MEBn5042 Economics of Energy Corporations

Faculty of Social Studies
Spring 2021
Extent and Intensity
2/0/0. 3 credit(s). Type of Completion: zk (examination).
Teacher(s)
James Henderson, Ph.D. (lecturer), doc. Mgr. Jan Osička, Ph.D. (deputy)
doc. Mgr. Jan Osička, Ph.D. (lecturer)
Guaranteed by
doc. Mgr. Jan Osička, Ph.D.
Department of International Relations and European Studies – Faculty of Social Studies
Contact Person: Olga Cídlová, DiS.
Supplier department: Department of International Relations and European Studies – Faculty of Social Studies
Prerequisites (in Czech)
! MEB442 Economics of Energy Corp. II. && !NOW( MEB442 Economics of Energy Corp. II. )
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.
fields of study / plans the course is directly associated with
there are 6 fields of study the course is directly associated with, display
Course objectives
The main goal of the course is to introduce the very basics of investing in energy-related projects. The course provides a brief theoretical basis related to the specifics of such investments, followed by multiple practical tasks through which the students gain firm understanding of the main tool for assessing an investment's viability: a discounted cash flow model.
Learning outcomes
The course will provide the students with:
- an insight into the ways the energy investment projects are prepared and evaluated
- a basic skill to build and interpret a discounted cash flow model
Syllabus
  • Following on from the first lecture series, this course will take a more practical approach to energy economics by building cashflow models for specific projects and discussing the main building blocks behind them. Taking case studies from the oil, gas and electricity sectors, students will take part in an active process of constructing a discounted cashflow model in Excel, inserting the main revenue and cost lines, discussing the key assumptions and making decisions on the viability of projects. The first two lectures will cover the fundamentals of discounted cashflow models and how to use them, while the following six lectures will use the models that we have made to analyse one oil field, one major gas project and one power project in the same way that the Business Development Group of an energy company would consider a new investment. We will create a base case analysis as well as looking at various upside and downside scenarios, while discussing the key elements for a major investment decision. At the end of the week, students will be given another project to analyse and assess in their own time, in order to provide a short analysis and recommendation in written and graphical form for assessment by the course leader.
Literature
    required literature
  • Clews, R.J. (2016). Project Finance for the International Petroleum Industry (289-310). Elsevier.
Teaching methods
Lectures, workshops, discussions
Assessment methods
Investment project assessment.
Language of instruction
English
Further Comments
Study Materials
The course is taught annually.
The course is taught: in blocks.
The course is also listed under the following terms Spring 2020, Spring 2022, Spring 2023, Spring 2024, Spring 2025.
  • Enrolment Statistics (Spring 2021, recent)
  • Permalink: https://is.muni.cz/course/fss/spring2021/MEBn5042