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Petroleum Economics: Projects, Value, Risk and Strategy

Name: Petroleum Economics: Projects, Value, Risk and Strategy
Rating: 4.7 (21 reviews)

How Decisions Are Driven by Cost, Risk, and Value in Engineering Economics — Business, Economics, and Strategy for all

Highest Rated

Created byAhmed Bakr

Last updated 5/2026

English

What you'll learn

Understand the fundamentals of petroleum economics and project valuation
Apply NPV, IRR, DCF, and cash flow analysis to oil and gas investments
Evaluate development concepts using risk, scenario analysis, and fiscal regimes
Make strategic project decisions based on economics, timing, and uncertainty
Interpret CAPEX, OPEX, production profiles, and cash flow behavior
Think like a value-focused engineer, economist, and project decision maker

Course content

9 sections • 73 lectures • 2h 53m total length

Before We Start!0:07
Let's start with a Course Summary!8:00
Your Course Certificate!0:08
Introduction to Petroleum Economics and the Oil & Gas Industry2:43
Overview of petroleum economics and how value is created across the oil and gas business.
Why Engineers Need Economics for Better Oil & Gas Decisions2:03
Learn how engineering choices directly drive project value, risk, and profitability.
Petroleum Economics in the Oil & Gas Project Life Cycle4:05
Where economics supports exploration, development, production, and abandonment decisions.
Economic Roles Across Oil & Gas Project Phases1:33
How economic analysis evolves from appraisal to final investment and execution.
Macroeconomics and Oil Prices: How Global Markets Drive Energy7:40
Why Wars Move Oil Prices: Geopolitics of Oil, Gas, Sanctions, and Global Energy7:00
Course Summary in PPT0:02

Economic Evaluation Models in Petroleum Project Analysis6:08
Overview of financial models used to screen and evaluate upstream investments.
NPV, IRR, Payback and Profitability Index in Petroleum Economics5:30
Deep dive into core metrics used in oil and gas investment decision-making.
Summary of NPV, IRR, PB, PI7:10
How Oil & Gas Companies Use Economic Metrics in Practice4:31
Real-world use of NPV, IRR and cash flow metrics in capital allocation.
Projects Screening and Ranking4:48
Oil and Gas Project Economics: NPV, IRR and Investment Decision Making0:24

CAPEX, OPEX and Production Profiles: Core Economic Inputs2:17
The three engineering inputs that control every petroleum economic model.
OPEX in Oil & Gas Projects: Costs, Drivers and Value Impact1:54
Understand operating cost behavior and its long-term impact on profitability.
Production Profiles and Decline Curves in Petroleum Economics1:58
How production forecasting shapes revenue, reserves and project valuation.
Summary of CAPEX, OPEX, Production Profile5:58
Building a Petroleum Economic Model from Scratch1:36
Step-by-step creation of a practical oil and gas economic model.
Typical Oil and Gas Project Cash Flow Explained2:31
Understand cash flow patterns from development to decline and abandonment.
The 2 Numbers... Cost /Barrel and CAPEX/Barrel6:04

Time Value of Money in Petroleum Project Evaluation1:16
Why timing dominates value in long-life oil and gas investments.
Discounting and Why Timing Drives Petroleum Economics2:40
How discounting reshapes project value and investment ranking.
Discounting vs Compounding in Oil & Gas Investment Analysis3:47
Forward and backward value movement in petroleum financial modeling.
Introduction to Discounted Cash Flow in Petroleum Projects1:33
Foundation of DCF analysis used in upstream project evaluation.
Building a DCF Model Step by Step for Oil & Gas Projects3:02
Practical workflow to construct a discounted cash flow model.

Sources of Risk and Uncertainty in Petroleum Projects4:19
Identify technical, market, fiscal and execution risks in upstream projects.
Risk vs Uncertainty in Oil & Gas Decision Making4:14
Conceptual framework for managing uncertainty in petroleum investments.
Risk Management Strategies in Petroleum Economics4:02
Tools and approaches to control downside and protect project value.
Scenario Analysis for Strategic Petroleum Project Planning4:17
Testing realistic futures to improve strategic project decisions.
Risk Summary5:19
Risk Summary Infograph
Diversification... A Risk Mitigation Magic Stick5:32

