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Home | Courses | Advanced Oil & Gas Project Economics, Risk & Decision Analysis
Date
Format
Time
Fees
30 Nov 04 Dec 2020 Live / Online 11:00 to 16:00 Dubai [GMT +4] $2,950 Register
04 08 Jul 2021 Live / Online 11:00 to 16:00 Dubai [GMT +4] $2,950 Register
14 18 Nov 2021 Live / Online 11:00 to 16:00 Dubai [GMT +4] $2,950 Register
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Course Description

Introduction

The petroleum industry is one of the most important, highly capital intensive and risky business. Global exploration and production spending in 2013 was $644 billion, up 7% from $604 billion the year before. In 2014, the exploration budgets reached $654 billion but this fell to $521 billion in 2015 and in the following year, 2016, there was a further decline of 27%. This year’s global exploration and production spending is expected to increase 7%.

The upstream sector’s profit margins are under real pressure from many factors such as higher costs of developing new reserves, less oil and gas found per foot of exploration drilling, rising inflation, global oversupply and price volatility. Competition for investments, for acreage / concessions, aging of existing reservoirs, the of unconventional oil and gas revolution all contribute business risk and uncertainty.

Petroleum industry projects are by their very nature risky, the challenge however is in assessing, managing, and mitigating this risk proactively. The three biggest planning challenges are predicting costs, assessing profitability, and risk management. All these tasks occur in the early stages of capital planning and failure to adequately evaluate these elements can lead to heavy losses.

This GLOMACS online training seminar will highlight:

  • Identification of the stages required in the risk analysis process, i.e., preparing, modeling, and running risk analysis
  • Development of the risk model, assessing probabilities to various variables, risk analysis, and explore the impact of uncertain variables
  • Enable the participants to create reports such as, tornadoes diagrams, scatter plots and cumulative probability functions, using excel
  • Application of decision trees and Monte Carlo-based simulations to generate profitability indicators
  • Enable the participants to develop probabilistic cashflow reports along with probabilistic profitability indicators for decision-making

Objectives

The primary objectives of this online training seminar are to:

  • Learn how to handle uncertainty in petroleum projects
  • Understand different economic terms used in the oil & gas industry
  • Understand the expected value concept and learn its impact on decision tree analysis
  • Learn expected theory concepts and attitudes towards risk, risk eversion and risk premium
  • Acquire spreadsheet skills including simulation software @RISK
  • Carry out cashflow analysis, for petroleum related project and use common economic indicators to evaluate between competing alternatives
  • Carry out a comprehensive economic study evaluating petroleum related projects using risk and sensitivity analysis by means of spreadsheets

Training Methodology

This online training course will utilize a variety of proven online learning techniques to ensure maximum understanding, comprehension, retention of the information presented. The training course is conducted Online via an Advanced Virtual Learning Platform in the comfort of any location of your choice.

Organisational Impact

By sending delegates on this five-day online training seminar, your organization will benefit by:

  • Learning how to apply economic valuation and risk assessment processes and techniques within the global oil and gas industry
  • Help the participants to identify and analyze the risk involved in a petroleum related project
  • Assist the participants to apply the decision-making procedures to justify the petroleum projects in terms of profitability
  • Participants learn the decision analysis process and foundation concepts so they can actively participate in multi-discipline evaluation teams
  • Monte Carlo simulation is discussed and experienced in detail in hands-on exercises
  • Adding value to the oil and gas company’s active projects, through the use of case studies
  • Help participants to recognize and identify the influencing parameters for oil and gas field developments

Personal Impact

By attending this online training seminar, you will:

  • Learn how to describe the elements of the decision analysis process and grasp how construct a project cashflow model incorporating sensitivity analysis
  • Evaluate investment and design alternatives with decision tree analysis
  • Gain the operational decision making techniques using @Risk
  • Gain valuable knowledge in identifying the important uncertainties in petroleum projects
  • Enhance your awareness of the influential parameters in an oil and gas field development projects

Who Should Attend?

This GLOMACS Advanced Oil & Gas Project Economics, Risk & Decision Analysis online training seminar is designed to provide technical and practical approaches to executing a petroleum related project in the upstream sector.

This training seminar is suitable to a wide range of professionals but will greatly benefit:

  • Planning Managers
  • Oil & Gas Engineers
  • Project Managers
  • Analysts
  • Commercial Managers
  • Economists
  • Government Officials
  • Geologists
  • Business Advisors
  • Asset Managers
  • E&P Managers
  • Product Managers
  • Project Management Professionals
Course Outline

DAY 1

Development Economics

  • A Brief History of Energy Usage
  • Principles of Development Economics
  • Understanding of Economic Terms
  • Inflation and its Impact on Nominal & Real CashFlows
  • Project Financing

DAY 2

Uncertainty in Investments

  • Handling Uncertainty in Capital Projects
  • Understanding Probability Concepts
  • The Expected Value Concept: Features and Pitfalls
    • Expected Monetary Value (EMV)
    • Expected Profitability Index (EPI)
    • Expected Opportunity Loss (EOL)

DAY 3

Risks and Uncertainties

  • Risk & Uncertainty
  • Risk Aversion and Risk Premium
  • Exploration Project Threats and Opportunities
  • Economic Decision Criteria
  • Decision Tree Analysis
  • Probability Distribution
  • Monte Carlo Simulation

DAY 4

Setting-up Spreadsheet Calculations Using Excel

  • Spreadsheet Calculations
    • CashFlow Analysis
    • Sensitivity Analysis Calculations
    • Tornado Diagrams
  • Introduction to Monte Carlo Simulations using @Risk
  • Setting-up an Oil Field Project

DAY 5

Practical Use of the @Risk add-on: Oil Field Development Model

  • Developing an Integrated Economic Model of an Oil Field Development
  • Developing and using an @Risk Model Analysis
  • Project Sensitivity Analysis utilizing data from @Risk Model
  • Training Seminar Final Review and Close
Certificates
  • On successful completion of this training course, GLOMACS E-Certificate with eligible Continuing Professional Education credits (CPE) from National Registry of CPE Sponsor and Professional Development Units (PDUs) / Contact Hours from Project Management Institute (PMI®), will be awarded to the delegates
Providers and Associations

Endorsed Education Provider

  • Quality Logo
  • Quality Logo

REP logo, PMI & PMP are registered trademarks of Project Management Institute, Inc.

In Association With

PetroKnowledge

PetroKnowledge

Our collaboration with Petroknowledge aims to provide the best training services and benefits for our valued clients

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