Comparative Study of Discounted Cash Flow and Energy Return on Investment: Review of Oil and Gas Resource Economic Evaluation
The aim of the paper is to develop a methodology for evaluating oil and gas fields return on investments based on not only finance, but also environmental and social interrelations. The subject of the study is a comparison of methods for calculating return on investments on the example of China, Can...
Saved in:
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | Russian |
| Published: |
Government of the Russian Federation, Financial University
2020-04-01
|
| Series: | Финансы: теория и практика |
| Subjects: | |
| Online Access: | https://financetp.fa.ru/jour/article/view/982 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850025821445554176 |
|---|---|
| author | J. Yan L. Feng A. N. Steblyanskaya S. Fu |
| author_facet | J. Yan L. Feng A. N. Steblyanskaya S. Fu |
| author_sort | J. Yan |
| collection | DOAJ |
| description | The aim of the paper is to develop a methodology for evaluating oil and gas fields return on investments based on not only finance, but also environmental and social interrelations. The subject of the study is a comparison of methods for calculating return on investments on the example of China, Canada and Russia’s oil and gas companies. The authors used a comparative method of calculations, as well as a case study — a comparison of return on investments methods on the example of oil and gas enterprises. In the paper, the authors analyze the next traditional methods of economic assessment: net present value, differential rent, reserve and multiple costs. The authors suggest using a new assessment method that determines the energy return on investment (EROI). This method does not rely on traditional analysis of net present value (NPV), internal rate of return (IRR), and financial sensitivity. It comprehensively takes into account the costs of energy production, environmental protection and energy efficiency. Based on the results of the study, the authors conclude that the advantages of various methods of economic assessment should be integrated in order to avoid disadvantages and create a new dynamic integrated system of economic assessment. Oil and gas companies may use the results of the study to implement the energy return on investment methodology concerning oil and gas fields’ evaluation. A promising direction for further research may be to compare the energy return on investment at oil and gas enterprises in different countries as well as developing corporate reporting concerning energy return on investment improving efficiency. |
| format | Article |
| id | doaj-art-513413fdd32c4c71a670f652bfc1d9eb |
| institution | DOAJ |
| issn | 2587-5671 2587-7089 |
| language | Russian |
| publishDate | 2020-04-01 |
| publisher | Government of the Russian Federation, Financial University |
| record_format | Article |
| series | Финансы: теория и практика |
| spelling | doaj-art-513413fdd32c4c71a670f652bfc1d9eb2025-08-20T03:00:43ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892020-04-01242505910.26794/2587-5671-2020-24-2-50-59768Comparative Study of Discounted Cash Flow and Energy Return on Investment: Review of Oil and Gas Resource Economic EvaluationJ. Yan0L. Feng1A. N. Steblyanskaya2S. Fu3China University of Petroleum (Beijing)China University of Petroleum (Beijing)Harbin Engineering UniversityHarbin Engineering UniversityThe aim of the paper is to develop a methodology for evaluating oil and gas fields return on investments based on not only finance, but also environmental and social interrelations. The subject of the study is a comparison of methods for calculating return on investments on the example of China, Canada and Russia’s oil and gas companies. The authors used a comparative method of calculations, as well as a case study — a comparison of return on investments methods on the example of oil and gas enterprises. In the paper, the authors analyze the next traditional methods of economic assessment: net present value, differential rent, reserve and multiple costs. The authors suggest using a new assessment method that determines the energy return on investment (EROI). This method does not rely on traditional analysis of net present value (NPV), internal rate of return (IRR), and financial sensitivity. It comprehensively takes into account the costs of energy production, environmental protection and energy efficiency. Based on the results of the study, the authors conclude that the advantages of various methods of economic assessment should be integrated in order to avoid disadvantages and create a new dynamic integrated system of economic assessment. Oil and gas companies may use the results of the study to implement the energy return on investment methodology concerning oil and gas fields’ evaluation. A promising direction for further research may be to compare the energy return on investment at oil and gas enterprises in different countries as well as developing corporate reporting concerning energy return on investment improving efficiency.https://financetp.fa.ru/jour/article/view/982economic evaluationnet present value (npv)energy return on investments (eroi) |
| spellingShingle | J. Yan L. Feng A. N. Steblyanskaya S. Fu Comparative Study of Discounted Cash Flow and Energy Return on Investment: Review of Oil and Gas Resource Economic Evaluation Финансы: теория и практика economic evaluation net present value (npv) energy return on investments (eroi) |
| title | Comparative Study of Discounted Cash Flow and Energy Return on Investment: Review of Oil and Gas Resource Economic Evaluation |
| title_full | Comparative Study of Discounted Cash Flow and Energy Return on Investment: Review of Oil and Gas Resource Economic Evaluation |
| title_fullStr | Comparative Study of Discounted Cash Flow and Energy Return on Investment: Review of Oil and Gas Resource Economic Evaluation |
| title_full_unstemmed | Comparative Study of Discounted Cash Flow and Energy Return on Investment: Review of Oil and Gas Resource Economic Evaluation |
| title_short | Comparative Study of Discounted Cash Flow and Energy Return on Investment: Review of Oil and Gas Resource Economic Evaluation |
| title_sort | comparative study of discounted cash flow and energy return on investment review of oil and gas resource economic evaluation |
| topic | economic evaluation net present value (npv) energy return on investments (eroi) |
| url | https://financetp.fa.ru/jour/article/view/982 |
| work_keys_str_mv | AT jyan comparativestudyofdiscountedcashflowandenergyreturnoninvestmentreviewofoilandgasresourceeconomicevaluation AT lfeng comparativestudyofdiscountedcashflowandenergyreturnoninvestmentreviewofoilandgasresourceeconomicevaluation AT ansteblyanskaya comparativestudyofdiscountedcashflowandenergyreturnoninvestmentreviewofoilandgasresourceeconomicevaluation AT sfu comparativestudyofdiscountedcashflowandenergyreturnoninvestmentreviewofoilandgasresourceeconomicevaluation |