PGE 491: Petroleum and Natural Gas Economics and Legislations

History and legislations of oil in Saudi Arabia, Oil pricing methods, Economical resources, Swing producer.  Inflation, cartel and market clearing price, Historical data for oil prices development. OPEC, OAPEC, International Energy Agency and Basic engineering economy terms.  Simple and Complex interests, Nominal and Effective and combined interest rates, Deterioration and sinking fund factor. Screening yardsticks for economical projects: Formulas for continuous and lump sum flow of fund, Net present value, Rate of return, Accounting rate of return, Growth rate of return, Discounted and undiscounted Payout time, Profit to Investment ratio, Benefit Cost ratio, Present value ratio, Incremental analysis.  Real economical examples based on oil field production data.