Petroleum Economics and Decision Analysis

The petroleum industry is complex, expensive, and uncertain. Success depends on smart choices and sound economic reasoning. As Warren Buffett said, “Risk comes from not knowing what you’re doing.” This course helps professionals make better decisions using clear insights—from economic models to risk and uncertainty analysis—built specifically for oil, gas, and energy investments.

By integrating financial principles, industry policies, and advanced scenario planning, participants gain the skills to make prudent project decisions. This course further prepares participants to tackle the challenges of decision making in the upstream oil and gas industry by providing them with skills in project decision analysis, economic evaluation, and policy analysis.

Software Requirements: The course uses Lumivero’s decision Suit Tools (formerly Palisade Decision Suit Tools), including @Risk and Precision Tree. However, delegates do not need access to these platforms as other alternative solutions will be discussed during the course.

This course highlights:

• Energy Commodity Market Economics: Understanding price, supply-demand dynamics, and investment trends.
• Financial Modelling & Valuation: Applying tools for assessing project profitability and economic feasibility.
• Risk & Uncertainty Management: Understanding, quantifying, and modelling uncertain factors.
• Decision Analysis Techniques: Use of Decision Trees, Monte Carlo Simulation and applications to Value of Information.
• Energy Policy Impact: Evaluating impact of policies, ESG considerations, and geopolitical trends.

Strategic Decision-Making: Optimizing investment portfolios and corporate planning strategies.

To succeed in the oil & gas industry is to create value. Learning about the subsurface challenges, along with the energy commodity market leads to insights that support good decision making. Good project decisions often lead to value creation.

At the end of this training course, you will learn to:

• Explain key aspects of the evolving energy landscape and its implications for oil and gas ventures.
• Summarize the fundamental principles of petroleum project economics and valuation techniques.
• Apply prudent business decisions to differentiate successful petroleum firms in an evolving global landscape.
• Analyse the impact of risk and uncertainty on management decision-making.
• Apply consistent financial valuation techniques to analyse petroleum projects.
• Use analytical tools and software for effective project evaluation and decision making.
• Evaluate the implications of uncertainty and risk on project feasibility.
• Create decision support models that consider the influence of uncertain hydrocarbon prices and environmental considerations on value creation.

Who Should Attend?