Advanced Petroleum Economics and Risk Analysis

Upcoming Schedules

Date	Venue	Duration	Fee (USD)
24 Feb - 05 Mar 2025	Live Online	10 Day	5250
17 Mar - 26 Mar 2025	Live Online	10 Day	5250
07 Apr - 16 Apr 2025	Live Online	10 Day	5250
09 Jun - 18 Jun 2025	Live Online	10 Day	5250
07 Jul - 16 Jul 2025	Live Online	10 Day	5250
08 Sep - 17 Sep 2025	Live Online	10 Day	5250
20 Oct - 29 Oct 2025	Live Online	10 Day	5250
24 Nov - 03 Dec 2025	Live Online	10 Day	5250

Course Overview

In an era defined by energy transition, price volatility, and capital intensity, the petroleum industry requires professionals who can navigate complex investment landscapes using advanced economic and risk analysis frameworks. “Advanced Petroleum Economics and Risk Analysis” is a comprehensive course offered by Pideya Learning Academy, combining the strengths of two highly regarded programs—Petroleum Economics and Risk Analysis Techniques and Economics, Risk, and Decision Analysis for Oil & Gas Projects—into a unified, future-forward learning experience.
As global demand patterns shift and geopolitical instability continues to shape the flow of investment in hydrocarbon projects, decision-makers in the oil and gas sector are under immense pressure to ensure capital efficiency and project resilience. According to the International Energy Agency (2023), global upstream investments are projected to surpass $600 billion by 2030. However, over 70% of large-scale projects still face cost overruns or delayed returns due to insufficient economic planning and inadequate risk analysis (Rystad Energy). These realities make it critical for professionals to master the art and science of economic modeling, scenario forecasting, and uncertainty management in energy ventures.
This advanced course spans 15 integrated modules covering topics such as energy project valuation, capital structuring, predictive risk simulation, regulatory economics, and ESG-integrated financial modeling. Participants will gain the tools needed to evaluate oil and gas investments using deterministic and probabilistic models, assess project feasibility under fluctuating commodity prices, and manage financial risks through data-driven decisions.
Key highlights of this immersive program include:
Cutting-edge techniques for petroleum fiscal regime evaluation, CAPEX/OPEX modeling, and price forecasting
Application of Monte Carlo simulations, decision trees, and real options to assess economic risks
ESG-aligned project valuation frameworks
Integration of SCAL, petrophysical, and simulation data into economic forecasts
Real-life industry case studies covering asset acquisition, contract structures, and regulatory shifts
Throughout the course, participants will engage in scenario-based learning, economic simulation exercises, and collaborative case evaluations that mirror current industry conditions. They will leave equipped not just with tools, but with insight—the ability to anticipate economic consequences and steer complex energy projects toward long-term profitability and sustainability.

Key Takeaways:

Cutting-edge techniques for petroleum fiscal regime evaluation, CAPEX/OPEX modeling, and price forecasting
Application of Monte Carlo simulations, decision trees, and real options to assess economic risks
ESG-aligned project valuation frameworks
Integration of SCAL, petrophysical, and simulation data into economic forecasts
Real-life industry case studies covering asset acquisition, contract structures, and regulatory shifts

Cutting-edge techniques for petroleum fiscal regime evaluation, CAPEX/OPEX modeling, and price forecasting
Application of Monte Carlo simulations, decision trees, and real options to assess economic risks
ESG-aligned project valuation frameworks
Integration of SCAL, petrophysical, and simulation data into economic forecasts
Real-life industry case studies covering asset acquisition, contract structures, and regulatory shifts

Course Objectives

After completing this Pideya Learning Academy training, participants will learn to:
Apply advanced economic models to assess the viability of upstream and downstream oil & gas projects
Quantify and mitigate financial, operational, and geopolitical risks
Integrate fiscal regimes, ESG factors, and price volatility into decision frameworks
Forecast capital and operational cash flows using scenario-based and probabilistic tools
Interpret technical data for informed investment decisions

Personal Benefits

Advanced skills in petroleum project economics and decision analysis
Stronger credibility in cross-disciplinary project teams
Enhanced career progression through specialization
Confidence in communicating financial risks and rewards

Organisational Benefits

More robust investment proposals and project evaluations
Enhanced capital allocation strategies
Reduced financial exposure through structured risk management
Integration of ESG metrics into corporate project pipelines
Cross-functional upskilling of technical and financial teams

Who Should Attend

This course is ideal for:
Petroleum economists and financial analysts
Project managers and planning engineers
Risk management professionals
Executives in strategic investment roles
Geoscientists and reservoir engineers involved in asset development and evaluation
By completing this training, participants will be positioned to take leadership roles in shaping resilient and economically sound projects in the ever-evolving oil and gas industry.

