Front Matter Page
Fiscal Affairs Department
Contents
I. Introduction
A. Resource Development
B. Resource Exploration
II. Related Research
III. The Modeling Approach
A. Primary Production
B. Enhanced Production
C. Optimal Field Development
D. Solution Method
E. Modeling Price Volatility and Financial Risk
F. Exploration
G. Integration of Exploration and Development
H. Fiscal Regimes Considered
IV. Overview of Results
A. Intensity of Development
B. Diligence
C. Fiscal Progressivity
D. Price Volatility and Financial Risk
E. Impact of Fiscal Design on the Optionality of Enhanced Oil Recovery
F. Exploration Incentives and Performance
V. Conclusion
Tables
1. Guide to Fiscal Regimes and Background Parameters Used in the Analysis
2. Background Parameters
3. Impact of Enhanced Oil Recovery on Resource Development and Recovery
4. Impact of Oil Price on Resource Development and Recovery
5. Marginal Chance of Exploratory Success
Figures
1. Impact of Enhanced Oil Recovery Effectiveness on Optimal Development
2. Impact of Enhanced Oil Recovery on Resource Recovery and Value
3. Resource Recovery, by Fiscal Regime and Phase
4. Total Net Present Value, by Fiscal Regime
5. Optimal Development Programs, Price Impact
6. Fiscal Impacts on Timing of Enhanced Oil Recovery and Abandonment
7. Incentive to Delay Development: High Cost Fields
8. Royalties Create Timing Conflicts in High Cost Fields
9. Government Take, by Fiscal Regime
10. Effective Marginal Tax Rates
11. Risk Sharing (Coefficient of Variation in Net Present Value)
12. Profitability Index versus Risk
13. Net Present Value versus Risk
14. The Option to Implement Enhanced Oil Recovery
15. Value of Option to Cancel Enhanced Oil Recovery
16. Impact of Price Simulations on International Oil Company Net Present Value
17. Maximum Exploratory Failures Before Abandonment
18. Full Cycle International Oil Company Net Present Value
19. Distorted Resource Exploration: Exploration and Development Stages
20. Tax Impact on Total Resource Value (Full Cycle)
21. Government Take (Full Cycle)
References