Petroleum Economics

Introduction to financial reporting for oil companies. Capital budgeting: Cash flow analysis, with emphasis on after-tax cash flows. Risk analysis: Probability theory and methods. Market theory: Supply and demand, oil price models, product prices. The national economy.

Knowledge:
Students should have a basic understanding of the principal economic framework for the petroleum sector. This includes financial reporting, capital budgeting, risk, markets and macroeconomics.

Skills:
Students should know how to evaluate projects by using net present value, risk models and optimization techniques and to use market models.

General competence:
Students should have a general theoretical understanding of economics in order to work towards profitable strategic goals for oil companies, government agencies and petroleum related companies.

Lectures and exercises. Lectures will be held every other week, as arranged by the lecturer. Exercises are to be done ex-classroom. The exercises are not compulsory. Lectures are held in English.