3rd Edition

Petroleum Economics and Engineering

Edited By Hussein K. Abdel-Aal, Mohammed A. Alsahlawi Copyright 2014
    486 Pages 16 Color & 114 B/W Illustrations
    by CRC Press

    This book explains how to apply economic analysis to the evaluation of engineering challenges in the petroleum industry. Discussion progresses from an introduction to the industry, through principles and techniques of engineering economics, to the application of economic methods. Packed with real-world examples and case studies demonstrating how to calculate rate of return, discounted cash flow, payout period, and more, Petroleum Economics and Engineering, Third Edition assists petroleum engineers, chemical engineers, production workers, management, and executives in sound economic decision-making regarding the design, manufacture, and operation of oil and gas plants, equipment, and processes.

    The fully revised third edition is updated to reflect key advancements in petroleum technology and expanded to include chapters on middle stream operations, known as surface petroleum operations (SPO), and natural gas processing and fractionation. By looking globally at the hydrocarbon industry, the improved text offers the reader a more complete picture of the petroleum sector, which includes the global processes of exploration, production, refining, and transportation.


    The Editors


    Introduction to the Oil and Gas Industry

    World Oil and Gas Supply and Demand
    M.A. Al-Sahlawi

    Structure of the Oil and Gas Industry
    M.A. Al-Sahlawi

    Characteristics of Crude Oil and Properties of Petroleum Products
    Saad Al-Omani

    Principles, Methods, and Techniques of Engineering Economics Analysis

    Time Value of Money (TVM) in Capital Expenditures
    M. Bassyouni

    Depreciation and Depletion in Oil Projects
    Shereen M.S. Abdel-Hamid and Faheem H. Akhtar

    Financial Measures and Profitability Analysis
    Maha Abd El-Kreem

    Analysis of Alternative Selections and Replacements
    Khaled Zohdy

    Risk, Uncertainty, and Decision Analysis
    Jamal A. Al-Zayer, Taqi N. Al-Faraj, and Mohamed H. Abdel-Aal

    Break-Even and Sensitivity Analysis
    Taqi N. Al-Faraj and Jamal A. Al-Zayer

    Optimization Techniques
    Jamal A. Al-Zayer, Taqi N. Al-Faraj, and Mohamed H. Abdel-Aal

    Applications and Case Studies

    Exploration and Drilling
    Hussein K. Abdel-Aal

    Reserves and Reserve Estimate
    K.A. Al-Fusail (Deceased)

    Production Operations
    Mohamed A. Aggour and Hussein K. Abdel-Aal

    Gas-Oil Separation
    Hussein K. Abdel-Aal

    Crude Oil Treatment: Dehydration, Desalting, and Stabilization
    Hussein K. Abdel-Aal and Halim H. Redhwi

    Gas Treatment and Conditioning
    Hussein K. Abdel-Aal and H.H. Redhwi

    Crude Oil Refining: Physical Separation
    Hussein K. Abdel-Aal and Gasim Al-Shaikh

    Crude Oil Refining: Chemical Conversion
    Abdullah M. Aitani

    Natural Gas Processing: Recovery, Separation, and Fractionation of NGL (Natural Gas Liquids)
    Mazyad Al Khaldi

    Oil and Gas Transportation
    M.A. Al-Sahlawi


    Conversion Factors

    Compound Interest Factors



    Hussein K. Abdel-Aal is emeritus professor for National Research Center (NRC), Cairo, Egypt and King Fahd University of Petroleum and Minerals (KFUPM), Dhahran, Saudi Arabia. He received his BS from Alexandria University, Egypt and his MS and Ph.D from Texas A&M University, College Station, USA. He has worked as process engineer for Suez oil refineries, headed KFUPM’s Chemical Engineering Department, served as visiting professor for Texas A&M, and headed NRC’s Solar Energy Department. He has contributed to over 90 technical papers, edited one book on petroleum economics and engineering, and authored Petroleum and Gas Field Processing. An AIChE member and fellow, he is founder of the board for the International Association of Hydrogen Energy, Miami, Florida, USA.

    Mohammed A. Alsahlawi is a previous dean and current professor for King Fahd University of Petroleum and Minerals (KFUPM), Dhahran, Saudi Arabia. He holds a BS and MBA from KFUPM and a Ph.D from University of Wisconsin-Milwaukee, USA. He has served as manager of KFUPM’s Economic and Industrial Research Division; head of the News Agency and Information Department for the Organization of the Petroleum Exporting Countries, Vienna, Austria; member of the Advisory Board of the Saudi Arabian Supreme Economic Council, Riyadh; and director of the Human Resources Development Fund, Riyadh, Saudi Arabia. He also was the first president of the Saudi Association for Energy Economics.

    "…an excellent text for petroleum engineering departments, and a very good supplementary text in economics and chemical engineering departments. It is also a very good reference for practicing engineers."
    —Mazen A. Al-Shalabi, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia