Upstream Petroleum Economics—Deterministic Models, Fiscal Regimes, and Stochastic Modeling Tools

Disciplines: Management

Course Description

This is an interactive two-day course to facilitate good understanding of various kinds of petroleum fiscal arrangements, which govern the international petroleum E&P business. The course examines the fundamentals of, and economic principles underlying petroleum fiscal system analysis and design. The mechanics of estimating the effects of fiscal instruments of total government takes and E&P economics and take statistics are to be well discussed with consideration for risk and uncertainty.


  • Basic petroleum economics for profitability analysis: deterministic models and applications
  • Basic petroleum economics for decision making: capital budgeting and incremental economics
  • Monte Carlo simulation of E&P project economics and profitability
  • Fiscal system structure and instruments –general prologue and synopsis
  • Arithmetic and mechanics of petroleum fiscal system models and applications, system economic metrics and cast studies
  • Overview of stochastic spreadsheet modeling tools: Crystal Ball and Risk features

Upon completion of this course, participants should be able to:

  • Understand and apply principles underlying international petroleum economics and commonly used economic tools in petroleum business decisions to analyze the PIB
  • Explain the underlying economic and management principles affecting petroleum fiscal system analysis and design
  • Understand the mechanics of various kinds of petroleum fiscal systems and the operational aspects of petroleum fiscal instruments and features underlying industry and government relationships.
  • Identify why some economic decision variables and fiscal instruments that govern petroleum operations are so important in making exploration and production investment decisions.

Learning Level


Course Length

2 Days

Why Attend

This course is an excellent way to quickly boost your professional skills and learn from a recognized expert in the field of upstream petroleum economics.

Who Attends

Petroleum professionals, geoscientists, planning engineers, business analysts, and managers


1.6 CEUs (Continuing Education Units) are awarded for this 2-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.


Wumi Iledare is a professor of petroleum economics and policy research and a director at the Center of Energy Studies at Louisiana State University, Baton Rouge.  He is an adjunct professor of petroleum economics at the Craft & Hawkins Department of Petroleum Engineering at Louisiana State University and the University of Louisiana, Lafayette.

Iledare’s international expertise comes from his work as a visiting professor of petroleum economics to the Institute of Petroleum Studies (IPS) at the University of Port Harcourt, Nigeria and to the African University of Science and Technology (AUST), Nigeria.  He is a senior fellow and past president of USAEE, holds a BSc in petroleum engineering with honors from the University of Ibadan, Nigeria, and MS in energy resources from the University of Pittsburgh’s School of Engineering, and a PhD in mineral economics from West Virginia University.  His is also a Distinguished Fellow of the Nigerian Association for Energy Economics (NAEE).