Options in the Real World: Lessons Learned in Evaluating Oil and Gas Investments

DOI10.1287/opre.47.1.1zbMath1035.91503OpenAlexW2124185870MaRDI QIDQ4545689

James E. Smith, Kevin F. McCardle

Publication date: 1999

Published in: Operations Research (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1287/opre.47.1.1

zbMATH Keywords

decision analysisoil and gas businessoption princing methods

Mathematics Subject Classification ID

Decision theory (91B06) Derivative securities (option pricing, hedging, etc.) (91G20) Economic models of real-world systems (e.g., electricity markets, etc.) (91B74)

Related Items (14)

Optimal Sequential Investment Decision-Making with Jump Risk ⋮ Project options valuation with net present value and decision tree analysis ⋮ The valuation of multidimensional American real options using the LSM simulation method ⋮ Discrete time modeling of mean-reverting stochastic processes for real option valuation ⋮ Mature offshore oil field development: solving a real options problem using stochastic dual dynamic integer programming ⋮ A review of the operations literature on real options in energy ⋮ Comparison of least squares Monte Carlo methods with applications to energy real options ⋮ Merchant Commodity Storage Practice Revisited ⋮ Discounted Utility and Present Value—A Close Relation ⋮ Valuing interdependent multi-stage IT investments: a real options approach ⋮ Optimal entry and exit decisions under uncertainty and the impact of mean reversion ⋮ Unnamed Item ⋮ Multiple Volatility Real Options Approach to Investment Decisions Under Uncertainty ⋮ Decision analysis and real options: a discrete time approach to real option valuation

This page was built for publication: Options in the Real World: Lessons Learned in Evaluating Oil and Gas Investments