Please visit the course list builder to get started. 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. Introduction to petroleum economics is about the process of gathering project data, calculating whether a project should proceed and delivering recommendations. Petroleum project economics and risk analysis workshop. It is an excellent book because it considers all economic aspects of the petroleum industry. The economic decisions continue throughout the producing life of the project. Course philosophy petroleum professionals need to have a thorough understanding of the value chain and the global competitive landscape in which they operate. Economic evaluation in the petroleum industry inflation prediction. His research interest covers the oil, gas, and refining industry and is related to cost assessment, fiscal analysis, infrastructure modeling, and valuation studies. The internationalization of china oil companies 4 hours 1.
The present study considers two important and complementary reasons. Economic evaluation of petroleum projects basic aspects dr. Petroleum economics net present value internal rate of. Petroleum project economics and risk analysis ihrdc. This course is designed for learning the basics of petroleum economics and project selection. It covers everything you need to know about the economics behind the petroleum industry, in very simple language. Orlandi encyclopedia of life support systems eolss these shows structural characteristics, relations of strength, economic and political dynamics which cannot be immediately attributed to the traditional life cycle of an industry and which indeed can no longer be repeated. Mai 2004 ppm 2nd workshop of the china case study 28 1 calculate separately the present value of all the cashflow elements 2 add together the discounted cashflow elements time 012 cashflow100 80 70. Project economic issues have been pigeonholed into a very narrow concern with the calculation of economic rates of return, as opposed to a more fundamental. The economics of petroleum refining home canadian fuels. Scribd is the worlds largest social reading and publishing site.
You have to use the rate of return of the best alternative use of money as the discount rate. 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. This book presents basic aspects of current petroleum refining technology and economics in quite a systematic manner. Petroleum projects which involve different activities. Petroleum economics and engineering crc press book. Introduction to petroleum economics society of petroleum. Importance of petroleum economics in decision making macroeconomic condition and project evaluation upstream economic evaluation time value of money cash flow analysis and present value key economic indicators for project evaluation probability and statistics in decision making uncertainty analysis tornado diagram, sensitivity analysis decision tree and monte carlo analysis. This new reprint, a collaboration between spe and the society of petroleum evaluation engineers spee, combines the subjects of property and project evaluation, economics, and finance by offering a selection of papers that were presented in spe publications and other forums over the past 30 years. Petroleum economics, risk and opportunity analysis.
In particular, the pervasive presence of important distortions is the main reason it was necessaryor at least exceedingly usefulto construct these concepts. Project management committee to focus on seamless execution of projects. 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. Report of the committee on revisiting and revitalizing the public. The course provides a comprehensive overview of the practices of exploration and development petroleum economics and its application in valuing oil and gas assets to aid corporate decisions. Petroleum economics and engineering abdelaal, hussein k. The subjects treated are petroleum economics, project evaluation and corporate finance. The kelkar report, submitted to the petroleum ministry in january 2014, has lifted verbatim material from an association of oil and gas operators aogo report.
Decisions through the lifecycle of a petroleum project 3 d. Kaiser has led several studies and published extensively in the field and regularly teaches petroleum economics at lsu and short courses for. Expanded basic petroleum economics training course. The basic introduction of evaluation methods of oil project and oil firms 3. Economics modeling for petroleum exploration and production projects considering risk and imprecise data. Economic evaluation in the petroleum industry paperback 20. Vijay kelkar, felt the switchover should be in a phased. Literally any other choice for an economics book will be a better one. Petroleum economics free download as powerpoint presentation. Vijay kelkar, whos been the secretary oil and finance in the past, has repeated verbatim a privately commissioned report that lobbies for big corporates including reliance, in his latest report on the hydrocarbon sector called roadmap for reduction in import dependency in hydrocarbon sector by 2030. Academic partnership for a masters of science degree in.
The assessment of profit oil or gas should be conducted on the basis of self. For each issue, list what your interest is and in parenthesis list your position based on each. Petroleum economics distance learning training course. The applicability of various probability distributions to the petroleum project development cost analysis is discussed. Covers the application of a wide range of topics, including reservoir characterization, geology and geophysics, core analysis, well logging, well testing, reservoir management, enhanced oil recovery, fluid mechanics, performance prediction, reservoir simulation, digital energy, uncertaintyrisk assessment, information management, resource and reserve evaluation, portfolioasset management. Econ 2000 this course introduces students to the economics of energy at the micro level. Economic evaluation is an essential step for assessing and studying and selecting new petroleum projects which involve different activities. Aogo represents the group of oil and gas explorers which has interest in the indian hydrocarbon sector.
Decisions through the lifecycle of a petroleum project 3 d seismic drill a wildcat drop appraisal drop drop develop in all these phases you have to take decisions investment analysis is used as a managerial tool to take such decisions accept work progr drop applybid license drop mai 2004 ppm 2nd workshop of the china case study 4 objectives. Report of the committee on roadmap for reduction in import. Project economics and uncertainty are recurring themes both in course presentations and. Steps to be taken to enhance domestic oil and gas production. Pdf economics modeling for petroleum exploration and. Economic evaluation of petroleum projects basic aspects. Introduction to probability distribution and petroleum. China united states mexico former ussr venezuela iran kuwait uae iraq. Info university of oklahomas p e department has 12 courses in course hero with 2. An introduction to the oil and gas value chains and the identification of business opportunities along these chains.
