Essays on the role of information in natural resource exploration and development

Thesis/Dissertation · Thu Jan 01 04:00:00 EST 1981

OSTI ID:6715717

Isaac, R M

Because natural resource exploration and development are inherently risky undertakings, information can be a valuable commodity in these processes. A survey of the literature concerning information and resources is contained in Chapter 1, and the areas of interest for this thesis are introduced. Aspects of the role of information early in the exploration process are considered in Chapter 2 as the public and private provision and valuation of exploratory information are examined. The role of information in market performance is not independent of the allocation institutions under consideration, so several are examined. Next, in Chapter 3, consequences of the joint provision of resources and information are examined in the context of problems of information inexcludability. This essay presents the case in which more than one firm owns land in a geologically related area. Each firm can provide valuable information to the other, and each firm recognizes this predicament. The problem is developed first as one of noncooperative play of a two-person game, with particular attention then given to the theory and performance of cooperative institutions for sharing the resource information. Finally, in Chapter 4, the observation that information is a valuable commodity in natural resource markets is combined with the fact that such information is often produced jointly with the oil and gas product to demonstrate that price controls on petroleum properties can produce unintended results. This follows from the alteration in firm optimal extraction paths when price controls are present.

• OSTI ID: 6715717
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290400* -- Energy Planning & Policy-- Energy Resources
EVALUATION
EXPLORATION
INFORMATION
RESOURCE DEVELOPMENT
RISK ASSESSMENT