The Ultimate Oil & Gas Economics Course

Explore economic terms in petroleum economics, including assets (tangible and intangible), money and cash, revenue, profit, capital and operating expenditures, inflation, stock (common and preferred), and simple and compound interest.

Explore petroleum economics by defining projects and feasibility studies, distinguishing discretionary and non-discretionary projects, and outlining stages from initiation to closing in upstream and downstream oil and gas.

Identify petroleum companies by type—integrated, independent, oil service, and oil equipment manufacturers—and explain OPIC and benchmarks like West Texas Intermediate and Dubai crude, outlining API quality, sulfur, and viscosity.

Examine the laws of supply and demand in oil and gas, and explore how equilibrium price and quantity arise from supply and demand curves and shifts.

Explore the fully integrated oil and gas lifecycle from upstream exploration to downstream refining and marketing, and analyze data sources, costs, pricing, and capital flow across sectors.

Explore hydrocarbon definitions and the classification of saturated, cycloalkanes, and aromatics, then connect crude quality and price to API gravity, specific gravity, viscosity, and impurities.

Explore the upstream oil and gas lifecycle—from land acquisition, exploration methods, and appraisal to development, surface facilities, and production decline—while learning revenue, capex, opex, royalties, taxes, and after-tax cash flow.

Analyze how tax and depreciation affect upstream oil and gas economics by applying straight-line, declining balance, and depletion methods to compute tax income from revenue, capex, and opex.

Calculate cumulative net cash flows in an offshore feasibility study for an upstream project using production data, revenue from production times price, capex, opex, depreciation, taxes, and net cash flow.

Identify the key economic barometers from the feasibility study: start of production, project lifetime, maximum cash exposure, and payback time, using net cash flow and cumulative cash flow curves.

Analyze upstream project economics by applying time value of money, discounting and compounding to present and future values, calculating NPV, IRR, and profitability index using WACC.

Apply sensitivity analysis to assess upstream project economics under variations in oil price, exchange rate, capex, opex, and time to production, using spider diagrams and net present value.

Analyze risk and uncertainty in upstream oil and gas economics, distinguishing probability-based risk from uncertainty, and apply decision trees and expected monetary value to optimize exploration, appraisal, and development decisions.

Learn to estimate the optimal number of wells and spacing using economic barometers, CapEx and OpEx, oil price, and discount rates to maximize net present value.

Explore the basics of midstream economics by tracing upstream equipment needs through manufacturers and midstream design to pipelines, storage, and transport.

examine crude oil processing units and surface facilities, focusing on water removal via multi-phase separators and dehydration and desalting to meet refinery salt and water targets.

Explore pipelines as economical hydrocarbon transport to fixed terminals, and analyze pump types—from positive displacement to centrifugal—using performance and system curves for life cycle cost analysis.

Explore storage tank types—fixed roof, external and internal floating roofs, horizontal and pressure tanks—for crude, natural gas, and LNG; compute capacity over a 2–4 day delay and deduce tanks.

Understand how downstream economics relies on the refinery plant's distillation and refining processes that convert crude into fuels and petrochemicals through blending and treatments.

Learn to find the break-even point with algebraic and graphical solutions by mapping total cost and total revenue against volume and deriving profit.

Explore alternative and non-linear break-even analyses, compare options using total cost and total revenue curves, and identify optimal production ranges.

Analyze refinery cost structures, detailing capital costs for processing units and facilities, and operating costs—variable and fixed—and examine factors like refinery complexity, demand, size, crude quality, and environmental constraints.

Define refining margins and conduct a feasibility study for an oil refinery; compute gross, net, and cash margins, evaluate expenses, revenue, taxes, and discounted profit to assess net present value.