This article presents basic aspects related to the economic evaluation. Introduction to petroleum economics is about the process of gathering project data, calculating whether a project should proceed and delivering recommendations. This book provides a nontechnical introduction to the fundamental principles and techniques of regional impact and evaluation analysis. Guidelines for programme design, monitoring and evaluation. Petroleum economics and engineering abdelaal, hussein k. Economic evaluation of petroleum projects basic aspects. The book is written for readers who have a minimal background in mathematics and economics. This important procedural envelope is critical to the success of any oil and gas venture.
Introduction to project planning this unit gives an overview of the different tasks that are involved in the design, development and implementation of a project. Published for the world bank by the johns hopkins university press. Economic evaluation of petroleum projects basic aspects dr. This series is designed to introduce you to a number of important concepts that will help you understand economic evaluation. An overview hierarchy of evaluation techniques ideally, a complete economic evaluation aims to clarify, quantify and value all the relevant options, their. Economic evaluations are also performed to determine. This chapter outlines the methods and processes used to evaluate the economic potential of an oil andor gas property.
Basic petroleum economics mai 2004 ppm 2nd workshop of the china case study 2 investment decisions investment decisions are among the most important decisions that a. This book will be quite resourceful for learners in both project management and monitoring and evaluation, as it highlights on varied issues dealing with the theme of the subject. Upstream petroleum fiscal and valuation modeling in excel. This2009versionofthehandbookonplanning,monitoringandevaluatingfor developmentresultsaimstosupportundpinbecomingmoreresultsorientedand.
The aim is to provide a new approach to understanding design economics in the context of the changing policy environment, legislative and regulatory framework, and increasing economic. Economics modeling for petroleum exploration and production projects considering risk and imprecise data. Pdf economics modeling for petroleum exploration and. In order to prioritize exploration activities, oil and gas companies need to follow a framework.
Introduction to project economics in oil and gas exploration and production upstream industry, including basic project economics method and example of calcul. New to the second edition of project economics and decision analysis, volume 1 is a section on netback pricing and indexed netback pricing. Evaluation of the department of energys plan to sell oil from the strategic petroleum reserve. Included with your purchase of the book is the project economic evaluation selfassessment downloadable resource, which contains all questions and selfassessment areas of this book in a ready to use excel dashboard, including the selfassessment, graphic insights, and project. Icheme, the institution of chemical engineers, is the. The answer is economic evaluation a powerful tool that can help with all these situations. A guide to the strategies and techniques for building project evaluation models amr rezk on. Carry out a comprehensive economic evaluation study for any petroleum related project including risk analysis and sensitivity study using spreadsheet contribute to the petroleum project investment within a solid economic system and do a detailed economic evaluation.
Project economic issues have been pigeonholed into a very narrow concern with the calculation of economic. Introduction to probability distribution and petroleum. Discussion progresses from an introduction to the industry. With the help of this wellestablished book, the engineer can tackle cash flow, tax, depreciation, cost minimisation, uncertainty and risk. This book has become one of the classics of development literature. This book explains how to apply economic analysis to the evaluation of engineering challenges in the petroleum industry. Economics drives the entire oilgas producing industry.
Module 8 project planning, monitoring and evaluation is divided into six units. An overview hierarchy of evaluation techniques ideally, a complete economic evaluation aims to clarify, quantify and value all the relevant options, their inputs and consequences ambitious. Carry out a comprehensive economic evaluation study for any petroleum related project. Whilst project assistance still holds the dominant position in bilateral cooperation, both sectoral and program assistance are becoming more important. See also whats at wikipedia, your library, or elsewhere. Project evaluation project monitoring focusing on activities and outputs and their contribution to outcomes. Project evaluation is a methodology for assessing the economic, social, environmental and financial impact of proposed capital projects. While project preparation is the process that converts a project idea into a formal plan, the overall objective of appraising a project. However i wish it could be updated by the authors or other scholars interested in petroleum industries.
Introduction to project economics in oil and gas upstream. Comparing economic and financial impacts over the life of proposed infrastructure projects by martland, carl d. This volume will enable the reader to successfully undertake pre project evaluations, especially in the areas of refining and petrochemistry. Also, to avoid repetition of the phrase oil andor gas, the term oil is often used as. But when it comes to the science of project management, project evaluation can be broken down into three main types. Introduction to probability distribution and petroleum project economics c o n t e n t s part 1. Almost every decision is made on the basis of an economic evaluation. Petroleum project economics and risk analysis training in london uk, dubai united arab emirates, kuala lumpur malaysia, istanbul turkey, france paris. Regional economic impact analysis and project evaluation. This course is an excellent introduction to the fundamentals of petroleum economics. Economic evaluation is an essential step for assessing and studying and selecting new petroleum projects which involve different activities. This booklet deals with the entire subject matter of the tools and techniques used in monitoring and evaluation.
Additionally, the new edition expands the weighted average cost of capital wacc concept for better comprehension and to recognize its weakness in practice. Design economics for the built environment wiley online. Project evaluation and programming i mit opencourseware. This course will introduce a variety of fundamental petroleum economic principles including revenue, expenditures, fiscal systems, risk analysis, and investment analysis. Project management must involve detailed evaluation, assessment and mitigation of a wide range of risks in order to make the right decisions at the appropriate times.
The economic evaluation of projects in the bank tends to be overoptimistic and to neglect downside risksa tendency it shares with the banks macroeconomic forecasts. This highly interactive and scenariobased training programme will enable you to apply a structured approach to project justification, investment appraisal and decisionmaking in the upstream petroleum business. Petroleum project economics and risk analysis training. Pdf petroleum economics, risk and opportunity analysis. The project evaluation process has been around as long as there have been projects to evaluate.
Basic petroleum economics mai 2004 ppm 2nd workshop of the china case study 2 investment decisions investment decisions are among the most important decisions that a companygovernment can take capital intensive irreversible high riskuncertainty. Also, to avoid repetition of the phrase oil andor gas, the term oil is used as a reference to both oil. In this discussion, the terms property and project are used interchangeably as the objects of evaluation. He has contributed to over 90 technical papers, edited one book on petroleum economics. These guidelines are meant primarily for design, monitoring and evaluation. Search the worlds most comprehensive index of fulltext books. Impact of sustainability on project evaluation presents new directions, reflecting the need to recognise the impact of climate change and the importance of sustainability in project evaluation. Find materials for this course in the pages linked along the left. A worked examples approach demystifies fiscal analysis which, unlike disciplines such as earth sciences and engineering, can be learned from a book. Introduction to petroleum economics spe book store. Monitoring is the continuous observation of a project s progress by.
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