Petroleum, Energy Economics & Finance
This programme is specifically designed for graduates who wish to develop analytical and problem-solving skills from economics and finance enabling them to embark and develop their careers in business and government within the petroleum industries. The course addresses the increasing need for economic and finance skills required for the complex nature of decision-making in these industries. Our students will develop the skills to allow them to analyse a range of economic and finance issues relevant to these industries, such as investment analysis, Government petroleum policies, decommissioning, energy demand.
Aberdeen is one of the World’s Oil Capitals, with a very high population of oil industry professionals and international oil companies in all sectors, with the University of Aberdeen the premier location for industry contact for research and education. Our students will develop a broad knowledge and understanding of the petroleum industries through interaction with industry located in and around Aberdeen.
Students will benefit from studying at a traditional UK university, which has been disseminating knowledge and understanding of key concepts and practises for over 500 years. Students will be able to build global connections through our international student base and Alumini network.
During the year a range of external speakers from industry give talks on topical issues within the energy industry. In the recent past , these have included speakers from Aberdeen Renewables Energy Group, Conoco-Phillips UK, Wood Mackenzie, Shell. In addition, at the end of the year each student presents her or his dissertation work during a poster event with guests from the Industry. A small number of field trips are also organised. In the recent past these have included to a Drilling Rig, Wind Farm and Power Station.
Programme Structure & Content
The programme is based on core modules in the first and second semester plus one option course in the second semester plus a dissertation.
First Semester (all modules are compulsory in the first and second semesters)
Economic Analysis –
An introduction to economics to equip students with and understanding of the techniques of used in micro and macroeconomic modelling. Microeconomic topics include Consumer theory, Theory of the Firm, Market structure, Choice under uncertainty and an Introduction to Game theory. The Macroeconomics section will include the use of quantitative and modelling techniques found in the academic, professional open-economy macroeconomics and finance literature in order to provide the economic context in which financial markets and institutions operate.
Introduction to Energy & Petroleum Economics - a first course using the principles from economics and finance to examine key issues in the petroleum and energy industries. Issues examined will include an up-to-date assessment of upstream petroleum economics including the world petroleum market and the role of OPEC, introductory economic analysis of global warming, the potential roles of government and implications for energy markets.
Quantitative Methods – An introduction to statistics and quantitative methods used in economics and finance, where the focus is on the intuitive development of basic quantitative tools. This will enable students to analyse appropriate models, undertake empirical analyses of economic and financial data and provide students with practical computer-based skills.
Accounting – An introduction to Accounting, which enables students to develop technical skills and an understanding of financial statement analysis. Students are also introduced to the relationship between the theory and practice of accounting and contemporary issues in financial accounting.
Introduction to Corporate Finance – To equip students with good analytical skills in order to understand the implications of corporate financing decisions, and to enable students to understand the theoretical underpinnings of corporate finance theory.
Second Semester
Business Strategy - The course studies the economic and business concepts that form the foundation for strategic business thinking by industrial policy analysts, entrepreneurs, and corporate managers. This course will equip students with an analysis of how the firm is organised, operates, and manages its strategic interfaces and interactions to generate and maintain a competitive advantage. This course will provide a systematic approach to strategic thinking (game theory) and use its concepts to help students understand how businesses interact strategically and develop principles for such interaction.
Real Options and Decision Making – This course will deepen and broaden students’ understanding and develop their analytical skills concerning investment decisions under uncertainty. It will introduce students to methods of analysis of the benefits and costs of investment decisions and provide an appreciation of how these methods may be useful to decision makers in the petroleum industry as well as decision makers in other corporate or government settings who must assess investment opportunities under uncertainty.
Issues in Energy & Petroleum Economics – This module will further develop the student’s analytical skills allowing them to examine key issues in energy and petroleum sectors. This course will examine in detail a number of selected issues central to understanding energy and petroleum economics which may include: Petroleum Policies, Economic rents and their collection of to the state, Licensing and other policy issues, Modelling prospects for an oil province, Economics of Decommissioning, Economics of Auctions, Economics of liability, Renewable Energy and Bio-fuels, Modelling Energy Demand, Markets for Tradable Emissions Permits, Non-Market Valuation.
Empirical Methods In Energy Economics – Students will deepen the understanding and knowledge of empirical methods in economics and finance and their ability to apply their knowledge and understanding of these methods to issues in the petroleum and energy industries. The course will consider the application of a range of empirical methods. For each method, any required background to the method will be discussed, and the practical application of the technique to a case introduced.
Final Stage
Dissertation - Candidates write on a topic suggested by staff and drawn from areas studied in the programme.
Teaching & Assessment
The programme is delivered via a mixture of lectures, seminars and small group tutorials. Most modules are assessed by examination and coursework.
Careers
The first destinations of the graduates from the programme have typically been a range of energy and consultancy type companies. In the recent past these have included, Aditya Brila, BP, Citibank, Ernst & Young, KPMG, npower and Scottish Renewables. The typical titles for the first position after graduation includes Energy and Business Consultant, Energy analyst, Strategy analyst, Market analyst, Commercial analyst, Economist, and Oil and Gas Associate.