DE0919 : Basic Petroleum Economics

This practical and highly-interactive course includes various practical sessions and exercises. Theory learnt will be applied using our state-of-the-art simulators.
This course is designed to provide participants with a detailed and up-to-date overview of Basic Petroleum Economics. It covers the scope of petroleum economics, oil & gas industry value chain and basic economic terminology; the time value of money (conceptual), oil & gas pricing basics and the role of geology in economics; the exploration costs, development costs and production costs; the revenue estimation, production profiles and decline rate concept; the reserves and resources classification and cash flow analysis; and the net present value (NPV), internal rate of return (IRR) and payback period.
During this interactive course, participants will learn the break-even analysis, economic indicators comparison and various types of risks in petroleum projects; the geological uncertainty, sensitivity analysis, scenario analysis and decision-making under uncertainty; the economic impact of geological decisions, petroleum fiscal systems, fiscal framework and economic evaluation workflow; and the cost optimization strategies covering reducing drilling costs, improving recovery factor, technology impact on economics and efficiency improvements.