PET 412 PETROLEUM AND NATURAL GAS ECONOMICS
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Course Title :
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Petroleum and Natural Gas Economics
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Course Title In Turkish :
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Petrol ve Doğal Gaz Ekonomisi
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Department :
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Petroleum and Natural Gas Engineering
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Course Code :
PET 412 |
Course Hours : 3+0
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Course Credits : 3 |
Course Type : Required |
Semester : 8 |
Prerequisites (If Any) :
None |
Course Language :
Turkish |
Instructor : Dr.
Ümran Serpen |
Course Web Page : |
http://atlas.cc.itu.edu.tr/~serpen/pet412.html |
COURSE DESCRIPTION
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The course provides the students with
basic principles, concepts and equations in decision making
process. First, deterministic approach is introduced with
measures of profitability and then stochastic approaches
are described in risk management methods.
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OBJECTIVE OF THE COURSE
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The aim of the course is to acquaint the
students with concepts, equations and analysis methods
for project evaluation and risk assessment, and provide
them the skills and knowledge for decision analysis.
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CONTENT
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An overview of petroleum and natural gas
economy. Basic concepts. Measures of profitability: rate
of return, ROR and NPV analyses. Definition of risk and
uncertainty. Expected monetary value. Decision analysis.
Decision tree analysis, estimation of future money value.
Risk analysis techniques for petroleum and natural gas
explorations. Binomial, multinomial and hypergeometric
techniques. Evaluation of expected explorations in developed
areas. Determination of the value of uncertain risky investments.
Applications.
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