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Figure 17-4 shows first the life cycle of the asset under present technology, as indicated by the curve F 1. With present technology, the exploration phase covers 10 years (with negative cash flows), while the development and production period lasts for about 15 years, up to exhaustion at about year 27.

Prospects for these offshore deposits would be greatly improved by advances in drilling technology under the difficult conditions found in very deep water.

An advance in this technology, portrayed as curve F 2 , would extend the life cycle of the asset and vastly enhance financial returns: the exploration phase would be shorter, the development and production phases would be longer, and exhaustion of the deposit could be pushed out 5 years or more.

Of course, offshore drilling involved environmental risks that may cause host countries and foreign oil firms to have some second thoughts about undertaking very expensive and difficult-to-manage deepwater deposits. These risks become much in evidence after the May 2010 oil spill in waters off the Gulf of Mexico, involving British petroleum and several other firms.

Capturing benefits from energy endowments for emerging nations

As earlier noted no emerging nation, even those with large NOCs such as China’s CNooc or Brazil’s Petrobras has the technology to tap all available hydrocarbon sources, especially the relatively inaccessible and expensive newly diverse shale and pre-sal deposits and deposits lying under 10,000 feet of salt water.

For both types of deposits, there will be for some time need for foreign technology and capital to get hydrocarbons out of the shale, or out of deepwater deposits. That being the case, how can emerging nations best protect their interests in dealing with foreign firms such as Exxon, Chevron, Statoil, and Total.

One option would be to merely hire the firms to bring their exploration and drilling technology to the table and pay just for the technology? Ecuador attempted to do this in 1981. The State Oil Co. asked the author to advise them on whether or not they could just pay the foreign oil companies just to bring their technology capital, but with no share of any oil produced. It was clear that this would not work, for at least two reasons:

  1. Large oil companies are organized to be big oil companies. They do not see themselves of simply sellers of technology or suppliers of the billions of dollars of capital required for oil exploration and development. They seek a share of oil or gas produced. They are, after all, oil companies.
  2. For many emerging nations, such as Ecuador, Thailand, Colombia, the revenues of the oil companies are as big or usually even bigger than your EDP. That meant they are better able, or at least as able, to shoulder the major risks in all oil business:
    1. Market risk (what will be the price of oil internationally 2-5 years down the road, given volatile energy markets such as the world has experienced for decades).
    2. Technological risk – typical oil and gas projects today run into several billions of dollars. But there is no guarantee that commercial reserves will be found when this money is spent.

Questions & Answers

can someone help me with some logarithmic and exponential equations.
Jeffrey Reply
sure. what is your question?
ninjadapaul
20/(×-6^2)
Salomon
okay, so you have 6 raised to the power of 2. what is that part of your answer
ninjadapaul
I don't understand what the A with approx sign and the boxed x mean
ninjadapaul
it think it's written 20/(X-6)^2 so it's 20 divided by X-6 squared
Salomon
I'm not sure why it wrote it the other way
Salomon
I got X =-6
Salomon
ok. so take the square root of both sides, now you have plus or minus the square root of 20= x-6
ninjadapaul
oops. ignore that.
ninjadapaul
so you not have an equal sign anywhere in the original equation?
ninjadapaul
Commplementary angles
Idrissa Reply
hello
Sherica
im all ears I need to learn
Sherica
right! what he said ⤴⤴⤴
Tamia
what is a good calculator for all algebra; would a Casio fx 260 work with all algebra equations? please name the cheapest, thanks.
Kevin Reply
a perfect square v²+2v+_
Dearan Reply
kkk nice
Abdirahman Reply
algebra 2 Inequalities:If equation 2 = 0 it is an open set?
Kim Reply
or infinite solutions?
Kim
The answer is neither. The function, 2 = 0 cannot exist. Hence, the function is undefined.
Al
y=10×
Embra Reply
if |A| not equal to 0 and order of A is n prove that adj (adj A = |A|
Nancy Reply
rolling four fair dice and getting an even number an all four dice
ramon Reply
Kristine 2*2*2=8
Bridget Reply
Differences Between Laspeyres and Paasche Indices
Emedobi Reply
No. 7x -4y is simplified from 4x + (3y + 3x) -7y
Mary Reply
is it 3×y ?
Joan Reply
J, combine like terms 7x-4y
Bridget Reply
im not good at math so would this help me
Rachael Reply
yes
Asali
I'm not good at math so would you help me
Samantha
what is the problem that i will help you to self with?
Asali
how do you translate this in Algebraic Expressions
linda Reply
Need to simplify the expresin. 3/7 (x+y)-1/7 (x-1)=
Crystal Reply
. After 3 months on a diet, Lisa had lost 12% of her original weight. She lost 21 pounds. What was Lisa's original weight?
Chris Reply
what's the easiest and fastest way to the synthesize AgNP?
Damian Reply
China
Cied
types of nano material
abeetha Reply
I start with an easy one. carbon nanotubes woven into a long filament like a string
Porter
many many of nanotubes
Porter
what is the k.e before it land
Yasmin
what is the function of carbon nanotubes?
Cesar
what is nanomaterials​ and their applications of sensors.
Ramkumar Reply
what is nano technology
Sravani Reply
what is system testing?
AMJAD
preparation of nanomaterial
Victor Reply
Yes, Nanotechnology has a very fast field of applications and their is always something new to do with it...
Himanshu Reply
good afternoon madam
AMJAD
what is system testing
AMJAD
what is the application of nanotechnology?
Stotaw
In this morden time nanotechnology used in many field . 1-Electronics-manufacturad IC ,RAM,MRAM,solar panel etc 2-Helth and Medical-Nanomedicine,Drug Dilivery for cancer treatment etc 3- Atomobile -MEMS, Coating on car etc. and may other field for details you can check at Google
Azam
anybody can imagine what will be happen after 100 years from now in nano tech world
Prasenjit
after 100 year this will be not nanotechnology maybe this technology name will be change . maybe aftet 100 year . we work on electron lable practically about its properties and behaviour by the different instruments
Azam
name doesn't matter , whatever it will be change... I'm taking about effect on circumstances of the microscopic world
Prasenjit
how hard could it be to apply nanotechnology against viral infections such HIV or Ebola?
Damian
silver nanoparticles could handle the job?
Damian
not now but maybe in future only AgNP maybe any other nanomaterials
Azam
can nanotechnology change the direction of the face of the world
Prasenjit Reply
At high concentrations (>0.01 M), the relation between absorptivity coefficient and absorbance is no longer linear. This is due to the electrostatic interactions between the quantum dots in close proximity. If the concentration of the solution is high, another effect that is seen is the scattering of light from the large number of quantum dots. This assumption only works at low concentrations of the analyte. Presence of stray light.
Ali Reply
the Beer law works very well for dilute solutions but fails for very high concentrations. why?
bamidele Reply
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Source:  OpenStax, Economic development for the 21st century. OpenStax CNX. Jun 05, 2015 Download for free at http://legacy.cnx.org/content/col11747/1.12
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