Handbook

Students will learn how to carry out net cash flow analyses for geo-energy resources industry investment decisions pertaining to energy generation and storage. The contents will include the definition and composition of cash flow, deriving net cash flow under tax/royalty systems and production sharing contracts, depreciation methods, inflation, sunk costs, carbon credits.

Building on the net cash flow analyses mentioned above, students will study economic indicators (net present value, rate of return and other indicators), what they mean, and the issues associated with their application in practice.

Students will also carry out fiscal analyses, covering the nature of fiscal regimes, the effects of fiscal regimes on energy resources development decision making and economic analyses.

Moreover, the course will cover how risk analysis is conducted in the energy resources industry. The coverage will include project risk and expected value, sensitivity analysis, probability analysis, Monte Carlo simulation, probabilistic reserves estimates, probabilistic economics, portfolio analysis, asset management, risk and discount rates.