Petroleum Economics and Energy Markets

Introduction

This comprehensive 5-day course explores the core principles of petroleum economics and the dynamics of global energy markets, equipping participants with analytical tools and industry insights.

Objectives

• Understand the fundamentals of petroleum economics and market structures.
• Analyze the factors driving oil and gas prices globally.
• Evaluate economic models relevant to energy projects and investments.
• Examine policy, regulatory, and geopolitical impacts on energy markets.
• Develop practical skills for risk assessment and economic decision-making in the energy sector.

Course Outlines

Day 1: Fundamentals of Petroleum Economics

• Overview of petroleum industry value chain
• Economic principles relevant to oil and gas
• Key metrics: NPV, IRR, and payback period
• Cost structures in upstream, midstream, and downstream sectors
• Introduction to project evaluation techniques

Day 2: Energy Market Structures and Pricing

• Types of energy markets: spot vs. futures
• Oil and gas price formation mechanisms
• Role of OPEC and non-OPEC producers
• Price volatility and market cycles
• Major energy exchanges and benchmarks

Day 3: Project Economics and Investment Analysis

• Cash flow analysis for petroleum projects
• Economic modeling and sensitivity analysis
• Cost estimation and capital budgeting
• Fiscal regimes and tax structures
• Risk and uncertainty in investment decision-making

Day 4: Policy, Regulation, and Geopolitics

• Energy policies and regulatory frameworks
• Geopolitical influences on supply and demand
• Environmental and social considerations
• International trade and sanctions
• Market liberalization and its impacts

Day 5: Contemporary Issues and Future Trends

• Energy transition and the role of renewables
• Decarbonization and climate policy impacts
• Technological innovations in the energy sector
• Emerging markets and new investment opportunities
• Summary, case studies, and course wrap-up