Petroleum Economics and Risk Analysis


Candidates:

Engineers, geologists, economists, accountants, technicians as well as managers and supervisors who need to learn and/or develop their understanding on how to conduct economic evaluation to help them in investment decision making.

Summary:

This workshop provides practical guidance in the application of the techniques of the economic analysis currently used in the oil & gas industry. It covers the techniques which assist in making investment decisions. It also covers in detail the cash flow analysis, economic indicators, risk and uncertainty. The workshop will include a number of exercises aimed at enhancing each participant capability to conduct various economic evaluations. Each participant will attempt to develop spreadsheet calculations of various economic analyses.

Contents:

  • Cash Flow
  • Depreciation, Sunk Costs and Escalation
  • Project Financing
  • Economic Indicators
  • Discount Factors and IRR
  • Interest and Inflation
  • Payback and EPSA
  • Risk and Uncertainty
  • Categories of Risk
  • Probability & Sensitivity Analysis
  • Reserve Distribution
  • Mont Carlo Simulation