Oil & Gas Economics 101
SEMINAR DETAILS
CPE: Recommended 7.5 hours
Program Level: Basic to Intermediate
Field of Study: Specialized Knowledge and Applications
Prerequisites: None. No advance preparation needed.
Instructional Delivery Method: Group Live
Cost: $898
Schedule: 8am – 4pm. Lunch is provided at 12pm.
Select a date to register!
Brief:
This course is designed to train employees on the basic concepts of finance, economics, and financial statements. There are multiple examples which are specific to oil and gas companies but could be applied to all industries. Students will learn the concepts and applications behind:
Net Cash Flow
Economic Concepts
Performance Measures
Fundamentals of Financial Statements
Hedging Primer
Full Cost Accounting
Taxes: Cash versus Book
Who should attend:
This course is geared for employees who want to learn how oil and gas investment decisions are made, and how those decisions flow through to a company’s financial statements. No accounting background is required, therefore it is suitable for professionals and analysts in engineering, geology, accounting, treasury, investor relations, marketing, land, legal, HR, IT, etc.
Agenda
AGENDA: OIL AND GAS ECONOMICS 101
SECTION I – Morning
- Purpose of Economics
- Investment Evaluation – Converting Technical Data into Financial Data
- Compare Investments / Projects – Apples to Apples is Good for Business
- Provide Insights into Risks and Rewards – Does Bigger mean Better?
- Investment Decisions – Is it Time to make the Donuts?
- Acquisition / Divestment Analysis – Sold!
- Definition of Net Cash Flow
- Characteristics – Cash Inflows versus Outflows
- An Example – Drill an Oil Well or Buy a Rental Property?
- Components – Time to Get into the Weeds
- More Examples – Time to Get into the Dirt
- Economic Concepts
- Opportunity Cost – Is there Something Better Out There?
- Time Value of Money – Why a Dollar Today is Worth More than a Dollar Tomorrow
- Discounting and Present Value – Who Knew Calculating Interest could be so Much Fun!
- Financial / Economic Performance Measures
- Net Cash Flow – A Time to Remember
- Payout – When Will I get my Money Back?
- Return on Investment, Discounted Return on Investment, and Present Value Index – It’s Bang for the Buck
- Net Present Value at X% – Back to the Bigger is Better Question
- Internal Rate of Return – The Interest Rate of an Investment
SECTION II – Afternoon
- Fundamentals of Financial Statements
- Balance Sheet – It’s the Water in a Bathtub Combined with the Water Bill
- Income Statement – AKA Profit & Loss
- Cash Flow Statement – Exactly how much $ do I have in my Checking Account?
- Hedging Basics for Oil and Gas Producer
- What is a Hedge? – Is it like a Derivative?
- Why Hedge? – To Hedge or Not to Hedge
- Mechanics of Hedging – An Example of a Swap
- Full Cost Accounting for an Oil and Gas Producer
- Definition – A Pool, Not a Bathtub
- An Example – It’s Crunch Time
- Full Cost Ceiling Test – A By-Product of Full Cost Accounting
- Taxes: Cash versus Book
- Definitions: Cash Taxes, Book Taxes, Deferred Taxes –The Tax Man Cometh
- An Example – A Little More Crunch Time
This seminar is also available as an in-house seminar brought to your office. Contact us for more details.
Not Convinced?
See what others had to say about Energy Seminars:
This was one of the better training classes I have attended in the 25 years I have been working. The instructor was very knowledgeable and made the content interesting!!
ALL new hires should take this course first.
Excellent foundation in the basics presented in understandable, plain English with helpful anecdotes and stories.
Budgeting for Oil & Gas Companies
You can never know enough! Budgeting for Oil & Gas Companies is designed to provide employees with a bottoms-up understanding on how to forecast the financial statements for an oil and gas producer. Students are guided step by step on how to model the Income Statement, Balance Sheet, and Cash Flow Statement on a monthly basis.
Register for Budgeting for Oil & Gas Companies Today!
