Field Development Economics

Disciplines: Management

Course Description

In this course, participants will learn to construct an economic evaluation of a field development opportunity using common industry indicators. Supported by many practical examples, the course covers both greenfield and brownfield situations. The course is supported by full text, copy of slide presentation, glossary of terms, and bibliography.


  • Data gathering and capturing uncertainty
  • Cash flow analysis
  • Tax and royalty systems
  • Production sharing contracts
  • Development technologies
  • Discounting and assessing the cost of capital
  • Economic indicatiors and project ranking
  • Incorporating uncertainty into economic models and assessing risk
  • Incremental project econmoics

Learning Level


Course Length

1 Day

Why Attend

The information shared in this course will assure your decisions in the field are backed by sound economics.

Who Attends

This course is for engineers, geoscientists and managers who want to use economic methods for making field development decisions. Service company staff will learn to evaluate the economic benefits their products can offer, and investors will be better able to rank their oil or gas opportunities.


0.8 CEUs (Continuing Education Units) are awarded for this 1-day course.

Additional Resources

This course has a supplemental book located in our SPE Bookstore entitled Introduction to Petroleum Economics. Please check out this valuable resource!

Cancellation Policy

All cancellations must be received no later than 14 days prior to the course start date. Cancellations made after the 14-day window will not be refunded. Refunds will not be given due to no show situations.

Training sessions attached to SPE conferences and workshops follow the cancellation policies stated on the event information page. Please check that page for specific cancellation information.

SPE reserves the right to cancel or re-schedule courses at will. Notification of changes will be made as quickly as possible; please keep this in mind when arranging travel, as SPE is not responsible for any fees charged for cancelling or changing travel arrangements.

We reserve the right to substitute course instructors as necessary.


David Palmer has worked within key oil-and-gas-industry commercial operations for 20 years, initially for BNOC/Britoil (the UK’s former national oil company), followed by 13 years in central commercial management roles with BP’s upstream division. As a business economist and career commercial specialist, he managed teams and partnership interfaces at the heart of corporate investments, was a leading contributor of developing decision methodology, and managed the full range of commercial skills development programs. Since leaving BP he has maintained industry currency as associate training consultant with TRACS International, building further upon extensive experience with a range of IOC’s and state oil and gas agencies. Palmer has a BA in economics.

Jerry Hadwin is a reservoir engineer with more than 35 years of oil field experience. After thirteen years with Shell International in Europe and the Middle East, Hadwin spent most of his subsequent time as a consultant with TRACS International (UK) and AGR (Norway). He has lived and worked in Calgary for the last 5 years. During this time he has participated as reservoir engineer, economist and project manager in a wide range of international projects, with a mix of reservoirs from heavy oil to gas-condensate and in many different geological settings including fractured reservoirs. In addition to his role as a consultant, Hadwin has delivered training courses to the industry for more than 20 years.

Mark Cook has worked in the oil and gas industry for more than 22 years, the first eleven for Shell International. While at Shell, Cook worked internationally as a reservoir engineer. He is currently managing director of AGR Petroleum Services (TRACS International Consultancy, Ltd.), where he is active in both training and consulting.

Cook’s specialties are reservoir engineering, petroleum economics and risk analysis. He has taught the SPE training course on petroleum economics for more than five years, and during 2002 he was an SPE Distinguished Lecturer on the same topic. Cook holds a BS degree in chemical engineering from the University of Nottingham.

Paul Baron has been in the international and UK petroleum industry since 1980. He has worked in a variety of technical and commercial roles in the UK and several overseas locations. His key technical strengths lie in prospect evaluation, pre-sanction studies, and field development activities. He has specialist skills in heavy oil evaluation and appraisal. Baron is skilled at applying classical reservoir engineering techniques to help understand the key uncertainties involved in appraisal and development and to identify the economic levers that maximise asset profitability.