Geol.790 Petroleum Economics (3 C.H)
Course contents: Introduction to Petroleum Economics and Risk Analysis; The Role of Economics in the E&P Industry; Importance of Risk Analysis; Overview of Investment Decision-Making. Basic Concepts in Petroleum Economics; Time Value of Money; Cash Flow Analysis; Discounting and Compounding; Sensitivity Analysis. Cost Estimation in E&P Projects; Capital Expenditures (CAPEX); Operating Expenditures (OPEX); Finding and Development Costs; Cost Escalation and Inflation. Revenue Forecasting and Pricing; Hydrocarbon Reserves Estimation; Oil and Gas Price Forecasting; Production Forecasting. Investment Appraisal Techniques; Net Present Value (NPV); Internal Rate of Return (IRR); Profitability Index (PI); Payback Period; Economic Limit; Monte Carlo Simulation. Risk Analysis and Uncertainty; Types of Risks in E&P Projects; Quantitative Risk Analysis; Sensitivity Analysis; Decision Trees; Real Options Analysis.
Recommended Books:
- An Introduction to Exploration Economics by Megill, R. E. (1979). Pennwell.
- Petroleum Economics and Risk Analysis: A Practical Guide to E&P Investment Decision-Making (Volume 71) (Developments in Petroleum Science, Volume 71) by Cook, M. (2021). 1st Edition. Elsevier.
- Petroleum Economics by Masseron, J. (2000). Editions Technips.