Petroleum Economics and Legislation

Description

Introduction to petroleum economics - Cash flow analysis in the petroleum industry - Deriving net cash flow under tax/royalty systems and production sharing contracts - Depreciation methods, inflation, sunk costs - Economic indicators (net present value, rate of return and other indicators) - Field development decision making - Fiscal analysis in petroleum industry - Risk analysis (investment phase risks, project risk and expected value, sensitivity analysis, probability analysis) - Monte Carlo simulation, and probabilistic reserves estimates - probabilistic economics, portfolio analysis, asset management, risk and discount rates - Risk management (standards, identifying risk, analyzing the risks, assessing and prioritizing risks, risk elimination) - Insurance practices in the oil and gas industry, monitoring project risks) - Case study (mini project).

Program

Bachelor Degree in Oil and Gas Engineering (144)

Objectives

• Explain the fundamentals of petroleum economics and fiscal systems, including tax, royalty and production sharing contracts. Perform cash flow analysis and calculate economic indicators such as net present value and rate of return. Analyze project risk using sensitivity analysis, probability analysis and Monte Carlo simulation. Apply risk management principles and insurance practices in oil and gas projects. Evaluate field development decisions through a case study.