INTRODUCTION:
One of the most significant, capital-intensive, and dangerous industries is the petroleum one. Spending on exploration and production worldwide increased in 2013 by 7% to $644 billion from $604 billion. The budgets for exploration peaked in 2014 at $654 billion, but they were reduced to $521 billion in 2015 and then further decreased by 27% in 2016. Global expenditures on exploration and production are predicted to rise by 7% this year.
The profit margins in the upstream sector are really being squeezed by a number of variables, such as growing inflation, global oversupply, price volatility, lower oil and gas finds per foot of exploration drilling, increased expenses of developing new assets, and so on. The following are some of the most common questions we get from our customers.
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
ORGANISATIONAL BENEFITS
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 BENEFITS
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 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
Method of Instruction
Online
Course Duration:
5days
Type of Certificate Issued:
On a successful completion of this training, Participants will be issued
Certificate in Advanced Oil & Gas Project Economics, Risk & Decision Analysis
Participants can choose to have their certificate in any of the three options below:
- Digital Certificate (Downloadable (PDF)
- Physical Certificate with security marking shipped to your location with a price
- Framed Certificate with security markings shipped to your location with a price.
REGISTRATION: