Petroleum Economics

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). references Petroleum Economics and Engineering

Program

Bachelor Degree in Oil and Gas Engineering (160)

Objectives

• Perform cash flow analysis in the petroleum industry under tax, royalty, and production sharing systems. Calculate economic indicators such as net present value and rate of return. Apply depreciation, inflation, and discount rate concepts to field development decisions. Assess project risk using sensitivity analysis, probability analysis, and Monte Carlo simulation. Describe risk management and insurance practices in the oil and gas industry.