• norsk
    • English
  • norsk 
    • norsk
    • English
  • Logg inn
Vis innførsel 
  •   Hjem
  • Norges Handelshøyskole
  • Thesis
  • Master Thesis
  • Vis innførsel
  •   Hjem
  • Norges Handelshøyskole
  • Thesis
  • Master Thesis
  • Vis innførsel
JavaScript is disabled for your browser. Some features of this site may not work without it.

Cost uncertainty in petroleum investments : a real options model

Støre, Kristian; Mjell, Line L.
Master thesis
Thumbnail
Åpne
Mjell og Store 2010.pdf (1.292Mb)
Permanent lenke
http://hdl.handle.net/11250/168473
Utgivelsesdato
2010
Metadata
Vis full innførsel
Samlinger
  • Master Thesis [3762]
Sammendrag
There are a number of uncertainties that are important to consider when planning a large

petroleum investment. Oil price uncertainty has, in particular, been incorporated in many

examples of real options analyses of petroleum investments. However, in the context of real

options, there are few academics or professionals who discuss cost uncertainty in the

petroleum industry. This real options analysis on cost uncertainty in petroleum projects

demonstrates that there are significant effects of introducing stochastic costs. We find that

volatility and correlation between income and cost components have important effects on both

option value and the optimal investment time, especially for projects that are initially less

profitable. Moreover, the choice of convenience yield can magnify these effects. We conclude

that although the analysis of these effects is tedious and computationally demanding,

petroleum companies should consider incorporating a real options framework that includes

cost uncertainty in their evaluations of future prospects.

Kontakt oss | Gi tilbakemelding

Personvernerklæring
DSpace software copyright © 2002-2019  DuraSpace

Levert av  Unit
 

 

Bla i

Hele arkivetDelarkiv og samlingerUtgivelsesdatoForfattereTitlerEmneordDokumenttyperTidsskrifterDenne samlingenUtgivelsesdatoForfattereTitlerEmneordDokumenttyperTidsskrifter

Min side

Logg inn

Statistikk

Besøksstatistikk

Kontakt oss | Gi tilbakemelding

Personvernerklæring
DSpace software copyright © 2002-2019  DuraSpace

Levert av  Unit