Petrocash: Basic Petroleum Economics

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Upcoming courses

Location	Dates	Cost
	<to be announced>

Detailed Course Outline

Monday

Analysis of Profitability
Accounting Concepts
Cash Flow
Cash Flow Analysis
Basic Cash Flow Design
Project Definition
Profitability Yardsticks
Pay Out Time
Profit to Investment Ratio
Discounting

Discounted Cash Flows
Net Present Value
Determining Discount Factors
Weighted Average Cost of Capital
Rate of Return
Hurdle Rate Concept
Discounted Profit to Investment Ratio
EMV Analysis
EMV Analysis
Maximum Sustainable Risk

Tuesday

Determination of Oil and Gas Reserves
Volumetric Reserve Determination
Concepts of Field and Reservoir
Determination of Basic Reservoir Parameters
Area of Closure
Rock Volume
Porosity
Recovery Factor
Decision Tree Analysis

Simple and Complex Decision Trees
Geological Risk
Statistical Analysis
Geological Analysis
Monte Carlo Analysis
Determination of Probability Distributions
Interdependence of Variables
Monte Carlo Simulation

Wednesday

Exploration Costs
Geophysical Programs: 2-D and 3-D
Cost of Exploration Wells: Onshore and Offshore
Impact of Well Depth and Logistics on Exploration Well Cost
Delineation Costs
Nature and Scope of Appraisal Programs
Appraisal Well Costs
Oil and Gas Production
Factors Affecting the Oil and Gas Production Curves
Development Wells

Production Methods
Primary, Secondary, and Tertiary Recovery
Development Costs
Onshore and Offshore Development Schedules
Deep Water Issues
Development Well Costs
Facilities Costs
Impact of Gas/Oil Ratio on Facilities Costs
Platform Costs

Thursday

Operating Costs
Fixed Operating Costs
Variable Operating Costs
Pipelines
Capital and Operating Costs
Pipeline Tariffs
Marine Tanker Transport Costs
Tanker Market
Tanker Transport Rates

Crude Oil Quality
Metal Content and Pour Point
Sulfur Content and Gravity
Crude Oil Prices
Posted Prices
Net Back Prices and Formula Prices
Quality of Natural Gas
Gas Prices

Friday

Escalation and Inflation
Determination of Escalation Factors
Determination of Inflation Rates
Cash Flow in Nominal and Real Values
Methodology of Determining Constant Dollar Cash Flows
Financing

Financing Concepts
Impact of Financing of the Cash Flow
Posted Prices
Net Back Prices and Formula Prices
Oil and Gas Field Profitability
Main Technical and Economic Factors that Determine Oil & Gas Field Profitability