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Institute For Oil & Gas Training
OGI-1082 New

Break-even Oil Price Analysis for Field & Portfolio Training Course

Duration
5 days
CPD hours
15
Language
English
Next date
18 Jan 2027
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Overview

The Break-even Oil Price Analysis course from the Institute For Oil & Gas Training develops advanced financial analysis capability for professionals responsible for understanding field economics, portfolio performance and oil price exposure. Break-even Oil Price Analysis provides a structured basis for determining the minimum oil price required to sustain operations, recover investment and support informed portfolio decisions across changing market conditions.

Oil & gas organisations operate across assets with different production profiles, lifting costs, development commitments, fiscal structures and capital requirements. A single headline oil price does not provide sufficient insight into the economic resilience of an individual field or an integrated portfolio. Decision-makers require a clear understanding of the cost components that sit beneath production economics and how those costs translate into different break-even measures.

This course addresses the practical skills required to distinguish between unit operating cost, unit technical cost, cash break-even price, full cycle break-even and half cycle break-even. Participants examine how each measure serves a different management purpose and how inappropriate use of a break-even metric can distort investment, production and portfolio decisions.

The Institute For Oil & Gas Training focuses on the commercial application of break-even analysis within real oil and gas operating environments. Participants examine production costs, capital expenditure, abandonment obligations, development expenditure, production forecasts and economic assumptions to build a more complete understanding of field economics.

A key focus is cost per barrel of oil equivalent and its role in comparing assets with different production characteristics. Participants also examine price floor determination, marginal barrel economics and cost curve positioning to support commercial decisions when oil prices move through different operating scenarios.

The course connects technical production information with financial analysis. Production engineers, asset managers, finance professionals and commercial teams frequently work with different measures of cost and value. A common analytical framework enables these functions to interpret field economics consistently and communicate financial implications more effectively.

Break-even analysis also supports portfolio-level decisions. Organisations need to distinguish between assets that generate immediate operating cash, assets that require continued capital investment and assets whose economics depend heavily on long-term commodity assumptions. Participants learn how to use break-even indicators to assess relative economic resilience without treating a single break-even figure as a complete substitute for detailed economic evaluation.

The course also considers the relationship between operating performance and commodity price exposure. Changes in production volume, unit costs, capital commitments and expected recovery influence the economic position of an asset. Participants therefore develop an integrated approach to analysing the financial consequences of operational and commercial decisions.

The Institute For Oil & Gas Training delivers the course for professionals who need commercially relevant analytical skills rather than purely theoretical financial concepts. The emphasis remains on practical interpretation, structured analysis, scenario evaluation and communication of results to management.

Objectives

  • Apply Break-even Oil Price Analysis to producing fields, development projects and oil and gas portfolios.

  • Distinguish between unit operating cost and unit technical cost.

  • Calculate and interpret cash break-even price.

  • Explain the commercial purpose of full cycle break-even and half cycle break-even.

  • Analyse cost per barrel of oil equivalent across different asset types.

  • Apply price floor determination techniques to oil and gas commercial decisions.

  • Evaluate marginal barrel economics and its relevance to production decisions.

  • Assess cost curve positioning across fields and portfolios.

  • Separate operating, technical, capital and full-cycle economic considerations.

  • Analyse the sensitivity of break-even prices to production and cost assumptions.

  • Evaluate the effect of capital expenditure on asset economic resilience.

  • Interpret break-even results within broader field economic analysis.

  • Compare economic performance across assets with different production profiles.

  • Support portfolio screening using consistent financial indicators.

  • Identify key assumptions that materially influence break-even analysis.

  • Communicate financial analysis clearly to asset managers and senior decision-makers.

  • Integrate financial and operational information when evaluating oil price exposure.

  • Use scenario analysis to examine different commodity price environments.

  • Strengthen collaboration between finance, engineering, commercial and operations functions.

  • Improve the quality and consistency of economic information used in corporate decision-making.

