How do you present petroleum economics to stakeholders?

1 Understand your audience

Before you prepare your presentation, you need to know who your audience is and what their interests and concerns are. Different stakeholders may have different criteria and expectations for evaluating your project, such as return on investment, cash flow, breakeven price, environmental impact, social responsibility, and technical feasibility. You should tailor your presentation to address the specific questions and objectives of your audience, and use appropriate language and terminology.

2 Define your assumptions and scenarios

One of the challenges of petroleum economics is dealing with uncertainty and variability. You need to make assumptions and estimates about various factors that affect your project, such as oil and gas prices, production rates, costs, taxes, royalties, and discount rates. You should clearly state your assumptions and explain how you derived them from reliable sources and data. You should also present different scenarios that reflect the possible outcomes of your project under different conditions, such as high, low, and base cases. This will help your audience understand the range and probability of your results and the sensitivity of your project to key drivers.

3 Use relevant metrics and indicators

To present your results effectively, you need to use relevant metrics and indicators that measure the economic performance and attractiveness of your project. Some of the common metrics and indicators are net present value (NPV), internal rate of return (IRR), profitability index (PI), payback period, breakeven price, and break-even ratio (BER). You should explain what each metric and indicator means and how it relates to your project objectives and criteria. You should also compare your results with other projects or benchmarks to demonstrate the relative value and competitiveness of your project.

4 Visualize your data and findings

To make your presentation more engaging and understandable, you should use visual aids and tools to display your data and findings. You can use graphs, charts, tables, maps, diagrams, and animations to illustrate your assumptions, scenarios, results, and comparisons. You should use appropriate colors, fonts, labels, and legends to make your visuals clear and consistent. You should also use captions, headlines, and bullet points to highlight the main points and messages of your visuals.

5 Invite feedback and discussion

The final step of presenting petroleum economics to stakeholders is to invite feedback and discussion. You should encourage your audience to ask questions, share opinions, and provide suggestions. You should listen carefully and respectfully to their feedback and respond with facts and evidence. You should also acknowledge any limitations or uncertainties of your analysis and indicate how you plan to address them in the future. By inviting feedback and discussion, you can build trust and rapport with your audience and improve your project outcomes.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?