Take yourself to greater depths right from your desktop with SPE Webinars and Online Education.
Join our industry experts as they explore solutions to real problems and discuss trending topics.

Project Economics, Risk, and Uncertainty Analysis

Description:

Perform economic analysis of petroleum projects under conditions of uncertainty. Develop simple examples of project metrics using spreadsheet monte carlo simulations for stochastic analysis. Build financial models to show project cash flow streams for both capital investment and income cash flow and calculate key metrics such as profit/investment ratio, profit, payout period, net present value, internal rate of return and expected monetary value. Where there are uncertainties in the variables, use standard software to prepare sensitivity and stochastic analysis to show the potential variations in the metrics because of these uncertainties. The objectives of this course are to introduce the learner to: analyze the economics of a prospect under conditions of uncertainty, build deterministic and stochastic models, build E&P financial models to demonstrate project cash flow, calculate project economic metrics including profit/investment ratios, profit, payout period, net present value, internal rate of return and expected monetary value, and prepare sensitivity and stochastic analysis to measure potential variations in project metrics. 

Duration:  8 hours

Content:

  • Investment Cash Flow Analysis
  • Net Income and Income Cash Flow Analysis; Net Cash Flow Analysis
  • Calculating NPV, IRR and Capital Efficiency
  • Measuring Uncertainty Using the Deterministic Estimates; the Tornado Diagram; the Monte Carlo Simulation
  • Project Metrics When Using Debt to Fund One-Half of the Capital Costs
  • Analyzing Uncertainty When a Project is Debt Funded
  • Your Personal Opinion on Recommending that the Oceana Exploration Wells be Drilled



0.8 CEUs offered.

Members : USD 115.00

Non-members : USD 150.00


Key:

Complete
Failed
Available
Locked
Project Economics, Risk, and Uncertainty Analysis
Begin self-paced component package.
Begin self-paced component package. This course will take 480 minutes.
CEU
0.80 CEUs credits  |  Certificate available
0.80 CEUs credits  |  Certificate available CEUs offered.