Application and discussion of multi-factor sensitivity analysis in value assessment of areas with low exploration level

With the full implementation of competitive mining rights policies in China, the oil and gas exploration and production market has been fully open, but most of the exploration blocks currently being offered are located in areas with low exploration level. Due to the lack of data and limited understa...

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Main Authors: Yongtai FENG, Linjie ZHAO, Baohua WANG, Longlong LI, Tiejun DUAN
Format: Article
Language:zho
Published: Editorial Office of Petroleum Geology and Experiment 2025-03-01
Series:Shiyou shiyan dizhi
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Online Access:https://www.sysydz.net/cn/article/doi/10.11781/sysydz2025020426
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author Yongtai FENG
Linjie ZHAO
Baohua WANG
Longlong LI
Tiejun DUAN
author_facet Yongtai FENG
Linjie ZHAO
Baohua WANG
Longlong LI
Tiejun DUAN
author_sort Yongtai FENG
collection DOAJ
description With the full implementation of competitive mining rights policies in China, the oil and gas exploration and production market has been fully open, but most of the exploration blocks currently being offered are located in areas with low exploration level. Due to the lack of data and limited understanding in these areas, major oil companies face challenges in evaluating, selecting, and bidding during the process of obtaining mining rights. Against this background, it is particularly crucial for those companies to quickly and effectively assess the value of areas with low exploration level to gain a strategic advantage in block acquisition. This study takes into account the risks in oil and gas exploration, including geological complexity, exploration limitations, development uncertainties, and economic fluctuations. Based on the internationally recognized expected monetary value (EMV) method, the study employed multi-factor sensitivity analysis to identify the key sensitive factors affecting block value assessment. A multiple regression equation was established between the expected revenue per unit of geological resources and the main controlling factors, thereby enabling an effective assessment of the value of areas with low exploration level. The method has been applied to a conventional karstic-fault oil reservoir block in the northern Tarim Basin. This method comprehensively considers geological, exploration, development, and economic risks in oil and gas exploration. Through quantitative multi-factor sensitivity analysis, it determines the key controlling factors and establishes an analogy model. It provides a scientific basis for defining the parameter systems in analogy methods, enabling objective and rapid assessment of expected revenue in areas with low exploration level. It offers strong support for bidding decisions on blocks on offer.
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spelling doaj-art-608eb614ea164009987b2d4f66ca71732025-08-20T01:49:55ZzhoEditorial Office of Petroleum Geology and ExperimentShiyou shiyan dizhi1001-61122025-03-0147242643210.11781/sysydz2025020426sysydz-47-2-426Application and discussion of multi-factor sensitivity analysis in value assessment of areas with low exploration levelYongtai FENG0Linjie ZHAO1Baohua WANG2Longlong LI3Tiejun DUAN4Oilfield Exploration and Development Division, SINOPEC, Beijing 100728, ChinaWuxi Research Institute of Petroleum Geology, SINOPEC, Wuxi, Jiangsu 214126, ChinaWuxi Research Institute of Petroleum Geology, SINOPEC, Wuxi, Jiangsu 214126, ChinaWuxi Research Institute of Petroleum Geology, SINOPEC, Wuxi, Jiangsu 214126, ChinaWuxi Research Institute of Petroleum Geology, SINOPEC, Wuxi, Jiangsu 214126, ChinaWith the full implementation of competitive mining rights policies in China, the oil and gas exploration and production market has been fully open, but most of the exploration blocks currently being offered are located in areas with low exploration level. Due to the lack of data and limited understanding in these areas, major oil companies face challenges in evaluating, selecting, and bidding during the process of obtaining mining rights. Against this background, it is particularly crucial for those companies to quickly and effectively assess the value of areas with low exploration level to gain a strategic advantage in block acquisition. This study takes into account the risks in oil and gas exploration, including geological complexity, exploration limitations, development uncertainties, and economic fluctuations. Based on the internationally recognized expected monetary value (EMV) method, the study employed multi-factor sensitivity analysis to identify the key sensitive factors affecting block value assessment. A multiple regression equation was established between the expected revenue per unit of geological resources and the main controlling factors, thereby enabling an effective assessment of the value of areas with low exploration level. The method has been applied to a conventional karstic-fault oil reservoir block in the northern Tarim Basin. This method comprehensively considers geological, exploration, development, and economic risks in oil and gas exploration. Through quantitative multi-factor sensitivity analysis, it determines the key controlling factors and establishes an analogy model. It provides a scientific basis for defining the parameter systems in analogy methods, enabling objective and rapid assessment of expected revenue in areas with low exploration level. It offers strong support for bidding decisions on blocks on offer.https://www.sysydz.net/cn/article/doi/10.11781/sysydz2025020426areas with low exploration levelsensitivity analysisexpected revenuevalue assessmentanalogy modeleconomic evaluation scenario
spellingShingle Yongtai FENG
Linjie ZHAO
Baohua WANG
Longlong LI
Tiejun DUAN
Application and discussion of multi-factor sensitivity analysis in value assessment of areas with low exploration level
Shiyou shiyan dizhi
areas with low exploration level
sensitivity analysis
expected revenue
value assessment
analogy model
economic evaluation scenario
title Application and discussion of multi-factor sensitivity analysis in value assessment of areas with low exploration level
title_full Application and discussion of multi-factor sensitivity analysis in value assessment of areas with low exploration level
title_fullStr Application and discussion of multi-factor sensitivity analysis in value assessment of areas with low exploration level
title_full_unstemmed Application and discussion of multi-factor sensitivity analysis in value assessment of areas with low exploration level
title_short Application and discussion of multi-factor sensitivity analysis in value assessment of areas with low exploration level
title_sort application and discussion of multi factor sensitivity analysis in value assessment of areas with low exploration level
topic areas with low exploration level
sensitivity analysis
expected revenue
value assessment
analogy model
economic evaluation scenario
url https://www.sysydz.net/cn/article/doi/10.11781/sysydz2025020426
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AT baohuawang applicationanddiscussionofmultifactorsensitivityanalysisinvalueassessmentofareaswithlowexplorationlevel
AT longlongli applicationanddiscussionofmultifactorsensitivityanalysisinvalueassessmentofareaswithlowexplorationlevel
AT tiejunduan applicationanddiscussionofmultifactorsensitivityanalysisinvalueassessmentofareaswithlowexplorationlevel