Oil And Gas Exploration And Economic Evaluation Studies

Economic evaluation for oil/gas exploration is a special type of evaluation to the relationship between investment and profit. China petroleum industry has paid little attention to the relationship of investment and profit due to the long time of planned economy. Chinese petroleum corporation have attached much more importance to the relationship between investment and profit and take it as an important basis on investment decision after their successful listing on the international stock market and China entry to the WTO. As the first period of E&P investment, exploration investment is of decisional affect on the whole profit of the exploration and production.In this paper, index and method of economic evaluation for oil/gas exploration is studied. Exploration cost of unit economic recoverable oil/gas is taken as a core parameter in the exploration economic evaluation, and oil/gas recoverable reserves and exploration cost are analyzed and studied. Based on techno-economic method, he get real option approach to evaluate the profit of oil/gas exploration investment. He has relative study on the profit of oil/gas exploration between China and foreign country.