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Unconventional Gas Economics

Unconventional Gas Economics

4 days
ENE/UCGI
Sessions
This course is not scheduled.
Who should attend?

Audience

    • People involved in unconventional gas project analysis

Level

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

UNCONVENTIONAL GAS CHARACTERISTICS

0.2 day

  • Conventional and unconventional gas (shale gas, tight gas, coal bed methane, hydrates)
  • Resources & reserves

UPSTREAM STEPS, TECHNICS & COSTS

0.8 day

  • Geology, permit negotiation & geophysics
  • Identification & site preparation
  • Directional & horizontal drilling
  • Hydraulic Fracture Stimulation & Micro-seismic Fracture Mapping
  • Decommissioning

ECONOMIC ANALYSIS & INVESTMENT DECISION

2 days

  • 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 & needs
  • Financing solutions (M&A, PE, MLP, FI/FO)
  • Introduction to risk analysis (sensitivity analysis, decision tree & Monte Carlo analysis)

ECONOMIC & STRATEGIC IMPACT OF UNCONVENTIONAL GAS REVOLUTION

0.75 day

  • 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

0.25 day

  • Environmental Issues
  • water consumption, water treatment & waste issues
  • surface footprint & noise
  • greenhouse gas emissions
  • seismic events
  • The protagonists of the debate & their communication strategy
  • the pro (O&G producers and contractors, organization, energy consumers)
  • the cons (environmental & anti-globalization associations, renewable industry, some consumers)
Ways & Means
  • Game on the unconventional exploration and production technics
  • Videos
  • Unconventional gas project analysis, sensitivity study and decision analysis
  • Hedging strategy