Incorporating risk in exploration economics

Journal Article · Thu Sep 01 04:00:00 EDT 1994 · World Oil; (United States)

OSTI ID:6781790

Anders, J ^[1]

---

1. Vastar Resources, Inc., Houston, TX (United States)

Economic evaluation of prospects is a common method to determine wells that will be included in drilling programs. Exploratory prospect evaluations require determination of many unknowns that have a range of possible values. When prospects are presented to management for review, analysis should address this range of outcomes. Financial analysis must address various outcomes, including large or small discoveries, dry holes or uneconomic production rates. This article reviews methods for determining risk and reserve distributions, and statistical occurrence of hydrocarbons. Various methods to determine chance factors and reserve distributions are discussed. Expected monetary value economic evaluation method and mean reserve size use are also covered. Applications of these concepts are presented.

• OSTI ID: 6781790
• Journal Information: World Oil; (United States), Journal Name: World Oil; (United States) Vol. 215:9; ISSN 0043-8790; ISSN WOOIAS
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020300* -- Petroleum-- Drilling & Production
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
03 NATURAL GAS
030300 -- Natural Gas-- Drilling
Production
& Processing
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
ECONOMIC ANALYSIS
ECONOMICS
EXPLORATION
GEOLOGIC DEPOSITS
MINERAL RESOURCES
NATURAL GAS DEPOSITS
PETROLEUM DEPOSITS
RESOURCE DEPLETION
RESOURCES