.

    • Supports disciplined consideration of liquidity and financial position information.

    Learning Outcomes

    • Interpret integrated stress testing outputs for management decision-making.

    • Identify key liquidity pressure points and escalation triggers.

    • Present downside scenarios in a concise management format.

    • Connect stress results with cash preservation measures.

    • Establish stronger governance around scenario assumptions.

    • Support ongoing monitoring of financial resilience.

    • Communicate financial risks effectively across finance, treasury, commercial and operational teams.

Certificate

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon successfully finishing the course. The certificate confirms participation and completion of the programme requirements.

Attendance is required throughout the course to qualify for the Certificate of Completion. Participants are expected to engage in the scheduled learning activities, practical exercises, case studies and scenario-based discussions.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,100

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,100

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,100

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,100

Fees include tuition, course materials and refreshments. Need different dates or a different city? Ask about your preferred date.

Frequently asked questions

What is Cash Flow Stress Testing in the oil and gas sector?

Cash Flow Stress Testing assesses how adverse conditions affect an organisation's cash position. In oil and gas, this includes commodity price declines, production disruption, delayed receipts, cost increases, partner funding issues and capital expenditure pressures.

What does the Cash Flow Stress Testing course cover?

The course covers price collapse scenarios, prolonged shutdown scenario analysis, unplanned deferment impact, receivable collection delay, government payment arrears, partner default on cash calls, combined shock modelling, capex deferral levers, cost reduction response and cash preservation measures.

Who is the course designed for?

The programme is designed for finance, treasury, FP&A, commercial, joint venture, asset management, risk, operations, procurement and senior management professionals involved in financial forecasting, liquidity planning or business decision-making.

How is the course delivered?

Institute For Oil & Gas Training uses practical case studies, financial scenarios, simulations, group exercises and applied stress testing activities. The delivery focuses on realistic oil and gas situations and connects financial analysis with operational and management decisions.

What certificate is provided after completing the course?

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon finishing the course and meeting the attendance requirement. The certificate confirms successful participation in the programme.

Next: 12 Oct 2026

4 dates available

Register Now

Related training courses

Get the training calendar in your inbox

New courses, dates and industry insight. No more than twice a month.