Introduction

The "Petroleum Economics and Risk Analysis" course is designed to provide participants with a comprehensive understanding of the economic principles and risk assessment techniques applicable to the petroleum industry. This five-day program covers everything from basic economic frameworks to advanced risk analysis, equipping professionals with the tools and knowledge necessary to excel in decision-making processes within the sector.

Objectives

• Understand the fundamental concepts of petroleum economics.
• Analyze the financial feasibility and economic viability of petroleum projects.
• Assess and manage risks in the petroleum industry.
• Develop strategies for effective economic decision-making.
• Communicate economic and risk analysis findings effectively.

Course Outlines

Day 1: Introduction to Petroleum Economics

• Overview of the global oil and gas industry
• Basic economic principles and concepts
• Supply and demand dynamics
• Price formation and market structures
• The role of technology and innovation in economics

Day 2: Economic Evaluation of Petroleum Projects

• Cash flow analysis and financial metrics
• Capital budgeting techniques
• Cost estimation and control
• Economic indicators: NPV, IRR, and profitability index
• Case studies on project evaluation

Day 3: Risk Analysis in the Petroleum Sector

• Types of risks in the oil and gas industry
• Risk identification and assessment techniques
• Quantitative and qualitative risk analysis
• Risk management frameworks
• Scenario planning and sensitivity analysis

Day 4: Advanced Economic and Risk Analysis Techniques

• Monte Carlo simulation for risk assessment
• Real options analysis in project evaluation
• Portfolio management and diversification strategies
• Evolving market dynamics and geopolitical influences
• Digital tools and software for economic analysis

Day 5: Strategic Decision-Making and Communication

• Integrating economics and risk analysis in decision-making
• Strategic planning and competitive positioning
• Communicating analysis to stakeholders
• Negotiation and influence in economic contexts
• Group project and presentation