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 economics 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
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.