Description
Dive into the world of petroleum property economic evaluation. Gain insights into the purposes and applications of economic evaluations in oil and gas investments. Explore the interaction between production, sales, operating costs, taxes, third-party interests, and regulatory controls. Master the construction of income streams to measure economic benefits, with the ultimate goal of maximizing income and establishing economic value from oil and gas properties.
Drawing from over 50 years of industry experience, this indispensable resource explains:
- Core Concepts: Understand effective dates, economic limits, production decline, discounted cash flow, and market value.
- Practical Applications: Learn to estimate future production and income potential of properties.
- Economic Benefits: Evaluate the financial advantages of both producing and non-producing properties.
This book highlights numerous topics often overlooked in other publications. It provides a detailed discussion and illustration of appropriate measures of value, as well as methods for estimating market value. The book also covers the historical context of oil and gas pricing, alongside techniques for estimating and projecting future prices. You'll find thorough explanations of how to determine, apply, and project property operating costs. Additionally, the book explores evaluations for regulatory purposes, such as abandonment, ad valorem tax, and eminent domain. It also discusses how to evaluate income potential and economic benefits for royalty owners and other non-operating interests. With comprehensive coverage of these subjects, the book serves as an invaluable resource for anyone seeking to deepen their understanding of petroleum property economic evaluation.
Features & Benefits
- Learn the purposes and applications of economic evaluation in investing and operating oil/gas properties.
- Understand how various elements of an economic evaluation interact, including production, sales, operations, operating costs, and the impact of taxes, third-party interests, and regulatory controls such as abandonment and environmental obligations.
- Construct appropriate income streams to measure the economic benefits of petroleum properties.
- Appreciate the ultimate goal of owning and operating oil/gas properties: achieving income and establishing economic value.
Audience
- Petroleum economists and financial analysts
- Reservoir and production engineers involved in asset valuation
- Oil & gas investors and royalty owners
- Regulatory and tax professionals in the energy sector
- Students
About the Author
Richard J. Miller began his career as a petroleum engineer in 1967 with Texaco, Inc. in California and Trinidad, West Indies. He was later employed by James A. Lewis Engineering in Dallas, Texas and by United California Bank in Los Angeles, California. He founded Richard J. Miller & Associates, Inc. in 1977. The firm provides oil and gas property evaluation services to a wide range of industry clients. Richard has conducted and/or participated in several hundred engineering and economic evaluation projects covering oil and gas properties in all parts of the United States including individual property appraisals, determination of the feasibility of property development plans or enhanced recovery processes. Evaluations prepared by Richard have been used by petroleum producers for exploration and field development; by investors to establish project feasibility; by operators and financiers to support institutional financing; for reporting to government agencies; for estimation of estate and property taxes; and for presentation in federal and state courts and before assessment appeal boards. Recent practice includes the appraisal of oil and gas production in the Marcellus Shale region of Pennsylvania; the Haynesville and Fayetteville shales of Arkansas and Louisiana; and the Eagle Ford and Barnett shales in Texas.
Richard holds a Bachelor of Science in Petroleum Engineering (1967) from the New Mexico Institute of Mining and Technology. He also holds a Master of Science in Petroleum Engineering (1970) and Master of Business Administration (1976) degrees from the University of Southern California. He is an Accredited Senior Appraiser with a specialty in oil and gas property appraisal.
Details
Type: Hardcover
Size: 6x9
Pages: 283
Published: May 2025
ISBN: 9781955578301
