Advanced Petroleum Economics
Select Other "city & date"
Advanced Petroleum Economics Course
Introduction:
This petroleum economics training course will provide a detailed knowledge of valuing oil and gas projects, assets and companies. Using the petroleum finance techniques explained in the programmer, you will be able to practice your valuations of petroleum assets and critically analyze those of others to help you make informed and astute oil and gas investment decisions.
This program provides practical guidance in the application of the techniques of the economic analysis currently used in the oil & gas industry. When executing a petroleum-related project, such as field development, you should be able to choose the best alternative from an economic point of view. You should be able to properly evaluate various investment opportunities by determining economic indicators and sensitivity analysis. Techniques for predicting profit, production, costs, and cash flow enable the analyst to evaluate decision alternatives for optimum results. Understanding economic indicators, risk, and uncertainty, different economic structures such as tax regimes and production sharing contracts, enhance the quality and the value of economic analysis.
Course Objectives:
These objectives of the program are to:
- Understand various economic terms used in the oil & gas industry
- Understand how to develop economic models of various petroleum fiscal regimes
- Carry out cash flow analysis and determine economic indicators
- Carry out different economic analyses for petroleum-related projects
- Evaluate and quantify risks and uncertainties
- Make the right investment decision in the presence of risk
- Carry out a comprehensive economic evaluation study for any petroleum-related project including risk analysis and sensitivity study using spreadsheet
Who Should Attend?
Oil & gas professionals such as engineers, geologists, economists, accountants, technicians need to learn how to conduct the economic evaluation and to understand the role of petroleum economics in investment decision making. This program is also recommended for supervisors & managers in the Planning, Exploration, Production, Projects, Financing and Technical Departments in Oil & Gas Companies.
Course Outlines:
Cash Flow Analysis
- Familiarization with Economic terms
- Feasibility Studies
- Setting up Cash Flow Calculation
- Depreciation
- Depreciation Methods
- Loss Carry Forwards
- Inflation
- Nominal & Real Cash Flow
- Sunk Costs
- Project Financing
Economic Indicators
- Economic Indicators Definitions
- Present Value Concept
- Discount Factor
- Net Present Value
- Internal Rate of Return
- Effect of Project Delay
- Payback Period
- Profit/Investment Ratio
- Incremental Projects
- Comparing Economic Indicators
Risks and Uncertainties
- Risk & Uncertainty
- Expected Value Concept
- Decision Tree Analysis
- Farm-out Decision
- Probability Analysis
- Sensitivity Analysis
- Spider and Tornado Diagrams
- Probability Distribution
- Monte Carlo Simulation
Setting up Spreadsheet Calculation
- Introduction to Spreadsheet Calculation
- Simple Cash Flow Using Excel
Setting up Oil Field Development Model
- Setting up an Integrated Economic Model of a Typical Oil Field Development Project including Sensitivity Analysis
