Petroleum Economics Online

In the Cash Flow Basics module you will cover the following topics:

• Calculating cash flow
• Identifying the components necessary to compute cash flow
• Possible methods to determine production volume
• Price and price variances
• Defining royalties
• Common operating expenses
• Identifying tangible and intangible capital investments

In the Revenue module you will cover the following topics:

• Factors involved in calculating the revenue portion of net cash flow
• Calculating oil and gas reserves
• Offset well information used in determining reserves
• Volumetric Equation Analysis
• The use of decline curves for forecasting production and revenue
• Projecting a production schedule for a reservoir and predicting the economic limits of profitable production
• How the physical properties and market price of oil determine its value

In the Expenditure module you will cover the following topics:

• Factors involved in calculating the expenditure portion of net cash flow projections
• How responsibilities for expenditures are assigned
• Accounting for capital expenditures
• Common costs associated with start-up and operating oil and gas fields
• Taxes that must be paid by oil and gas producers

In the Fiscal Systems module you will cover the following topics:

• The concept of Mineral Ownership
• The concept Economic Rent
• Differentiating between Concessionary and Contractual Fiscal Systems
• Differentiating between Service and Production Sharing Contracts
• Differentiating between Regressive and Progressive Fiscal Systems
• How fiscal systems can affect economic decision-making in the petroleum industry

In the Risk Analysis module you will cover the following topics:

• The concepts of Risk, Uncertainty and Probability
• Common sources of risk in the petroleum industry
• Uncertainty associated with petroleum development
• Assigning probabilities to possible outcomes
• Accounting for risk and uncertainty in economic analysis

In the Investment Analysis module you will cover the following topics:

• The concept of Time Value of Money
• Calculating Present Values from estimated future cash flows
• Identifying economic indicators typically involved in investment analysis
• The concept of Opportunity Cost
• How these factors can influence economic decision-making