Fundamentals of Petroleum Industry Economics: Ourse Yllabus

COURSE SYLLABUS
Fundamentals of Petroleum Industry Economics
Duration
Three classroom days providing 2.4 CEU (Continuing Education Credits) or 24 PDH (Professional
Development Hours)
Summary
This three-day course offers an opportunity for petroleum industry employees and related government,
financial, legal and service industries to gain an understanding of the unique economic principles that
drive the "oil business" to success in the 21st century. The course begins with a presentation of basic
economic theory and develops its application to financing, finding, development, transportation and
marketing of energy resources. The impact of these on the success or failure of the firm is then
considered. The course uses real life examples and experiences and, wherever possible, case studies
which allow all to participate in group discussion and learning. Participants are required to bring a
laptop, loaded with Microsoft Excel, to the course.
Who Should Attend
The course is specifically designed for those new to the industry or transitioning from one area of the
industry to another. Directors, Government officials and investors as well as new hires and those curious
about the oil/gas business space should attend to learn not only the language but also the analysis
methods and decision processes as the industry uses its capital to return value to shareholders. The
course is very much hands-on with practical case studies and applications.
Participants will learn to

1. Understand the context and methodology utilized by the industry in analysis, evaluation,
selection and monitoring of any project or segment of the organization.
2. Know and comprehend the elements, data sources, data value boundaries, terminology, tools
and processes used in economic evaluation.
3. Understand the effects of bounding data in consideration of and quantification of risk in project
selection.
4. Have an awareness of the key metrics of the industry and develop the ability to use metrics in
analysis.
5. Develop an initial proficiency in use of economic project modeling through use of spread-sheet
financial modeling of multiple real-world problems with outcomes.
6. Learn how to undertake an analysis and present the results for management review.
7. Understand the unique language of industry economic analysis and discussion.
8. Gain an awareness of the external and internal forces, drivers and accuracy limits of cost, price
and reserve forecasting.
9. Learn how to develop an analysis strategy with consideration of physical product markets,
hedging, costs, budget constraints, capital markets and corporate goals.
PEICE is part of the RPS Group

training.rpsgroup.com
COURSE SYLLABUS
Course Outline
• Basic Economic Concepts in the Petroleum Industry
• Cash Flow and Profit Analysis Techniques
• Performing Basic Economic and Financial Calculations
• World Energy Economics
• Competing Fuel Analysis
• Theory of the Firm in the Petroleum Sector
• Depreciation and Cost Resource Pools
• Company Financing
• Joint Ventures
• Sunk Cost Analysis
• Fixed and Variable Costs
• Principles of Discounting
• Cost of Capital
• Portfolio Management in the Petroleum Industry
Course Agenda
Day One
1. Introduction to oil/gas economics and common usage
2. Economic calculations
3. Models
4. Money calculations
5. Profit indicators and their use
6. Case studies 1-4
7. Basics of upstream industry language and nomenclature
Day two
1. Case study 5
2. Oil price forecasting
3. Gas price forecasting
4. Oil transportation
5. Capital sources
6. Reserve forecasting
Day three
1. Cost and capital forecasting
2. Valuation and finance
3. Risk considerations
4. Use of futures - hedging
5. Portfolio management
6. Joint ventures
7. Case study 6

COURSE SYLLABUS
Instructor
Gerald Henderson earned a B. S. and M. S. degree in Petroleum Engineering and has over 30 years’
experience as reservoir engineer, investor, producing property and facility owner, operator and CEO
and founder of independent oil and gas companies. He worked extensively in development of
producing property appraisal software and analysis methods, technology to apply statistical analysis of
exploration and well log data and published extensively in reservoir simulation development. Gerald
has also acted as energy advisor to private banking and insurance investment companies.
Course Dates
Please visit the course details webpage for currently scheduled course dates.
Available for In-House Group Delivery

This course is available for In-House Training and the content can be customized to suit the needs of
your organization. For more information or to request a proposal, please email
[email protected] or call 713-482-3858 (USA), 403-284-1250 (Canada).


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COURSE SYLLABUS

Fundamentals of Petroleum Industry Economics

Who Should Attend

Participants will learn to

PEICE is part of the RPS Group

PEICE is part of the RPS Group

Available for In-House Group Delivery

PEICE is part of the RPS Group

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