Innovative Development of Oil and Gas Sector as a Factor of Increasing of Option’s Value of Its Companies

Rymarenko M.V., Skopina L.V.

 

The necessity of innovative development of the oil and gas industry is being discussed. Evaluation of oil and gas projects accounting for R&D costs, cost of implementation of innovations are overviewed. Real option methodology, stochastic simulation of the oil price, reserves value modeling are utilized for evaluation of projects with a high uncertainty. A model of evaluation of a reserve cost at early stage  accounting for risks and uncertainty of R&D costs is created. The model features, abilities and advantages of its practical application are considered.

 

Key words: real options, methods of evaluation, uncertainty and risks, innovations, oil field development project.

Science and Education, 2015, No.2, pp.58-62