Basic Petroleum Economics

أساسيات اقتصاديات البترول

Start Date End Date Duration Location
Oct. 15, 2017 Oct. 19, 2017 5 Dubai

Description:

This five-day course covers the economic structure of the petroleum industry and factors influencing oil economics. It also addresses feasibility of developing oil and gas related project and decision tools and models used to evaluate the economics of an investment. The course explains economic analysis of oil and gas production operations, reserve estimation and means of forecasting production using decline curves, how oil and gas prices are determined and we will look at the marketing aspects of petroleum products.

Goal:

To enhance the participants’ Knowledge, Abilities and Skills necessary to understand the basics of petroleum industry

Objectives:

By the end of the course the participant will be able to:

  • 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

Outlines:

  • 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

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