Fundamentals of petroleum economics and

Price: AED 5,500

Duration: 24 Hours

Timing: Flexible

Course Overview

This Fundamentals of Petroleum Economics course will introduce a variety of fundamental petroleum economic principles including profit, revenue, expenditures, time value of money, Cost concepts in decision making, investment analysis, fiscal systems, and risk analysis. This course is an excellent introduction to the fundamentals of petroleum economics.  The learning experience will include exercises, class discussions, team presentations, and Monte Carlo Simulation software applications.


Course Outline

Day 1

Cash Flow, Revenue, and Expenditures

  1. Module 1: Cash Flow Basics
  2. Module 2: Revenue
  3. Module 3: Expenditures

Module 1 will present cash flow basics, including revenue and expenditures.  Then, before tax and after tax cash flows will be calculated.  Module 2 will discuss revenue, including production volume, scheduling, and decline.  After which, product prices, net profitability, and economic limits will be presented.  Module 3 will discuss expenditures, including capital and operating expenses.  The usual taxes that must be paid by oil and gas producers will be described.

Day 2

Fiscal Systems, Risk, and Investment Analysis

  1. Module 4: Fiscal Systems
  2. Module 5: Risk Analysis
  3. Module 6: Investment Analysis
  4. Module 7: Petroleum Economics Challenge

Module 4 will present an overview of fiscal systems, including the different types of contracts.  Module 5 will discuss incorporating risk and uncertainty into economic evaluations.  Module 6 will present investment analysis, including the time value of money, economic indicators, and opportunity costs.  Module 7 is the economics challenge, which will include the simulated board meeting and project selection.

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