💰 Introduction to Petroleum Economics

Overview

📘 Course Description

This course provides a comprehensive introduction to the fundamental economic principles and analytical tools used in the oil and gas industry. Participants will learn how to evaluate the economic viability of upstream oil and gas projects, understand cash flow modeling, risk analysis, and decision-making under uncertainty. The course equips attendees with the skills to build economic models, interpret financial metrics, and apply economic evaluation techniques to real-world exploration and production scenarios.

🎯 Learning Objectives

✅ Understand the fundamentals of petroleum economics
✅ Build discounted cash flow (DCF) models for oil and gas projects
✅ Calculate key economic indicators: NPV, IRR, Payback Period
✅ Perform sensitivity and scenario analysis
✅ Assess fiscal regimes, royalties, and tax impacts on project economics
✅ Evaluate risks and uncertainties in petroleum investment decisions

👥 Who Should Attend

Geologists, reservoir & petroleum engineers
Commercial & planning analysts
Project managers
Economists & financial analysts new to oil and gas
Government & regulatory staff overseeing oil sector investments
Anyone seeking a solid foundation in petroleum economics

🗂️ Training Format

✅ Instructor-led lectures with worked examples
✅ Hands-on spreadsheet modeling exercises
✅ Group discussions & case studies from real oil and gas projects
✅ Interactive Q&A sessions

📅 Day-by-Day Agenda with Time Breaks

📅 Day 1: Fundamentals of Petroleum Economics

Time	Topic
08:30 – 09:00	Welcome, Introductions & Course Overview
09:00 – 10:30	Overview of the Oil & Gas Value Chain
10:30 – 10:45	☕ Coffee Break
10:45 – 12:15	Basic Economic Concepts & Time Value of Money
12:15 – 13:15	🍽 Lunch
13:15 – 14:45	Discounting, NPV & IRR Principles
14:45 – 15:00	☕ Coffee Break
15:00 – 16:30	Exercise: Calculating Present & Future Value

📅 Day 2: Cash Flow Modeling & Economic Indicators

Time	Topic
08:30 – 10:00	Components of Petroleum Project Cash Flows
10:00 – 10:15	☕ Coffee Break
10:15 – 12:15	Building a Simple Oil Field Cash Flow Model
12:15 – 13:15	🍽 Lunch
13:15 – 14:45	Economic Indicators: NPV, IRR, Payback, ROI
14:45 – 15:00	☕ Coffee Break
15:00 – 16:30	Workshop: Cash Flow & Economic Indicator Calculations

📅 Day 3: Fiscal Regimes & Contract Types

Time	Topic
08:30 – 10:00	Overview of Fiscal Systems: Concession, PSC, Service Contracts
10:00 – 10:15	☕ Coffee Break
10:15 – 12:15	Royalties, Bonuses & Taxation in Petroleum Projects
12:15 – 13:15	🍽 Lunch
13:15 – 14:45	Netbacks, Cost Recovery, and Contractor Entitlement
14:45 – 15:00	☕ Coffee Break
15:00 – 16:30	Case Study: Comparing Fiscal Regimes in Different Countries

📅 Day 4: Risk & Sensitivity Analysis

Time	Topic
08:30 – 10:00	Sources of Risk in Oil & Gas Projects
10:00 – 10:15	☕ Coffee Break
10:15 – 12:15	Sensitivity Analysis on Key Parameters
12:15 – 13:15	🍽 Lunch
13:15 – 14:45	Scenario Analysis & Decision Trees
14:45 – 15:00	☕ Coffee Break
15:00 – 16:30	Workshop: Sensitivity & Scenario Exercises

📅 Day 5: Project Evaluation & Final Integration

Time	Topic
08:30 – 10:00	Screening Multiple Prospects & Ranking
10:00 – 10:15	☕ Coffee Break
10:15 – 12:15	Portfolio Analysis & Real Options Concepts
12:15 – 13:15	🍽 Lunch
13:15 – 14:45	Integrated Project Evaluation Exercise
14:45 – 15:00	☕ Coffee Break
15:00 – 16:30	Presentations, Wrap-Up & Certificate Distribution

📦 Materials Provided

✅ Printed & digital course manuals
✅ Excel templates for economic modeling
✅ Fiscal system summary sheets
✅ Real-world project case studies
✅ Certificate of Completion

Target audiences

Reservoir Engineers, Geologists

$ 5,950

Course Features

Lecture 0
Quiz 0
Duration 5 days
Skill level All levels
Language English
Students 40
Assessments Yes