Upstream Petroleum Economics, Risk and Fiscal Analysis
A programme on the economic and financial concepts driving the upstream oil and gas industry, risk management, fiscal analysis and project profitability.
5 Days
Programme overview
This training course aims to provide participants with a thorough understanding of the fundamental economic and financial concepts that drive the upstream oil and gas industry.
The programme covers upstream petroleum economics, risk management and fiscal analysis. Participants learn how to analyse and manage risks associated with exploration, production and investment activities and conduct financial analysis to evaluate the profitability of different projects.
The programme also includes case studies and practical exercises to enable participants to apply the concepts in real-world situations.
Upstream decisions, where to explore, when to develop, how to structure a project's fiscal terms, are made under some of the highest uncertainty and longest time horizons in any industry. This programme gives participants a coherent view of the upstream value chain and the economic, fiscal and risk logic that determines whether a given exploration or production opportunity is genuinely worth pursuing.
Why this programme matters
Upstream projects commit capital years before first production and depend on fiscal terms, commodity prices and reservoir performance that are only ever partially known at the point of decision. Professionals who can move fluently between economic analysis, fiscal-system mechanics and financial evaluation are able to test an opportunity properly before capital is committed, rather than discovering its true economics only after the investment is made.
Learning objectives
- Understand the critical economic and financial concepts driving the upstream oil and gas industry, including the upstream petroleum value chain, fiscal systems and financial metrics.
- Analyse and manage risks associated with upstream oil and gas operations.
- Conduct financial analysis to evaluate project profitability using cash-flow analysis, time value of money, sensitivity and scenario analysis.
- Evaluate and select profitable projects using capital-budgeting techniques and investment criteria.
- Apply concepts through case studies and practical exercises.
- Communicate effectively with other teams and organisational stakeholders using a common understanding of economic and financial concepts.
- Enhance skills and knowledge in upstream petroleum economics, risk management and fiscal analysis.
Key programme highlights
- Foundations of the upstream petroleum value chain, from exploration through production
- Fiscal systems used to structure upstream agreements and their impact on project returns
- Identification and management of risk and uncertainty in exploration, production and investment activity
- Financial analysis techniques for evaluating upstream project profitability
- Cash-flow analysis and the time value of money applied to long-horizon petroleum investments
- Sensitivity and scenario analysis for testing project assumptions
- Capital-budgeting techniques and investment criteria for selecting between competing projects
Training methodology
The programme is delivered through lectures, case studies, group discussions and practical exercises, designed to support both conceptual understanding and practical application.
Who should attend
- Project Managers
- Finance Professionals
- Senior Executives
- Exploration and Production Professionals
- Government Regulators
- Investment Professionals
Organisational impact
- Improved decision-making: participants learn to evaluate and manage risks associated with exploration, production and investment activities.
- Increased profitability: fiscal analysis helps participants identify potentially profitable projects and avoid unprofitable ones.
- Improved communication: participants develop a common language and understanding of key economic and financial concepts, supporting communication and collaboration between teams.
Personal impact
- Enhanced economic and financial knowledge
- Practical skills for analysing and managing risk
- Skills in fiscal analysis
- Improved understanding of the financial factors driving upstream operations
- Greater confidence in contributing to organisational decisions
Course outline
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Considering this for your organisation?
Talk to our corporate learning team about delivering this programme, or a bespoke variant of it, for your team.