Prerequisites for Module
None in addition to course entry requirements or equivalent.
Corequisite Modules
None.
Precluded Modules
None.
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 concepts and principles underlining operation of oil and gas markets.
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| 2. |
Critically reflect on and apply the principles of Oil and Gas economics to decision making relating to field development options.
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| 3. |
Critically apply economic modelling approaches to risk and uncertainty in an Oil and Gas context.
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| 4. |
Critically evaluate the economics of field appraisal, field development and end of field life.
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Indicative Module Content
The module is delivered in two parts.
The first part explores the evolution of the carbon economy and 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), late field economics and decommissioning.
| Indicative Student Workload
Contact Hours
| Full Time | Part Time | Distance Learning | Lectures / Tutorials
| 36 | 28 | 16 | Online Discussion Activities
| 14 | 22 | 54 |
Directed Study
| | | | Assessment
| 30 | 30 | 30 | Directed Study
| 50 | 50 | 30 |
Private Study
| | | | Private Study
| 20 | 20 | 20 |
Mode of Delivery
Taught Mode (T)
The module is delivered in Taught Mode by lectures, workshops, interactive group work, tutorials and directed self−study.
Distance Learning Mode (DL)
The module is delivered in Distance Learning mode by self
directed study learning from paper−based or web−based
learning materials, supported by on−line support and group
work.
Assessment Plan
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Learning Outcomes Assessed
| | Component 1 | 1,2,3,4
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Module is assessed by porfolio coursework including contribution to module activities.
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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