Description
A clear, practical, and comprehensive guide to capital investment evaluation, capital budgeting, and decision analysis. Designed for students and professionals alike, the book walks readers step-by-step through decision-making under uncertainty, emphasizing real-world application with numerous solved examples, illustrations, and end-of-chapter problems. With a focus on building foundational knowledge and critical thinking, this edition makes complex concepts accessible while encouraging a big-picture understanding of oil and gas operations. The book is ideal for those looking to enhance their ability to analyze, interpret, and defend economic decisions in capital projects.
The Third Edition presents a unified volume combining both Deterministic and Probabilistic models, streamlining the approach from previous separate volumes. All time-sensitive materials, figures, and tables have been updated for clarity. Real-world examples have been added to enhance understanding of key concepts. Expanded sections include weighted average cost of capital (WACC), international economics, and abandonment costs. A new chapter addresses commerciality assessment and reserves booking, and an advanced depreciation technique has been introduced. Updated spreadsheet models support decline curve analysis, and all decision tree and Monte Carlo problems have been revised using the latest Palisade DecisionTools™ suite. In response to nearly two decades of user feedback, additional examples have been added for clarity. For instructors, a test bank of 300 questions and a set of 700 PowerPoint™ slides are now available.
Features & Benefits
- Comprehensive coverage of capital investment evaluation and decision analysis methods
- Emphasis on uncertainty and risk in investment decision-making
- Practical, straightforward approach with real-life examples and step-by-step solutions
- End-of-chapter problems and illustrations to reinforce learning
- Expanded content for readers with limited prior experience in the subject
- Detailed explanation of how to interpret probabilistic estimates and convert them into profitability measures
- Strong focus on developing problem-solving skills and critical thinking over rote computation
- Designed for a broad audience including engineers, geologists, economists, planners, graduate and undergraduate students, and managers
- Encourages a "helicopter view" of oil and gas operations while training readers to recognize and resolve key issues
- Includes enhanced content based on feedback to improve clarity and accessibility
Audience
- Engineers
- Geologists
- Accountants
- Financial Analysts
- Anyone who seeks to understand how, or relies upon, energy markets
- Graduate and undergraduate students
About the Author
M. A. Mian has 40 years' (1981-2021) practical experience. He has worked as a Sr. Petroleum Engineering Consultant with Saudi Aramco, Head of QP Operations and Planning with Qatar Petroleum, Sr. Planning Engineer with ZADCO in Abu Dhabi and as Reservoir Engineer with different companies in U.S.A. Mian has been involved in reservoir engineering, reserves evaluation for SEC filing, field development plans, and project economics - evaluating multi-billion-dollar oil and gas field developments, LNG plants, GTL plants, NGL recovery plants, aluminum smelters, refineries, petrochemical plants, and power plants. He has designed fiscal terms for international contracts and practically managed the day-to-day modalities for pre- and post-agreement functions.
Mian earned a B.Sc. degree in Mechanical Engineering, M.Sc. degree in Petroleum Engineering, and an M.Sc. in Mineral Economics. Both the masters are from Colorado School of Mines. In addition, he has published extensively in the oil industry trade journals, is the author Petroleum Engineering Handbook for the Practicing Engineer (PennWell 1992), and Tips & Tricks for Excel-Based Financial Modeling (Business Expert Press). He has delivered 5-day courses on various topics, especially Project Economics & Decision Analysis, in 25 countries. He also received the 2021 SPE International Management Award. Mian has a unique ability to drill down to the key points and make complex terminology much easier to understand.
Details
Type: Hardcover
Size: 6x9
Pages: 805
Published: August, 2025
ISBN: 9781955578264
