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 Project Economics for Oil & Gas Industries (E6089) QR Code

Project Economics for Oil & Gas Industries

Overview:

Introduction:

The course allows the participants to develop a deep understanding of petroleum economics and the complex decision-making process involved in the upstream oil and gas sector – a sector that is highly capital intensive and fraught with uncertainties. The course provides an overview of the special features of the oil and gas markets then zooms in on the different types of costs and economics across the supply chain. It also explores the key variables affecting decision making and investment – namely the size of reserves, oil and gas prices, technological advancements, costs, market conditions, political risks, environmental threats, and government regulations, to name but a few.

The participants will enjoy a dynamic and active learning process. Throughout the course, they will examine real case studies and take part in group discussions to maximize their knowledge and share their expertise.

Course Objectives:

At the end of this course the participants will be able to:

  • How the oil and gas industry operates in an ever-changing technical, economical, and political environment.
  • The economics of each stage of the supply chain, with a special focus on upstream activities.
  • The decision-making process within a typical oil and gas company, taking into consideration various types of risk.
  • The techniques used by oil and gas companies to carry out meticulous economic evaluations of any capital investment’s commitment before allocating their limited resources.
  • How Governments affect oil and gas companies’ investment decisions.

Targeted Audience:

  • Business Development Professionals
  • Corporate Planners, Investment Analysts, Oil & Gas Directors who would appreciate the gist of a full Oil & Gas energy MBA study program
  • More senior Oil & Gas executives intrigued by the concepts of an MBA but lacking the time for a full MBA
  • Managers in the Oil & Gas energy sector that want a ‘taster’ to see if a full MBA might be for them
  • Professionals who have already done a generic MBA but want to relate those processes to the Oil & Gas industries
  • Managers in industries and professions supplying or serving the industry who would like a deeper understanding of oil and gas, e.g. bankers, lawyers, analysts, service majors, etc.
  • Project managers, Engineers, Supply Planners & Scheduling Professional

Course Outlines:

Unit 1: Introduction to The Oil And Gas Industry:

  • Fundamentals of oil markets.
  • Fundamentals of gas markets (global, regional, and domestic).
  • Oil and gas pricing.
  • Oil and gas industry structure (International oil companies, national oil companies, OPEC).

Unit 2: The Oil And Gas Industry Value Chain:

  • Upstream, midstream, and downstream.
  • Upstream economics: exploration; appraisal; development; production; abandonment.

Unit 3: Projects Economics (I):

  • Costs breakdown.
  • Costs control.
  • Comparison of oil and gas economics.
  • Economics of LNG.
  • Economics of unconventional oil and gas.
  • Typical industry risks.

Unit 4: Projects Economics (II):

  • Decision analysis.
  • Risk and uncertainty.
  • Financial evaluation and measures of profitability.
  • Decision making on exploration and production.
  • Common techniques to incorporate uncertainty (risked NPV; decision tree analysis, and sensitivity analysis).

Unit 5: Government Influence:

  • Legal, regulatory, fiscal, and contractual framework.
  • Impact of Government policy on oil and gas project’s economics, investment decision and sharing of oil and gas wealth.

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