Depletion of large gas fields with thin oil layers and uncertain stocks
Working paper
Åpne
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http://hdl.handle.net/11250/2584490Utgivelsesdato
1987-12-09Metadata
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- Discussion Papers [1002]
Sammendrag
The optimal depletion policy for a combined oil and gas field is studied
under the assumption that if oil is to be extractéd, it has to be depleted
before production of gas can start. In particular, focus is put on how
uncertainty affects the decision whether or not to extract the oil, and to
study the effect of "learning by doing" on this decision. In opposition to
conclusions in other literature it is shown that uncertainty alone may
change the attitude to oil production. The effect of learning is a more
attractive oil production if experience from oil production reduces the
uncertainty about gas reserves.