Tuesday, May 08
Petroleum economics plays a vital role in the oil and gas Industry and it lies at the heart of all decision-making. Performing prudent investment evaluation becomes even more critical in the lower crude oil price environment and/or development of marginal field/projects.
Various techniques have evolved over time in determining and calculating economic inputs, evaluating investments, quantifying risk and generating feasible portfolios. This one-day seminar will bridge the gap between theory and practice and show the methodologies used in performing economic evaluations and making decisions on the economic viability of investments.
Petroleum economics brings together information and expertise across the E&P spectrum and a clear understanding of the following is required:
Cash-flow analysis and the right assumptions to use
Bridging the gap between theory and practice
Cost drivers and risk management
Profitability indicators and their application in decision-making
Accounting for uncertainty in the economic evaluation of investments
Macro and microeconomic effects on investment analysis
Beginner to Advanced
Continuing Education Units (CEUs)
0.8 CEUs will be awarded for this 1-day Seminar
By attending this seminar, the participants will be able to assist in making investment decisions, such as deciding:
- Whether or not to drill an exploration well
- Whether or not to develop an entire oil and/or gas field
- On the commerciality of a new discovery
- On adequate facility and infrastructure requirements, upgrades/replacements
- On debottlenecking of existing facilities
- On abandonment of existing field/facilities
Who Should Attend
To ensure a consistent level of understanding and to further enrich the class dialogue across all levels of expertise, this course is recommended for:
Engineers, geoscientists, economists, financial analysists, financial modelers, etc.
Anwar M. Beaiji has 15 years of multidisciplinary experience in hydrocarbon resources and reserves evaluation and energy economics and finance. He currently works at the exploration resources assessment department in Saudi Aramco, responsible for assessing, managing, reporting and updating hydrocarbon resources of all Saudi Aramco’s oil and gas fields. He is proficient in economic modelling and performed detailed economic evaluations for various multi-billion USD projects such as monetisation of gas discoveries of upstream joint ventures projects; oil and gas production sharing contracts; rigs economics buy vs. lease, unconventional resources exploration, development, and economics. Anwar also worked with the Kingdom’s strategic projects such as Saudi Aramco IPO, the Kingdom’s gas strategy, and the Accelerated Transformation Program (ATP) team which was an unconventional gas initiative.
Anwar has a broad knowledge and experience in global energy markets and took a summer fellowship position with the Organisation of Petroleum Exporting Countries (OPEC) in Vienna where his research was focused on global crude oil supply and demand. Anwar is currently the president-elect of the American Association of Petroleum Geologists (AAPG) in the Middle East Region.
BSc in Geosciences, Tulsa University, USA
MSc in Petroleum Geosciences, Imperial College London, UK
Masters in Energy Economics, Rice University, USA
Wednesday, May 09
Any oil and gas basin in the world that has produced large volumes of hydrocarbons from conventional reservoirs over the past 100 years should have order of magnitude where more oil and gas in unconventional reservoirs are waiting to be discovered and developed both from the tight sands and shale source rock. Based on this, the unconventional miracle is not limited to North America and it could be replicated in many other oil and gas basins in the world. Unconventional crude oil and natural gas reserves are those that are trapped in the pores of sediments rocks such as shale or tight formations. Lacking a clear definition; the categories ‘conventional’ and ‘unconventional’ are not fixed, and over time, as economic and technological conditions evolve, unconventional resources could migrate into the conventional category.
In this panel session industry experts will share their perspectives on what constitutes unconventional resources and how they differ in the Middle East.
Unconventional resources have developed from industry castaways, meters of challenging log responses, useful cap rock and more.
Advancements in understanding and technology have seen these formations turn from effective seals to prolific reservoirs that combined, represent approximately 10% of the world’s crude oil and as much as 32% of the world’s natural gas reserves*. These advancements came through trial and error, with many successes but equally as many failures. In this case history session we will share some of these successes and failures and the learning that was achieved from each of them.
*US Energy Information Administration
Unconventional resources present an exceptional opportunity for the Middle East region having unique requirements for the supply chain. The North American experience has shown that the economics of unconventional resources is important, and that supply chain can make a strong contribution to the overall economics of the programme. Some of these challenges, which are faced by operators worldwide, derive from the fundamental characteristics of unconventional resource extraction, intense drilling activity (low productivity per well), uncertain subsurface characteristics (low predictability of production profile), and rapidly evolving business (changing geographic footprint and technology). Other challenges stem from the unique business and physical environment such as the local supply-market being immature, existence of long lead-times for imports from abroad and operations in remote and previously undeveloped environments.
These challenges combine to create pressure on operating margins and require a lean, cost-focused operation that effectively promotes cross-functional collaboration and leverages the capabilities of its suppliers. To address these challenges, a fit-for-purpose supply chain has to be developed that is flexible, efficient, and supports continuous learning.
Thursday, May 10
The evaluation and assessment of unconventional opportunities requires more than the typical methods used for conventional resources. A requisite for a successful unconventional play is the right combination of rock, fluid and completion properties. Therefore, the development of a multidisciplinary approach is essential in exploring, appraising and developing such resources. This session explores and discusses the concepts and methodologies in evaluating and characterizing unconventional reservoirs. It focuses on developing the regional geological understanding of the emerging unconventional plays in the Middle East. The discussions include best practices in geological and geophysical workflows to delineate sweetspots in conjunction with petrophysical, geochemical and geomechanical analysis for identification of potential pay-zones.
Unconventional resources are expected to be an important part of the overall energy mix that will satisfy the world’s energy needs. One key characteristic of these resources is that they are relatively abundant in subsurface, but they are harder to develop leading to more expensive projects. Therefore, unconventional resources require fast adaptation of completion and production practices and integration of advanced technologies. Advances in technology have the potential to improve the entire well completion and production sequence in unconventional reservoirs reducing the cost of projects.
This session aims to bring together speakers on latest technological developments in completion practices including; hardware, well/stage spacing, cluster density, hydraulic fracturing materials, techniques and modelling, as well as artificial lift equipment and production optimisation operations aided by digital platforms.
This session provides insights from unconventional reservoirs in the form of case studies that would potentially cover the various stages from exploration to completing and production. Furthermore, it aims at providing the audience with a practical understanding of the various processes involved in unconventional resources development. Speakers share with the audience methodologies, challenges, success, non-success as well as lessons learned in developing unconventional reservoirs. Topics covered might include prospect identification, risk and economical assessments, reservoir characterization, operation and logistics, drilling and hydraulic fracturing, completion and production, and environmental impact.