Training methodology

The Institute For Oil & Gas Training uses a practical corporate training methodology designed around the financial realities of oil and gas field and portfolio management.

Case Studies

Participants work through field-based case studies covering producing assets, development projects and multi-asset portfolios. Cases examine production assumptions, operating costs, capital expenditure and oil price scenarios to demonstrate how different break-even measures respond to changes in underlying economics.

Financial Simulations

Simulation exercises demonstrate how changes in oil price, production volumes, unit operating cost and capital expenditure affect field economics. Participants interpret the resulting break-even movements and identify the financial implications for asset and portfolio decisions.

Group Exercises

Group exercises require participants to compare assets using cost per barrel of oil equivalent, cash break-even price and broader full cycle measures. The exercises strengthen cross-functional understanding between finance, engineering, commercial and asset management teams.

Real-World Scenarios

Real-world scenarios focus on decisions faced by operating companies, including production optimisation, development screening, capital allocation, portfolio restructuring and commodity price stress testing. Participants apply break-even analysis to decisions where cost structures and production profiles differ.

Analytical Workshops

Structured workshops guide participants through the construction and interpretation of break-even models. The methodology covers cost classification, economic assumptions, production forecasts and scenario analysis before moving towards management-level interpretation.

Management Interpretation

The course places strong emphasis on converting numerical analysis into commercially useful conclusions. Participants practise presenting break-even findings in a way that supports investment discussions, operating decisions, portfolio reviews and strategic planning.

Organisational impact

The Break-even Oil Price Analysis course strengthens the organisation's ability to connect field performance with financial decision-making. A consistent analytical approach gives management teams a clearer view of the economic characteristics of individual assets and portfolios.

Improved cost analysis supports stronger visibility of unit operating cost and unit technical cost. This enables organisations to identify the cost components influencing field economics and establish more consistent comparisons between assets.

The course also supports improved price floor determination. Management teams gain a structured approach for identifying the oil price conditions associated with different levels of economic sustainability. This information supports commercial planning, portfolio reviews and scenario analysis.

Understanding cash break-even price improves visibility of short-term operating resilience. Full cycle break-even provides a broader perspective by incorporating the financial requirements associated with sustaining and developing an asset. Half cycle break-even provides another analytical perspective for assessing existing production economics. Using these measures appropriately prevents different economic questions from being combined into a single metric.

Improved cost per barrel of oil equivalent analysis supports more consistent cost benchmarking across production assets. Management teams can examine how operating and technical costs influence cost curve positioning and identify areas requiring further investigation.

The focus on marginal barrel economics also supports production decision-making. Organisations can assess the incremental economics associated with additional production and distinguish marginal production decisions from broader full-field economics.

Portfolio teams benefit from stronger comparative analysis. Break-even indicators can be incorporated into portfolio reviews alongside production forecasts, capital requirements and other commercial information. This creates a more structured basis for identifying differences in economic resilience across assets.

The course also strengthens communication between technical and financial functions. Engineers and asset teams gain greater understanding of financial terminology, while finance and commercial professionals develop a clearer view of the operational drivers behind field economics.

Better analytical discipline supports capital allocation discussions by making assumptions more visible and allowing decision-makers to challenge the factors driving economic results. It also improves scenario analysis when organisations assess changes in oil price, production expectations, operating costs or investment requirements.

Personal impact

Participants develop a stronger command of financial analysis techniques used in oil and gas asset management and portfolio evaluation. They learn to move beyond headline oil prices and examine the underlying cost and production factors that determine economic resilience.

Professionals improve their ability to calculate and interpret unit operating cost, unit technical cost, cash break-even price and cost per barrel of oil equivalent. These capabilities support clearer communication with finance, engineering, commercial and management teams.

Participants also gain practical experience in full cycle break-even and half cycle break-even analysis. They learn how the choice of break-even measure affects interpretation and how to select the appropriate analytical perspective for a specific business question.

