An Intensive 5-Day Training Course
Economics of Petroleum Exploration
Scheduled Dates
| 16 - 20 Oct 2023 | London - UK | $5,950 |
Why Choose this Training Course?
Why Choose this Training Course?
Economics drives the entire oil/gas industry. Almost every decision is made on the basis of an economic evaluation, performed to determine the value and ranking of competing projects. In many cases, the goal of the company is to make decisions that have the best chance of maximizing the present day profit.
Economics of petroleum exploration involves the application of economic analyses in the development of oil and gas exploration and production. The economics of oil and gas projects are affected by a variety of factors, including the location of the oil or gas field, the type and number of wells, market conditions and the fiscal regime i.e. the tax & royalty systems in place. By analyzing these factors, petroleum economists are able to make investment decisions such as whether or not to drill an exploration well or whether or not to develop an entire petroleum production project. The training course will enable the participant to make crucial decisions in negotiations involving Production Sharing Contracts PSC’s and purchasing oil and gas properties.
This training course will feature:
- The theory of upstream petroleum economics based on the time value of money
- How oil and gas economics are essential for comparing values of competing projects
- Critical evaluation and appraisal of the opportunities and challenges of this pivotal sector of the energy industry
- The assessment and management of the technical, economic and other risks associated with the different phases of an oil or gas projects
- An understanding and critical awareness of the principles, theory and practice of how economic analyses are performed
- A comprehension of the machinations of the international oil and gas industry
- Focusing on management interpretation of the diversity of fiscal arrangements and PSC’s
- Applying a judicious overview of contemporary issues like climate change and environmental concerns in exploration and development
What are the Goals?
What are the Goals?
By the end of this training course, participants will be able to:
- Calculate the key economic metrics used in investment decision making
- Appreciate the geological and engineering inputs to the cash flow model
- Understand oil and gas pricing and forecasting
- Build Excel-based economic models in both tax/royalty and production sharing contract fiscal systems
- Apply the principles of Oil and Gas economics to decision making relating to field development options
- Understand development options (including modelling cash flows, profitability and risk indicators, net present value, and investment appraisal), incremental analysis and economics
- Understand and manage the key characteristics of the oil and gas industry and activities
Who is this Training Course for?
Who is this Course for?
This training course is suitable to a wide range of professionals but will greatly benefit:
- Commercial and finance professionals and managers
- Oil and Gas Planners and Financial Analysts
- Oil & gas field personnel, operations and maintenance technicians, and engineering trainees
- It is also of benefit to other support staff who have an interest in increasing their understanding of the oil & gas economics
How will this Training Course be Presented?
How will this Training Course be Presented?
The daily sessions will be highly interactive and participative, involving regular discussions and trainer encouraged participation. The training course will include exercises aimed at enhancing the participant’s ability to address topics in oil and gas economics. Short videos and exercises will be presented during the training course to enhance the participants’ knowledge of the oil & gas field economics. Interactive training methods will be used including practical exercises, case studies, question and group discussions to cover current practices in the field. Presentations underpinning the daily topics will be used to highlight the key issues. The training manual will support the learning experiences and provide additional reference materials and examples.
Daily Agenda
Day One: Oil & Gas Economics
- Introduction to Energy Finance and Economics
- Geopolitics and world Oil and Gas markets
- Overview of world petroleum consumption and supply
- Oil and Gas prices and prospects for the future
- Transportation of Oil and Gas
- Storage of Oil and Gas
Day Two: Oil & Gas Value Chain
- Adding value: The refining process & Petrochemicals
- Petroleum products
- Sales and marketing of oil and gas products
- Netback Calculations
- Reference pricing
- OPEC and the future role of a cartel
Day Three: Oil & Gas Principles of Development Economics
- IOC's v’s NOC's and Fiscal regimes
- Basic Principles of Development Economics
- Financing and financial performance
- Financial and Economic Analysis in the Energy Industry
- Financing Large Energy Projects
- Economics of a field development
Day Four: Oil & Gas Project Cash flow
- Conducting a Project Cash flow
- Calculating a discounted cash flow
- Profitability indicators
- Project screening and ranking
- Project Sensitivity analysis
- Case study: Exploration economics
Day Five: Oil & Gas Derivative Markets and Hedging
- Hedging of financial risks of oil and gas projects
- Forward, Futures, and options
- Real-option evaluation analysis and Energy trading commodities risks
- How do oil and gas companies handle operational risks?
Certificate
- On successful completion of this training course, a PetroKnowledge Certificate will be awarded to the delegates