These developments make some associated works easier and may help to increase the available information, decrease cost and risks, and. Developed new methodology for evaluating in fill potential in tight gas reservoir. This article presents basic aspects related to the economic evaluation process such as concepts and. Participants, working in teams, will evaluate an oil and gas business opportunity in the republic of. Esanda engineering petroleum economics and risk analysis. Huge quantities of data are provided so that the casestudy method can be. The presentation here is brief, providing the participant only with the basics that. This book is a guide to the basic economics of petroleum production as practiced throughout the world. 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.
The evaluation methods of project and oil firms 4 hours 1. Economic evaluation in the petroleum industry free ebook download as pdf. Project evaluation 183 discounted cash flow 183 factors which influence interest hurdle rate 184 185 internal rate of return irr 186 v. Growing refining overcapacity has resulted in recent refin. The 5 days sophisticated training course in petroleum economics is an entrylevel course designed to bridge gaps in your knowledge and give you true business advantage. Basic petroleum economics by mari kvaal august 2004 3rd ppm philippines case stydy workshop 2. Discussion progresses from an introduction to the industry, through principles and techniques of engineering economics, to the application of economic methods. Petroleum economics and engineering crc press book this book explains how to apply economic analysis to the evaluation of engineering challenges in the petroleum industry. Economic decision criteria in this part we will see how how to use cashflow and discounting to decide whether a project is economic or not.
Economic and financial determinants of oil and gas. The petroleum companies generally make the decision for a certain petroleum project on the base of economics models. Due to similarity in content, petroskills recommends that participants take this course if they have no previous experience in this subject. Citlalli olivares planning document form negotiation. Planning document bullard houses mgmt47 negotiation. The comparison of methods of evaluation of project and firms 4.
Economics modeling for petroleum exploration and production projects considering risk and imprecise data thesis pdf available january 2016 with 10,901 reads how we measure reads. Involved in reservoir description field projects and integrated studies. Then the net present value means the increase in value by choosing this project instead of the best alternative. This chapter covers the basic economic principles that govern the oil and gas industry. The economic evaluation of projects in the bank tends to be overoptimistic and to neglect downside risksa tendency it shares with the banks macroeconomic forecasts. Energy project economics and measures of performance. Similarly, the ministry of petroleum and natural gas. 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. Feb 17, 2015 new york basel tm petroleum refining technology and economics fourth edition james h. International journal of research in management, economics and commerce issn 2250057x, impact factor. The certificate in petroleum economics is the ideal course for both individuals and corporate groups to develop this crucial knowledge. Textbooks can only be purchased by selecting courses. Analysis of financial performance of hindustan petroleum.
Petroleum economics net present value internal rate of return. Review of the applications of decision tree analysis in petroleum. And so, to improve the decision making process and to be able to face modern challenges, it is imperative to develop a robust solution of the petroleum economics model and an assessment of the associated risks. The petroleum companies generally make the decision for a certain. Participants will construct economic models, to include basic fiscal terms, production and cost profiles and project timing. The majority of ge 494 projects are specified such that the economic analysis is a. Within north america, recent demand for refined petroleum products has been flat to declining and is forecast to continue on this path. Basic petroleum economics mai 2004 ppm 2nd workshop of the china case study 2 investment decisions investment decisions are among the most important decisions that a companygovernment can take capital intensive irreversible high riskuncertainty. However i wish it could be updated by the authors or other scholars interested in petroleum industries.
Buyers representative determine your positions and interests on each issue. Discussion progresses from an introduction to the industry. Gary colorado school of mines golden, colorado glen marcel dekker, inc. This course will explain how to apply tools from petroleum economics which help make better decisions for upstream oil and gas opportunities. Obviously, united states imports a large portion of the petroleum that it consumes. That became possible thanks to advanced programs, additional skillsand experiences as well as the outputs of mathematical and statistical sciences. View petroleum economics and project evaluation kelkar. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.
Economics for oil and gas projects under conditions of certainty and uncertainty. This paper presents an economic feasibility study for co2 coupled with eor in a small mature brazilian oilfield. Review of the applications of decision tree analysis in. The present value of a project is the sum of discounted cash flow elements.
List the issues in order of importance and add more issues if necessary. This course is an excellent introduction to the fundamentals of petroleum economics. The economic, political and policy implications of this state of affairs are discussed in chapter 21. Oil prices on indian economy submitted for the award of doctor of. Cornelis van kooten university of victoria victoria, canada draft. Kelkar committee roadmap for fiscal consolidation ministry of. Economics is the primary link between basics of petroleum. This course will introduce a variety of fundamental petroleum economic principles including revenue, expenditures, fiscal systems, risk analysis, and investment analysis.
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