Advanced Oil & Gas Project Economics,  Risk & Decision Analysis

An Intensive 5-Day Online Training Course

Advanced Oil & Gas Project Economics,
Risk & Decision Analysis

Handling Uncertain Scenarios

PMI® Registered training
PMI® Registered training

Scheduled Dates

24 - 28 Apr 2023 Online $3,950
13 - 17 Nov 2023 Online $3,950
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Why Choose this Training Course?

Why Choose this Online Training Course? 

The petroleum industry is one of the most important, highly capital intensive and risky business. Global exploration and production spending in 2013 was $644 billion, up 7% from $604 billion the year before. In 2014, the exploration budgets reached $654 billion but this fell to $521 billion in 2015 and in the following year, 2016, there was a further decline of 27%. This year’s global exploration and production spending is expected to increase 7%.

The upstream sector’s profit margins are under real pressure from many factors such as higher costs of developing new reserves, less oil and gas found per foot of exploration drilling, rising inflation, global oversupply and price volatility. Competition for investments, for acreage / concessions, aging of existing reservoirs, the of unconventional oil and gas revolution all contribute business risk and uncertainty.

Petroleum industry projects are by their very nature risky, the challenge however is in assessing, managing, and mitigating this risk proactively. The three biggest planning challenges are predicting costs, assessing profitability, and risk management. All these tasks occur in the early stages of capital planning and failure to adequately evaluate these elements can lead to heavy losses.

This Petroknowledge online training seminar will highlight:

  • Identification of the stages required in the risk analysis process, i.e., preparing, modeling, and running risk analysis
  • Development of the risk model, assessing probabilities to various variables, risk analysis, and explore the impact of uncertain variables
  • Enable the participants to create reports such as, tornadoes diagrams, scatter plots and cumulative probability functions, using excel
  • Application of decision trees and Monte Carlo-based simulations to generate profitability indicators
  • Enable the participants to develop probabilistic cashflow reports along with probabilistic profitability indicators for decision-making

What are the Goals?

What are the Goals? 

The primary objectives of this Petroknowledge online training seminar are to:

  • Learn how to handle uncertainty in petroleum projects
  • Understand different economic terms used in the oil & gas industry
  • Understand the expected value concept and learn its impact on decision tree analysis
  • Learn expected theory concepts and attitudes towards risk, risk eversion and risk premium
  • Acquire spreadsheet skills including simulation software @RISK
  • Carry out cashflow analysis, for petroleum related project and use common economic indicators to evaluate between competing alternatives
  • Carry out a comprehensive economic study evaluating petroleum related projects using risk and sensitivity analysis by means of spreadsheets

Who is this Training Course for?

Who is this Petroknowledge training course for?

This Petroknowledge Advanced Oil & Gas Project Economics, Risk & Decision Analysis online training seminar is designed to provide technical and practical approaches to executing a petroleum related project in the upstream sector.

This Petroknowledge training seminar is suitable to a wide range of professionals but will greatly benefit:

  • Planning Managers
  • Oil & Gas Engineers
  • Project Managers
  • Analysts
  • Commercial Managers
  • Economists
  • Government Officials
  • Geologists
  • Business Advisors
  • Asset Managers
  • E&P Managers
  • Product Managers
  • Project Management Professionals

How will this Training Course be Presented?

How will this Online Training Course be Presented?

This PetroKnowledge online training course will utilize a variety of proven online learning techniques to ensure maximum understanding, comprehension, retention of the information presented. The training course is conducted online via an Advanced Virtual Learning Platform in the comfort of your choice location.

