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The AAPG/Datapages Combined Publications Database

Indonesian Petroleum Association

Abstract


18th Annual Convention Proceedings (Volume 2), 1989
Pages 477-487

Economic Analysis: Criteria for Project Assessment

Richard W. Stearns

Abstract

Project assessment through economic analyses has become an integral part of management's decision making process. A comprehensive approach to project economics is essential for judging the relative merits of exploration opportunities worldwide. This paper identifies the significant criteria a company should look at when making economic evaluations. The importance of such factors as rate of return, leverage, profitability, payout, expected value, etc. are discussed and a simplified method of investment analysis is demonstrated that will incorporate the degree of risk inherent in oil and gas investments.


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