IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Petroleum Property Valuation

  • James L. Smith

The term “petroleum property valuation” refers to the analytical procedure by which the commercial value of oil and gas fields is assessed. This assessment provides to prospective buyers and sellers, and other interested parties such as lenders and tax assessors, an estimate of the fair market value of underground deposits of oil and gas— the amount for which they might be bought or sold. The value of an underground deposit is directly related to the ultimate value of whatever petroleum may be extracted in the future, but because the future is uncertain, the value of the property is subject to various sources of risk that stem from geological as well as economic factors. To be useful, the valuation procedure must take proper account of the unpredictable fluctuations that would cause field development, operations, and performance to deviate from the expected outcome. This task represents a complex analytical problem that has challenged traditional valuation methods. To meet the challenge, new and highly innovative techniques have been developed in recent years, and are now finding increasingly widespread use.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://tisiphone.mit.edu/RePEc/mee/wpaper/2003-011.pdf
Our checks indicate that this address may not be valid because: 500 Can't connect to tisiphone.mit.edu:80 (10060). If this is indeed the case, please notify (Sharmila Ganguly)


Download Restriction: no

Paper provided by Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research in its series Working Papers with number 0311.

as
in new window

Length:
Date of creation: Jun 2003
Date of revision:
Handle: RePEc:mee:wpaper:0311
Contact details of provider: Postal: 77 Massachusetts Ave. (Building E40-279), Cambridge, MA 02139-4307
Phone: (617) 253-3551
Fax: (617) 253-9845
Web page: http://tisiphone.mit.edu/RePEc
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:mee:wpaper:0311. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sharmila Ganguly)

The email address of this maintainer does not seem to be valid anymore. Please ask Sharmila Ganguly to update the entry or send us the correct address

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.