COURSE SYLLABUS

******************************************************************************
YEAR COURSE OFFERED:
2014
SEMESTER COURSE OFFERED:

Spring

DEPARTMENT:

CHE ENG

COURSE NUMBER:

PETR 3310

NAME OF COURSE:

Petroleum Production Economics

NAME OF INSTRUCTOR:

Donald Bellman

******************************************************************************

The information contained in this class syllabus is subject to change without

notice. Students are expected to be aware of any additional course policies
presented by the instructor during the course.
******************************************************************************

Learning Objectives
Development of a basic understanding of the global economics of producing petroleum,
including methods of estimating reservoir contents, production quantity forecasting, product
values, characteristics of various contracting techniques, cost structures, discounted cash flow
analysis and assessing risks versus rewards.

Major Assignments/Exams
1. Three tests, on physical aspects of production, costs and prices, and economic analysis
principles
2. A series of homework problems
3. A final exam comprised of a economic assessment problem
Each of the three categories above will account for 1/3 of the final grade.

Required Reading
Textbook: Oil and Gas Property Evaluation Beta Test Version, J. D. Wright, Thompson
Wright LLC, 2014. This new text book can be ordered from:
http://thompson-wright.com/beta.aspx

Page 1 of 2

COURSE SYLLABUS
List of discussion/lecture topics
Time value of money
Investment decisions
Measuring economic results
Estimation of initial reservoir contents
Forecasting production versus time (decline curve analysis)
Petroleum chemistry and value
Oil and gas prices
Investment and operating costs
Severance taxes
Global fiscal systems and contracting arrangements
Bulding cash flow models
Dealing with risk and uncertainty
Probability concepts
Decision trees
Monte Carlo simulaton
Investment criteria
Assessment of alternative production ventures

Page 2 of 2