Petroleum Economics

There are many steps required in order to bring petroleum products to consumers. New reserves must be located and explored. Wells must be planned and drilled. Raw crude and gas must be transported and refined, and finally petroleum products created, marketed, and sold to consumers.

In this module you will learn:

• The business models of upstream, midstream, and downstream business units
• How each business stream makes revenue and is influenced by macroeconomics
• The business stream units that different types of companies operate within
• The variables that contribute to fluctuations in world crude oil prices and the common crude oil and natural gas pricing indexes.
• The factors considered in forecasting commodity prices and the relationship between price, investment, drilling rig counts, number of wells, and supply.
• Trends in world energy supply and demand.
• How upstream businesses evaluate prospective sites before drilling new crude oil and natural gas wells
• The factors involved in financial decision making for new oil wells
• How to complete a financial model of cash flow for an oil well
• How to calculate rates of return on investments in new supplies

In order to successfully complete this module you will be required to:

• Go through all the lessons in the module.
• Complete the practice items.
• Complete the module quiz with a passing grade of 70%. You will have 2 chances to complete the quiz.

At the end, you will receive a Certificate of Completion. It should take you approximately 45-60 minutes to complete this module.

For multiple licenses or to use the Introduction to Petroleum e-learning module in training, please contact us at 800.687.4132 or 512.471.5940 or by sending an email to info@petex.utexas.edu.