Course Outline

Module 1: Foundations of Energy Project Economics and Valuation

Industry-specific economic principles Evaluation methodologies in oil and gas projects Key financial metrics: NPV, IRR, Payback Period Stages in the upstream oil and gas project lifecycle Classification of upstream development projects Stakeholders and functional roles across the project timeline Economic life cycle of energy projects Production estimation techniques and price forecasting Operating cost modeling and trend analysis Introduction to economic screening and cost escalation considerations

Module 2: Advanced Cash Flow Modeling and Forecasting

Components and structure of project cash flows Revenue estimation under variable pricing structures Fixed vs. variable OPEX and CAPEX planning Net cash flow projections and temporal cash flow curves Time value of money and discounting methodologies Adjusting for inflation and currency volatility Non-economic value drivers in financial models Sensitivity analysis and financial resilience Forecasting operational and capital expenditures Present value and future value calculations

Module 3: Performance Metrics and Decision Criteria

Net Present Value (NPV) calculation methods Internal Rate of Return (IRR), MIRR, and interpretation Discounted Payback Period and profitability index Weighted Average Cost of Capital (WACC) and hurdle rate Decision criteria based on capital rationing Comparative assessment of economic indicators Sensitivity of metrics to project variables

Module 4: Petroleum Fiscal Regimes and Financial Structuring

Overview of global fiscal regimes in petroleum Structural elements of concessionary systems Production Sharing Contracts (PSCs) and sliding scales Taxation, royalties, and investor share modeling Fiscal stability clauses and emerging trends Cash flow modeling under various fiscal regimes Risk Service Contracts and bonus payment structures

Module 5: Risk Analysis and Decision-Making under Uncertainty

Identification of financial and operational risks Deterministic vs. probabilistic evaluations Scenario-based risk quantification techniques Expected Monetary Value (EMV) and ENPV methods Monte Carlo simulation and real options analysis Portfolio optimization and incremental decision-making Ranking and prioritization under uncertainty

Module 6: Capital Allocation, Budgeting, and Governance

Principles of portfolio optimization and capital budgeting Strategic evaluation of asset acquisition Internal competition for capital and project screening Post-audit of capital projects and decision gates Integrating ESG into investment decisions Governance and assurance in investment appraisal Balancing short-term and long-term investments

Module 7: ESG and Regulatory Compliance Economics

Analyzing environmental impacts of energy operations Regulatory compliance strategies and economic implications Integrating CSR in operations and financial models Managing stakeholder expectations through ESG metrics Auditing, monitoring, and compliance risk management Financial tools for compliance decision-making

Module 8: Predictive Modeling and Simulation in Energy Finance

Advanced stochastic and volatility modeling techniques Predictive analytics in economic evaluations Stress-testing financial models and risk-adjusted forecasting Integration of predictive tools and performance metrics Dynamic modeling of CAPEX and OPEX escalations

Module 9: Comprehensive Frameworks for Investment Decisions

Collaborative approaches to strategic planning Developing and applying KPIs in project analysis Decision matrices and multi-criteria evaluations Review and critique of complex project case studies Integration of cross-functional inputs in investment decisions

Module 10: Feasibility Studies and Technical-Economic Assessments

Phases in preparing feasibility studies Financial modeling for project alternatives Operational and technical feasibility assessments Economic justification and approval processes Determining critical success factors

Module 11: Supply Chain Economics and International Trade Impacts

Cost efficiency in procurement and distribution Financial implications of supply chain interruptions Risk management in supplier relationships Inventory optimization strategies Impact of trade laws on energy project finances

Module 12: Contractual and Legal Financial Structures

Types of contracts in energy operations Financial implications of contractual clauses Negotiation techniques and risk allocation Performance benchmarks and payment terms Contract structures in financing agreements

Module 13: Asset Valuation, Divestiture, and M&A Planning

Valuation techniques in the energy sector Divestiture planning and strategic M&A opportunities Lifecycle asset management and post-divestiture planning Financial and operational M&A considerations

Module 14: Digital Transformation in Energy Project Economics

Big data in predictive forecasting Machine learning in economic risk modeling Blockchain applications for contract transparency Digital tools for economic analysis Trends in technological innovation in energy

Module 15: Integrated Forecasting and Technical Data Utilization

Integration of economic, technical, and fiscal forecasting Reservoir simulation data and production forecasting Volatility and probabilistic models for uncertainty Stress-testing and dynamic scenario modeling

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