COURSE INFORMATION
Upstream Petroleum Economics using Excel
Location:
Calgary, Alberta
Type:
Training Course
Length:
2 Days
CEU:
1.6
PDH:
16
Fee:
$1695 CAD
5% GST will be added to course fees upon registration.
Date:
Monday, June 4, 2012
8:30 AM - 4:30 PM
Tuesday, June 5, 2012
8:30 AM - 4:30 PM
Course Description
This hands-on course examines many of the traditional topics of engineering economics as applied to typical upstream oil and gas evaluations through introduction of concepts followed by illustrative Excel modeling exercises. The course also sets the stage for various ways to incorporate risk into our analyses and for analyzing uncertainty.
A complete set of course materials and lunch is included in this course.
*Participants will need to bring a PC laptop with Microsoft Excel to each day of this course*
Course Outline
DAY 1
Principles of Petroleum Economic Analysis
Overview − Basic Principles for Economic Analysis
Ingredients for an Economic Evaluation - Objectives and recurring themes; generating a cash flow forecast, time value of money, understanding the analysis scope and purpose, project viability.
Economic Analysis Procedure − How to start, what to consider, where to go to get the appropriate information and estimates as inputs.
Developing a Cash Flow Prediction − Investments (such as capital expenditures and operating expenses), revenue (from selling production at a price), timing issues.
Time Value of Money – Defining and understanding the role of discount rate, investigate the effects of varying discount rate.
Economic Metrics – Net present value (NPV), internal rate of return, payout, profit to investment measures, finding and development costs, and other appropriate metrics.
Fiscal Regime (Tax – Royalty)
Examples and Exercises Interspersed Throughout the Day
DAY 2
Petroleum Economics – Applications
Multiple Potential Investments − Ranking projects, considerations of constraints and business objectives, formulating fair-comparison models.
Multiple Potential Investments − Portfolio considerations and complexities.
Probability of Success – Geologic, mechanical, commercial – how to incorporate them in our models.
Incorporating Risk Factors − Chance of success, qualitative risk, how risk affects ranking projects, how risk affects portfolios.
Correlation and Dependency − Recognizing dependency or correlation among ventures, projects, or wells, and why we must consider this in our business economics.
Beyond Deterministic Economics – An introduction to stochastic (probabilistic) economics and the rational for applying this methodology.
Examples and Exercises Interspersed Throughout the Day
Final Comprehensive Exercise - Valuation Case Study
Instructor
Susan K. PetersonSusan Peterson is an independent consultant based out of Houston Texas, and is a leader in applying risk and decision analysis to engineering economics and field development strategies.
Susan received her PhD from Texas A&M University in Petroleum engineering with Minors in Finance, Geology and Statistics.
With over 25 years of career experience in the oil and gas industry, Susan now consults on Risk Analysis and Decision Methods on a global scale, instructs on many areas of economics in the Oil and Gas industry, and remains an active member of the Society of Petroleum Engineers (SPE) and the American Association of Drilling Engineers (AADE).
Venue
Ramada Hotel (Downtown Calgary) - Bordeaux Room708 8th Ave SW
Calgary, AB
View MapDirections:
The Bordeaux room is located on the conference floor (2nd floor) of the Ramada Hotel. To access the room, take the stairs in the lobby or the elevator. If you need assistance in finding the room, please ask the front desk staff. There will also be signage in the conference center to direct you to the room.
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