Engineers perform technical work to support the business objectives of the organization they work for (corporation, government). It is therefore important that they understand that business because it will influence the judgments they make.
Economic evaluations provide the main source of the organization's information by which investment and operational decisions are made regarding the most effective use of resources. There are many subtleties and assumptions that underlie the apparently straight-forward economic calculations that are often seen. Consequently, a fundamental understanding of the concepts behind economic evaluation and of techniques for performing them within a petroleum context, are essential skills.
The many uncertainties inherent to the offshore business create considerable uncertainty in the value that can be realized from resource-allocation decisions. Consequently, there will be a strong emphasis on evaluating the impacts of uncertainty, managing its resultant risks and planning to exploit its up-side potential.
The course provides understanding and knowledge of economic and business concepts, time-value of money, discounted cash flow, cash-flows, net present value and other economic decision criteria, the decision-making process, multi-objective decision making, decision-tree analysis, and value-of-information & flexibility. Some of the psychological and judgmental aspects of how people respond to uncertain and complex decision situations will be discussed.
Required prerequisite knowledge
Bachelor degree in engineering.
Form of assessment
Digital school exam
The assessment consist of a digital on-campus exam.
Portfolio containing five assignments that needs to be approved in to acccess the final exam.
Lectures, Interactive discussions, compulsory assignments, self-study or group work. Lecture language is English. Excel and Python will be used for assignments and tests. The course does provide a short introduction to Python but it is NOT a course in Python so the students will need to consult other resources for learning Python if they are not already familiar with it.