This course provides students with a novel introduction to energy economics, aiming to present the fundamental aspects of, and mainly applied analytical tools for analysing issues related to the allocation of natural resources in a broader sense. Complex problems that often arise during decision-making regarding energy resources, such as market failures, government failures, externalities, public goods, and property rights, will be elaborated. In its setup and due to time limits, the course mainly aims to provide adequate exposure to fundamentals of economics of petroleum – analysis of demand-side, supply-side and market structures of oil. To this end, the evolution of the international oil market and the emergence of the Organisation of Petroleum Exporting Countries (OPEC) are analysed in detail. Notwithstanding, all these are placed in a bigger picture of the inter-relationship between humans and the environment.