The basic concepts utilized in analysis of non-renewable energy resources are presented in this study. Dr. Petrick explains the process of exploration in terms of the present value of expected discoveries, efficiency in exploration, and the budgeting process, stressing objectives and strategies designed to help avoid "gambler's ruin" and aid in the efficient spending of exploration dollars. The case of a wildcat oil-gas prospect in Colorado illustrates the fundamentals of petroleum evaluation, including calculation of reserves and the expected value of discovery. The history of the Ekofisk...