PETROENG 7006 - Petroleum Project Economics

Economic evaluations provide the main source of information by which investment and operational decisions are made regarding the most effective use of enterprise resources. There are many subtleties and assumptions that underlie the apparently straight-forward calculations that are often seen. Consequently, a fundamental understanding of the concepts behind economic evaluation and of techniques for performing them, are essential skills. Topics to be included are: economic and business concepts, cash-flows and fiscal regimes, time-value of money, discounted cash flow, net present value and other economic indicators, case studies and portfolio management. If time permits, there will be an introduction to real options analysis and its application to valuing managerial flexibility and risk.