This reading focuses on the managerial challenges faced in producing oil and gas with an emphasis on cost efficiency as a competitive advantage.

The reading begins by examining the various costs in the upstream sector,

& how they are accounted for, their impact on the company's earnings

& how production costs vary by location.

We then takes a look at oil economics, using various parameters like operating profitability, break-even point, working interest and taxation.

The reading then moves on to strategic cost management, examining the various cost drivers and their impact on specific costs. The impact of economies of scale, economies of scope, and learning curve on production costs. It then discusses and differentiates between primary, secondary and tertiary methods of oil recovery.

The reading then assesses the terms & conditions of a partnership management agreement, explaining how duties are shared & disputes settled among the various parties involved. The reading then discusses the management of contractor

supply chains & the different stakeholder needs in terms of contractor arrangements.

Finally, there is a discussion on political risks and their impact on decisions

relating to crude oil production.