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The AAPG/Datapages Combined Publications Database

AAPG Special Volumes


Pub. Id: A108 (1973)

First Page: 629

Last Page: 632

Book Title: M 19: Arctic Geology

Article/Chapter: Economics of Prudhoe Bay Field--A Comparison with Bell Creek Field: Economics of Petroleum Exploration and Production in the Arctic

Subject Group: Geologic History and Areal Geology

Spec. Pub. Type: Memoir

Pub. Year: 1973

Author(s): Charles A. Norman (2)


An economic model of Prudhoe Bay field based on the discounted cash-flow method uses the following assumptions: (1) 7.5 billion bbl of recoverable oil, (2) an average initial producing rate of 4,000 bbl per well per day, (3) a peak production rate of 1.6 million bbl per day, and (4) a discount factor of 15 percent. The model gives a producing cost (no exploratory or lease costs included) of $0.28/bbl. A similar economic model for the Trans-Alaskan Pipeline gives a pipeline cost of $0.45/bbl far transport from Prudhoe Bay to Valdez. Tanker costs from Valdez to Los Angeles are estimated at $0.30/bbl.

For comparative purposes, a model of Bell Creek field, Montana, was made along the same lines as the Prudhoe Bay model. Actual producing rates of Bell Creek field were used, and the expected ultimate recovery was assumed to be 150 million bbl. The model gives a cost of production at Bell Creek of $0.58/bbl.

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