Economics of Oil and Gas Production

Can you predict the oil price today, tomorrow, or next year? Uncertainty and risk are inherent in the hydrocarbon industry, thus evaluating and quantifying uncertainties and risks associated with a course of action is a vital step in the petroleum business. This is especially critical as oil and gas production is capital-intensive with high operating costs, and the decisions made today last for decades with long-lived assets.

This Economics of Oil and Gas Production training course highlights economic and uncertainty analysis applied to oil and gas projects to facilitate informed decision-making and foster long-term business resilience for complex systems and projects. Applications for screening and evaluation are studied in detail.

This GLOMACS Economics of Oil and Gas Production training course will highlight:

• Decision & Risk Analysis for Oil & Gas
• Economic Concepts in the Petroleum Industry
• Modeling Uncertainty for Hydrocarbon Projects
• Bayesian Thinking and Decision Tree Framework
• Economic Evaluation of Unconventional Resources

At the end of this training course, you will learn to:

• Facilitate high-quality decisions under uncertainty
• Recognize the sources of uncertainty in the hydrocarbon business
• Apply effective modeling frameworks for quantitative analysis
• Develop data to knowledge to action resiliency
• Compare alternatives from operational performance and economical perspectives

This is a high-level training course with engineering and project economics principles interwoven in. The training course provides an overview of economic concepts and petroleum resources management to leverage complex, sequential decision-making. Delegates attending this Economics of Oil and Gas Production training course will learn and apply techniques and workflows to solve economic exercises using software-based and manual methods.

Also, the delegates will have exposure to real-world case studies from multiple fields the world over. Some of the case studies will be presented and handed to delegates as a class activity to evaluate the case, identify risks and propose optimization measures. Furthermore, the delegates will complete projects with the objective of evaluating hydrocarbon resources performance and economic value under uncertainty.

Decision made in the oil and gas industry last for decades. For this reason, multi-agent decision-making frameworks are the need of the hour. This Economics of Oil and Gas Production training course will guide participants to evaluate complex economic options and construct decision trees to streamline high-quality decision processes across the organization.

Delegates in this Economics of Oil and Gas Production training course, through lectures, presentations, and cases, will develop critical skills to become more effective members and leaders of oil and gas project assessment and deployment. Training participants will practice a variety of relevant techniques, including Monte Carlo simulation, decision tree framework and Bayesian thinking.

Through exercises and case studies, participants will appreciate the value of reliable modeling to enable long-term business resilience.

This workshop is highly recommended for a wide range of professionals in management, planning, operations, and engineering disciplines. It is specially of great value to: 

• Business and Government Leaders
• Energy Professionals
• Professionals working in the field of Economy, Finance, Business Administration, and Investment
• Petroleum Engineering Disciplines
• Geoscientists
• Regulatory, Security and Political Authorities
• Merger & Acquisition
• Project Management

DAY 1

Economic Principles 

• Motivation
• Economic Concepts
• Economic Definitions
• Cash Flow Analysis
• Time Value of Money

DAY 2

Hydrocarbon Resources Economic Evaluation 

• Petroleum Resources Management System
• Petroleum Reserves
• Return on Investment
• Net Present Value
• Screening and Evaluation of Oil & Gas Projects

DAY 3

Modeling and Forecasting  

• Building Models from Data
• Reservoir Performance
• Well Production Forecast
• Sensitivity Analysis
• Monte Carlo Simulation

DAY 4

Unconventional Resources 

• Unconventional Reservoirs
• Rate Forecast
• Economic Value Estimation
• Investment Evaluation Methods
• Bayesian Inference

DAY 5

Decision and Uncertainty Analysis 

• Sources of Uncertainty
• Risks from Uncertainty
• Decision Tree Construction and Evaluation
• Decision Analysis and Framework

In Association With

PetroKnowledge

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

© 2023. Material published by GLOMACS shown here is copyrighted.
All rights reserved. Any unauthorized copying, distribution, use, dissemination, downloading, storing (in any medium), transmission, reproduction or reliance in whole or any part of this course outline is prohibited and will constitute an infringement of copyright.

P.O. Box 74653, Dubai, United Arab Emirates
Tel : +971 - 04 - 425 0700, Fax : +971 (04) 425 0701, Email : info@glomacs.com