petroleum economics interactive full set (2 cds & booklet)
Course Description
This seven-unit course, titled Petroleum Economics Interactive, provides a solid foundation on 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 first course introduces the student to cash flow concepts and shows how cash flow is generated relative to oil and gas ventures.
The next two modules focus on the components of the cash flow curve: Revenue and Expenditure. Sources of potential revenue from petroleum assets are presented along with methods for estimating oil reserves. Technical parameters associated with basic volumetric analysis are illustrated using 3D animations that allow non-engineering students to quickly grasp difficult concepts. The various strategies associated with production and price forecasting round out this module.
The expenditure module introduces the student to the myriad of costs involved with developing and operating petroleum assets. Operating expenses, overhead, and taxes are covered using examples that are readily understood by those with little or no oilfield background. The various types of capital expenditures are explained, as well as the notions of depreciation, depletion, and amortization. No discussion of petroleum economics would be complete without addressing the many types of contracts that are negotiated by petroleum companies. This module compares and contrasts the different types of fiscal systems that are used and examines their impact on bottom-line economics. This discussion is particularly well suited for individuals involved in international E&P operations where U.S. laws and procedures do not apply.
The series continues with a module that introduces the student to the different types of uncertainty that must be accounted for when allocating risk capital. The impact of geological and political risk factors is then woven into the scenarios already presented. The notion of decision tree analysis illustrates how the concepts in this module can be applied to the development scenarios.
A module on investment analysis completes the technical presentation on petroleum economics. The differences between present, future, and expected value are explained. This module also illustrates how the various economic data explored in the previous modules can be distilled into economic decision parameters such as Profit-to-Investment Ratio, Payout Period, Net Present Value, and Rate of Return for an investment.
The series concludes with a module that challenges the students understanding of the material presented in the six content modules. The student is asked to participate in a simulated board of directors meeting where decisions will be made about the fate of the projects under consideration for development. The student will have to apply concepts learned throughout the course in order to make the correct recommendation to the board.
Audience
- Engineering Technicians
- Production and drilling personnel
- New hires
- Supervisors with no prior economics experience
Prerequisites
- There are no prerequisites for this module
Topics covered
- Cash Flow Basics
- Revenue
- Expenditures
- Fiscal Systems
- Risk Analysis
- Investment Analysis
- Also contains the Petroleum Economics Challenge
Ordering
Average runtime
7 Hours
Order on-line
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