Petroleum Exploration and Production Rights (eBook)

Allocation Strategies and Design Issues

Silvana Tordo (Autor)

eBook Download: EPUB

2010 | 1. Auflage
The World Bank (Verlag)
978-0-8213-8168-7 (ISBN)

Infos

Governments often pursue a variety of economic, social and political objectives through their allocation policies that go beyond the maximization of the net present value of the economic rent. The optimal allocation policy depends on a range of country specific and exogenous factors. Despite the variety of factors influencing optimal design, most countries use similar solutions. In particular, when auctions or administrative procedures are used, most governments opt for simple simultaneous multi-object sealed-bid rounds. While this may appear to be paradoxical, there is a practical explanation. It is true that more complex bidding forms might increase rent capture at bidding. However, the potential marginal gain is often limited, owing to most E & P projects' high level of uncertainty and risk. In addition market mechanisms, such as joint bidding and secondary markets, and the fiscal regime are widely used in the petroleum sector to correct inefficiency at the time of allocation.

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Many governments rely on oil companies to efficiently exploit natural resources. Governments have the challenging task of deciding which companies should be awarded exclusive rights to explore, develop, and produce their petroleum resources, and on what conditions such rights should be awarded. This paper analyzes the available evidence on the advantages and disadvantages of various systems used by petroleum-producing countries to allocate petroleum exploration, development, and production rights, and considers the policy implications of each system. The experience of six petroleum-producing countries is presented in detail, and numerous other examples are provided to derive lessons of wider applicability. The paper presents various conclusions for policy makers about the optimal design of allocation systems.

Produkt-Details

• Erscheint lt. Verlag: 12.1.2010
• Sprache: englisch
• Themenwelt: Sozialwissenschaften ► Politik / Verwaltung
• Themenwelt: Technik ► Elektrotechnik / Energietechnik
• Themenwelt: Wirtschaft
• ISBN-10: 0-8213-8168-7 / 0821381687
• ISBN-13: 978-0-8213-8168-7 / 9780821381687