Oil and gas management and petroleum economics pdf

Appreciate and apply the concepts and methods of forecasting. Petroleum project economics with a challenging simulation game new. H30702 economic evaluation of oil and gas properties handbook. Economic criteria and evaluation method of an oil project.

The 221page document replaces the 2001 guidelines for evaluation of reserves and resources with content expanded to focus on using the 2007 prms to classify petroleum reserves and resources. Area oil and gas marketing information should be researched. By joining our petroleum economics and management program, you enhance your initial training through a cuttingedge curricula in oil, natural gas and electricity economics and management. Acknowledgments thanks are extended to david hobbs who advised on. The modeling of gas sources and oil reservoirs was conducted based on technical and economic factors. At ifp school, you will experience your studies as a pathway towards a world of opportunities. Firms spent most of the remaining portion acquiring undeveloped oil and gas properties. An introduction to petroleum economic is a reallife, concise and hugely enjoyable in depth look at one of the key fundamentals of the oil and gas industry. Petroleum economics net present value internal rate of. Kent saugier is a handson scientific, technology and business professional with twentyfive years experience in upstream oil and gas, offshore technology, economics, economic modeling, international petroleum contracts, project management, software applications and technology including design, licensing and commercialization. Pdf economics modeling for petroleum exploration and.

The course will be presented by richard woodhouse who has over 20 years experience in oil and gas combining process engineering and petroleum economics. This book is a guide to the basic economics of petroleum production as practiced throughout the world. Bachelors degree programs in energy management or commerce that emphasize oil and gas are typically interdisciplinary, and include coursework in business, law, economics, petroleum engineering. Petroleum, energy economics and finance postgraduate taught. Derivatives and risk management in the petroleum, natural. The course has already been provided to professionals working in engineering, management, tax, finance, commercial, sales and geosciences. Almost every decision is made on the basis of an economic evaluation. Particular attention should be paid to times of change in the areas oil and gas prices and markets. The reservoir management consists on the application, within a given fiscal and contractual frame, of wellestablished industrial technologies and field best practices to a hydrocarbon reservoir, in order to efficiently perform the field operations and maximize the economic return of the investments. The purpose of this paper is to consider the future of the oil and gas industry and the profound challenges that it is facing. The following table summarizes the basic conditions that in petroleum economics are the most relevant. This course is designed for learning the basics of petroleum economics and project selection. The petroleum industry is arguably the most influential and important industry in the world.

Oil and gas journal database, oil industry comparative appraisals, basic petroleum data book, and oil and gas reserve disclosures. Saudi arabia responded with its longterm vision 2030 economic transformation. Vii financing and ownership of the oil and gas industry 2834 cost of entry into the oil business 283 sources of funds 284. Project management in the oil and gas industry wiley. Stages and technico economic aspects of the explorationproduction. This course will introduce a variety of fundamental petroleum economic principles including revenue, expenditures, fiscal systems, risk analysis, and investment analysis. Economics for oil and gas projects under conditions of certainty and uncertainty. Petroleum economics net present value internal rate of return. The usual taxes that must be paid by oil and gas producers are described. Economic and financial determinants of oil and gas. The 2008 national oil and gas policy required that an appropriate framework be put in place to aid the sustainable management of oil and gas revenues. Petroleum economics and contract management in the oil and. Economics of worldwide petroleum production petroskills. Personal statement on admission into oil and gas management postgraduate course.

The enormous economic contribution of the oil and gas industry to many national economies makes its future of critical importance to the global community. Economics drives the entire oil gas producing industry. Transporting oil and gas by pipeline is generally cheaper than transporting it by rail or truck. In this book, we describe and analyze the global oil and gas industry with a focus on the strategic, financial, and business aspects of the industry.

Economic evaluations are also performed to determine reserves and the standardized measure of value for reporting purposes for publicly held companies. Department of the interior, bureau of ocean energy management herndon. It is an excellent book because it considers all economic aspects of the petroleum industry. Petroleum engineers specialising in petroleum economics can work for oil and gas exploration and production companies, service companies, banks and investment houses. Identify all elements of a project lifecycle and say who is involved. By the end of this course delegates will be able to. Chapter 8 petroleum for the foreseeable future, oil will remain a critical fuel for the united states and all other industrialized nations.

The multiplicity of factors that influence the directions of the petroleum production chain is huge, making the task of preparing strategies and action plans. Pdf the economic structure of the petroleum industry differs strongly. With over 20 years handson experience as a petroleum economist in the upstream oil and gas industry, peter has a detailed understanding of the technical and financial aspects of the industry as well as the key determinants of project value and risk. This paper examines ghanas petroleum industry, its steady growth, and its initial challenges, such as. Petroleum economics is one of the most influential players in the world economy, so having a comprehensive understanding of this vital area is key for anyone working within the oil and gas or energy industries. Oil and gas projects have special characteristics that need a different technique in project management. Although oil and gas are likely to be major sources of. The subjects treated are petroleum economics, project evaluation and corporate finance. As you can gain experience, senior positions in operations and team leading will materialise and you will be further involved in the discovery and maintenance of the worlds oil and gas supply. The ccop guidelines for risk assessment of petroleum. Comparative assessment of the federal oil and gas fiscal systems.

