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Course code: 000587
School of Business and Management
FIAC012 - Petroleum Economics and Risk Analysis
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Currently, this course is conducted only in an intracorporate format.
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What this course about?

In today's rapidly evolving energy sector, the ability to effectively evaluate and manage economic risks and opportunities stands as a cornerstone for successful exploration and production (E&P) ventures. Our meticulously designed Petroleum Economics and Risk Analysis training program is crafted to meet the demands of professionals seeking to excel in this dynamic field. Through a comprehensive curriculum that bridges theoretical knowledge with practical application, this program is your gateway to mastering the intricacies of petroleum economics.

The program embarks on a journey through the fundamentals of petroleum economics, offering a solid foundation in economic terms, cashflow analysis, and the vital role of economic analysis in E&P investment decisions. Participants will learn to navigate the complexities of developing economic models under various petroleum fiscal regimes and to employ critical economic indicators for insightful project evaluation. This foundational module sets the stage for more advanced topics, ensuring participants are well-prepared for the depth of analysis required in later stages.

As the program progresses, it delves into the nuanced world of risk management and decision analysis, equipping participants with the tools to assess and mitigate risks inherent in petroleum projects. From understanding the basics of risk and uncertainty to applying sophisticated risk assessment methods like Monte Carlo Simulation, learners will gain the confidence to make informed decisions under conditions of uncertainty. This rigorous analysis is complemented by practical training in spreadsheet modeling, where participants will apply their knowledge to real-world economic evaluations and oil field development projects.

The culmination of this training program is a comprehensive module focused on investment decision-making and strategic planning. Participants will engage in a detailed economic evaluation of petroleum projects, integrating risk analysis and sensitivity studies to guide investment decisions within a robust economic framework. Through interactive discussions and case studies, learners will refine their decision-making skills, contributing effectively to the strategic planning and success of petroleum projects.

Designed for professionals by industry experts, this training program not only imparts essential knowledge and skills but also fosters a deep understanding of the economic and risk analysis processes critical to the oil & gas industry. Whether you're looking to enhance your expertise or to make significant contributions to your organization's strategic objectives, this program offers the knowledge, tools, and confidence needed to navigate the complexities of petroleum economics and risk analysis.

Who is this course for?
The Petroleum Economics and Risk Analysis training program is meticulously designed for a diverse range of professionals within the oil and gas industry who are involved in or aspiring to engage with the financial, strategic, and operational aspects of exploration and production (E&P) projects. This course is particularly beneficial for:
- Petroleum Engineers: Those who wish to enhance their understanding of the economic factors that influence project viability and operational decisions.
- Project Managers and Planners: Professionals responsible for overseeing E&P projects who need to incorporate economic evaluations and risk analysis into project planning and decision-making.
- Financial Analysts and Economists: Individuals specializing in financial analysis within the oil and gas sector who require a deep dive into industry-specific economic modeling and risk assessment techniques.
- Investment Analysts and Advisors: Those who provide investment advice or evaluate investment opportunities in the oil and gas industry, needing expertise in assessing project risks and returns.
- Risk Managers: Professionals tasked with identifying, analyzing, and mitigating financial and operational risks within E&P projects.
- Government and Regulatory Agency Staff: Employees involved in the regulation, taxation, and oversight of the oil and gas industry who need to understand the economic and financial underpinnings of the sector.
- Business Development and Strategy Professionals: Individuals involved in strategic planning and business development within the oil and gas industry who require insights into economic evaluation and risk analysis to identify and pursue growth opportunities.
- Legal Professionals and Contract Specialists: Those who deal with contracts, negotiations, and legal aspects of oil and gas projects and need to understand the economic implications of various contractual and fiscal arrangements.
- Corporate Planners and Strategists: Individuals involved in strategic planning and long-term decision-making for companies within the oil and gas industry, aiming to align corporate strategies with economic realities and risk profiles.
This training program is ideal for anyone looking to deepen their understanding of petroleum economics, enhance their skill set in economic analysis and risk management, and make informed decisions that will positively impact the profitability and sustainability of oil and gas projects.
What will you learn?
  • Understand Key Economic Terms and Principles: Gain a solid grasp of the economic terms, concepts, and principles specific to the oil and gas industry, including the intricacies of cash flow analysis and the importance of economic evaluations in project investments
  • Develop and Analyze Economic Models: Build and interpret economic models tailored to various petroleum fiscal regimes. Delegates will learn to carry out cash flow analysis and determine economic indicators, enabling the evaluation of different investment opportunities
  • Apply Economic Indicators Effectively: Utilize key economic indicators such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period to assess project viability and make informed decisions. Understanding these indicators will allow delegates to evaluate the significance of investments and their potential return
  • Assess and Manage Risks: Identify, quantify, and manage risks and uncertainties associated with petroleum projects. Through techniques like sensitivity analysis, Monte Carlo simulation, and probability analysis, delegates will be adept at evaluating decision alternatives and risk profiles for better project outcomes
  • Make Informed Investment Decisions: With a comprehensive understanding of economic evaluation and risk assessment techniques, delegates will be capable of making sound investment decisions, even in the presence of significant risks and uncertainties
  • Conduct Comprehensive Economic Evaluation Studies: Perform detailed economic evaluations, including risk analysis and sensitivity studies, using spreadsheet models. This capability will enable delegates to contribute effectively to the financial planning and strategic decision-making processes within their organizations
  • Enhance Strategic Planning and Decision-Making: Equip themselves with the tools and insights necessary to contribute to the strategic planning and decision-making processes, ensuring that economic considerations and risk assessments are integral to the development and implementation of corporate strategies
  • Communicate Economic Analyses Effectively: Develop the ability to clearly articulate economic analysis outcomes and risk assessments to stakeholders, including management teams, investors, and regulatory bodies, enhancing the transparency and credibility of decision-making processes
Courses in this discipline
Course outline
  • Overview of the oil & gas industry's economic landscape
  • Importance of economic analysis in E&P investment decisions
  • Economic terms and definitions used in the oil & gas industry
  • Basics of cashflow analysis, including depreciation methods, inflation impacts, and real vs. nominal cashflows
  • Introduction to various petroleum fiscal regimes
  • Setting up economic models for cashflow calculation and analysis
  • Understanding and calculating key economic indicators (NPV, IRR, Payback Period, etc.)
  • Analyzing the effects of project delays and incremental projects
  • Understanding risk and uncertainty, expected value concept
  • Techniques for risk evaluation: Decision Tree Analysis, Probability Analysis, Sensitivity Analysis
  • Probability distribution and Monte Carlo Simulation for petroleum economics
  • Farm-out decision analysis
  • Basics of spreadsheet calculation for economic analysis
  • Practical exercises on simple cashflow, NPV calculations, and application of economic indicators using Excel
  • Building an integrated economic model of a typical oil field development
  • Project sensitivity analysis and introduction to the Russell Field model
  • Steps to conduct a comprehensive economic evaluation study, including risk analysis and sensitivity study
  • Contribution to petroleum project investment decisions within an economic framework
  • Enhancing the decision-making process for petroleum projects through solid economic evaluation and risk management
  • Class discussion on real-world case studies and final remarks
Eni
Total
Eni
Endesa
Shell
Chevron
Gas Natural
Iberdrola
Eni
Inpex
Eni
Exonmobile
Frequently Asked Questions (FAQ)

