Series: IMF Working Papers
Author(s): Nikolay Aleksandrov , lajos Gyurko , and Raphael Espinoza
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 17 December 2012
Keywords: Real Options, Capacity Expansion, Equilibrium Price of Oil, oil revenues, oil prices, world supply, oil fields, General, Energy and the Macroeconomy,
We study the optimal oil extraction strategy and the value of an oil field using a multiple real option approach. The numerical method is flexible enough to solve a model with several state variables, to discuss th...