N014 Petroleum Economics and Risk Analysis
N014 Petroleum Economics and Risk Analysis
Business Impact: This course will provide attendees with methods to identify and incorporate subsurface facilities and commercial uncertainties into an economic evaluation of a project. Additionally, it will provide practice with tools with which to manage the associated risks, thereby reducing the investor’s exposure to financial downside while taking advantage of potential upside.
This course details the main financial concepts and economic evaluation techniques and related financial concepts that are used in the oil and gas upstream business to assist decision making on either the investment of capital or the divestment of assets. The course will be focused upon the conversion of hydrocarbon volumes to ‘monetary value’ and the requirement for consistent means of determining both the absolute and relative attractiveness of investment opportunities, from exploration, through appraisal and new field development to portfolio management decisions.
This is a five-day classroom course comprising of a mixture of lectures and practical exercises some of which use bespoke software tools.
Participants will learn how to:
This course will explain the petroleum economics techniques that are applied in the oil and gas business to assist decision making on either the investment of capital or the divestment of assets. This course will focus on the conversion of hydrocarbon volumes to ‘dollars’ and the requirement for consistent means of determining the attractiveness of investment opportunities, from exploration, through appraisal and new field development to new field developments to portfolio management decisions. The course materials include many exercises to embed the principles of petroleum economics and some related financial concepts across the E&P asset life cycle. A feature of this course is the use of AGR TRACS MCApp tool for Monte Carlo simulation.
Introduction
Development Economics
Incremental Economics
Risk and Uncertainty Analysis
Defining Uncertainty and Risk; Statistician’s vs Practitioner’s View
Exploration Economics
Economics of Appraisal
Heuristics - Human Bias in Uncertainty Estimation
Risk and Uncertainty in Development Planning
Portfolio Management
Subsurface professionals of all disciplines (geoscientists, engineers and managers) involved in the E&P process who wish to obtain an understanding of petroleum economics, and those who are transferring from a technical discipline into the world of commercial evaluation.
A working use of Excel is required (including an understanding of formula use and basic Excel functions).
Upon completion of this course possible follow up courses could include N006 (An Introduction to Reservoir Engineering), N412 (A Critical Guide to Reservoir Appraisal and Development), N425 (Play Analysis for Targeted Prospect Identification) and N995 (Managing Uncertainty and Risk in Appraisal and Development).
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Background
Affiliations and Accreditation
MBA, Henley Management College
BSc, University of Nottingham, Chemical Engineering
Courses Taught
N006: An Introduction to Reservoir Engineering for Geoscientists
N014: Petroleum Economics and Risk Analysis
D006: An Introduction to Reservoir Engineering for Geoscientists (Distance Learning)
D014: Petroleum Economics and Risk Analysis (Distance Learning)
N444: Development Planning For Mature Fields
Background
Richard Oxlade is an oil and gas industry advisor with a petroleum engineering background. He has over 35 years of oil and gas industry experience with a major operator (BP) and a consultancy (TRACS) in a range of technical, commercial, and leadership roles. He is recognised as a very strong analytical thinker who can cover strategic issues and deal with complexity and detail. He is respected for providing business advice at all levels of the organisation up to CEO level. He has a track record of working with multi-disciplinary teams, complemented by an enthusiasm for developing others through coaching and teaching.
Courses Taught
N006: An Introduction to Reservoir Engineering
N014: Petroleum Economics and Risk Analysis
N310: Carbonate Reservoir Modelling and Field Development Planning (Provence, France)
N444: Development Planning For Mature Fields
Background
David Palmer has over 27 years’ experience as a career Economist and Commercial Specialist, of which 20 years was spent in the upstream Oil Industry working on many high profile projects and key investment decision processes. After working as a Regional Planning Economist, he joined BNOC as a Business Analyst and following privatization in 1982 was tasked with managing the commercial evaluation of all Britoil’s operated fields and joint venture interests. When Britoil was acquired by BP in 1988 he was appointed Commercial Manager for Northern North Sea Developments and Ventures, later moving into central roles as Commercial Review Team Leader and Commercial Advisor on key investment decisions. From 1992 he also took on sole accountability for developing BP Exploration’s global commercial skills training framework, including the partnership training needs of State Oil Companies and other Associates. He has delivered commercial courses and teamwork training in many parts of the world and cultural settings.
Affiliations and Accreditation
The Polytechnic Wolvertonhampton
B.A. Hons Business Economics 2nd Class (1st Division).
HND Pt I Business Studies / Data Processing.
Royal Town Planning Institute parts I, II, III (main)
Team Management Systems (Margerison-McCann): TMS Master Accreditation
Courses Taught
N014: Petroleum Economics and Risk Analysis
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