Petroleum economics formulas and calculations

Abstract Petroleum economics deals with economics of development and production of petroleum reservoirs with principles of economics. There are several formulas used in petroleum hydrocarbon economics in determination of important parameters including but not limited to net present value, cash flow, annuity, interest, and payback period. This chapter provides a comprehensive list of commonly used formulas in petroleum hydrocarbon economics, comprising very simple to relatively more complex formulas that will serve engineers in oil and gas industry as a useful reference. Inputs, outputs, and formulas are outlined clearly along with their units. References are listed for the reader to investigate the subject further where necessary. This chapter features around 40 formulas in petroleum hydrocarbon economics.