Organisational Impact

By sending delegates on this five-day Petroknowledge online training seminar, your organization will benefit by:

  • Learning how to apply economic valuation and risk assessment processes and techniques within the global oil and gas industry
  • Help the participants to identify and analyze the risk involved in a petroleum related project
  • Assist the participants to apply the decision-making procedures to justify the petroleum projects in terms of profitability
  • Participants learn the decision analysis process and foundation concepts so they can actively participate in multi-discipline evaluation teams
  • Monte Carlo simulation is discussed and experienced in detail in hands-on exercises
  • Adding value to the oil and gas company’s active projects, through the use of case studies
  • Help participants to recognize and identify the influencing parameters for oil and gas field developments

Personal Impact

By attending this Petroknowledge online training seminar, you will:

  • Learn how to describe the elements of the decision analysis process and grasp how construct a project cashflow model incorporating sensitivity analysis
  • Evaluate investment and design alternatives with decision tree analysis
  • Gain the operational decision making techniques using @Risk
  • Gain valuable knowledge in identifying the important uncertainties in petroleum projects
  • Enhance your awareness of the influential parameters in an oil and gas field development projects

Daily Agenda

Day One: Development Economics

  • A Brief History of Energy Usage
  • Principles of Development Economics
  • Understanding of Economic Terms
  • Inflation and its Impact on Nominal & Real CashFlows
  • Project Financing

Day Two: Uncertainty in Investments

  • Handling Uncertainty in Capital Projects
  • Understanding Probability Concepts
  • The Expected Value Concept: Features and Pitfalls
    • Expected Monetary Value (EMV)
    • Expected Profitability Index (EPI)
    • Expected Opportunity Loss (EOL)

Day Three: Risks and Uncertainties

  • Risk & Uncertainty
  • Risk Aversion and Risk Premium
  • Exploration Project Threats and Opportunities
  • Economic Decision Criteria
  • Decision Tree Analysis
  • Probability Distribution
  • Case Study: Monte Carlo Simulation

Day Four: Setting-up Spreadsheet Calculations Using Excel

  • Spreadsheet Calculations
    • CashFlow Analysis
    • Sensitivity Analysis Calculations
    • Tornado Diagrams
  • Introduction to Monte Carlo Simulations using @Risk
  • Class Exercises: Setting-up an Oil Field Project

Day Five: Practical Use of the @Risk add-on: Oil Field Development Model

  • Developing an Integrated Economic Model of an Oil Field Development
  • Developing and using an @Risk Model Analysis
  • Project Sensitivity Analysis utilizing data from @Risk Model
  • Training Seminar Final Review and Close

Certificate

  • On successful completion of this training course, a PetroKnowledge Certificate will be awarded to the delegates
  • On successful completion of this PetroKnowledge training course, Certificate with eligible Professional Development Units (PDUs) / Contact Hours from Project Management Institute (PMI®), will be awarded to the delegates

Accreditation

PMI® Registered Training Course

The Registered Education Provider (R.E.P. ID:4349) status with the Project Management Institute (PMI®) enables PetroKnowledge to issue applicable Professional Development Hours/Units (PDHs/PDUs) to participants on our Project Management oriented training courses, to help them achieve or maintain PMI® professional credentials.

In Association With

GLOMACS Training

Our collaboration with GLOMACS aims to provide the best training services and benefits for our valued clients

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Frequently Asked Questions

How can I register for a training course?

  • To register online through our website, please click “Enroll Now” on the course page, complete and submit the form. A confirmation e-mail and instructions will be sent to the participant’s e-mail.
  • You may also get in touch with our Registration Team on
    +971 56 222 7795 | +971 2 557 7389 or send an email to reg@petroknowledge.com

When and how do I arrange payments?

  • Payments can be made in USD or UAE local currency AED (Arab Emirates Dirhams) either by Bank Transfer or by Credit Card. Our Bank Account details will be provided on the invoice.
  • Course fees are payable upon booking unless a valid, authorized Purchase Order is provided and accepted.
  • Invoices will be sent via email/courier to the ID/name and address provided.
  • The course fee shall be settled prior to course start date. Corporate payments with existing payment policy shall be relayed to us in advance.

When should I expect to receive confirmation of registration?

Upon successful registration online, enrolment on the respective training course will be confirmed by Registration Team by e-mail along with the invoice and joining instruction.

Is there a discount for more than one registrant/course?

For corporate fees and group registration, please send your query to info@petroknowledge.com.

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© 2022. Material published by PetroKnowledge shown here is copyrighted.

All rights reserved. Any unauthorized copying, distribution, use, dissemination, downloading, storing (in any medium), transmission, reproduction or reliance in whole or any part of this course outline is prohibited and will constitute an infringement of copyright.


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