Last modified: 27 Feb 2018 14:23
This course introduces key techniques from economics and finance to allowing understanding of the basics of business decision making within the energy industries and the economic implications of key energy policies. We consider basic financial concepts such as: present value, the opportunity cost of capital and their role in business decision making in energy industries. We also consider key economic elements of markets and how the economic environment structures the way in which businesses make decisions and energy market outcomes.
|Session||First Sub Session||Credit Points||15 credits (7.5 ECTS credits)|
|Campus||Old Aberdeen||Sustained Study||No|
Introduction to energy markets
Oil: History of the world oil market, Natural resource depletion, Hubert Curve and Peak Oil. OPEC. Electricity: Industry Structure, Ownership, Regulation and Reform in the UK.
Understanding Markets Introduction to the Economics of Consumer and Producer Behaviour Oil Supply and Demand Curves Price Determination: Recent oil market behaviour.
Wholesale Electricity Markets: Peaking Load Prices and Market Efficiency. “Missing Money” Problem. Understanding UK Electricity Market Reform.
Investment Appraisal Techniques and Project Evaluation. The Economics of Renewable Energy Projects: Project Economics in Petroleum Economics and the role of the Government :
Energy and the Environment: Market Failure and Global warming.
This is the total time spent in lectures, tutorials and other class teaching.
In class test (20%)
2-hour examination (80%)
Resit: 100% two hour written examination.