Training can take place in 4 formats:

  • Self-paced
  • Blended learning
  • Instructor-led online (webinar)
  • Instructor-led offline (classroom)

Description of training formats:

  • Self-paced learning or e-Learning means you can learn in your own time and control the amount of material to consume. There is no need to complete the assignments and take the courses at the same time as other learners.
  • Blended learning or "hybrid learning" means you can combine Self-paced learning or e-Learning with traditional instructor-led classroom or webinar activities. This approach requires physical presence of both teacher and student in physical or virtual (webinars) classrooms or workshops. Webinar is a seminar or presentation that takes place on the internet, allowing participants in different locations to see and hear the presenter, ask questions, and sometimes answer polls.
  • Instructor-led training, or ILT, means that the learning can be delivered in a lecture or classroom format, as an interactive workshop, as a demonstration under the supervision and control of qualified trainer or instructor with the opportunity for learners to practice, or even virtually, using video-conferencing tools.

When forming groups of students, special attention is paid to important criteria - the same level of knowledge and interests among all students of the course, in order to maintain stable group dynamics during training.

Group dynamics is the development of a group in time, which is caused by the interaction of participants with each other and external influence on the group. In other words, these are the stages that the training group goes through in the process of communicating with the coach and among themselves.

The optimal group size for different types of training:

  • Self-paced / E-learning: 1
  • Instructor-led off-line (classroom): 6 – 12
  • Instructor-led on-line (webinar): 6 – 12
  • Blended learning: 6 – 12
  • Workshop: 6 – 12
  • On-the-job: 2 – 4
  • Simulator: 1 – 2

Feedback in the form of assessments and recommendations is given to students during the course of training with the participation of an instructor and is saved in the course card and student profile.

In order to control the quality of the services provided, students can evaluate the quality and training programme. Forms of assessment of the quality of training differ for courses with the participation of an instructor and those that are held in a self-paced format.

For courses with an instructor, start and end dates are indicated. At the same time, it is important to pay attention to the deadlines for passing tests, exams and practical tasks. If the specified deadlines are missed, the student may not be allowed to complete the entire course programme.

A personal account is a space for storing your training preferences, test and exam results, grades on completed training, as well as your individual plan for professional and personal development.

