About the Course

Can you predict the oil price today, tomorrow or next year? Uncertainty and riskiness are inherent characteristics in the hydrocarbon industry; thus, evaluating and quantifying uncertainties and risks associated with a course of action is critical to succeeding in the petroleum business. This is especially vital as oil & gas production is capital-intensive with high operating costs, and the decisions made today last for decades with long-lived assets.

This 5-day interactive Certificate in Economics of Oil & Gas training course highlights economic and uncertainty analysis applied to oil and gas projects to facilitate informed decision-making and foster long-term business resilience for complex systems and projects. Field applications for screening and evaluation of hydrocarbon resources are studied in detail with practical techniques.

This is a high-level training programme with engineering and project economics principles interwoven. It overviews economic concepts and petroleum resources management to leverage complex, sequential decision-making. Delegates will learn and apply techniques and workflows to solve economic exercises using software-based and manual methods. Furthermore, delegates will utilise innovative methods to systematically qualify the relative economic merits of investment opportunities and review several analytical, empirical and numerical methods for estimating the volumetric performances of petroleum reservoirs.

Core Objectives

The delegates will achieve the following objectives:

• Facilitate high-quality decisions under uncertainty
• Recognise the sources of uncertainty in the hydrocarbon business
• Apply effective modelling frameworks for quantitive analysis
• Develop data to knowledge to action resiliency
• Compare alternatives from operational performance and economic perspectives

Training Approach

This training course will include engineering and project economics principles, providing an overview of economic concepts and petroleum resources management to leverage complex, sequential decision-making. The delegates will learn and apply techniques and workflows to solve economic exercises using software-based and manual methods.

Also, they will be exposed to real-world case studies from multiple fields worldwide. Some case studies will be presented and handed to delegates as a class activity to evaluate the case, identify risks and propose optimisation measures. Furthermore, the delegates will complete projects assessing hydrocarbon resources' performance and economic value under uncertainty.

The Attendees

This training course is highly recommended for management, planning, budgeting, operations, and engineering professionals.

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

• Business and Government Leaders
• Energy Professionals
• Petroleum Engineering Disciplines
• Geoscientists
• Regulatory, Security, and Political Authorities
• Merger & Acquisition
• Project Management
• Professionals working in the field of Economy, Finance, Business Administration and Investment

Daily Discussion

DAY ONE: ECONOMIC PRINCIPLES

• Motivation
• Economic Concepts
• Economic Definitions
• Cash Flow Analysis
• Time Value of Money

DAY TWO: HYDROCARBON RESOURCES ECONOMIC EVALUATION

• Petroleum Resources Management System
• Petroleum Reserves
• Return on Investment
• Net Present Value
• Screening and Evaluation of Oil & Gas Projects

DAY THREE: MODELING AND FORECASTING

• Building Models from Data
• Reservoir Performance
• Well Production Forecast
• Sensitivity Analysis
• Monte Carlo Simulation

DAY FOUR: UNCONVENTIONAL RESOURCES

• Unconventional Reservoirs
• Rate Forecast
• Economic Value Estimation
• Investment Evaluation Methods
• Bayesian Inference

DAY FIVE: DECISION AND UNCERTAINTY ANALYSIS

• Sources of Uncertainty
• Risks from Uncertainty
• Decision Tree Construction and Evaluation
• Decision Analysis and Framework
• Informed Decision-Making