Oil And Gas Economic Foundation
Course Category: OIL, GAS, PROCESS And CHEMICAL COURSES
Course Fee: $4,500
ABOUT THE COURSE
Economic evaluation in the oil and gas industry is an encompassing activity. It involves the bringing together of the principal technical and commercial dimensions of a project into a forecast of future performance, that allows different projects to be compared and ranked according to economic and/or other criteria. At its heart, economics is an organizing and quantification exercise. Increasingly, its boundaries are expanding to include a quantification of risk. Risk analysis is a rapidly growing discipline that can take many different forms. It is best understood and applied one step at a time – for professionals and for organizations.
This course provides practical guidance in the application of the techniques of the economic analysis currently used in the oil & gas industry. It covers the techniques which assist in making investment decisions. It also covers cash flow analysis, economic indicators, risk and uncertainty
Course Objectives:
At the end of the course, will be able to:
- Introduce the fundamentals of economic evaluation and of risk analysis in the oil and gas industry.
- Focus on basic, simple and pragmatic solutions.
- Understand fundamentals; learn to take a practical approach.
- Build understanding, apply concepts, use software tools, and increase sophistication one step at a time.
- Understand various economic terms used in the oil & gas industry
- Understand different economic models
- Carry out cash flow analysis and determine economic indicators
- Carry out different economic analyses for petroleum related projects.
- Put economics and risk into perspective
- Understand alternative approaches – advantages and disadvantages.
- Evaluate and quantify risk and uncertainty
- Make the right decision in the presence of risk
- Carry out a comprehensive economic evaluation study for any petroleum related project including risk analysis and sensitivity study using spreadsheet.
- Use real life examples and situations.
TARGET PARTICIPANTS
- Engineers; senior supervisors; managers; strategic planners and project leaders; accountants and analysts; related industry personnel involved in project economics; and anyone seeking a comprehensive understanding of the economics of the oil and gas industry.
- This course is beneficial to anyone who needs to learn how to conduct economic evaluation and to understand the role of petroleum economics in investment decision making.
- This course takes a building block approach to understanding what economic and risk analysis is about. It is designed to become as sophisticated as its participants are comfortable. It will initially be a refresher course for those who are economics professionals and provide a framework for those who are not. We will advance our understanding as a group – learning from real examples and from each other – and we will take a hands-on approach at every opportunity. This is a course for anyone who has an interest in this field.
COURSE CONTENT
Day 1: Introductions-Cash Flow Analysis
- Familiarization with Economic terms
- Feasibility Studies
- Setting up Cash Flow Calculation
- Depreciation
- Depreciation Methods
- Loss Carry Forwards
- Inflation
- Nominal & Real Cash Flow
Day 2: Economics
- What is economics, where does it fit in an oil & gas company, who are the economists, when do they become activated, why is their work important?
- Exploration versus development versus acquisitions & divestitures.
- The many faces of the economist – economist as expert, organizer, innovator, motivator, communicator.
- The many facets of economics – quantify, optimize, compare and combine projects.
- Beyond economics – financing, financial impact.
Day 3: The Economic Model
- The framework for economic analysis.
- It’s about cash – cash flow versus income, integrated financial statements, value creation.
- It’s about the future – point forward versus full-cycle evaluations.
- The fundamentals of cash flow projection – revenues and costs.
Day 4: Economic Indicators
- Economic Indicators Definitions
- Pr
Dates:
17 Dec - 21 Dec, 2018 | 13 May - 17 May, 2019 | 12 Aug - 16 Aug, 2019 | 02 Dec - 06 Dec, 2019
Venues:
USA | London | Dubai | South Africa | Ghana
