Petroleum Economics and Management

By Prof. Anwesha Aditya   |   IIT Kharagpur
Learners enrolled: 81
The proposed course will begin with the basic issues on microeconomics, market structure (price and non-price competition), public policy, issues of sustainability. It will then discuss the evolution of petroleum industry; geopolitics and world petroleum market; the role of OPEC. Fundamentals of petroleum business – strategic issues; dynamics of petroleum pricing; the risk, uncertainty, and decision analysis will be dealt with in depth. Implications of fiscal and trade policies will also be covered. Also, the course will discuss recent geopolitical issues like the impact of the Covid-19 pandemic and the Russia-Ukraine war on the global oil market.

INTENDED AUDIENCE: Anyone interested to understand the issues related to the world oil market.

INDUSTRY SUPPORT: Oil and Petroleum Companies (ONGC, IOC), Mining, Metallurgy, Naval, Geology and Geophysics, Analytics, Consulting, UPSC Aspirants
Course Status : Upcoming
Course Type : Elective
Duration : 12 weeks
Start Date : 23 Jan 2023
End Date : 14 Apr 2023
Exam Date : 29 Apr 2023 IST
Enrollment Ends : 30 Jan 2023
Category :
  • Humanities and Social Sciences
Credit Points : 3
Level : Undergraduate/Postgraduate

Page Visits

Course layout

Week 1: Introduction: Relevance And Syllabus, Role of Oil: Advantage of oil as carrier of energy; Energy and Sustainability
Week 2: Basics of Microeconomics, Analysis of Demand,Determinants of Demand, Analysis of Supply, Equilibrium, Concept of Elasticity, Revenue and Price Elasticity of Demand
Week 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 Arabia
Week 6: Petroleum as a depleting resource; Can depletion and rising costs explain price development, Cost performance of global oil industry and Oil Spills
Week 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, Cartel
Week 10: Basics of utility, Intertemporal Allocation, Hotelling's Rule, Comparison of market structure
Week 11: Model of Economic Growth: without uncertainty, Discovery of Natural Resource
Week 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)

Books and references

1. Petroleum Economics: Issues and Strategies of Oil and Natural Gas Production by Rognvaldur Hannesson, Praeger, 1998.
2. Price of Oil by Roberto M. Aguilera and Marian Radetzki, Cambridge University Press, 2015.
3. Microeconomics by Robert Pindyck and Dainel Rubinfeld, Pearson, 8th Edition, 2017.
4. Microeconomics by Jeffrey Perloff, Pearson Education; Seventh edition, 2019.
5. India’s trade and exchange rate policies: Understanding the BOP crisis and the reforms thereafter by R. Acharyya in The Oxford Handbook of the Indian Economy edited by Chetan Ghate, 2015, Oxford University Press.

Instructor bio

Prof. Anwesha Aditya

IIT Kharagpur
Prof. Anwesha Aditya is Assistant Professor in the Department of Humanities & Social Sciences of IIT Kharagpur since 2013. She did her PhD from the Department of Economics of Jadavpur University, Kolkata. She received the EXIM Bank’s International Economic Research Annual Award for the best PhD dissertation in International Economics in 2013. Her research interest lies in International Economics, Global Value Chain, Development Economics. Her teaching areas include International Trade, Microeconomics, Labour Economics, Statistics for Economics. She has taught the course Economics for the BTech students of Chemical Engineering and Petroleum Engineering at the Indian Institute of Petroleum and Energy (IIPE) Vishakhapatnam for 3 years. She has conducted various sponsored Projects and Consultancies funded by reputed international and national agencies like the UNDP (India and Nepal), the Commonwealth (UK), Cisco Research Foundation (USA), ICSSR. She has published in reputed international and national journals.

Course certificate

The course is free to enroll and learn from. But if you want a certificate, you have to register and write the proctored exam conducted by us in person at any of the designated exam centres.
The exam is optional for a fee of Rs 1000/- (Rupees one thousand only).
Date and Time of Exams: 29 April 2023 Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.
Registration url: Announcements will be made when the registration form is open for registrations.
The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published. If there are any changes, it will be mentioned then.
Please check the form for more details on the cities where the exams will be held, the conditions you agree to when you fill the form etc.


Average assignment score = 25% of average of best 8 assignments out of the total 12 assignments given in the course.
Exam score = 75% of the proctored certification exam score out of 100

Final score = Average assignment score + Exam score

YOU WILL BE ELIGIBLE FOR A CERTIFICATE ONLY IF AVERAGE ASSIGNMENT SCORE >=10/25 AND EXAM SCORE >= 30/75. If one of the 2 criteria is not met, you will not get the certificate even if the Final score >= 40/100.

Certificate will have your name, photograph and the score in the final exam with the breakup.It will have the logos of NPTEL and IIT Kharagpur. It will be e-verifiable at nptel.ac.in/noc.

Only the e-certificate will be made available. Hard copies will not be dispatched.

Once again, thanks for your interest in our online courses and certification. Happy learning.

- NPTEL team

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