Integrated Petroleum Economics Case Study: Discovery to Concept4:34
Apply economics, risk and strategy to a realistic offshore case study.
Petroleum Economics Conclusion: Thinking Like a Value Engineer1:07
Key principles to think economically in engineering and business decisions.
What Petroleum Economics Is Really About: Strategy and Value5:59
Strategic view of how economics guides decisions and value creation.
Case Study Explained: Project A vs B!6:55
Case Study Typed: Project A Vs Project B1:35
Course Summary!7:10
Strategic Planning in Capital Intensive Energy Industries1:02

Understanding the Engineering Drivers Behind Subsea Project Economics0:16
This bonus lecture connects petroleum economics concepts with the physical subsea systems that drive capital and operating costs. Topics include development architecture, equipment selection, intervention philosophy, and reliability considerations.
For engineers and professionals involved in economic evaluation, understanding subsea systems provides critical context that improves cost estimation, scenario analysis, and decision making. A full Subsea Systems Engineering course is linked for those who want to deepen their technical understanding.
Bonus Lecture0:17

Requirements

This course starts from fundamentals and gradually builds toward advanced petroleum project evaluation and strategic decision making.

Description

Limited bonus (April & May): Get an additional course at no extra cost after enrollment.

How about asking yourself one question:

Are the projects you work on truly profitable… or just technically impressive?

Most oil & gas projects don’t fail because of engineering mistakes. They fail because they don’t survive the economic evaluation process.

If you don’t fully understand Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), Payback Period (PB), discounted cash flow analysis, fiscal regimes, and project risk assessment, you are not truly part of the investment decision — regardless of how strong your technical skills are.

This Petroleum Economics course delivers MBA-level financial thinking tailored specifically for oil & gas professionals. You will learn how upstream companies evaluate oil & gas projects, screen capital investments, assess fiscal terms, model cash flows, and make risk-adjusted decisions that can shift project value by millions.

This is not just theory. It is a practical project evaluation for real-world petroleum investments.

No advanced mathematics. No finance background. Just clear, practical logic that connects engineering decisions to investment approval.

If you want your voice to matter when projects are screened, funded, or rejected, this is your step forward.

Enrol now — and start seeing projects the way decision-makers do.

What You’ll Learn

How petroleum projects create or destroy economic value
How to interpret NPV, IRR, payback, and cash flow
Why timing and early production dominate project economics
Key CAPEX, OPEX, and production drivers
Time value of money and discounting—without heavy math
Major sources of risk and uncertainty
Sensitivity and scenario analysis for downside risk
Impact of fiscal regimes (PSC, concession, service contracts)
How economics, risk, and fiscal terms shape real decisions
How to communicate effectively with managers and decision-makers
How to apply economic thinking to engineering design choices

Who This Course Is For

Petroleum, reservoir, drilling, production, facilities, and subsea engineers
Project engineers and project managers in oil & gas
Technical professionals moving into leadership roles
Engineers preparing for FID reviews, project approvals, or interviews

Who This Course Is Not For

Advanced mathematical petroleum economics learners
Finance or accounting specialists
Spreadsheet-heavy financial modelling seekers

Course Approach

Engineer-to-engineer explanations
Decision-focused, not academic
Realistic industry logic
Risk-aware, not optimistic
Designed for real projects and real careers

Who this course is for:

Petroleum engineers and oil & gas professionals
Project managers and development engineers
Economists and financial analysts working in energy
Business professionals involved in energy investments
Strategy, planning, and corporate development teams
Graduate students in petroleum engineering, energy economics, or MBA programs
Anyone interested in oil & gas project economics, risk, and strategic decision making

Petroleum Economics: Projects, Value, Risk and Strategy

What you'll learn

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Course content

Module 1 – Foundations of Petroleum Economics10 lectures • 33min

Module 2 – Economic Models and Investment Metrics in Oil & Gas6 lectures • 29min

Module 3 – CAPEX, OPEX, Production Profiles and Project Cash Flow7 lectures • 22min

Module 4 – Time Value of Money and Discounted Cash Flow5 lectures • 12min

Module 5 – Risk, Uncertainty and Strategic Analysis in Petroleum Projects7 lectures • 28min

Module 6 – Fiscal Regimes, Government Take and Investment Incentives2 lectures • 9min

Module 7 – Integrated Petroleum Economics and Strategic Decisions7 lectures • 28min

Petroleum Economics 25 Basic Principles.27 lectures • 11min

Bonus Lecture2 lectures • 1min

Requirements

Description

Who this course is for: