AFC-106 BUSINESS PLANNING AND FINANCIAL PROJECTION

This course is intended at helping engineerings and technical professionals plan and forecast the business through developing fact-based financial scenarios. The key is through proper understanding of the commercial/economic drivers and how the businesses decisions were implemented that lead to optimal resource allocation while still meeting the petroleum production, development or exploration goals.

 

Topics:

1. Forecasting oil production

2. Defining: reserves, operating expenses, capital expenditures, inflation, factors effecting oil and gas prices

3. Cash flow techniques

4. Economic criteria: interest, hurdle rate, time value of money, selection, ranking criteria

5. Risk, uncertainty: types of risk, mathematical techniques, probabilistic models, uncertainty in economic analysis

6. Financing, ownership in the oil and gas industry: business arrangements between operators, between mineral owners

7. Accounting versus cash flow: accounting principles and definitions, differences between accounting cash numbers, depreciation, depletion, and amortization (DD&A)

8. Budgeting and Forecasting: types, processes, selecting of projects for the budget

9. Economic analysis of operations & maintenance (O&Ms)

10. Business ethics in technology/economic analyses