Petroleum Economics

Course Duration: 2 days | Time: 8am to 4pm | Course Locations: Lagos, San Diego


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Petroleum Economics brings together information and expertise to make decisions in every stage of oil and gas development. Upstream project decisions are made based on economics and most project inputs and outcomes can be reduced to economic factors. This short class is intended for technical people and decision makers who want to understand the basic and more advanced concepts of decision making based on economics.  It is also useful to view the economics from both the oil company and the government perspectives.
1.The Need for Petroleum Economics
2.Petroleum Fiscal Systems Government and Oil Company objectives Work Commitment and Fiscal Terms Families of Systems
3.Project Inputs
4.Accounting Principles Accounting concepts Successful and Full Cost Accounting Depreciation, Depletion and Amortization (DD&A) Taxation
5.Economic Metrics -pros & cons Net Present Value Profit / Investment Ratio Internal Rate of Return Payout Government take
6.Class Exercise 1
7.Decision Trees
8.Value of Information
9.Probabilistic methods
10.Class Exercise 2
11.Conclusion and Summary
Oil and Gas Personnel who are interested understanding the important role of economic in successfully delivering projects.  Besides the technical aspects of Oil & Gas development economic play an equally important role in project decisions Participants need to bring a laptop to do several exercises to reinforce learning.