The course strengthens commercial awareness by introducing marginal barrel economics and cost curve positioning. Participants gain a clearer understanding of how incremental production decisions relate to broader asset economics.

Finance professionals strengthen their understanding of the operational drivers behind financial performance. Technical professionals gain greater confidence when interpreting cost and economic indicators. Asset managers develop a more integrated approach to production, cost and investment decisions.

The analytical capability developed through the course supports responsibilities in asset planning, economic evaluation, portfolio management, budgeting, performance analysis and commercial decision-making. Participants also strengthen their ability to explain analytical findings to senior management using clear and commercially relevant information.

Who should attend

Asset Managers and Asset Team Leaders

Built for professionals responsible for field performance, economic resilience, production strategy and asset planning.

Petroleum Engineers and Production Engineers

Relevant for technical professionals who need to connect production performance and cost structures with financial outcomes.

Petroleum Economists and Economic Analysts

Designed for specialists responsible for field economics, economic modelling, investment analysis and commercial evaluation.

Finance and Management Accounting Professionals

Supports finance teams analysing operating costs, capital expenditure, production economics and asset performance.

Commercial and Business Development Professionals

Useful for professionals evaluating commercial opportunities, portfolio economics, development decisions and oil price exposure.

Portfolio Managers

Supports professionals comparing assets and understanding cost curve positioning across a diversified oil and gas portfolio.

Planning and Strategy Professionals

Relevant for teams developing business plans, scenario analysis, portfolio strategies and long-term economic assessments.

Investment and Corporate Finance Teams

Provides practical insight into break-even analysis for capital allocation and investment evaluation.

Senior Managers and Decision-Makers

Designed for leaders who interpret field and portfolio economics and require consistent financial indicators for management decisions.

Operations and Production Management

Helps operational leaders understand how production performance, operating costs and marginal barrel economics affect financial outcomes.

Course outline

This Module establishes the commercial and analytical foundations of Break-even Oil Price Analysis. Participants examine the relationship between oil price, production economics, operating costs and asset value before distinguishing the principal break-even measures used across the industry.

  1. IFRS 6 Exploration for and Evaluation of Mineral Resources

    • Provides the accounting framework relevant to exploration and evaluation expenditure.

    • Supports understanding of how exploration and evaluation activities interact with financial reporting.

    • Provides useful context when linking economic analysis with accounting information.

    Learning Outcomes

    By the end of Day 1, participants will be able to:

    • Explain the purpose of break-even oil price analysis.

    • Distinguish unit operating cost from unit technical cost.

    • Interpret cost per barrel of oil equivalent.

    • Identify the principal inputs required for break-even analysis.

    • Connect production and cost assumptions with field economics.

    • Recognise the difference between operating cost analysis and broader economic analysis.

This Module focuses on short-term field economics and cash generation. Participants examine cash break-even price and assess how operating costs, production volumes and incremental production decisions influence the economic position of producing assets.

  1. IAS 1 Presentation of Financial Statements

    • Establishes principles for the presentation of financial statements.

    • Provides context for understanding financial information used in economic analysis.

    • Supports consistent interpretation of financial information relevant to management analysis.

    Learning Outcomes

    By the end of Day 2, participants will be able to:

    • Calculate and interpret cash break-even price.

    • Identify the operating cost components influencing cash economics.

    • Analyse the effect of production volumes on break-even levels.

    • Evaluate marginal barrel economics.

    • Distinguish short-term cash economics from broader asset economics.

    • Use cash break-even information in operational and commercial discussions.

This Module examines the broader economic dimensions of oil and gas assets. Participants compare full cycle break-even and half cycle break-even and assess the influence of capital expenditure, development requirements and investment recovery on economic outcomes.

  1. IAS 36 Impairment of Assets

    • Establishes principles for assessing whether assets are impaired.

    • Provides context for understanding recoverable economic value.

