BSM179 – Oil and Gas Economics

Introduction & Module Resources

Dr Nathaniel Babajide
 About this module…
Course objectives

• Critically assess the economic concepts and principles underlining the oil and gas
markets with a focus on international operations of the oil and gas industry.

• Critically reflect on the demand and supply scenarios in the energy markets, focussing
on the peculiarities of the oil and gas market by analysing the macro and micro
economic factors.

• Critically apply economic modelling approaches to risk and uncertainty in an oil and gas
context.

• Critically evaluate the economics of field appraisal, field development and end of field
life.
 Module Resources…
Moodle

• ‘Module Information’ = Course outline, reading lists etc.

• ‘Module Materials’ = Module guide, lecture slides, group

coursework

• ‘Reading List’ = digitalised articles, books, reports etc.

• Get used to the University's Resource Lists system.

3
 Activities – Formative Assessments
Type of Date Topic for Formative Assessments Working Template
Activities
Quiz 1 19 September Session 1- Basic Economic Concepts Work in a group
2023 (tomorrow)

Group 03 October 2023 Choose any oil producing country and analyze Work in a group
Presentation I (All groups how global political and economic developments
present) in the past three years have impacted the
economy of that nation. Can you draw any
parallels from history? Use relevant macro and
micro economic theories in the discussion.

7 October 2023 4
 Activities – Formative Assessments
Type of Date Topic for Formative Assessments Working Template
Activities
Group 10 October 2023 While oil and gas will play an essential part in Work in a group
Presentation II (Each topic is energy supply, companies must ensure that their
presented by 2 production and operational activities are done in
groups) the most sustainable way to protect the
environment. Is there a contradiction between
business/company’s growth and environmental
protection? Critically evaluate applying the
concept of market failure.
Critically analyze the implications of OPEC and Work in a group
OPEC+ oil policy since 2015 on the global oil
market.

7 October 2023 5
 Activities – Formative Assessments
Type of Date Topic for Formative Assessments Working Template
Activities
Group 17 October 2023 Critically evaluate the economic challenges of Work in a group
Presentation III (All groups) decommissioning for the North Sea oil and gas
industry
Oligopoly 14 November Play roles activity on oligopoly Work in a group
Simulation 2023 (All groups)
Activity

7 October 2023 6
 Graded Assessments:
• Coursework 1 (CW1)– Essay Paper
• Deadline: 27 November 2023
• Answering 2 questions from 4 available questions (See Moodle Page)
• @question – 1250 words max

• Coursework 2 (CW2)– Group assessment on Oil and Gas Project

Economics Evaluation
• Deadline and Presentation: 14 December 2023

7 October 2023 7
 Forming Groups for CW 1

• BSM 179:

• BSM 216:

7 October 2023 8
 Participants
• Session 1 to 3
• BSM179 Oil and Gas Economics & BSM 216 Economics of Energy Transition

• Session 4 onwards
• BSM179 Oil and Gas Economics
• BSM216 Economics of Energy Transition

7 October 2023 9