Economic Decision Analysis: For Project Feasibility Studies

ISBN-13: 9783030961367 / Angielski / Miękka / 2022 / 116 str.

Babak Jafarizadeh

Spis treści

Chapter 1: Exploration Decisions

1.1: The Big Bets of the Industry

1.2: Valuation for Decision Making

1.3: Exploration Decision Model

1.4: Valuations are Subjective and Transitory 10

1.5: The Journey is Important

1.6: Conclusions

Chapter 2: Sources of Uncertainty

2.1: Introduction

2.2: Geological Uncertainty

2.3: Uncertainty in Exploration Value Chain

2.4: All Models are Wrong, some are Useful

2.5: Conclusions

Chapter 3: Uncertainty to Value

3.1: Introduction

3.2: Comparisons Across Time

3.3: Comparisons Across Different Levels of Uncertainty

3.4: Company’s WACC and the Project Discount Rate

3.5: Making Valuation Models

3.6: Markets and Risk-Neutral Valuation

Chapter 4: Applications

4.1: Non-Linearities and Real Options

4.2: Uncertain Future Prices

4.3: Value of a Group of Prospects

4.4: Environmental Considerations

4.5: Useful Analyses and Common Pitfalls

O autorze

Babak Jafarizadeh is a faculty member of petroleum engineering in the Institute of Geo-Energy Engineering at Heriot-Watt University. His teaching and research interests in the energy industry's investment decision making have led his works towards improving the practice of economic decision analysis. He has worked as a senior economic analyst in industry and holds a PhD degree in Investment and Decision Analysis from the University of Stavanger.