FN13

Basic Petroleum Economics

  Objectives:

This course aims to enhance the participant’s ability to make excellent economical studies of the projects on hand in order to choose the best alternative that will have positive impact on the development of the company.

Contents:

1-     Basic concepts

2-     Petroleum evaluations: purpose & methods

3-     Hydrocarbon reserves in the world

4-     Briefing of the oil property forms in the U.S.

5-     Return on investment

6-     Discounted cash flow (DCF):PV concepts, PV profile,payout time, rate of return, buying power of investment money.

7-     Appraisal of uncertain ventures

8-     Decline analysis

9-     Confidence factoring

10-      Sensitivity analysis

11-      Expected monetary value.

12-      Decision trees & economic models.

13-      Purpose served by decision trees,variations in degree & kind,symbols & layout.

14-      Analysis of a probability tree.

15-      Economic significance,methods of estimating expected discoveries.

16-      Evaluation of expected discoveries in mature regions.

17-      Economic significance.