An Introduction to Upstream Petroleum Economics & Risk Analysis

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We are currently in the midst of one of the deepest downturns in the upstream industry in recent years. Challenging times are ahead for those looking to invest capital and grow their companies in this environment.

Petroleum Economics is all about the allocation of scarce resources….investment capital is certainly that scarce resource at the moment. In this environment, have you been asking the following questions in your organisation?

  • Which are my most profitable upstream assets?
  • Which regions of the world offer the best returns?
  • Which are the most fiscally attractive parts of the world?
  • How can we compare upstream projects to ensure capital is optimally utilised?
  • What is the breakeven oil price and minimum economic threshold?
  • If we could negotiate a 20% cost cut from our suppliers how does that impact the overall conomics of the project?

This course will provide a through insight into the world of upstream petroleum economics and risk analysis to address these questions and many more.

By attending this highly interactive and practical course you will:

  • Understand the theory of upstream petroleum economics based on discounted cashflow
  • Calculate with confidence the key economic metrics used in investment decision making
  • Appreciate the geological and engineering inputs to the cashflow model
  • Understand oil and gas pricing and forecasting
  • Appreciate the diversity of fiscal systems worldwide
  • Build Excel-based economic models in both tax/royalty and production sharing contract fiscal systems
  • Interpret the economic results and quantify the risks so as to put values to prospects, fields and companies
  • Select the optimum projects and development options for you company

Course overview:

This practical training course will enable delegates from all technical and commercial disciplines to understand the theories and methods used to value oil and gas projects. The four-days will reveal the fundamental aspects of upstream petroleum economics and risk analysis. Through computer-based exercises, participants will construct economic models, incorporating relevant cash flow data for case study projects and scenarios.

Delegates will be provided with electronic copies of all workshop solutions and examples, and a comprehensive hard copy course manual

No prior knowledge of petroleum economics or the upstream industry is required. Delegates should ideally have some knowledge of Microsoft Excel ™ and bring a laptop loaded with Microsoft Office™ to the course.


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Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:

Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.


We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:

Read more about our offering or complete a call back request to speak to a learning specialist.


Why us

We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product