This book explains how to apply economic analysis to the evaluation of engineering challenges in the petroleum industry. Discussion progresses from an introduction to the industry, through principles and techniques of engineering economics, to the application of economic methods. Packed with real-world examples and case studies demonstrating how to calculate rate of return, discounted cash flow, payout period, and more, Petroleum Economics and Engineering, Third Edition assists petroleum engineers, chemical engineers, production workers, management, and executives in sound economic decision-making regarding the design, manufacture, and operation of oil and gas plants, equipment, and processes. The fully revised third edition is updated to reflect key advancements in petroleum technology and expanded to include chapters on middle stream operations, known as surface petroleum operations (SPO), and natural gas processing and fractionation. By looking globally at the hydrocarbon industry, the improved text offers the reader a more complete picture of the petroleum sector, which includes the global processes of exploration, production, refining, and transportation.
Preface Contributors Part I: Introduction to the Oil and Gas Industry World Oil and Gas Supply and Demand Structure of the Oil and Gas Industry Characteristics of Crude Oil and Properties of Petroleum Products Part II: Principles, Methods, and Techniques of Engineering Economics and Analysis Introductory Remarks for Part II Time Value in Capital Expenditures Depreciation and Depletion in Oil Projects Financial Measures and Profitability Analysis Analysis of Alternatives Selections and Replacements Risk, Uncertainty, and Decision Analysis Breakeven and Sensitivity Analysis Optimization Techniques Part III: Applications and Case Studies Introductory Remarks for Part III Exploration and Drilling Reserves and Reserve Estimate Production Gas/Oil Separation Oil Treatment: Dehydration, Desalting, and Stabilization Gas Treatment and Conditioning Crude Oil Refining: Physical Separation Crude Oil Refining: Chemical Conversion Natural Gas Processing: Separation of Natural Gas and Fractionation of Natural Gas Liquids Transportation Appendices Conversion Factors Compound Interest Factors Bibliography Index
