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Petroleum industry and trade-Econometric models., Petroleum products-Prices., Pricing-Mathematical models.

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Subject-Keyword: Petroleum industry and trade-Econometric models. Petroleum products-Prices. Pricing-Mathematical models.

Type of item: Report

Language: English




Date created: 2000

DOI: doi:10.7939-R3B17Z

License information: Creative Commons Attribution-Non-Commercial 3.0 Unported


Author: Laughton, David G. David Graham, 1953- Sagi, Jacob S. Jacob Shimon, 1968- Samis, Michael R. Michael Robert, 1964- : University of



Number 56•September 2000 Modern Asset Pricing and Project Evaluation In the Energy Industry David G.
Laughton*, Jacob S.
Sagi**, and Michael R.
Samis** * Faculty of Business and School of Mining and Petroleum Engineering, University of Alberta ** Faculty of Commerce and Business Administration, University of British Columbia *** Department of Mining and Mineral Processing Engineering, University of British Columbia A condensed version of this Bulletin has been published in The Journal of Energy Literature, 6-1 (2000) 3-46. We would like to thank the editors of JEnL for asking us to write this review, and Soussan Faiz, Simon Woolley, John Campbell and Radford Schantz for useful comments.
Michael Samis acknowledges research support from an FCAR grant obtained through Université Laval. Canadian Cataloguing in Publication Data Laughton, David G.
(David Graham), 1953Modern asset pricing and project evaluation in the energy industry (Information bulletin ; no.56) Includes bibliographical references. ISBN 1-55195-060-X 1.
Petroleum products—Prices.
Pricing—Mathematical models.
Sagi, Jacob S. (Jacob Shimon), 1968- II.
Samis, Michael R.
(Michael Robert), 1964- III.
University of Alberta.
Western Centre for Economic Research.
Series: Information bulletin (University of Alberta.
Western Centre for Economic Research) ; no.
56. HD9560.6.L38 2000 338.2’3282 C00-911148-4 Western Centre for Economic Research Bulletin 56, September 2000 2 1. Introduction A key task of any commercial organisation is the choice of its asset configuration.
This choice cannot be made without the generation and evaluation of alternatives.
Asset valuation is usually a key aspect of the evaluation process. For several decades in the energy industry, the most common form of asset valuation for these purposes has been a style of Discounted Cash-Flow (DCF) analysis, which, in this paper, we call the Standard DCF approach. However, over the past five years in particular...

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