PETROLEUM INDUSTRY

PETROLEUM INDUSTRY

Current issues

Increase in oil prices feared to cause a drag on Indonesian economic development in 2008. The prices of crude oil have been on the increase lately  triggered by a number of factors including Middle East conflicts notably in Iraq and mounting tension between Iran and the West over nuclear issue, and the falling value of the U.S. dollar against euro and other major currencies. Inflation will likely increase weakening the  purchasing power of the people and falling purchasing power will cause a decline in consumption, which has been a major driving motor  for the country's economic growth in the past several years. The cash strapped government may be forced to raise the oil fuel prices further worsen the condition.

Petroleum Industry is considered to be the back bone of an economy because this is the main source of energy till date. Any economy around the world would fail to proceed a single step in the absence of Petroleum Industry. Thus, before using this energy source, the crude petroleum is required to be refined in the petroleum refineries for extracting various fractions for energy generation namely, petrol, natural gas, kerosene, asphalt and many more. The most important part of the Petroleum Industry is the Petroleum Refining Industry which refines the crude oil to convert it to the usable fuel. It also derives many derivative products out of the crude petroleum like natural gas, naphtha, etc which can be used in various ways.

Risk Analysis For Upstream Petroleum Industry

This course is a practical petroleum economic course and practices the upstream oil and gas business uses to deal with the high investment, high return and high risk. Nobody knows how much oil exists under the earth’s surface or how much it will be possible to produce in the future. The Petroleum Economics provides knowledge of the role of commercial analysis and petroleum economics in decision making with uncertainty in exploration and production ventures. Many of these methods and practices are also used extensively in other industries. The course gives participant the skills to perform economic evaluation using  a selection of indicators from cash-flow and making decision with the risk analysis. Risk analysis is important for making decision. Risk analysis consists of sensitivity analysis, decision tree and monte carlo simulation. Applications for reserves estimation and for petroleum exploration and development planning are important for upstream petroleum industry. The course covers cash flow analysis, economic indicators, risk and uncertainty, fiscal analysis, techniques for valuing oil and gas properties and key commercial issues in negotiating and implementing upstream project under tax and royalty, Production Sharing and risk service. This is a practical course that will use current industry example and case-studies and encourage interaction between participant.