Portfolio management in oil and gas building and preserving optionality 1 change is the new constant in an increasingly complex and uncertain environment, oil and gas companies worldwide are facing relentless pressure to improve returns even as they encounter strong headwinds. Hr management for oil and gas managers and supervisors. Among those concerned with the manyfaceted area of energy, there has been increasing. International journal of academic research in economics and management sciences july 2014, vol. While the energy transition aims to find substitutes for these energy sources in the medium term by emphasizing technological innovation, the economic and financial challenges faced by these sectors cannot be ignored. Petroleum migrates as a mixture of oil, gas and water. The nontheoretical approach makes this an incredibly interesting and well thought out book, written by a mentor whose principles i still observe to this day. The main types and elements of fiscal regimes around the world will be presented.

It is also an important tool in exploration strategy, especially when assessing the ranking of prospects. This book offers a comprehensive introduction to the economics of oil and natural gas extraction and production along with a detailed discussion of pricing, taxing, and markets of these most valuable commodities. However i wish it could be updated by the authors or other scholars interested in petroleum industries. This pdf is a selection from an outofprint volume from the national. This highly interactive and scenariobased training programme will enable you to apply a structured approach to project justification, investment appraisal and decisionmaking in the upstream petroleum business. Introduction to petroleum economics is about the process of gathering project data, calculating whether a project should proceed and delivering recommendations. Introduction to petroleum economics learning objectives. The course will introduce you to petroleum economics in the upstream oil and gas business, providing you with the knowledge, language and tools to improve your commercial business awareness and to sharpen your focus on value creation. It discusses the science of petroleum economics, starting from squareone, the tools of the trade that petroleum economists use, day in and day out, and also its application. Oil contracts and principle of the oil rent sharing. The participants will receive an overview of petroleum economics, including an introduction to basic cash flow and net present value. The gas allocated to each oil reservoir and its economic results are given in table 3. The certificate in petroleum economics is the ideal course for both individuals and corporate groups to develop this crucial knowledge.

In the oil and gas industry it is often useful to be able to express price forecasts in both. Energy economics studies forces that lead economic agents firms, individuals, governments. Some of our courses lead to certifications, validating competencies needed in jobs, such as economist, financial analyst, jurist or auditor. Financial modeling and petroleum project economics. In accord with the secretarys direction, this report specifically includes. The oil and gas industry is one of the worlds largest and most important global industries. Introduction to petroleum economics an introduction to petroleum economic is a reallife, concise and hugely enjoyable in depth look at one of the key fundamentals of the oil and gas industry. Energy management 0206 march 2015 dubai, 1620 march 2015 moscow, 2327 march 2015 istanbul. Review the common types of oil and gas upstream projects. The training approach is based on principles of economic evaluation of petroleum related project with focusing on step by step developing economic models, determining economic indicators, evaluating and quantifying risks and uncertainties and making the right investment decision for the project. Pdf petroleum economics, risk and opportunity analysis.

Expanded basic petroleum economics training course. During this course participants will evaluate and make recommendations on potential oil and gas investments. Therefore, these projects need a sort of management match with their. The international collaborative program in petroleum economics and management is designed for students or professionals with degrees in science, engineering or social science business school, law, seeking indepth training to develop a commanding skill set in energy techniques, energy economics and management. An oil company has estimated the following cash flow for an oil project. The msc petroleum, energy economics and finance is a course highly regarded for being both intellectually challenging and for providing the careerready credentials that are essential to increase your appeal with employers within an energy economics context. A look at the challenges of managing the countrys oil and gas reservoirs development process and production process of countrys oil and gas. Petroleum economists are also involved in the assessment and management of the technical, economic and other risks associated with the different phases of an oil or gas projects. International gas business management certificate program. Several key concepts that will be covered are the time value of money, cash flow basics, common economic indicators, fiscal systems and project selection fundamentals.

In the reservoir these phases separate according to density with the most dense, water on the bottom, least dense gas on top and oil between the two. Vision 2040 global scenarios for the oil and gas industry 5 how to read the study few areas of the economy are as volatile literally and figuratively as the oil and gas sector. Orlandi encyclopedia of life support systems eolss depends on the costs that will be sustained globally and on current prices. Petroleum economics distance learning training course. Module 3 discusses expenditures, including capital and operating expenses. Standard handbook of petroleum and natural gas engineering second edition. Detailed product pricing and cost information for oil or gas exploration and development should be collected if the discounted cash flow method dcf is expected to be used. The nontheoretical approach makes this an incredibly interesting and well thought out book, written by a mentor whose principles i still observe to this.

Sensitivity analysis of technical and economic parameters. Petroleum economics free download as powerpoint presentation. Module 5 discusses incorporating risk and uncertainty into economic. With bsc in mechanical engineering, i have had over twenty 20 years of varying engineering working experience.

Petroleum economics school of minerals and energy resources. Our expertise also extends to the economic and managerial aspects of our industry in which energy is at the heart of challenges to be met in the coming years. Over fifteen 15 years has been with the volta river authority vra, a power utility in ghana, in which i served in various capacities including project engineer and. Our petroleum economics and management program will provide you with multifaceted. Oil, gas and petroleum management graduates will initially apply for positions such as environmental consultant or research administrator. Module 4 presents an overview of fiscal systems, including the different types of contracts. To diversify the risk, oil firms have developed a strategy of horizontal integration, where possible. This course is an excellent introduction to the fundamentals of petroleum economics. The structure of the oil and gas industry also provides economists with a. Financial modeling and petroleum project economics during these two units, participants will gain an integrated and practical understanding of.