Using Production Forecasting Uncertainty in the Economic Analysis of Multiple Producing Oil and Gas Properties
Abstract/Contents
- Abstract
- Most owners of oil and gas producing properties realize that a significant amount of risk is inherent in their investments. Most also intuitively understand that if a number of producing assets are held, their total risk is somewhat reduced through the process of diversification. Since most investors are risk averse, they will, to some degree be willing to sacrifice a level of expected return for some reduction of risk. The question arises, however, as to how to quantify the effect of diversification within a portfolio of producing oil and gas assets. More importantly, if it is possible to quantify the effects of diversification within a portfolio of producing properties, is it also possible to quantitatively manage risk within a portfolio and strategically select specific properties for acquisition or disposition so as to optimize the total portfolio risk return relationship? In this thesis, it is shown that a model based on financial portfolio theory can be used to answer some of these questions by quantifying the risk and expected return of portfolios of oil and gas producing properties.
Description
| Type of resource | text |
|---|---|
| Date created | August 1994 |
Creators/Contributors
| Author | Edwards, Robert A. |
|---|---|
| Primary advisor | Hewett, Thomas A. |
| Degree granting institution | Stanford University, Department of Petroleum Engineering |
Subjects
| Subject | School of Earth Energy & Environmental Sciences |
|---|---|
| Genre | Thesis |
Bibliographic information
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Preferred citation
- Preferred Citation
- Edwards, Robert A. (1994). Using Production Forecasting Uncertainty in the Economic Analysis of Multiple Producing Oil and Gas Properties. Stanford Digital Repository. Available at: https://purl.stanford.edu/bk433fc3791
Collection
Master's Theses, Doerr School of Sustainability
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