Oil & Gas Economics: Decline Curves, Netbacks & Well NPV
Convert barrels, mcf and BOE, forecast production with Arps decline curves, estimate EUR, build netbacks and a monthly well cash flow with NPV10, find the breakeven oil price, measure F&D cost and recycle ratio, and draw a tornado chart: 8 graded labs with illustrative numbers.
The first lesson is free — no account needed.
About this course
An oil and gas economics course that values one new horizontal well and a small producer's results in a spreadsheet, for petroleum engineers, energy analysts and finance students. You convert oil, gas and NGL volumes into barrels of oil equivalent at 6:1 with daily rates and the liquids share, forecast 24 months of production with Arps exponential and hyperbolic decline curves, add up monthly volumes into cumulative production and the EUR to an economic limit, build the netback per BOE after royalties, opex and transport for four wells, discount a monthly well cash flow into NPV10, find the breakeven oil price from a price grid, measure finding and development cost, reserve life and the recycle ratio and flex price, EUR, capex and opex by ±20% for a tornado chart. Illustrative numbers only, not investment advice. The first lab is free.
Lessons
- Units: Barrels, Mcf & BOE (6:1), Daily Rates & Liquids ShareFree
- Arps Decline Curves: Exponential vs Hyperbolic (with Chart) Pro
- Monthly Volumes, Cumulative Production & EUR Pro
- Netback per BOE: Price − Royalties − Opex − Transport Pro
- Well Cash Flow & NPV10 with Monthly Discounting Pro
- Breakeven Oil Price: Price Grid & First Price with NPV ≥ 0 Pro
- F&D Cost, Reserve Life & Recycle Ratio Pro
- Sensitivity Analysis: Tornado Table & Chart Pro