Compare courses
Register
Euromoney Learning Solutions

An Introduction to Upstream Petroleum Economics

Dec 2—5, 2019
4 days
London, United Kingdom
GBP 4195 ≈USD 5250
GBP 1048 per day

How it works

Disclaimer

Coursalytics is an independent platform to find, compare, and book executive courses. Coursalytics is not endorsed by, sponsored by, or otherwise affiliated with Euromoney Learning Solutions.

Full disclaimer.

Description

Conquer the issues of upstream petroleum economics & risk analysis

To truly understand how projects are valued and investment decisions are made, professionals working in the upstream industry must have detailed and up-to-date knowledge of petroleum economics and risk analysis.

This practical introductory training course is designed to help you understand the theories and methods used to value oil and gas projects and make decisions where conditions are far from certain.

A particularly useful learning experience for those in technical and commercial disciplines, the course will present the fundamental aspects of discounted Cashflow analysis and risk analysis, as well as examining fiscal regimes, cost estimating, production profiles and commodity pricing.

By the end of the course you will have a solid understanding of the issues involved, the ability to build your own economic models, and confidence in interpreting the results of your analysis.

Attend this interactive and practical course and:

  • Understand the theory of upstream petroleum economics based on discounted Cashflow
  • Learn how to calculate with confidence the key economic metrics used in investment decision making
  • Appreciate the geological and engineering inputs to the Cashflow model
  • Understand oil and gas pricing and forecasting
  • Appreciate the diversity of fiscal systems worldwide
  • Build Excel-based economic models for both tax/royalty and production sharing contract fiscal systems
  • Interpret the economic results and quantify the risks so as to put values to prospects, fields and companies
  • Select the optimum projects and development options for your company

Methodology

The course will be delivered through a series presentations, project examples and hands-on Excel modelling workshops that will reinforce your understanding of the subject. The practical exercises in the workshops will cover Cashflow and fiscal modelling and explore prospect evaluation.

Agenda

Day 1

Cash flow analysis

  • What is Petroleum Economics?
  • Cash flow equations
  • Accounting for inflation
  • Calculating the economic cut-off
  • Economic analysis v. corporate accounting

Accounting for the time value of money

  • The time value of money, compounding & discounting
  • Discount rate, discount factor & discount method
  • Calculating the discount rate

Economic metrics

  • General metrics (Breakeven, Payback, Exposure)
  • Value and return metrics (e.g. NPV, IRR, DPIR)
  • Per barrel and other metrics and KPIs
  • Making development & investment decisions

Workshop: Pre-tax cash flow model

  • Calculating revenues
  • Accounting for inflation
  • Adjusting for the economic cut-off
  • Including the abandonment costs

Day 2

Cost, scheduling and tariffs

  • Capital, operating, & abandonment Costs
  • Project schedules Tariffs

Fiscal Regimes

  • Overview
  • Royalty & taxation systems
  • Production sharing contracts
  • Risk service contracts

Workshop: The Taxation and Tariff Case Study

  • Introduction to the gas field case study
  • Establishing the economic model framework, structure & calculation flows
  • Understanding the taxation structure & algorithms
  • Determining the field, economic & fiscal data and building the input decks
  • Step by step construction and audit of the taxation model
  • Running the economic cases & evaluating the results

Day 3

Production profiles and reserves classification

  • Resources, reserves, production and sales profiles
  • SPE and SEC reserves classification systems

Oil and gas prices and other economic inputs

  • Oil and condensate pricing & forecasting
  • Gas & LNG pricing & forecasting
  • Inflation, cost escalation
  • Interest Rates & exchange rates

Workshop: The PSC Case Study

  • Introduction to the oil field PSC case study
  • Establishing the economic model framework, structure & calculation flows
  • Understanding the PSC fiscal structure & algorithms
  • Determining the field, economic & fiscal data and building the input decks
  • Step by step construction and audit of the PSC model
  • Running the economic cases & evaluating the results

Day 4

Consolidation and incremental analysis

Types of interest (working, royalty and carried interests)

  • Accounting for risk and uncertainty
  • Risk versus uncertainty
  • Sensitivity analysis
  • Scenario analysis
  • Decision trees
  • Monte Carlo simulation

Proprietary software solutions

Workshop: The Oil Prospect Case Study

  • Establishment of the prospect commercial reserves distribution
  • Calculation of the success case expected value and the prospect EMV
  • Drill or no-drill decision?

Who should attend

This course is particularly beneficial for people working in roles such as:

  • Petroleum economists
  • Business development managers
  • Project managers
  • Lawyers
  • Financial analysts
  • Accountants and auditors
  • Government officials

Experts

With over 20 years' hands-on experience as a Petroleum Economist in the upstream oil and gas industry, Peter has a detailed understanding of the technical and financial aspects of the industry as well as the key determinants of project value and risk. He leverages his in-depth experience of numer...

Files

Detailed Description
Detailed Description
Detailed Description
Detailed Description

Next dates

Dec 2—5, 2019
4 days
London, United Kingdom
GBP 4195 ≈USD 5250
GBP 1048 per day

How it works

Show more