Evaluating Oil and Gas Investments Through Financial Modeling: A Training Course (Online / Remote)
1Summary
How do you decide whether a multi-billion-dollar oil field is actually worth developing? The answer lives inside a financial model — and getting that model wrong means either walking away from a profitable field or pouring capital into a project that was never going to pay off.
This Oil and Gas Investment Evaluation and Financial Modeling course from the Arab British Fellowship Training Academy combines the core practical principles of project evaluation — net present value, investment budgeting, and real-world case studies — with the financial modeling skills needed to price in uncertainty and cost. Participants will learn to calculate project costs, assess exposure to risk, measure profitability, and build the models that make investment decisions defensible.
By the end of the course, participants will understand the key factors driving investment decisions in the oil and gas sector and will be able to construct financial models to assess project viability.
2Objectives and target group
Who Should Attend?
- Professionals and students seeking a foundational understanding of oil and gas project evaluation and financial modeling economics.
- Individuals working in finance, energy, or consulting who want to expand their knowledge and skills in the oil and gas sector.
Course Objectives
By the end of this course, participants will be able to:
- Understand the fundamentals of the oil and gas industry, including its structure, operations, and key stakeholders.
- Apply various methods of evaluating oil and gas projects, including reserves estimation and financial analysis techniques.
- Build financial models for oil and gas projects, incorporating revenue forecasting, cost estimation, and risk assessment.
- Explore the economic principles underlying investment decisions in the oil and gas sector and apply them in financial modeling.
- Interpret financial models and use them to make informed investment decisions in the oil and gas industry.
3Course Content
Module 1: Why Financial Modeling Makes or Breaks an Investment Decision
- Overview of the oil and gas value chain and the key players involved (operators, service companies, regulators).
- Types of oil and gas projects: exploration, development, and production.
Module 2: The Metrics That Decide If a Project Is Worth It
- Net Present Value (NPV), Internal Rate of Return (IRR), payback period, and profitability index.
- Sensitivity analysis and risk assessment.
Module 3: Industry Fundamentals and Reserves Classification
- Classification of reserves: proved, probable, and possible.
- Reserves estimation methods (volumetric analysis, decline curve analysis, analogy) and regulatory frameworks for reporting (SEC regulations, SPE standards).
Module 4: From Assumptions to Excel — Building the Model
- Building blocks of financial models: revenue, expenses, and capital expenditures.
- Time value of money, discounted cash flow (DCF) analysis, and Excel modeling techniques.
Module 5: Forecasting Revenue and Controlling Costs
- Price forecasting, market dynamics, production forecasting techniques, royalty and tax considerations, and hedging strategies.
- Operating expenses (OPEX) and capital expenditures (CAPEX) estimation, decommissioning costs, and inflation factors.
Module 6: Managing Geological, Market, and Political Risk
- Geological and technical risks, price volatility and commodity risk.
- Political, regulatory, environmental, and social risks.
Module 7: Financing Structures, Compliance, and Ethics
- Portfolio optimization, real options analysis, and project financing structures (debt, equity, project finance, joint ventures).
- Compliance with accounting standards (IFRS, US GAAP) and reporting to stakeholders.
- Environmental sustainability, social responsibility, and corporate governance.
Module 8: The Road Ahead — Digitalization and the Energy Transition
- The impact of digitalization and automation on the industry.
- The renewable energy transition and geopolitical factors affecting oil and gas markets.