Petroleum Economics On-Line Course
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This seven-unit course, titled Petroleum Economics Interactive, provides a solid foundation of the basic economic factors and concepts pertaining to decision-making in the petroleum industry. The subject matter is presented using real-life scenarios and fictional characters that represent various "players" involved in the decision process.
The course concludes with a module that challenges the participants understanding of the material presented. A simulated board of directors meeting is presented, and a decision must be made about the projects under consideration for development.
Module 1 discusses cash flow basics, including revenue and expenditures. Before tax and after tax cash flow are then calculated.
Module 2 presents revenue, including production volume, scheduling and decline. Product prices, net profitability and economic limits are presented.
Module 3 discusses expenditures, including capital and operating expenses. The usual taxes that must be paid by oil and gas producers are described.
Module 4 presents an overview of fiscal systems, including the different types of contracts.
Module 5 discusses incorporating risk and uncertainty into economic evaluations.
Module 6 presents investment analysis, including the time value of money, economic indicators and opportunity costs.
Module 7 is the economics challenge, including the simulated board meeting and project selection.
Engineering technician, production and drilling personnel, new hires and supervisors with no prior economics experience.