Advanced Petroleum Economics

Trainer(s): Michiel Bender

Business Content

This course assumes that the participants already have basic knowledge and experience with economics calculations and are already familiar with Production, CAPEX and OPEX profiles, discount rates, inflation compensation, NPV’s, fiscal regime, earn back times etc. This course builds further this basic knowledge and teaches on the application of economics within the business environment with a focus on decision making. The course will therefore look at the basics of Decision Analysis, Value of Information, reverse engineering of decisions etc. Goal is to develop the economist from an operator of an economic model into a driver of the business decision preparation process.
In this role the economist will find that he/she has to handle many different scenarios representing key points of the different uncertainty ranges. The course will also dive into practical tips and best practices to deal with such large number of scenarios.  
Experience shows that the course has the highest impact when it can be applied to the specific business environment of the participants. The format of an educational workshop in which the different methods and techniques are practiced on the current business challenges of the client, possibly with the clients data, is highly recommended.


Course content 

- Recap of fundamentals of economics calculations

- Introduction into Decision Analysis

- Role of economist in the Decision Analysis process

- Opportunity framing and strategy tables

- Application of decision trees in the E&P business

- The economist in Commercial Negotiations

- Organisation of input data and handling of multiple scenarios

- Value of Information calculation

- Reverse Engineering of decisions

- Practice of decision making

If needed a pre-course primer can be given to bring non-economist up to speed with the basis of economics calculation.


Learning, methods and tools

The course will be given via lectures with regular regular excesizes primarily in Excel will be conducted. Also, dedicated time is reserved for group discussions about the role of the economist in each stage of the decision making process. All participates have the opportunity to discuss their experience and challenges in fulfilling their tasks. The instructors will share their best practices and inside tips.


Day by day programme

The course has the highest impact when it can be applied to the specific business environment of the participants. The day by day programme will be set according to focus areas as requested by the client.