The Economics of Exploration and Production in the Oil and Gas Industry

The key question in every business centres on costs and returns. The Oil and Gas business is no different.

This course is designed to bring personnel from different departments engaged in the management of a petroleum business to a common understanding as to the economic feasibility of the exploration, drilling and production projects.



This introductory course is intended for Managers, Engineers, Accounting/Commercial Officers and other personnel who need to develop or improve their skills and understanding of basic economic analysis and profitability of petroleum exploration and production.



By the end of this course participants will have a better understanding of  -

• How to evaluate the economic viability of a project using the DCF method
• Petroleum contracts and fiscal systems
• Models to weigh risk and uncertainty
• Techniques to manage sensitivity and after tax factors
• The effects of finance, inflation, tariffs and breakeven costs on financial performance
• The basic principles of gas economics
• Project evaluation and screening criteria

Topics covered during the course will include :

• Project Economics - The DCF Method
• Economics - Allowing for inflation and exchange rates
• Decommissioning
• Tariffs and breakeven costs
• Petroleum contracts and fiscal systems
• Decision and uncertainty analysis
• Information management
• Gas Economics
• Economic analysis and indicators
• Exploration and Production Economics - The Legal Approach