Petroleum, energy economics and finance postgraduate. Pdf the political economy of oil contract renegotiation in. Pdf the economic structure of the petroleum industry differs strongly. Petroleum project economics and risk analysis workshop author. Petroleum fiscal systems and contracts muhammed mazeel.
Petroleum economics at university of new south wales. 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. Production sharing contracts two types of pscs contains a cost recovery feature indonesian model does not contain a cost recovery feature peruvian model based on a sharing of production basis where the multinational oil company works as a contractor for the state the contractor does not own any oil or gas up to. This paper describes the negotiation procedure for oil contracts and highlights the important issues and points that government negotiators need be aware of. The author thanks the olin, sloan, and fletcher jones foundations for financial support. The independent association of drilling contractors iadc has its own set of drilling contracts, and they are commonly used.
Petroleum economist is a monthly magazine that provides macroeconomic and geopolitical analysis of the energy industry. The book provides practitioners and other parties with essential operational detail, as well as. American international journal of contemporary research vol. Orlandi encyclopedia of life support systems eolss these shows structural characteristics, relations of strength, economic and political dynamics which cannot be immediately attributed to the traditional life cycle of an industry and which indeed can no longer be repeated. Economic implications of petroleum policies in nigeria. Petroleum economics distance learning training course. Reiss is associate professor of economics at the stanford business school and a faculty research fellow at the national bureau of economic research. Planck foundation amsterdam holland may 2010 gijs graafland.
Summary of course outline n economic criteria n development economics n property valuation. Assessment of fiscal terms of international petroleum contracts. More broadly, the fiscal system includes all aspects of the contractual and taxation framework that governs the relationship between the host government and an international oil company. Examples of all three of these contracts are in the workbook. Petroleum economics is one of the most influential players in the world economy, so having a comprehensive understanding of this vital area is key for anyone working within the oil and gas or energy industries.
Stabilisation clauses in international petroleum contracts. The link between energy and economic development can differ for economies at different stages of development. The instructors approach is applied, practical and broad, providing you with the background necessary to tackle and understand a variety of problems. Introduction to petroleum economics is about the process of gathering project data, calculating whether a project should proceed and delivering recommendations. As contracts and systems worldwide have evolved and improved for the past five decades revenuebased systems have become, for all practical purposes, extinct. Petroleum contracts peter roberts oxford university press. The fiscal regime can be used to convert a governments policy into economic signals. These include concession regimes, joint ventureparticipation agreements and production sharingrisk service contracts. Michael likosky this article looks at key regulatory and contractual issues in the oil and gas and also metal minerals industries. This 5day workshop teaches participants how to analyze the financial performance of oil and gas investments using financial models, performance metrics and project risks.
Stabilisation clauses in international petroleum contracts illusion or safeguard. Pdf economics modeling for petroleum exploration and. Oil and gas journal database, oil industry comparative appraisals, basic petroleum. Company supplies services and knowhow to the state in exchange for a fee. Intermediate microeconomics is suggested, though not required.
During the program the participant is exposed to the. Jun 30, 2004 oil and gas exploration and production. These are by nature complex due to high uncertainty levels and capital intensity. The course will introduce basic economics concepts with their terminology, including the time value of money and discounted cash flows, and cover taxes and land resource ownership in alberta, partnership agreements, alberta government agencies and their roles, oil and gas production rate limitations in alberta, sales contracts in alberta, and profitability analysis. The key provisions and clauses which are commonly used in the contracts are explained and for. Petroleum development contracts with multinational oil. It is found that three kinds of petroleum contracts are operating in nigeria.
If the host government adopts a measure subsequent to the conclusion of the petroleum contract in which the fiscal terms are stated, that is likely to have damaging consequences to the economic benefits for one or both of the parties, a rebalancing will take place. He would also like to thank glenn hubbard and john meyer for their useful comments on earlier versions. Contracting and regulatory issues in the oil and gas and. Economic and financial determinants of oil and gas. Over the nearly four decades of the reports existence, the petroleum economics monthly provided indepth analysis of the evolution and function of oil and energy commodity markets, as well as the effects of global political, regulatory, and economic events on these markets.
