Basic Petroleum Economics

Any professional working in the oil & gas industry with an interest in business and economic affairs but with limited experience in financial matters. The course targets engineers involved in project evaluations as well as finance staff with limited exposure to petroleum economics.

• Forecasting oil production 
• Defining: "reserves," operating expenses, capital expenditures, inflation, factors effecting oil and gas prices 
• Cash flow techniques 
• Economic criteria: interest, hurdle rate, time value of money, selection, ranking criteria 
• Risk, uncertainty: types of risk, mathematical techniques, probabilistic models, uncertainty in economic analysis 
• Financing, ownership in the oil and gas industry: business arrangements between operators, between mineral owners 
• Accounting versus cash flow: accounting principles and definitions, differences between accounting cash numbers, depreciation,
• depletion, amortization 
• Budgeting: types, processes, selecting of projects for the budget 
• Economic analysis of operations 
• Computer economics software 
• Tips on economic factors in computer spreadsheet analysis 
• Ethics in economic analysis