petroleum project economics 01

7/21/2019 Petroleum Project Economics 01

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Petroleum Project

EconomicsEcon210D

Presentation 1

Economics in the Petroleum Industry

Week 1

1



2Economics in the PetroleumIndustry Week 1



Crude Oil and Natural Gas

ProductionFie !ear "era#e Natural Gas Production $ %ales &olumes %chedule

'((sc)*d+

!ear 200, 200- 200. 200/ 200

Production

3,136 3,789 3,992 4,059 4,102

%ales 2,970 3,515 3,729 3,673 3,706

Crude Oil Production and Prices Fie !ear "era#e '3*day+

!ear 200, 200- 200. 200/ 200

OilProduction

138,814 147,693 123,263 115,475 100,068




Or#ani4ational %tructure

President*CEO

5eseroir

En#ineerin#

65

Facilities

En#ineerin#Drillin#

En#ineerin#

Production

O7erations

Economics I8




Who o9ns an oil com7any:

!h"reholders #ointly o$n "n oil com%"ny

&il com%"nies r"ise 'in"nce 'rom the s"le

o' sh"res

( %erson $ho o$n sh"res is " sh"reholder

E"ch sh"reholder is entitled to " sh"re o'

the com%"ny)s %ro'it $hich is c"lled the

di*idend 5Economics in the PetroleumIndustry Week 1



1+ ind more reser*es

2+ &-t"in o%timum %roduction r"tes

3+ (chie*e cost e''iciency

4+ Pr"ctice s"'ety

5+ ."/imie %ro'it or return on in*estment

6

O;jecties o) Oil and Gas

Com7anies

Economics in the PetroleumIndustry Week 1



Pro'it"-ility 'orec"sts

ecision m"kin recommendin %ro#ects

"nd o-t"inin "%%ro*"l+

e%ortin to sh"reholders

e%ortin to host country o*ernment

7

Why Economic Ealuation o)

Petroleum Projects is Im7ortant :

Economics in the PetroleumIndustry Week 1

petroleum project economics 01

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