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MODULE DESCRIPTOR
Module Title
Oil And Gas Economics
Reference BSM179 Version 7
Created February 2024 SCQF Level SCQF 11
Approved September 2018 SCQF Points 15
Amended March 2024 ECTS Points 7.5

Aims of Module
To provide students with an understanding of world energy markets and the evolution of, and challenges facing the carbon economy. To provide students with a working practical knowledge of the role that oil and gas economics plays in the decision making within the oil and gas exploration and production lifecycle.

Learning Outcomes for Module
On completion of this module, students are expected to be able to:
1 Critically assess the economic concepts and principles underlining the oil and gas markets with a focus on international operations of the oil and gas industry.
2 Critically reflect on the demand and supply scenarios in the energy markets, focussing on the peculiarities of the oil and gas market by analysing the macro and micro economic factors.
3 Critically apply economic modelling approaches to risk and uncertainty in an oil and gas context.
4 Critically evaluate the economics of field appraisal, field development and end of field life.

Indicative Module Content
The module is delivered in two parts. The first part explores the evolution of the carbon economy and the world energy markets. This section will also consider labour markets in the oil and gas sector and de-commissioning. The second part of the module will consider exploration and appraisal economics (including probability and expectation curves), field development options (including modelling cash flows, profitability and risk indicators, net present value, investment appraisal, environmental issues), incremental analysis and economics (including depletion models)and late field economics.

Module Delivery
The module is delivered in blended mode by lectures, workshops, interactive group work, tutorials and directed self study. The module is delivered in online mode by self-directed study learning from web based learning materials, facilitated by online support and group work.

Indicative Student Workload Full Time Part Time
Contact Hours 30 30
Non-Contact Hours 120 120
Placement/Work-Based Learning Experience [Notional] Hours N/A N/A
TOTAL 150 150
Actual Placement hours for professional, statutory or regulatory body    

ASSESSMENT PLAN
If a major/minor model is used and box is ticked, % weightings below are indicative only.
Component 1
Type: Coursework Weighting: 50% Outcomes Assessed: 3, 4
Description: Group Presentation
Component 2
Type: Coursework Weighting: 50% Outcomes Assessed: 1, 2
Description: Individual Report

MODULE PERFORMANCE DESCRIPTOR
Explanatory Text
The calculation of the overall grade for this module is based on 50% weighting of C1 and 50% weighting of C2 components. An overall minimum grade D is required to pass the module.
Coursework:
Coursework: A B C D E F NS
A A A B B C E
B A B B C C E
C B B C C D E
D B C C D D E
E C C D D E E
F E E E E E F
NS Non-submission of work by published deadline or non-attendance for examination

Module Requirements
Prerequisites for Module None.
Corequisites for module None.
Precluded Modules None.

INDICATIVE BIBLIOGRAPHY
1 MU, X., 2019. The Economics of Oil and Gas. Newcastle: Agenda Publishing.
2 SLOMAN, J., GARRATT, D., GUEST, J. and JONES, E., 2019. Economics for business. 8th ed. Harlow: Pearson.
3 DOWNEY, M., 2009. Oil 101. Los Angeles: Wooden Table Press.
4 JAHN, F., COOK, M. and GRAHAM, M., 2008. Hydrocarbon exploration and production. 2nd ed. Amsterdam: Elsevier.
5 LERCHE, I. and NOETH, S., 2004. Economics of petroleum production: a compendium: vol.1: profit and risk. Brentwood: Multi Science Publishing Co Ltd. ebook
6 Other Resources: BP Statistical Review of World Energy IEA World Energy Outlook OPEC World Oil Outlook

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