One for You, Three for Me (Classic Reprint): Or the Design of Optimal Production Sharing Rules for a Petroleum Exploration Venture - Couverture souple

Hampson, Philip

 
9781334087943: One for You, Three for Me (Classic Reprint): Or the Design of Optimal Production Sharing Rules for a Petroleum Exploration Venture

Synopsis

This book examines the design and analysis of production sharing rules in the context of petroleum exploration ventures. Drawing from economics and finance principles, the author presents an in-depth analysis of a real-world oil and gas exploration agreement. The book employs a Principal-Agent model to evaluate the incentives embedded in the actual contract and proposes an optimal sharing rule that maximizes the net financial return to the resource owner. The author highlights the potential benefits of using agency models not just for general insights but for fine-tuning the design and parameters of financial contracts in specific cases. Through a detailed case study, the book demonstrates the practical application of agency theory in optimizing resource extraction agreements, offering valuable insights for practitioners and scholars in the fields of finance, natural resource management, and contract design.

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