Oil and Gas Economic

Introduction

The oil and gas products are two major contributor in energy mix. The oil and gas economic are concerned about the demand of energy and availability of resources especially oil and gas to meet the future requirement. Therefore, factors driven the energy demand and capabilities of oil and gas industry become important aspects in order to provide the sufficient crude oil and natural gas in the market.

This training divides by two main parts, the first part explores the evolution of the carbon economy and energy markets. Also it will consider labour markets in the oil and gas sector. Further this training will consider exploration and appraisal economics (including probability and expectation curves), field development options (including modeling cash flows, profitability and risk indicators, net present value, investment appraisal, environmental issues), incremental analysis and economics (including depletion models), late field economics and decommissioning.

Aims

This training aims to provide participants with an understanding of world energy markets and the evolution of, and challenges facing, the carbon economy; to provide participants with a working practical knowledge of the role that oil and gas economics plays in the decision making within the oil and gas exploration and production lifecycle.

Outcome

On completion of this module, participants are expected to be able to:

• evaluate concepts and principles underlining operation of oil and gas markets.
• critically reflect on and apply the principles of Oil and Gas economics to decision making relating to field development options.
• apply economic modeling approaches to risk and uncertainty in an Oil and Gas context
• assess the economics of field appraisal, field development and end of field life.

Topic Contents

Day 1

• General Opening
• Topic 1
  Introduction to oil and gas Economic
  • Global Economy
  • Demand Driven : Emerging markets
  • Energy Price
• Topic 2
  Oil and Gas in Energy Mix (Statistical review World Energy)
  • Oil reserve to production ratio
  • Energy subsidies
  • Gas
  • Gas Reserve to Production Ratio
  • Coal
  • Coal Reserve to Production Ratio
  • Biofuel
  • Other Alternatives Energy
• Topic 3
• Energy Market and Competition
  • Oil, Colonialism, and Resource Nationalism
  • A Changing Political landscape
  • Crude Oil Price historical price
  • The seven sister
  • Oligopoly Theory and the Oil Industry - the role of OPEC
• Topic 4
  Energy Market Regulation
  • o Natural Monopoly
  • o State or Municipal Ownership
  • o Privatisation
  • o Regional Regulation
• Topic 5
  Indonesia Oil and Gas Regulation
  • Law No. 22 of 2001 on Oil and Natural Gas.
  • Government Regulation No. 35 of 2004 on Oil and Gas Upstream Activities (as amended by Government Regulation No. 34 of 2005 and Government Regulation No. 55 of 2009).
  • Government Regulation No. 36 of 2004 on Oil and Gas Downstream Activities (as amended by Government Regulation No. 30 of 2009).

Day 2

• Topic 6
  Petroleum Economic and Oil & Gas Accounting
  • Petroleum Economic - Benefit & Cost
  • Understanding relationship of PE and Oil & Accounting
• Topic 7
  Petroleum Economic and Oil & Gas Decision Making of Business
  • Screening & Optimisation
  • Decision Economic
  • Review Economic
  • Uncertainty in Economic evaluation
• Topic 8
  Indicator in Oil and Gas Project Decision
  • Economic and Risk Indicator
  • Payback Period
  • Time Value for Money
  • Discounted Cash Flow
    • NPV
    • Profitability Index
    • IRR
• Topic 9
  Exercise on Discount Rate Calculation
  • WACC
  • Corporate Hurdle Rate
  • Project Discount Rate

Day 3

• Topic 10
  Project Selection exercise using input CAPEX, OPEX and indicator of NVP,PI,IRR , Payback Period
• Topic 11
  Energy Transformation
  • Learn from Renewable Energy transformation
• Question and Answer
• Summary

Training Duration: 3 Days

Participants:

- Employees who working in Oil & Gas Industry, Energy sector that interest in Oil and Gas Economic.
- Economic Officer with different background of Oil & Gas or Petroleum or Energy that would like to enhance the understanding of Oil and Gas Economic.
- Decision Maker or Executives Management who would like to revisit the Oil & Gas Economic
- Other participants working in or related to Oil & Gas Industry.

Course Leader :

Expert Trainer

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