Slide 3 Flashcards
What are two ways to evaluate a project?
Commercial and Technical
What does technical evaluation entail?
How can we do the project most cost effectively with design, construction, and engineering .
Many ways to skin Polish potato is the way I like to look at it - Mike
What does commercial evaluation entail?
Which method makes the most economic sense. Always thinking ‘How we gonna get paid”
Explain the relationship between cost estimation and project evaluation
In order to build a good project evaluation, include as much about cost with as much accurate information as possible. However, you know more later on in the project so you know costs better as the project progresses. Schedule is also important for project evaluation since time is money. Return is important for a project,
Which step will provide the best estimation of cost before actual construction
Detailed Design bro
Why does detailed design overlap construction?
As long as you are confident in your design and cost estimates. This ensures that you get your money back as soon as possible. Detailed Design so you can build it!
What does FEED stand for? What is it an assessment on? What is confirmed by the end of FEED?
Front End Engineering Design; It is an engineering assessment on costs, schedules, fabrication. By the end of FEED, viability of the project is confirmed and you can move on with Detailed design
What is the general formula for determining profit for a Simplified Upstream Profitability Model?
Revenue-Royalties-Operating Costs- DD&A
Detailed design is the design made so you can ___?
Build it
What are some Economic/Investment items to consider when evaluating a project?
Long lead times Markets and prices Capital Costs Operating Costs Royalties/contract terms Taxation
What are the 4 ‘flags’ for evaluating an Oil and Gas Project?
Prospect, Discovery, Sanction, and, First Gas/Oil Flags
