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Provided by: HOT Engineering Petroleum Economics and BusinessGeological Engineering |
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Training
Provided by HOT Engineering
This course teaches the fundamentals of assessing the economic viability of upstream oil & gas projects in terms of the data/ information required, the calculation techniques used, the assumptions made and how to interpret the resulting metrics such as NPV, ROI, ROR, IRR, P/ I, etc.
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Petroleum Economics and Business Seminar Schedule
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Petroleum Economics and Business
The days of over-the-wall economics are drawing to a close. More and more technologists are being directly involved in economic valuations either through being asked to perform these evaluations or by participating in related issues such as calculating the value of information, data, technical work or research. Any technologist who wants to be aware of the value of their contribution, or who aspires to management or decision-making positions, will find great value in understanding project economics and its underlying assumptions.
The material taught in this course underlies the economic evaluation of projects large and small from the economics of a fracture stimulation, through side-tracking a well, to major field development decisions. Due to the large impact of discounting, an emphasis will be placed on the philosophy and assumptions behind it and the choice of appropriate discount rate. The importance of the distinction between new and incremental projects will be made. Finally, the impacts of uncertainty in the data that goes into economic calculations, and how risk is dealt with, will be discussed. The objective is to have the attendees leave with the ability to carry out straightforward economic calculations that do not involve complex tax regimes.
OUTLINE
Context and purpose of economic evaluation
Developing Net Cash Flow (NCF) estimates
Revenue and Expense (Capital and Operating) streams
Depletion, Depreciation and Abandonment provisions
Taxes, Royalties and Production Sharing Contracts
Discounted Cash Flow analysis: time value of money and discount rates
Value and investment metrics: Net Present Value, Rate-of-Return, Return-on-Investment, Investment Efficiency, hurdle rates
Incremental vs. acceleration projects
Strengths and weaknesses of DCF and NPV
Sources of uncertainty and accounting for risk
WHO SHOULD ATTEND
Surface and sub-surface technologists (engineers of all disciplines, geologists and geophysicists, petrophysicists) who directly or indirectly contribute information or data to economic evaluations.
The material taught in this course underlies the economic evaluation of projects large and small from the economics of a fracture stimulation, through side-tracking a well, to major field development decisions. Due to the large impact of discounting, an emphasis will be placed on the philosophy and assumptions behind it and the choice of appropriate discount rate. The importance of the distinction between new and incremental projects will be made. Finally, the impacts of uncertainty in the data that goes into economic calculations, and how risk is dealt with, will be discussed. The objective is to have the attendees leave with the ability to carry out straightforward economic calculations that do not involve complex tax regimes.
OUTLINE
Context and purpose of economic evaluation
Developing Net Cash Flow (NCF) estimates
Revenue and Expense (Capital and Operating) streams
Depletion, Depreciation and Abandonment provisions
Taxes, Royalties and Production Sharing Contracts
Discounted Cash Flow analysis: time value of money and discount rates
Value and investment metrics: Net Present Value, Rate-of-Return, Return-on-Investment, Investment Efficiency, hurdle rates
Incremental vs. acceleration projects
Strengths and weaknesses of DCF and NPV
Sources of uncertainty and accounting for risk
WHO SHOULD ATTEND
Surface and sub-surface technologists (engineers of all disciplines, geologists and geophysicists, petrophysicists) who directly or indirectly contribute information or data to economic evaluations.
About The Training Provider: HOT Engineering
HOT Engineering - HOT Engineering (www. hoteng. com) a company headquartered in Austria, offers exploration and field development services and E&P training services to the petroleum industry worldwide. With more than 20 years of consulting experience, we are one of the leading providers of advanced and integrated geological, geophysical, petrophysical and reservoir and production engineering technology.
