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The AAPG/Datapages Combined Publications Database

Indonesian Petroleum Association


6th Annual Convention Proceedings (Volume 2), 1977
Pages 333-333

Reserves Required for Investment in Production Development Projects: Abstract

Joseph Warren1


Despite current uncertainties oil and gas will be the dominant energy source throughout the world for the next decade or two. But the sustained investment required to develop adequate new reserves will exceed the internally generated cash flow of the international petroleum industry. Therefore investments in production development projects will be carefully assessed with regard to the economic/political environment and to the financing available.

Since the economics of the development projects reflect the interaction of many variables a general model is developed to permit a company to evaluate a specific project in a particular country in terms of its own decision criteria. An example is used to compare hypothetical developments in the USA, UK and Indonesia based on representative investments costs and prices. Sensitivity analysis and ranking procedures are also discussed.


Acknowledgments and Associated Footnotes

1 Gulf Exploration and Minerals, Pittsburg, Pa

** Abstract only is presented, full text of Dr. Warren's paper was not presented for publication.

Copyright © 2006 by the Indonesian Petroleum Association