Oil & Gas Training
and Competency Development

Discipline Economics and Finance
LevelFoundation
Duration7 Hours
CostUSD 1,000.00
Delivery Mechanism eLearning




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Petroleum Economics On-Line

This seven-unit course, titled Petroleum Economics Interactive, provides a solid foundation of the basic economic factors and concepts pertaining to decision-making in the petroleum industry. The subject matter is presented using real-life scenarios and fictional characters that represent various "players" involved in the decision process.

The course concludes with a module that challenges the participants understanding of the material presented.  A simulated board of directors meeting is presented, and a decision must be made about the projects under consideration for development.

  • Topics
  • Audience
  • Prerequisites
  • Topics

    Module 1 discusses cash flow basics, including revenue and expenditures.  Before tax and after tax cash flow are then calculated. 

    Module 2 presents revenue, including production volume, scheduling and decline.  Product prices, net profitability and economic limits are presented. 

    Module 3 discusses expenditures, including capital and operating expenses.  The usual taxes that must be paid by oil and gas producers are described.

    Module 4 presents an overview of fiscal systems, including the different types of contracts. 

    Module 5 discusses incorporating risk and uncertainty into economic evaluations. 

    Module 6 presents investment analysis, including the time value of money, economic indicators and opportunity costs. 

    Module 7 is the economics challenge, including the simulated board meeting and project selection. 

  • Audience

    Engineering technician, production and drilling personnel, new hires and supervisors with no prior economics experience.

  • Prerequisites

    There are no prerequisites for this module

  • Prerequisites

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