Course Objective

• Describe the role of petroleum economics in exploration, development, production, and Financing decision making
• Calculate the expected monetary value of a venture
• Discount a cash flow forecast and calculate net present value, internal rate of return, unit technical cost and break-even cost
• Apply procedures by which to rank projects and evaluate alternatives
• Evaluate the robustness of a project against sensitivities in the controlling parameters
• Determine incremental value after isolating cost and revenue profiles from an existing project

Who Can Benefit?

• Geo-scientists, engineers, staff working in finance, or commercial departments of oil and gas companies, or companies which supply finance or services to the oil and gas industry

Course Outline

• Introduction
  • Accounting Concepts
  • Weighted Average Cost of Capital
  • Project Definition
  • Profitability Analysis
  • Cash Flow Analysis
  • Discounted Cash Flows
  • Net Present Value
  •  Field and Reservoir
  •  Basic Reservoir Parameters
  • Area of Closure
  • Rock Volume
  • Recovery Factor
  • Geological Risk
  •  Statistical Analysis
  • Geological Analysis
  • Probability Distributions
  •  Interdependence of Variables
• Exploration Economics
  • Exploration Costs
  • Geophysical Programs: 2-D and 3-D
  • Cost of Exploration Wells: Onshore and Offshore
  • Delineation Costs
  • Oil and Gas Reserves
  • Appraisal Programs
  • Appraisal Well Costs
• Development Economics
  • Development Wells
  •  Production Methods
  • Primary, Secondary, and Tertiary Recovery
  • Development Costs
  • Development Schedules
  • Deep Water Issues
  • Development Well Costs
  • Facilities Costs
  • Gas/Oil Ratio and Facilities Costs
  • Platform Costs
• Operations Economics
  • Oil and Gas Production
  • Transportation Costs
  •   Prices
• Finance Economics
  • Escalation and Inflation
  • Nominal and Real Values
  • Constant Dollar Cash Flows
  • Financing
  • Oil & Gas Field Profitability

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