Unconventional Gas Economics

Economics & Project Analysis

GER/UCGI

Who should attend?

  • To make investment decision related to unconventional gas projects.
Audience :
  • People involved in unconventional gas project analysis.

Level : Foundation

Course Content

  • UNCONVENTIONAL GAS CHARACTERISTICS

      • Conventional and unconventional gas (shale gas, tight gas, coal bed methane, hydrates).
      • Resources and reserves.
  • UPSTREAM STEPS, TECHNICS & COSTS

      • Geology, permit negotiation and geophysics.
      • Identification and site preparation.
      • Directional and horizontal drilling.
      • Hydraulic fracture stimulation and micro-seismic fracture mapping.
      • Decommissioning.
  • ECONOMIC ANALYSIS & INVESTMENT DECISION

      • Production profile characteristics (Arps Equation and EUR).
      • Associated products value.
      • Economic variables associated with shale gas developments (F&D, Drilling, Fracking, T&F, LOE).
      • Fiscal impact (concession, PSA).
      • Economic evaluation criteria.
      • Shale gas project cash flow analysis.
      • Impact of the learning curve on the profitability.
      • Hedging strategy (price, currency, toll fees).
      • Financing issues and needs.
      • Financing solutions (M&A, PE, MLP, FI/FO).
      • Introduction to risk analysis (sensitivity analysis, decision tree and Monte Carlo analysis).
  • ECONOMIC & STRATEGIC IMPACT OF UNCONVENTIONAL GAS REVOLUTION

      • Panorama of unconventional gas developments: North & Latin America, Europe, Africa & Middle East, Asia Pacific.
      • Unconventional gas market (contractors and size of the market).
      • Strategy of the O&G companies (small and big independents, IOC, NOC).
      • Impact on the gas trades and gas price.
      • Indirect impacts on energy prices (oil price, coal price).
      • Economic impact on industries and government budgets (focus on petrochemicals, refining, and exporting and importing economies).
  • ENVIRONMENTAL IMPACT & ISSUES

      • Environmental issues:
      • Water consumption, water treatment & waste issues.
      • Surface footprint and noise.
      • Greenhouse gas emissions.
      • Seismic events.
      • The protagonists of the debate and their communication strategy:
      • The pro (O&G producers and contractors, organization, energy consumers).
      • The cons (environmental and anti-globalization associations, renewable industry, some consumers).

Learning Objectives

  • Upon completion of the course, the participants will be able to:
  • understand the characteristics of shale, tight and coal bed methane,
  • describe the steps, technologies and costs to develop an unconventional gas project,
  • understand the importance of the concept and calculation of net present value and internal rate of return in decision making,
  • introduce to the economic evaluation of unconventional gas play,
  • compare and evaluate unconventional gas developments,
  • appreciate the impact of the learning curve on the profitability,
  • locate the unconventional gas resources and what are the situation and the challenges country per country,
  • define the impact of unconventional gas on price formulae and the markets unbalance,
  • identify the impact of unconventional gas on economies and industries,
  • identify the main unconventional gas contractors and operators and it strategy,
  • describe the environmental risks related to the production of unconventional gas.

Ways & Means

  • Game on the unconventional exploration and production technics.
  • Videos.
  • Unconventional gas project analysis, sensitivity study and decision analysis.
  • Hedging strategy.