Production Of Crude Oil

Energy Risk Professional (GARP): Exam Review Series

What you'll learn
How specific upstream costs impact an energy company’s earnings; & why production costs may vary by location.
Assess the economic performance of an oil well, including; operating profitability, break-even price, working interest and tax allocations.
Classify and describe the costs and factors associated with the production of an oil field, with focus on primary, secondary & tertiary recovery methods.
Assess the terms & conditions of partnership management agreement; understand how duties are shared & disputes are settled between parties involved.
Describe the nature of relationships, incentives, and potential conflicts among various stakeholders along the oil and gas supply chain.
Identify & assess political risks that impact crude oil production decisions.
Requirements
Proficiency in the English Language.
Description
This course is designed to help students (including but not limited to; oil and gas analysts, energy traders and Energy Risk Professional (GARP) candidates), understand; managerial challenges faced by oil and gas companies in producing crude oil and natural gas with an emphasis on costs & cost advantage as a strategic objective.This course, Production of Oil & Gas Products, is the 3rd reading from the Crude Oil Markets & Refined Products section of the Energy Risk Professional curriculum and covers GARP specified Learning Objectives in detail.The GARP specific Learning Objectives of this reading are as follows:Explain how specific upstream costs impact an energy company’s earnings; & why production costs may vary by location.Assess the economic performance of an oil well, including; operating profitability, break-even price, working interest and tax allocations.Classify and describe the costs and factors associated with the production of an oil field, with focus on primary, secondary & tertiary recovery methods.Assess the terms & conditions of partnership management agreement; understand how duties are shared & disputes are settled between parties involved.Describe the nature of relationships, incentives, and potential conflicts among various stakeholders along the oil and gas supply chain.Identify & assess political risks that impact crude oil production decisions.Disclaimer: This course is NOT GARP endorsed.

Overview

Section 1: COURSE INTRODUCTION

Lecture 1 INTRODUCTION

Section 2: LEARNING OBJECTIVE #1:

Lecture 2 DEFINING COSTS IN THE UPSTREAM

Lecture 3 ACCOUNTING FOR UPSTREAM COSTS

Lecture 4 EXPLORATION, DEVELOPMENT AND PRODUCTION AND THE COST OF BUSINESS

Lecture 5 PERFORMANCE AND COMPETITIVE ADVANTAGE

Section 3: LEARNING OBJECTIVE #2:

Lecture 6 HOW TO CALCULATE OPERATING PROFITABILITY OF AN OIL WELL?

Lecture 7 HOW TO CALCULATE THE BREAK EVEN POINT FOR AN OIL WELL?

Lecture 8 HOW TO CALCULATE BREAK-EVEN USING WORKING INTEREST & NET REVENUE INTEREST?

Lecture 9 HOW TO CALCULATE THE BREAK EVEN POINT INCORPORATING TAXES?

Section 4: LEARNING OBJECTIVE #3:

Lecture 10 COST MANAGEMENT IN THE UPSTREAM OIL AND GAS SECTOR.

Lecture 11 STRATEGIC COST MANAGEMENT DURING OIL AND GAS PRODUCTION.

Lecture 12 STRATEGIC COST MANAGEMENT: ECONOMIES OF SCALE.

Lecture 13 STRATEGIC COST MANAGEMENT: ECONOMIES OF SCOPE.

Lecture 14 STRATEGIC COST MANAGEMENT: VERTICAL SCOPE AND IT'S IMPACT ON OIL PRODUCTION.

Lecture 15 STRATEGIC COST MANAGEMENT: IMPACT OF LEARNING ON OIL & GAS PRODUCTION PROJECTS.

Lecture 16 NOTE ON HOW TO CONTROL OIL AND GAS PRODUCTION COST DRIVERS.

Lecture 17 FIELD REINVESTMENT AND RENEWAL.

Lecture 18 CRUDE OIL EXTRACTION: PRIMARY RECOVERY METHOD.

Lecture 19 CRUDE OIL EXTRACTION: SECONDARY RECOVERY METHOD.

Lecture 20 CRUDE OIL EXTRACTION: TERTIARY RECOVERY METHOD.

Lecture 21 ENHANCED RECOVERY COSTS.

Section 5: LEARNING OBJECTIVE #4:

Lecture 22 INTRODUCTION TO PARTNERSHIP MANAGEMENT (UPSTREAM SECTOR)

Lecture 23 WHAT IS A JOINT OPERATING AGREEMENT IN THE OIL AND GAS INDUSTRY?

Lecture 24 TERMS IN A JOINT OPERATING AGREEMENT.

Lecture 25 JOINT VENTURE CONFLICT.

Lecture 26 MANAGING OPERATED-BY-OTHERS PROJECTS.

Section 6: LEARNING OBJECTIVE #5:

Lecture 27 MANAGING CONTRACTOR SUPPLY CHAINS.

Section 7: LEARNING OBJECTIVE #6:

Lecture 28 MANAGING POLITICAL RISK.

ANYONE INTERESTED IN UNDERSTANDING THE BASICS OF THE OIL AND GAS INDUSTRY.,ENERGY RISK PROFESSIONAL (GARP) CANDIDATES: who plan to sit for GARP's ERP Part 1 exam can learn the Learning Objectives for the first two readings of the ERP part 1 curriculum.,ENERGY MARKET PROFESSIONALS: The Energy Risk Professional (GARP) helps professionals working in the energy markets to broaden their knowledge of the complex energy value chain and its interconnection with financial markets. It will help sharpen your ability to identify, analyze, and manage risk, and will help you keep pace with emerging industry trends, particularly in areas where they lack direct professional experience. If you are at the start of your career, earning your ERP is an excellent way to demonstrate that you possess the knowledge and skills necessary to take on additional challenges and responsibilities in the energy space, and to differentiate yourself from your peers.,FINANCIAL ANALYSTS: who wish to grasp how exploration & development of crude oil takes place & be aware of financial risks involved in evaluating/valuing such firms.,TEACHERS: who wish to level up their industry knowledge and be able to understand & use industry terminology and give industry examples.,CAREER CHANGERS: If you are considering a career in energy, becoming an ERP can accelerate your transition. Professionals from non-finance, non-risk, or non-energy roles become ERPs in order to develop specialized, practical knowledge that can be applied in the global energy market. Undertaking the rigorous course of study to become an ERP signals your commitment to understanding energy markets to potential employers.,STUDENTS: If you are a student interested in a career in the energy industry, you may elect to sit for the ERP Exam during or after completing your studies. The ERP Program can complement your prior coursework or help you develop a foundation of specialized knowledge that goes beyond your university curriculum. Engaging with the ERP Program underscores your dedication to learning about the energy marketplace to prospective hiring managers.