MSc in Oil & Gas and Offshore Engineering
Course Information Package
|Course Unit Title||INTRODUCTION TO ENERGY ECONOMICS|
|Course Unit Code||MES502|
|Course Unit Details||MSc Oil & Gas and Offshore Engineering (Elective Courses) -|
|Number of ECTS credits allocated||7|
|Learning Outcomes of the course unit||By the end of the course, the students should be able to:|
|Mode of Delivery||Face-to-face|
|Recommended optional program components||NONE|
|Course Contents|| PART A: |
- Enhanced knowledge on industry infrastructure, renewable energy technology performance, markets, cost chain, and trends (market orientation).
- Analysis of current state of these technologies and market and their prospects for the future.
- Factors such as technology drivers and challenges and the impact of incentives will be discussed, while barriers to the implementation of renewable energy and how to overcome them will be addressed.
- The type of job opportunities available in the renewable energies industry and the skills required for these jobs are explored thoroughly.
- The course discusses issues that include energy systems’ economics analysis taking account financial and energy efficiency aspects in order to use energy systems and technologies in the most efficient way.
- Methods of appraisal such as investment analysis (investments initial construction cost, operational and rejection cost), life cycle cost analysis and choice of technology as related to pay-back requirements are discussed.
- Identification and estimation of cash flows, project appraisal formulae, and the application of net present value (NPV), internal rate of return (IRR) and other project evaluation criteria with a variety of examples.
- Risk analysis is extensively covered by the use of risk adjusted discount rate, certainty equivalent, sensitivity, simulation and Monte Carlo analysis.
- Resource constraints are introduced.
|Recommended and/or required reading:|
|Planned learning activities and teaching methods|| The taught part of course is delivered to the students by means of lectures, conducted with the help of computer presentations. Lecture notes and presentations are available through the web for students to use in combination with the textbooks. |
Lectures are supplemented with coursework and laboratory work carried out on Microsoft Excel. During laboratory sessions, students learn Engineering Economy functions at Microsoft Excel and develop simple Project Cash flow applications to evaluate critical parameters such as Net Present Worth or Internal Rate of Return of a proposed engineering investment.
The course material (notes, exercises, forum, etc) is maintained on the university’s e-learning platform
|Assessment methods and criteria|
|Language of instruction||English|