Financing and Ownership
About the Skill Module
This skill module explores financial aspects of how oil and gas companies manage the business of funding projects.
Where do oil companies get the capital to explore for oil and gas?
Do oil companies borrow money to develop projects?
How much interest do they pay?
What is the hurdle rate and why is it similar for almost all oil companies regardless of whether a large integrated company or an independent upstream company?
These are some of the financial issues covered in this skill module.
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
Participants will learn how to:
- Calculate the average cost of capital for a typical oil company
- Recognize the drivers for a company’s hurdle
- Determine the opportunity cost of capital