Petroleum Economics entails the process of applying various techniques pertaining to economic analysis during the stage of creating oil as well as gas exploration and oil and gas production projects. These projects are affected by a plethora of factors, including the location, the type of wells as well as the number of oil wells, market conditions, the effects of tax or royalty systems, etc. By analyzing these factors Petroleum Economists help to make investment decisions, such as whether to drill exploration wells.
Petroleum Economists are also involved in the assessment and management of the technical, economic and other risks associated with the different phases of an oil or gas project. Petroleum Engineers who specialize in the subject of petroleum economics work for oil production companies, and service companies, as well as banks, investment houses.
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