The impacts of carbon sequestration on oil production projects Decision-Making: a real option valuation approach

Abreu, Carlos Alexandre Camargo de

The impacts of carbon sequestration on oil production projects Decision-Making: a real option valuation approach

Página do item simplificado Estatísticas

dc.contributor.author	Abreu, Carlos Alexandre Camargo de
dc.date.accessioned	2020-12-07T13:26:22Z
dc.date.available	2020-12-07T13:26:22Z
dc.date.issued	2014-01-31
dc.description.resumo	A traditional real option model is applied to a simulation of an oil production project. This analysis includes a carbon sequestration structure cost and possible revenues from carbon credit markets. The evaluation focuses on the determination of an optimal timing for the investment in different scenarios, regarding the volatility of the uncertain variable, oil prices. Historical prices data from different moments are used to estimate different prices uncertainty scenarios and its impacts on the decision making on building a carbon sequestration structure. The results are compared between a real option model to the ones obtained using the traditional net present value evaluation. Trigger point of investments are defined for different scenarios with and without carbon sequestration. There is also an analysis of the effects on decision-making in different scenarios for carbon market prices. It is perceived an important difference in the decision making considering the different methods of economic analysis. The real option model is a fundamental valuation tool in periods of high price volatility and higher sunk costs added to a project such as the carbon sequestration structure. Greenhouse gas projects demand high oil prices, positive market trend expectation and volatility	pt_BR
dc.identifier.citation	ABREU, C. A. C.. The Impacts of Carbon Sequestration on Oil Production Projects Decision-Making: A Real Option Valuation Approach. Journal of Energy and Power Engineering, v. 8, p. 1-10, 2014. Disponível em: http://www.davidpublisher.org/index.php/Home/Article/index?id=12305.html. Acesso em: 23 nov. 2020. DOI:10.17265/1934-8975/2014.01.001.	pt_BR
dc.identifier.doi	10.17265/1934-8975/2014.01.001
dc.identifier.issn	1934-8983
dc.identifier.issn	1934-8975
dc.identifier.uri	https://repositorio.ufrn.br/handle/123456789/30853
dc.language	en	pt_BR
dc.publisher	David Publishing	pt_BR
dc.rights	Attribution-NonCommercial 3.0 Brazil	*
dc.rights.uri	http://creativecommons.org/licenses/by-nc/3.0/br/	*
dc.subject	Real options	pt_BR
dc.subject	Economic evaluation	pt_BR
dc.subject	Carbon sequestration	pt_BR
dc.subject	Oil prices	pt_BR
dc.subject	Uuncertainty	pt_BR
dc.title	The impacts of carbon sequestration on oil production projects Decision-Making: a real option valuation approach	pt_BR
dc.type	article	pt_BR