OGEG5810 Decision Making and Uncertainty for Oil and Gas Projects

6 points
(see Timetable)
Semester 1UWA (Perth)Face to face
This unit provides a description of the oil and gas industry economic chains and general aspects of reserves recognition, with various topics of decision making under risk and focus on hands-on use of techniques such as decision trees, Monte Carlo simulation and relevant software. The unit covers the economics of exploration, including expected monetary value (EMV); a basic introduction to cash flow determination in oil and gas; and complementary techniques involved in the decision making under risk process, such as value of information (VOI) and real options, fully applied to oil and gas industry. Learning is assisted throughout the course by frequent use of relevant demonstrations, real industry examples and group exercises, as well as laboratory computer sessions to familiarise students with Precision Tree and @Risk software.
Students are able to (1) understand the main components of the oil and gas industry economic chains; (2) achieve a hands-on understanding of the techniques used in the oil and gas industry for analysing risks in the decision-making process; (3) understand complementary techniques used in decision making; (4) familiarise with and learn to implement basic models using Precision Tree and @Risk software; and (5) demonstrate good written communication skills.
Indicative assessments in this unit are as follows: (1) LMS assignments; (2) term project; and (3) a final examination. Further information is available in the unit outline.

Supplementary assessment is only available in this unit in the case of a student who has obtained a mark of 45 to 49 and is currently enrolled in this unit, and it is the only remaining unit that the student must pass in order to complete their course.
Unit Coordinator(s)
Professor Zach Aman
Unit rules
enrolment in the (62520) Master of Engineering in Oil and Gas
(42520) Master of Business Administration (Oil and Gas)
  • The availability of units in Semester 1, 2, etc. was correct at the time of publication but may be subject to change.
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  • Books and other material wherever listed may be subject to change. Book lists relating to 'Preliminary reading', 'Recommended reading' and 'Textbooks' are, in most cases, available via the Booktopia Textbook Finder, which has the functionality to search by course code, course, ISBN and title, and may also be posted or available at the appropriate school's administrative offices. Where texts are listed in the unit description above, an asterisk (*) indicates that the book is available in paperback.