Petroleum Economics and Management

Week 1: Introduction: Relevance And Syllabus, Role of Oil: Advantage of oil as carrier of energy; Energy and SustainabilityWeek 2: Basics of Microeconomics, Analysis of Demand,Determinants of Demand, Analysis of Supply, Equilibrium, Concept of Elasticity, Revenue and Price Elasticity of DemandWeek 3: Petroleum Rents and Taxes,Welfare Analysis: Consumer and producer surplus, Government Intervention (Tax, Quota)Week 4: Movement of Oil Price, Major Pricing Events, Sector Wise use of Oil, Oil Price in the recent times (impact of Covid and lockdown measures, Russia-Ukraine War) Week 5: Structure of OPEC, Cartel, Role of OPEC in explaining oil price, Role of Saudi ArabiaWeek 6: Petroleum as a depleting resource; Can depletion and rising costs explain price development, Cost performance of global oil industry and Oil SpillsWeek 7: Structural Change and Resource Discovery, Theoeretical Framework, Sudden Discovery of Resource, Resource Curse, Dutch Disease and capacity destruction, Country Experiences Week 8: Market Structure, Oligopoly market structure, Introduction to Game Theory: Prisoner’s Dilemma, Nash Equilibrium, Competition versus Collusion Week 9: Collusive Oligopoly: Price leadership dominant firm model, CartelWeek 10: Basics of utility, Intertemporal Allocation, Hotelling's Rule, Comparison of market structure Week 11: Model of Economic Growth: without uncertainty, Discovery of Natural ResourceWeek 12: Exchange Rate, Determination of Exchange Rate, Oil Price Shock, Implications of fiscal and trade policies (with special attention to exchange rate policies, BOP crisis and Indian economy)