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Last modified: 31 Jul 2023 11:19

Course Overview

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.

Course Details

Study Type Postgraduate Level 5
Session First Sub Session Credit Points 15 credits (7.5 ECTS credits)
Campus Aberdeen Sustained Study No
  • Professor Frans de Vries

What courses & programmes must have been taken before this course?

  • One of Master Of Science In International Political Economy or Master Of Science In Strategic Studies & Energy Security (Sept Start) or MSc Energy Politics and Law or Master Of Science In Energy Transition Systems And Technologies or MSc Oil and Gas Enterprise Management or MSc Reservoir Engineering
  • Any Postgraduate Programme (Studied)

What other courses must be taken with this course?


Are there a limited number of places available?


Course Description

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.  

Contact Teaching Time

Information on contact teaching time is available from the course guide.

Teaching Breakdown

More Information about Week Numbers

Details, including assessments, may be subject to change until 31 August 2023 for 1st half-session courses and 22 December 2023 for 2nd half-session courses.

Summative Assessments

1000 word individual policy brief assignment 20%

Exam 80%


Resit: Exam 100%

Formative Assessment

There are no assessments for this course.

Course Learning Outcomes

Knowledge LevelThinking SkillOutcome
FactualRememberILO’s for this course are available in the course guide.

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