Users of the personal account have access to articles and blogs in specialized areas, as well as the ability to rate the completed training and leave comments under the articles and blogs of our instructors and technical authors

Registered users of a personal account can have various roles, including the role of a student, instructor or content developer. However, for all roles, except for the student role, you will need to go through an additional verification procedure to confirm your qualifications.

Based on the results of training, students are issued a certificate of training. All training certificates fall into three main categories:

  • Certificate of Attendance - students who successfully completed the course but did not pass the tests and exams can apply for a certificate of attendance.
  • Certificate of Completion - students who have successfully completed a course could apply for a Certificate of Completion, this type of certificate is often required for compliance training.
  • Verified Certificate - it is a verified certificate that is issued when students have passed exams under the supervision of a dedicated proctor.

You can always download a copy of your training certificate in PDF format in your personal account.

You will still have access to the course after completing it, provided that your account is active and not compromised and Tecedu is still licensed for the course. So if you want to review specific content in the course after completing it, or do it all over again, you can easily do so. In rare cases, instructors may remove their courses from the Tecedu marketplace, or we may need to remove a course from the platform for legal reasons.

During the training, you may encounter various forms of testing and knowledge testing. The most common assessment methods are:

  • preliminary (base-line assessment) - to determine the current level of knowledge and adapt the personal curriculum
  • intermediate - to check the progress of learning
  • final - to complete training and final assessment of knowledge and skills, can be in the form of a project, testing or practical exam

Travel to the place of full-time training is not included in the cost of training. Accommodation during full-time studies can be included in the full board tuition fees.

While Tecedu is not an accredited institution, we offer skills-based courses taught by real experts in their field, and every approved, paid course features a certificate of completion or attendance to document your accomplishment.

You can preview samples of the training materials and review key information about the course on our website. You can also review feedback and recommendations from students who already completed this course.

We want you to be happy, so almost all purchased courses can be returned within 30 days. If you are not satisfied with the course, you can request a refund, provided the request complies with our return policy.

The 30-day money back policy allows students to receive quality teaching services with minimal risk, we must also protect our teachers from fraud and provide them with a reasonable payment schedule. Payments are sent to instructors after 30 days, so we will not process refund requests received after the refund period.

We reserve the right, in our sole discretion, to limit or deny refund requests in cases where we believe there is refund abuse, including but not limited to the following:

  • A significant portion of the course has been consumed or downloaded by a student before the refund was requested.
  • Multiple refunds have been requested by a student for the same course.
  • Excessive refunds have been requested by a student.
  • Users whose account is blocked or access to courses is disabled due to violation of our Terms and Conditions or the Rules of Trust and Security.
  • We do not grant refunds for any subscription services.
  • These refund restrictions will be enforced to the extent permitted by applicable law.

We accept most international credit and debit cards like Visa, MasterCard, American Express, JCB and Discover. Bank Transfers also may be an option.

Smart Virtual Classroom (open digital / virtual classroom).

Conducting classes is based on the fact that the teacher demonstrates text, drawings, graphics, presentations on an interactive board, while the content appears in the student's electronic notebook. A specially designed digital notepad and pen are used to create and edit text and images that can be redirected to any surface via a projector.

Classes are live streamed online, automatically recorded and published on the Learning Portal, allowing you to save them for reuse anytime, anywhere, on any mobile device. This makes it possible not to miss classes and keep up with classes and keep up with the passage of new material.

Game Based Learning (learning using a virtual game environment)

Real-life training uses the principles of game organization, which allows future professionals to rehearse and hone their skills in a virtual emergency. Learning as a game provides an opportunity to establish a connection between the learning activity and real life.

The technology provides the following learning opportunities:

  • Focused on the needs of the user
  • Instant feedback
  • Independent decision making and choice of actions
  • Better assimilation and memorization of the material
  • Adaptive pace of learning tailored to the individual needs of the student
  • Better transfer of skills learned in a learning situation to real conditions

Basic principles of training:

  • A gradual increase in the level of difficulty in the game;
  • Using a simplified version of a problem situation;
  • Action in a variable gaming environment;
  • The right choice is made through experimentation.

The main advantages of Game Based Learning technology:

  • Low degree of physical risk and liability
  • Motivation to learn while receiving positive emotions from the process;
  • Practice - mirroring the real situation
  • Timely feedback
  • Choice of different playing roles
  • Learning in collaboration
  • Developing your own behavior strategy
Laboratory workshops using remote access technologies

Conducting practical classes online using remote access technologies for presentations, multimedia solutions and virtual reality:

  • Laboratory workshops that simulate the operation of expensive bench equipment in real production
  • Virtual experiment, which is visually indistinguishable from a remote real experiment performed
  • Virtual instruments, which are an exact copy of real instruments
  • Mathematical modeling to clarify the physical characteristics, chemical content of the investigated object or phenomenon.
FIAC012 - Petroleum Economics and Risk Analysis
Language: English, Russian
Level: Advanced
Special Offer
Order for a group
mail@tecedu.org
+7 747 898 5041
+7 707 981 1455