New market-based method for estimating oil field reserves: an application to the Santa Maria Basin

Journal Article · · J. Energy Dev.; (United States)

OSTI ID:5851447

Mead, W J; Moseidjord, A

The authors use market evidence from lease bidding records to estimate reserves on the grounds that, relative to government, bidders (1) have superior information, (2) may have superior interpretation skills, and (3) have a strong economic incentive to make an accurate estimation. Evidence from recent work evaluating the bidding record for 1223 Gulf of Mexico Outer Continental Shelf oil and gas leases issued between 1954 and 1969 supports the market approach. Using multiple techniques, as well as both internal rate of return and present value analysis, these studies concluded that bidding produced rational results and that, in the aggregate, high bids correctly reflected the discounted present value of net cash flows from leases. 2 figures, 4 tables.

• Research Organization: Univ. of California, Santa Barbara
• OSTI ID: 5851447
• Journal Information: J. Energy Dev.; (United States), Journal Name: J. Energy Dev.; (United States) Vol. 9:2; ISSN JENDD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020100* -- Petroleum-- Reserves-- (-1989)
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
ACCURACY
BIDS
CALCULATION METHODS
CONTINENTAL MARGIN
CONTINENTAL SHELF
GEOLOGIC DEPOSITS
LEASING
MARKET
MATHEMATICS
MINERAL RESOURCES
PETROLEUM DEPOSITS
REGRESSION ANALYSIS
RESERVES
RESOURCES
SALES
STATISTICS