Petroleum economics and contract management course mobility. While the course es some discusspolicy issues, it will focus on theoretical developments in the area of environmental and energy economics. Feb 03, 2015 the 5 days sophisticated training course in petroleum economics is an entrylevel course designed to bridge gaps in your knowledge and give you true business advantage. Energy economics delivering a framework for both energy politics and energy finance energy economics. Fiscal terms of oil contracts are primary nonresource factors international oil companies consider. Prevailing contracts between countries and oil companies production sharing agreements psa. Petroleum economics and contract management course. This pdf is a selection from an outofprint volume from the national.
Use contract theory to rationalize those contractual forms. Environmental and energy economics dartmouth college. Both the history of traditional concessions and the enumerated presentday contract types this article was written while michael likosky was global crystal eastman research fellow in the hauser global law school program, new york university school of law 2006. The msc petroleum, energy economics and finance is a course highly regarded for being both intellectually challenging and for providing the careerready credentials that are essential to increase your appeal with employers within an energy economics context. Energy and economic development november 7 session professor karen r. Ghana is a fastest moving growing economy in subsahara africa due to its rising gas and oil industry. Abstract the nigerian petroleum industry has been having major transformations since the discovery of crude oil in nigeria in 1956. Petroleum economist magazine was founded in 1934 by dr oskar tokayer, a flamboyant and immensely energetic hungarian. Economics of worldwide petroleum production petroskills. Petroleum economics net present value internal rate of. Economics is the primary link between basics of petroleum. The international collaborative program in petroleum economics and management is designed for students or professionals with degrees in science, engineering or social science business school, law, seeking indepth training to develop a commanding skill set in energy techniques, energy economics and management.
Describe the main characteristics of petroleum contracts. In physical science terminology, energy is the capacity for doing work, e. The economics of it are better than of the carbonfossil model. Reserves, costs, contracts centre for economics and management, pearse, jonathan on.
Access study documents, get answers to your study questions, and connect with real tutors for ptrl 3025. Petroleum economics provides an overview of the key financial and economic. This chapter will focus on the dif ferent types of contracts that are standard in the industry while also addressing the important public interest concerns that are too often neglected in contract negotiations. Petroleum economics net present value internal rate of return. China, india and the middle east together account for. Within north america, recent demand for refined petroleum products has been flat to declining and is forecast to continue on this path. Pdf the political economy of oil contract renegotiation.
Economics modeling for petroleum exploration and production projects considering risk and imprecise data thesis pdf available january 2016 with 11,365 reads how we measure reads. Petroleum project economics and risk analysis workshop. In addition, psas are largely practised in countries with high reserves and medium cost of exploration 25. Economics will be used as a conceptual tool to organize your understanding of the industry. Kent saugier is a handson scientific, technology and business professional with twentyfive years experience in upstream oil and gas, offshore technology, economics, economic modeling, international petroleum contracts, project management, software applications and technology including design, licensing and commercialization. The revenue earned from hydrocarbon exploitation largely depends on the fiscal regime.
The more popular modern approach to stabilization in a petroleum agreement is to include a provision which states that. Economics modeling for petroleum exploration and production projects considering risk and imprecise data. Historically the main source of financing in iranian oil and gas industry has been foreign investment, entered in to the country through upstream oil and gas contracts from the early oil and gas concessions i. It covers everything you need to know about the economics behind the petroleum industry, in very simple language.
The contractor is usually responsible for providing all capital associated with exploration. The earning from the gas and oil industry depends on the type of fiscal regime government operates. The relationship between oil price and costs in the oil. Global liquids consumption is projected to reach 104 mbd by 2030 but growth slows to 0. This book offers a comprehensive introduction to the economics of oil and natural gas extraction and production along with a detailed discussion of pricing, taxing, and markets of these most valuable commodities.
