Observed Costs Of Oil And Gas Reserves In Alberta 1957 1979 PDF Download

This report examines replacement costs and their associated methodologies for Alberta and Saskatchewan oil and gas. Replacement cost is being used to refer to the two different perspectives of the relationship between expenditures on exploration and development activity in the petroleum industry and the reserve additions they generate. The short-term perspective determines the per unit costs of obtaining reserves additions and is thus relevant for issues as cash flow decisions. The long-term perspective provides an estimate of the per unit costs incurred during the exploration and development stages of the energy cycle and is relevant for long-term investment decisions. This study provides a separate analysis for each of these perspectives, an explanation of the differences between them, and a discussion of the limitations of the analyses.