Engineering Economy in Upstream Oil & Gas Field Development

The business of upstream oil and gas industry is a complex process that
involves multidisciplinary participation. Producing crude oil and natural gas
from the subsurface reservoir rocks to the point of the selling terminal
requires stage by stage processes that costs several hundreds of millions of
dollars to the operating companies. Because of the capital intensive nature of
upstream investments, every required process is challenged of its economic
impact or benefits it will have on the project’s net present value (NPV). The
techniques applied in determining the economics of these processes and their
selection criteria are addressed in the book. This book guides the reader
through these strategic processes, and presents the participants involved in
the business of upstream oil and gas prospecting and the conditions that
dictate the field development and investment decisions by investors. It also
reveals the shared interests and relationships that exist between
international oil companies (IOCs) and national oil companies (NOCs) in the
exploration and exploitation of their hydrocarbon resources and reserves. This
text will serve the purpose of teaching and learning to those in the energy
and financial sectors, as the methods, tools, and techniques discussed
throughout the chapters will equip students, tutors, experts, and
professionals with the necessary skills and knowledge of Exploration and
Production (E&P;) projects and energy financing and investment. The principles
of project management as it applies in upstream oil/gas projects are discussed
as well. And the criteria for project ranking, selection, and budgeting which
are sine qua non to project financing and execution are well documented in
this book.