Energy and economic development mit opencourseware. Petroleum economics free download as powerpoint presentation. Economics and management is designed for students or professionals with degrees in science, engineering or social science business school, law, seeking indepth training to develop a commanding skill set in energy techniques, energy economics and management. Expanded basic petroleum economics training course. Introduction to probability theory including probability density functions, overview of typical probability distributions and definition of key terms. The petroleum industry is arguably the most influential and important industry in the world. Petroleum, energy economics and finance postgraduate taught. Are they enforceable, properly signed and properly dated. Discuss about the petroleum contracts and economics. In all stages of a projectfrom prospect assessment to abandonmentgeox exploration risk and resource assessment. Pdf readings in the international oil and gas agreements and.
The contractual structure of production sharing agreement has evolved to synchronise with the changing. How does the article say it works in industrialized countries. For which type of countries is the link between energy and economic development especially crucial. Basic refinery economics in many businesses, profits or losses result primarily from the difference between the cost of inputs and the price of outputs.
Economics and risk analysis is critical for investment decisions, budgeting, planning, reserves, and other business processes. School of management sciences national open university of nigeria 1416 ahmadu bello way victoria island lagos nigeria. We propose a simple structural model of the upstream sector in the oil and gas industry to study the determinants of costs with a focus on its relationship with the price of oil. In response to the primacy of english law as the lingua franca governing petroleum transactions, and the increased global demand for new sources of oil and gas, this fully updated new edition analyses the application of english law to contracts for project investment, financing, and development. Our economics and planning suite plays a significant role in completing the technical insights of geoscientists and engineers with the business analysis and processes needed to support decisions through an assets lifecycle. Analyze implications of incremental project decisions. Profitbased systems represent over 90% of the governments worldwide with petroleum operations underway. The relationship between oil price and costs in the oil and. Production contracts are signed between host states which sometimes are represented by their nocs and ioc for a specified period. Legal strategies in upstream oil and gas contracts to. Fiscal considerations oxford institute for energy studies.
The certificate in petroleum economics is the ideal course for both individuals and corporate groups to develop this crucial knowledge. As such, introductory economics and calculus are prerequisites. New generation of upstream oil and gas contracts with the title of iran petroleum contract ipc has been recently designed and set in the oil. Petroleum contracts and economics 0 download 6 pages 1,448 words add in library click this icon and make it bookmark in your library to refer it later. Department of economics, university of oxford b economics team bp january 2015 abstract. Summary energy politics is about energy technology advocating a fastmassive switch to a fuelfree energy system, to avoid hitting the wall in full speed.
Apart from the petroleum economics, risk analysis and project management programs, you can also choose to attend a training course, workshop or seminar in other categories of the oil and gas industry, including. The petroleum fiscal system for a country is essentially the taxation structure, including royalty payments, that has been established by legislation. Pdf economic analysis of new iraniab petroleum contract ipc. The economics of petroleum refining home canadian fuels. Get the corporate rigor and standards your company requires in order to manage the complexities in the economics evaluations and its many. The exploration and production cost of oil significantly plays a key role in designing a fiscal system of an upstream petroleum agreement. Petroleum existing within the territory of timorleste is a resource to be exploited jointly by timorleste and the contractor. The optimization of the time profile of revenues from individual fields is discussed along. Model production sharing contract under the petroleum act.
It discusses the science of petroleum economics, starting from squareone, the tools of the trade that petroleum economists use, day in and day out, and also its application. Also that the structures of these contracts are largely based on the bargaining strength of the two parties. May 2012 62 on the average, it is clear, from table 3. The determination of an appropriate petroleum contract. A brief history of petroleum contracts 3 productionsharing agreements in general 3. Growing refining overcapacity has resulted in recent refin. Darcy concessions of 1901 until the more recent buy back contracts. Legal strategies in upstream oil and gas contracts to attract.