About the Course

Volatility and uncertainty are central aspects that characterise the oil & gas industry. Volatility in oil & gas projects is the highest of any other industrial sector. The imperfect knowledge of the future creates elevated uncertainty; the sources of uncertainty vary in every phase of oil & gas programmes, from exploration, appraisal and field development to refining, transportation and sales.

Quantifying uncertainty creates value since it can potentially change or influence a critical decision in a more favourable direction. For this reason, it is essential to appreciate the role of uncertainty quantification methods for each phase in the petroleum value chain and the application of economic analysis and financial management to guide the decision-making process to maximise profits with less effort.

This 5-day interactive Applied Economics & Financial Management for Oil & Gas Industry training course highlights practical aspects of economic analysis and financial management applied to oil & gas projects to facilitate informed decision-making and foster long-term business resilience and agility for capital-intensive projects under multi-dimensional uncertainties. Also, this training programme offers guidance on applying Bayesian inference and constructing and assessing decision trees for more complex, sequential decision choices, which is the cornerstone of high performance.

Core Objectives

The delegates will achieve the following objectives:

• Facilitate high-quality decisions under uncertainty
• Recognise the sources of uncertainty in every phase of the project
• Apply effective data-driven modelling frameworks 
• Utilise Porter’s Five Forces Model for external risk management
• Know how to assess unconventional rock potential
• Understand the use of decision trees to evaluate more complex sequential decision choices

Training Approach

This is a high-level workshop with interwoven economics and financial project management principles. This training course provides an overview of economic and financial concepts and petroleum resources management to leverage complex, sequential decision-making. Delegates will learn and apply techniques and workflows to solve economic exercises using advanced software-based and manual methods.

Also, the delegates will be exposed to real-world case studies and examples from multiple fields worldwide. Some case studies will be presented and handed to delegates as a class activity to evaluate economic potential, quantify uncertainty, identify risks and propose optimisation measures to develop high-quality decisions. Furthermore, the delegates will complete real-world projects for assessing hydrocarbon resources performance and economic value under uncertainty, including unconventional resources and other emerging energy resources.

The Attendees

The training course provides practical technical and leadership approaches to applying economics and financial management to industrial projects. It is highly recommended for various management, planning, operations and engineering professionals. 

Likewise, it will be valuable to the professionals but not limited to the following:

• Investment Advisors
• Risk Managers
• Planning Analysts
• Operations Supervisors
• Executives in Private and Public Organisations
• Business and Government Leaders
• Energy Professionals
• Petroleum Engineering Disciplines
• Geoscientists
• Regulatory, Security, and Political Authorities
• Auditors and Compliance Officers
• Merger & Acquisition
• Project Management
• Professionals working in the fields of Economy, Finance, Accounting, and Investment

Daily Discussion

DAY ONE: ECONOMIC AND FINANCIAL MANAGEMENT

• Decision Theory
• Economic Concepts & Definitions
• Economics & Sustainability
• Project Finance
• Cash Flow Analysis

DAY TWO: HYDROCARBON RESOURCES ECONOMIC EVALUATION

• Petroleum Resources Management System
• Resources Classification Framework
• Petroleum Fluids & Products
• Net Present Value
• Screening and Evaluation of Oil & Gas Projects

DAY THREE: ECONOMIC MODELING AND FORECASTING

• Data-Driven vs First-Principle Modeling
• Data-Driven Modeling Tasks
• Reservoir Performance
• Sources of Uncertainty
• Risk Category
• Systematic Uncertainty Quantification

DAY FOUR: UNCONVENTIONAL RESOURCES

• Types of Unconventional Oil & Gas
• Geological Aspects & Characteristics
• Unconventional Rock Potential
• Modified van Krevelen Diagram
• Shale Gas Well Evaluation

DAY FIVE: DECISION-MAKING FRAMEWORK

• Bayesian Thinking
• Decision and Risk Analysis
• Decision Analysis Framework
• Decision Tree Construction
• Decision Tree Evaluation
• Interactive, Immersive Work Environments