The E&P industry is an extractive business and the two key characteristics are high-risk and capital intensity. Against this backdrop, the primary goals of E&P firms are to maximize the present value of long run profits and to enhance shareholder value. The Petroleum Economics course takes a look at the basic drivers of profitability in an E&P firm and how to maximise these. Investment cash flows depend mainly on the operating fiscal regime and government regulatory framework. At the end of the programme, participants will have an appreciation of the factors that determine the economic attractiveness of petroleum ventures and operations and have an understanding of risk and uncertainties around Oil & Gas ventures. The application of these principles is a necessary requirement for the proper allocation of limited resources and the continuing investment required to replace depleted petroleum reserves.