Economic Modeling for Upstream Petroleum Projects [Paperback]A Guide to the Strategies and Techniques for Building Project Evaluation Modelsby Amr Rezk
PRINT ON DEMAND Description of Economic Modeling for Upstream Petroleum ProjectsIn order to prioritize exploration activities, oil and gas companies need to follow a framework. This important procedural envelope is critical to the success of any oil and gas venture. Decision makers need to consider a multitude of variables before they decide whether or not to pursue any petroleum project. Before a decision to drill a well can be made, some important questions need to be answered; some of these questions revolve around the need for assurance that a well will bring wealth to the organization or parties that drill it. A decision maker therefore has to start by asking whether a venture is worth pursuing from an economic perspective. The answer to this question forms the heart of petroleum investment; and supporting this process by building petroleum economic models is what this book is all about. This book offers a basic understanding of the methods required to build economic models for valuing upstream petroleum projects. The book offers an overview of the fundamentals of some of the major petroleum contracts, simple commercial concepts and how to use them for creating valuation models.Title Information
Write a review of this book Customer Reviews from AmazonContents of Economic Modeling for Upstream Petroleum Projects1. Commercial Concepts and Petroleum ContractsIntroduction A word on semantics Petroleum economies defined The reason why people study petroleum economics The factors that influence the objectives of a firm The oil & gas project life cycle Economic rent Contractor and economic takes Government marginal takes Fiscal agreements defined Types of fiscal agreements Fiscal agreements framework Concessionary Systems Tax/Royalty Contractual Systems Production Sharing Contracts Risk Service Contracts Special Topics in Petroleum Taxation Risk and uncertainty Booking Reserves 2.Petroleum Finance & Accounting Introduction Financial Statements Overview of Financial Statement modeling Measuring Free cashflow produced by the business Constructing project cashflow Capital budgeting Net present value Setting the discount rate Internal rate of return (IRR) Payback Maximum Exposure Full Cycle and point forward economics Incremental economics Working capital Impairment Depreciation 3. Modeling Frameworks and Design Introduction Model design defined Design theory and practice The design process Integrating solutions Components of a "good" model Spreadsheet development Planning your work Section Design 4. Modeling with Microsoft Excel Introduction SUM function SUMPRODUCT function IF function SUMIF function MIN function MAX function CHOOSE function AND and OR functions OFFSET function Naming ranges and cells Absolute cell references Mixed cell references Fixing formula errors Formula auditing toolbar Tracing errors manually Watch Windows Circular references LOOKUP function Drop down menus Data tables Graphing with Excel Protecting Cell Contents Hiding Formula cells Auditing Spreadsheet style Expert tips Visual Basic Macros 5. Modeling Applications Introduction The decision that is being modeled Production sharing contract modeling Tax/Royalty Contract modeling Rate of return contract modeling Special modules Selected Bibliography Appendix A: Depreciation Examples - Straight line method - Declining balance method - Unit of production method Appendix B: Energy Conversions - Volume - Energy - Approximate Heat Content of Petroleum Products Appendix C: Production Sharing Contract Influence Diagrams Appendix D: Tax/Royalty Influence Diagrams |
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