    • Supports consideration of asset-level economic assumptions and cash flow expectations.

    Learning Outcomes

    By the end of Day 3, participants will be able to:

    • Explain the distinction between full cycle break-even and half cycle break-even.

    • Identify the cost components included in broader economic analysis.

    • Assess the effect of capital expenditure on break-even levels.

    • Analyse the relationship between production forecasts and investment recovery.

    • Compare alternative break-even measures for different management questions.

    • Interpret asset economics using a broader full-cycle perspective.

This Module moves from individual field analysis to comparative commercial assessment. Participants examine price floor determination and cost curve positioning to understand how assets compare within a portfolio and how cost structures influence strategic decisions.

  1. IFRS 13 Fair Value Measurement

    • Establishes principles for fair value measurement.

    • Provides context for market-based valuation concepts.

    • Supports understanding of valuation inputs and market participant assumptions relevant to financial analysis.

    Learning Outcomes

    By the end of Day 4, participants will be able to:

    • Apply structured approaches to price floor determination.

    • Analyse cost curve positioning across producing assets.

    • Compare cost structures using consistent financial measures.

    • Identify the assumptions driving differences in asset break-even prices.

    • Assess portfolio exposure to changes in oil prices.

    • Communicate comparative economic findings to commercial and management teams.

This Module integrates the analytical techniques covered throughout the programme. Participants apply Break-even Oil Price Analysis to integrated field and portfolio scenarios and develop management-focused interpretations from operating, technical, financial and commercial information.

  1. IFRS 9 Financial Instruments

    • Establishes principles for financial instruments and related financial reporting.

    • Provides relevant context for understanding financial risk information.

    • Supports broader consideration of commodity-related financial exposure within corporate analysis.

    Learning Outcomes

    By the end of Day 5, participants will be able to:

    • Integrate multiple break-even measures into field and portfolio analysis.

    • Compare cash, half cycle and full cycle economic perspectives.

    • Apply marginal barrel economics to production scenarios.

    • Interpret cost curve positioning across a portfolio.

    • Conduct structured sensitivity and scenario analysis.

    • Present price floor determination findings clearly.

    • Identify the key assumptions influencing portfolio economics.

    • Translate break-even analysis into commercially relevant management information.

    • Support more consistent economic discussions across finance, engineering and commercial functions.

Certificate

Attendees receive a Certificate of Completion from The Institute For Oil & Gas Training upon finishing the course.

The certificate is provided to participants who meet the attendance requirement for the full programme. Participants are expected to attend the scheduled course sessions and actively engage with the practical exercises and analytical activities.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,300

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,300

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,300

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £4,300

Fees include tuition, course materials and refreshments. Need different dates or a different city? Ask about your preferred date.

Frequently asked questions

What is the Break-even Oil Price Analysis course about?

The course develops practical skills for analysing the minimum oil price associated with different field and portfolio economic conditions. It covers unit operating cost, unit technical cost, cash break-even price, full cycle break-even, half cycle break-even, price floor determination, marginal barrel economics and cost curve positioning.

Who delivers the Break-even Oil Price Analysis course?

The course is delivered by Institute For Oil & Gas Training for professionals working across oil and gas finance, economics, engineering, commercial, asset management, operations, planning and portfolio functions.

How is the course delivered?

The Institute For Oil & Gas Training uses corporate-focused case studies, financial simulations, group exercises, analytical workshops and real-world oil and gas scenarios. The delivery approach emphasises practical interpretation and application of break-even analysis.

What skills will participants develop?

Participants develop the ability to analyse field cost structures, calculate and interpret different break-even measures, assess marginal barrel economics, evaluate price floor determination and understand cost curve positioning. They also strengthen their ability to communicate economic findings to management.

Do attendees receive a certificate?

Yes. Attendees who complete the programme and meet the attendance requirement receive a Certificate of Completion from The Institute For Oil & Gas Training.

Next: 18 Jan 2027

4 dates available

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