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Petroleum Economics and Asset Valuation

Course Code :
PE 505
Level :
Undergraduate
Course Hours :
2.00 Hours
Department :
Department of Petroleum Engineering

Instructor information :

Area of Study :

The Main Goals of this course are preparing students to:  Enrich knowledge for the difference between Petroleum macroeconomic and Petroleum microeconomic.  Demonstrate knowledge and methods of predict, forecast, analysis and estimated the factors affecting on the international petroleum activities.  Train to predict oil and gas prices in the international petroleum markets.

For further information :

Telephone: 16383 (16FUE)
E-mail: [email protected]

Petroleum Economics and Asset Valuation

Uncertainty in the estimation of oil and gas reserves; tangible and intangible investment costs; depreciation; evaluation of producing properties; federal income tax considerations; chance factor and risk determination. Petroleum economic evaluation software is introduced.

For further information :

Telephone: 16383 (16FUE)
E-mail: [email protected]

Petroleum Economics and Asset Valuation

Course outcomes:

a. Knowledge and Understanding:

1-	Describe economic evaluation and economic analyses for petroleum projects and decision in different situation
2-	State the different economics indicator in evaluation petroleum project
3-	Explain the evaluation of oil projects decisions related to the drilling activities, exploration and development activities
4-	Illustrate the economic methods for value estimation of petroleum wells.
5-	List the different factor effected in International oil market
6-	Select International oil organization
7-	Classify the factors effect in the international oil market and how the price determined in international oil market

b. Intellectual Skills:

1-	Demonstrate different techniques for evaluate the petroleum decisions related to bid round development decision, drilling and completion well.
2-	Apply the different methods for Valuation of Petroleum Projects

c. Professional and Practical Skills:

1-	Use software tools for estimated – cash flow – net cash flow – net present value to evaluate the petroleum assets and projects.
2-	Use software tools for estimated internal rate of return (IRR), payback period – discounted payback and the profitability index.

d. General and Transferable Skills:

1-	Use efficiently IT capabilities.

For further information :

Telephone: 16383 (16FUE)
E-mail: [email protected]

Petroleum Economics and Asset Valuation

Course topics and contents:

Topic	No. of hours	Lecture	Tutorial/Practical
Introduction to Petroleum Microeconomics and petroleum macroeconomics.	2	2	4
Cash flow – discounted cash flow for petroleum projects.	2	2	4
pay out / payback period. / discounted pay back	2	2	4
Economic Yardsticks for petroleum projects- Present value, net present value, IRR ( internal rate of return ), Rate of investment, and Profitability index	4	4	8
Discovery and well economics valuation	4	4	8
Oil and Gas Decision to Complete a Well	2	2	4
Assets valuation	4	4	8
Oil Peak and Hubbert Curve	2	2	4
Oil Economics In International Market	4	4	8
Forecasting	4	4	8