Universidad Politécnica de Madrid

ENERGY PROJECT EVALUATIONS

Description

This course continues the collaboration carried out between the University of Oklahoma (OU) and the Universidad Politécnica de Madrid (UPM) that began years ago, through the School of Mines and Energy with the development of other initiatives and courses. Also, on this occasion it has the collaboration of the Cátedra Fundación Cepsa de Energía y Medio Ambiente of the UPM.

General Objectives

This course will introduce principles and develop skills for the evaluation of oil & gas and renewable energy projects and the valuation of energy firms. Topics include approaches for estimating reserves and capital investments, and forecasting energy production, revenues and operating expenses. Financial and economic principles are applied in experiential, case-based projects to evaluate energy investments and value the equity of energy firms.
Two case studies will be evaluated in a team environment. The first case will be the evaluation of a relatively new unconventional resource play in northwest Oklahoma. Students will evaluate an acquisition to acquire a working interest in the field. Future reserves and cashflows will be forecasted for both producing and non-producing reserves. Teams will develop strategies to fund the acquisition with equity and debt and will make presentations of their proposals.
The second case study will evaluate the economic feasibility of a Carbon Capture, Utilization and Storage (CCUS) project in southern Oklahoma. Costs to capture, transport and inject CO2 will be assessed, as will the cost and benefit in utilizing the captured CO2 for a tertiary recovery oil project. Students will identify the key factors necessary to make CCUS projects economically viable.

Specific Objetives

Integrate students from different backgrounds – universities, institutions or companies – and disciplines to address complex energy challenges in a multidisciplinary, international and experiential environment.
Address challenges in delivering affordable, sustainable energy to all humans while mitigating effects on the environment and climate.
Provide the knowledge and skills to gather information and apply standard analysis techniques for evaluation of projects in oil & gas and renewable energy.
Apply deterministic and probabilistic financial analysis of energy projects using industry software and Microsoft Excel.
Build pro forma discounted cash flow models to value the equity of energy firms.

Instructors

Dean Sergent, Executive Director at the Irani enter for Energy Solutions, Mewbourne College of Earth and Energy. University of Oklahoma.
Tom Hooper, Director of Finance Placement and Outreach. Instructor in Finance. Price College of Business. University of Oklahoma.

Face-to-face mode

Classes will meet weekdays from 10 am – 1:00 pm. Each session will generally consist of a lecture on economic theory followed by working in teams to develop project financial analyses in Excel. Additional time in the classroom will be available in the afternoons from 2:30 pm – 4 pm to work on the case studies. Students and faculty will have the option to have lunch from 1 pm – 2:30 pm at the School of Mines and Energy cafeteria.

Profile for access

This course is open to petroleum engineers, energy engineers and managers who want to apply standard analysis techniques for project evaluation in oil and gas and renewable energy.