Study On Economic Evaluation Of Unconventional Oil And Gas Resources For Energy Company

BP forcasts that the global production of shale oil and shale gas will increasing rapidly in 2011-2020.China is rich in unconventional oil and gas resources, which has 24-32 trillion cubic meters of shale gas,and nearly 10-15 billion tons of shale oil recoverable resource.The investment of unconventional oil and gas resources in China has intensified,however, investment decisions depend not only on the success of geological evaluation of unconventional oil and gas resources, but also on the economic analysis.Less for the study of economic analysis of unconverrtional resourses in nowdays,this study takes shale gas and shale oil for economic evaluation.Firstly, through the review of related domestic and foreign researches,this study put forward the suitable economic evaluation methods for energy companies of unconventional oil and gas resources.Then, the study find out economic parameters of unconventional oil and gas resources.After that,the study takes Chesapeake energy company as an example,makes the shale gas parameter list and shale oil parameter list of Chesapeake company.Next,measuring the price,production, development cost, operation cost and royalty rate on the influence of NPV,finding out economic boundary.Finally,Compare the shale gas and oil in the economic evaluation on the similarities and differences.The conclusions are as follows: firstly, sum up a set of ideas, processes and methods of economic analysis on unconventional oil and gas.Second,determine the economic parameters.Third,establish that the price, production, and development cost are the main controlling factors that impact the unconventional oil and gas resources economy.Forth,make the economic plates in defferent development cost, operation cost and royalty rate for low,medium,high production,find out economic boundary.Fifth,compare the economic evaluation between shale gas and oil,point out that in the current conditions, when the oil price is $60/bbl and above, the majority of oil wells are profitable.Last, take some advices for Chinese enterprises.