Basic Petroleum Economics - BEC3

Discipline: Petroleum Business
Level: Basic
Instructors who teach this course:
  • Mr. Tim Nieman
  • Dr. Kent Saugier
  • Dr. Richard D. Seba
  • Mr. Ronnie Tucker

Related courses
Expanded Basic Petroleum Economics - BEC
About the course Designed For You will learn Course Content
About the course
Could you answer the following three questions for your next project? What will it cost? What is it worth? Will it earn sufficient profit? Before undertaking any project, these questions should be answered, and this course will provide the fundamentals necessary to enable you to do so. Contractual arrangements, which also significantly impact the economic viability of a project, are covered. Participants practice cash flow techniques for economic evaluations and investigate frequently encountered situations. Each participant will receive Economics of Worldwide Petroleum Production, written specifically for PetroSkills courses.
Designed For
Managers, engineers, explorationists, field accounting supervisors and other personnel who need to develop or improve their skill and understanding of basic economic analysis and profitability of petroleum exploration and production. Due to similarity in content, PetroSkills recommends that participants take this course if they have no previous experience in this subject. For participants with more exposure to the subject, please review the Economics of Worldwide Petroleum Production description as its course content is more advanced than either Basic Petroleum Economics or Expanded Basic Petroleum Economics. Take one or the other, but not both courses.
You will learn
  • How to evaluate the economic viability of a project
  • Cash flow techniques applicable in economic evaluations
  • How to use economic criteria to choose investments
  • Models to weigh risk and uncertainty
Course Content
  • Forecasting oil production
  • Defining: "reserves", operating expenses, capital expenditures, inflation, factors effecting oil and gas prices
  • Cash flow techniques
  • Economic criteria: interest, hurdle rate, time value of money, selection, ranking criteria
  • Risk, uncertainty: types of risk, mathematical techniques, probabilistic models, uncertainty in economic analysis
  • Tips on economic factors in computer spreadsheet analysis
  • Ethics in economic analyses