Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review
Development of an economical approach for investment optimization in heavy oil industry. / Solar, J. Chacón.
Youth Technical Sessions Proceedings- Proceedings of the 6th Youth Forum of the World Petroleum Council- Future Leaders Forum, 2019. ed. / Vladimir Litvinenko. CRC Press/Balkema, 2019. p. 211-217 (Youth Technical Sessions Proceedings- Proceedings of the 6th Youth Forum of the World Petroleum Council- Future Leaders Forum, 2019).Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review
}
TY - GEN
T1 - Development of an economical approach for investment optimization in heavy oil industry
AU - Solar, J. Chacón
N1 - Publisher Copyright: © 2019 World Petroleum Council, London, UK.
PY - 2019
Y1 - 2019
N2 - The aim of this investigation is to propose an economical approach to take the most optimal investment decision in heavy oil fields, taking into account key variables such as exchange rate, oil benchmarks spread, technology, discount rate, capital and operating costs, taxes and environmental expenses. The method for this research is based on economical, mathematical and statistical methodologies, as well as sensitivity analyzes. As any investment analysis consists in forecasting costs and revenues within an intertemporal framework, this document’s subject assess to develop an empirical methodology which could develop a better system for increasing companies’ revenues when producing heavy oil restricted to the product and market conditions. Analysis showed that exchange rate and oil benchmarks fluctuations are not a considerable threat for the model, due to the fact that there is low volatility in the spread among WTI and Brent oil benchmarks, as well as Canadian and US Dollars. On the other hand, increases in technology ratios applied to production highly affect total income and revenues, meaning that the future of economic investments in non-conventional oil is highly related to technological advances.
AB - The aim of this investigation is to propose an economical approach to take the most optimal investment decision in heavy oil fields, taking into account key variables such as exchange rate, oil benchmarks spread, technology, discount rate, capital and operating costs, taxes and environmental expenses. The method for this research is based on economical, mathematical and statistical methodologies, as well as sensitivity analyzes. As any investment analysis consists in forecasting costs and revenues within an intertemporal framework, this document’s subject assess to develop an empirical methodology which could develop a better system for increasing companies’ revenues when producing heavy oil restricted to the product and market conditions. Analysis showed that exchange rate and oil benchmarks fluctuations are not a considerable threat for the model, due to the fact that there is low volatility in the spread among WTI and Brent oil benchmarks, as well as Canadian and US Dollars. On the other hand, increases in technology ratios applied to production highly affect total income and revenues, meaning that the future of economic investments in non-conventional oil is highly related to technological advances.
UR - http://www.scopus.com/inward/record.url?scp=85087018528&partnerID=8YFLogxK
U2 - 10.1201/9780429327070-29
DO - 10.1201/9780429327070-29
M3 - Conference contribution
AN - SCOPUS:85087018528
SN - 9780367346683
T3 - Youth Technical Sessions Proceedings- Proceedings of the 6th Youth Forum of the World Petroleum Council- Future Leaders Forum, 2019
SP - 211
EP - 217
BT - Youth Technical Sessions Proceedings- Proceedings of the 6th Youth Forum of the World Petroleum Council- Future Leaders Forum, 2019
A2 - Litvinenko, Vladimir
PB - CRC Press/Balkema
T2 - 6th Youth Forum of the World Petroleum Council- Future Leaders Forum, 2019
Y2 - 23 June 2019 through 28 June 2019
ER -
ID: 35676914