Overview

Basic Petroleum Economics, Expanded (BEC)

About the Course

 Could you provide three answers for your upcoming project? What is the price? What's its value? Will it bring in enough money? These questions should be addressed before starting any project. You will learn the foundational skills needed to do so in this course. Contractual arrangements, accounting, and budgeting and finance are all discussed because they have a big impact on a project's economic sustainability.

Participants examine common scenarios and practice cash flow procedures for economic analyses. If appropriate, participants are encouraged to present their own economic issues. A copy of Economics of Worldwide Petroleum Production, designed especially for PetroSkills courses, will be given to each participant.

Target Audience

Managers, engineers, explorers, field accounting supervisors, and other staff members who need to advance their knowledge of the economics of petroleum exploration and production. PetroSkills advises participants to enroll in this course if they have no prior knowledge of the subject because of the similarities in content. Please examine the description for Economics of Worldwide Petroleum Production for participants with additional background knowledge since it contains material that is more complex than Expanded Basic Petroleum Economics. Take just one course; don't enroll in both.

Course Objectives

• How to assess a project's economic feasibility
• Applying cash flow concepts to economic evaluations models that account for uncertainty and risk
• Methods for calculating anticipated value
• The impact that money, planning, and contracts have on a project
• The fundamentals of accounting

Course Outlines

• estimating future oil production
• Defining: reserves, costs of operations, investments, inflation, and variables affecting the price of oil and gas
• Cash flow strategies
• Economic criteria: selection, ranking, hurdle rate, time worth of money, and interest
• Risk and uncertainty: risk kinds, mathematical methods, probabilistic models, and economic analysis uncertainty
• Ownership and financing in the oil and gas sector: commercial agreements between operators and mineral owners
• Accounting versus cash flow: accounting terminology, depreciation, depletion, and amortization, as well as the distinctions between accounting cash numbers
• Budgeting: different forms, methods, and choosing projects for the budget Analysis of operations' economics
• economics software for computers
• Advice about using computer spreadsheets to analyze economic factors Analysis of economic ethics