Economic Decision Tools
About the Skill Module
This skill module addresses the need for economic evaluation criteria for petroleum projects. How can one project be compared to another when the projects are in different regions or offshore vs. onshore or gas vs. oil? In the purest sense, economic evaluations are independent of the details of a project and focus on the particular economic inputs such as capital investment needed, operational expenses, royalty rates and, ultimately, the economic outcomes using comparative economic metrics to evaluate projects and make decisions.
Managers, engineers, explorationists, field accounting supervisors and other personnel who need to develop or improve their skill and understanding of basic economic analysis and profitability of petroleum exploration and production.
You Will Learn
You will learn how to:
- Calculate compound interest
- Determine present values for future cash flows
- Evaluate NPV, DROI, IRR
- Choose the right economic metric
- Use economic decision tools to evaluate projects