This course will cover the economic analysis and decision modeling concepts and methodologies used in the financial evaluation of oil and gas wells and projects.
Duration
One day (eight hours)
CEUs Earned
.8 hours
Prerequisites
Working in the upstream oil and gas industry in a technical, business development, asset management or strategic planning role.
Who Should Attend
Geologists, geophysicists, reservoir engineers, production and operations engineers, reserves analysts, business development, strategic planning and asset managers.
Course Outline
- Why perform economic analysis
- Various economic indicators
- How do companies rank the projects in their portfolio?
- Cost of capital and discount factor
- What is an appropriate discount factor to use?
- Discounted Cash Flow Analysis
- Present value of future cash flows
- Risk analysis and expected monetary value (EMV)
- Decision trees and how to capture uncertainty
- Decision modeling and value of information
Learner Outcomes
- Learn about the most common type of economic indicators used to rank projects.
- Present value of future cash flows and discounted cash flow analysis.
- Discuss how to raise capital and calculate the “weighted average cost of capital.”
- Learn how to make the best possible decision in view of uncertainty in outcome.
- How to build decision trees and make the “best possible decision.”
