PGE 491: Petroleum and Natural Gas Economics

COURSE SYLLABUS
PETROLEUM AND NATURAL GAS ECONOMICS (PGE 491): INTRODUCTION: Course Learning Outcomes and Syllabus, Brief on Islamic Economy Principles. CHAPTER 1: HISTORY OF OIL IN SAUDI ARABIA: The Importance of Oil and Gas Resources in the Middle East, OPEC, USA, Rest of the World Oil Reserves, Production and Consumption, History of Oil Discovery in Saudi Arabia, Major Saudi Arabia Oil and Gas Fields, Saudi Arabia Oil Ministers, Giant Oil and Gas Fields, Saudi Arabia Oil and Gas Fields List, Saudi Arabia Geological Column, Crude Oil Classification and Refining, Carbon Net Zero Emission, Carbon Capture, Utilization And Storage (CCUS), Saudi Arabia-Kuwait Neutral (Divided) Zone, Legal Boundaries of Waters and Airspace, Pollution Caused by Petroleum Operations. CHAPTER 2: THE INTERNATIONAL OIL INDUSTRY: National and International Oil Companies and OPEC, Oil and Gas Ownership Types, OPEC, OPEC+, OAPEC and IEA, Swing Produces, Inflation, Depletion, and Energy Sources, Unconventional Oil and Gas Resources, The Difference between Oil Shale, Shale Oil and Shale Gas, Definition of Oil and Gas Reserves, Depletion and Depreciation. CHAPTER 3: OIL PRICES HISTORY AND PRICING CRITERION: Oil Pricing History, Oil Pricing Criterion, OPEC Reference Basket (ORB) Price, Oil Paper and Wet Barrels, The Port of Rotterdam, Law of Supply and Demand, Law of Oil Equilibrium (Bottom) Price. CHAPTER 4: BASICS OF ENGINEERING ECONOMY: Engineering Economy, Key Factors For Successful Project, Investment and Economic Limit, Capital Expenditure (CAPEX) and Operating Expenditure (OPEX), Petroleum Field Exploitation Cost Analysis, Nominal and Effective Interest Rates, Complex Interest Rate, Horizontal Time-Fund Flow Diagram, Formulas for Continuous and Lump Sum Flow of Fund, Mutually Exclusives Selection Methods and Decision Strategy, Decision Screening Yardsticks for Economical Projects, Net Present Value (NPV), Minimum Rate of Return (ROR), Payout (Payback) Period (POT), Profit-to-Investment Ratio (Profitability Index, P/I), Summary of Economical Screening Yardsticks. CHAPTER 5: FIELD EXAMPLES BASED ON OIL PRODUCTION DATA: Field Examples Based on Oil Production Data. CHAPTER 6: RISK, UNCERTAINTY, ETHICS, ENVIRONMENTAL IMPACTS, AND PEAK OIL THEORY: Oil and Gas Industry Sectors, Potential Environmental Impacts of Oil and Gas Activities, Risk and Uncertainty in the Oil and Natural Gas Industry, Oil Price Elasticity, Peak Oil Theory, SPE Ethics and Professional Responsibility.