Journal of Siberian Federal University. Humanities & Social Sciences / Economic Efficiency Assessment for Technological Solutions in the Oil and Gas Industry Using Monte Carlo Method

Full text (.pdf)
Journal of Siberian Federal University. Humanities & Social Sciences: 2016, Vol. 9, Issue 4
Kasimova, Anastasia E.; Moskalev, Alexander K.
Contact information
Kasimova, Anastasia E.:Siberian Federal University 79 Svobodny, Krasnoyarsk, 660041, Russia; Moskalev, Alexander K.:Siberian Federal University 79 Svobodny, Krasnoyarsk, 660041, Russia; E-mail:
investment; economic efficiency; net present value; Monte Carlo method

The article presents the results of a search for an adequate method of assessing economic efficiency of an innovative oil deposit development project offered for investment. The tools currently used for project assessment are seen as insufficient, and the results they provide are not informative enough for investment decision-making. The currently used methods do not consider the impact made by external and internal risk factors on the ultimate efficiency value; therefore, the investment efficiency assessment problem still remains urgent. One of the ways to solve the problem is to apply Monte Carlo simulation method for the investment efficiency analysis. The research analyses a real project for reservoir pressure maintenance system pumping units used in oil deposit development. In order to prove the accuracy of the obtained results and the efficiency of the assessment tool, the data were compared to the ones calculated with a method where the main efficiency indicator is net present value. The research results lead us to conclusion on the appropriateness of using such additional investment project selection tools as Monte Carlo method, along with the traditional ones

Paper at repository of SibFU

Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0).