IMPROVING METHODS FOR EVALUATING OIL AND GAS EXPLORATION EFFICIENCY IN NORTHERN TERRITORIES

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Dmitry M. Metkin1, Oleg V. Zhukov2, Alexander A. Temnikov3

1, 2Luzin Institute for Economic Studies of the Kola Science Centre, Russian Academy of Sciences, Apatity, Russia

1, 3Peter the Great St. Petersburg Polytechnic University, St. Petersburg, Russia

3St. Petersburg State University, St. Petersburg, Russia

1metkindm@yandex.ru, ORCID 0000-0001-7905-1502

2jukov@yandex.com

3temnikov.alexander@mail.ru

 Abstract. The article presents the results of a scientific study that investigates the methodological approach to assessing  the efficiency of geological exploration for hard-to-recover (HTR) hydrocarbon reserves. The traditional system of indicators for evaluating the geological and economic efficiency of exploration does not fully utilize the geological and geophysical data accumulated and processed as a result of studying HTR reserves. Consequently, the costs incurred by the operator rarely bring the expected positive effect. Using a system of additional indicators for evaluating exploration efficiency will increase the value  of geological data, which in turn will positively impact the efficiency of the development and exploitation of HTR reserves. The scientific novelty of the study lies in the proposed system of additional indicators for evaluating the geological and economic efficiency  of exploration. This system factors in the specific features of HTR reserves located within the northern territories of Russia.  It is recommended for use when assessing the geological and economic efficiency of greenfield exploration projects, as it will allow  for the adjustment of the estimated reserve volumes at various project stages. Since the proportion of proven oil reserves belonging  to the HTR category is high (about 65 %), exploration activities aimed at reserves maturation in the short- and medium-term will play an important role in the country’s oil industry. The reduction in state funding for exploration is another factor that contributes  to the search for new organizational forms and methods of exploration, especially at sites requiring more profound and detailed geological surveys, such as proven and forecast HTR reserves.

Keywords: geological data, geological exploration, hard-to-recover hydrocarbon reserves, geological and economic efficiency, exploration efficiency assessment methods, oil and gas projects, northern territories

For citation: Metkin D. M., Zhukov O. V., Temnikov A. A. Improving Methods For Evaluating Oil And Gas Exploration Efficiency In Northern Territories. Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2023, no. 1, pp. 120–132. doi:10.37614/2220-802X.1.2023.79.008

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