How Long to Read Optimal Oil Production and the World Supply of Oil

How Long Does it Take to Read Optimal Oil Production and the World Supply of Oil?

It takes the average reader and 31 minutes to read Optimal Oil Production and the World Supply of Oil by Mr. Nikolay Aleksandrov

Assuming a reading speed of 250 words per minute. Learn more

Description

We study the optimal oil extraction strategy and the value of an oil field using a multiple real option approach. The numerical method is flexible enough to solve a model with several state variables, to discuss the effect of risk aversion, and to take into account uncertainty in the size of reserves. Optimal extraction in the baseline model is found to be volatile. If the oil producer is risk averse, production is more stable, but spare capacity is much higher than what is typically observed. We show that decisions are very sensitive to expectations on the equilibrium oil price using a mean reverting model of the oil price where the equilibrium price is also a random variable. Oil production was cut during the 2008–2009 crisis, and we find that the cut in production was larger for OPEC, for countries facing a lower discount rate, as predicted by the model, and for countries whose governments’ finances are less dependent on oil revenues. However, the net present value of a country’s oil reserves would be increased significantly (by 100 percent, in the most extreme case) if production was cut completely when prices fall below the country's threshold price. If several producers were to adopt such strategies, world oil prices would be higher but more stable.

How long is Optimal Oil Production and the World Supply of Oil?

Optimal Oil Production and the World Supply of Oil by Mr. Nikolay Aleksandrov is 31 pages long, and a total of 7,781 words.

This makes it 10% the length of the average book. It also has 10% more words than the average book.

How Long Does it Take to Read Optimal Oil Production and the World Supply of Oil Aloud?

The average oral reading speed is 183 words per minute. This means it takes and 42 minutes to read Optimal Oil Production and the World Supply of Oil aloud.

What Reading Level is Optimal Oil Production and the World Supply of Oil?

Optimal Oil Production and the World Supply of Oil is suitable for students ages 8 and up.

Note that there may be other factors that effect this rating besides length that are not factored in on this page. This may include things like complex language or sensitive topics not suitable for students of certain ages.

When deciding what to show young students always use your best judgement and consult a professional.

Where Can I Buy Optimal Oil Production and the World Supply of Oil?

Optimal Oil Production and the World Supply of Oil by Mr. Nikolay Aleksandrov is sold by several retailers and bookshops. However, Read Time works with Amazon to provide an easier way to purchase books.

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