Discipline Economics and Finance ,
Business and Project Management
LevelAdvanced
Duration4 Days
Delivery Mechanism Practical Training with Software
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Course Progression Map - Petroleum Economics

Course Progression Map - Decision and Risk Analysis

Portfolio Management

Course participants will learn about the portfolio theory along with how to incorporate the best practices in portfolio management during the upstream oil and gas business planning process.  The course will highlight a proven process and technology for portfolio management and optimization used by companies worldwide. 

Participants will gain an overview of important concepts and processes for portfolio analysis, plus they will learn an easy-to-follow process for portfolio optimization to meet business unit and corporate goals.  Other key concepts that will be covered are accepted portfolio management workflows to model the business and decide which wells to drill, projects to undertake, or properties to acquire.

This course uses the Merak software Peep, Decision Tool Kit, and Capital Planning, as well as some Excel. 

  • Agenda
  • Audience
  • Prerequisites
  • Agenda

    Day 1

    Corporate Planning in E&P

    • Corporate planning in E&P
    • Macro environment challenges
    • Concepts of portfolio management

    Participants will learn about corporate planning in E&P companies, including the macro environment challenges companies face.  The concepts of portfolio management, including benefits, portfolio theory, corporate or business unit goals, and strategy development are introduced.

    Day 2

    Identify and Evaluate Strategies and Scenarios

    • Easy-to-use process for portfolio management and optimization
    • Identify and evaluate strategies and scenarios and interpret results
    • Portfolio management using Merak software

    An easy-to-use process for portfolio management and optimization will be presented and discussed.  Participants will learn to define and evaluate strategies and scenarios, then analyze and optimize those results in order to make recommendations.  The analysis will be done using the Merak Capital Planning software.

    Day 3

    Model, Test and Analyze Different Portfolios

    • Understanding and defining business rules and project dependencies
    • Model and test different strategies
    • Analyze and compare different portfolios
    • Use visualizations to answer a variety of business questions

    Participants will learn how to model and analyze the impact of business rules.  The feasibility of different strategies will be modeled and tested.  Multiple portfolios will also be analyzed and compared, using visualizations, to answer a variety of business questions.

    Day 4

    Portfolio Management and Optimization

    • Case studies of industry practices
    • Address problems using Portfolio management and optimization
    • Group problem challenge

    Case studies of industry practices for portfolio optimization will be reviewed.  Participants will learn to address various problems in portfolio management, as well as learn the methods and importance of optimization.  The course ends with a portfolio challenge that will be addressed by each group.

  • Audience

    Anyone in a current or potential business unit or corporate planning role who needs to understand and model the performance of a portfolio for oil and gas projects.

  • Prerequisites

    Training courses in Petroleum Economics (EF-TC1-NXT12680) and Decision and Risk Analysis (EF-TC1-NXT13150). Some on the job experience in both economics and risk is preferred, as well as experience with the Merak software.  Equivalent on the job experience can substitute for training courses.

  • Prerequisites

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