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Module Title
Oil And Gas Economics
Reference BSM179 Version 5
Created February 2020 SCQF Level SCQF 11
Approved September 2018 SCQF Points 15
Amended May 2020 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 Taught Mode by lectures, workshops, interactive group work, tutorials and directed self study. The module is delivered in Distance Learning mode by self directed study learning from paper based or web based learning materials, facilitated by online support and group work.

Indicative Student Workload Full Time Part Time
Contact Hours 51 42
Non-Contact Hours 99 108
Placement/Work-Based Learning Experience [Notional] Hours N/A N/A
TOTAL 150 150
Actual Placement hours for professional, statutory or regulatory body    

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

Explanatory Text
The Module is assessed by two components: C1 - Coursework - 50% weighting. C2 - Coursework - 50% weighting. Module Pass Mark = Grade D (40%)
Module Grade Minimum Requirements to achieve Module Grade:
A At least 70% on weighted aggregate and at least 35% in each component
B At least 60% on weighted aggregate and at least 35% in each component
C At least 50% on weighted aggregate and at least 35% in each component
D At least 40% on weighted aggregate and at least 35% in each component
E At least 35% on weighted aggregate
F Less than 35% on weighted aggregate
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.

1 DOWNEY, M., 2009. Oil 101. Los Angeles: Wooden Table Press.
2 JAHN, F., COOK, M. and GRAHAM, M., 2008. Hydrocarbon exploration and production. 2nd ed. Amsterdam: Elsevier.
3 LERCHE, I. and NOETH, S., 2004. Economics of petroleum production: a compendium: vol.1: profit and risk. Brentwood: Multi Science Publishing Co Ltd. ebook
4 SLOMAN, J., HINDE, K. and GARRATT, D., 2013. Economics for business. 56th ed. Harlow: Financial Times/ Prentice Hall.
5 Other Resources: BP Statistical Review of World Energy IEA World Energy Outlook OPEC World Oil Outlook

Robert Gordon University, Garthdee House, Aberdeen, AB10 7QB, Scotland, UK: a Scottish charity, registration No. SC013781