Reservoir Optimisation and Economic Model Analysis During the Oil Exploration Project in Upstream, Midstream and Downstream Operations
Abstract
Financial and economic evaluation performs a critical function in funding decision-making throughout the oil and gasoline price chain, in which projects are characterised by high capital intensity, lengthy life cycles, and enormous market and regulatory uncertainty. This paper examines the financial and economic characteristics of oil and gas projects throughout the 3 primary sectors?upstream, midstream, and downstream?highlighting how chance exposure, cash-go with the flow shape, and cost drivers fluctuate at every stage. within the upstream quarter, challenge evaluation is ruled by way of exploration chance, reserve uncertainty, oil rate volatility, and financial regimes, requiring the utility of discounted coins-float evaluation, probabilistic modelling, and sensitivity evaluation to decide viability. Midstream initiatives, in assessment, show off enormously solid and predictable cash flows supported by using long-time period transportation and processing contracts, transferring the analytical attention towards capital healing, financing structure, tariff law, and credit threat. Downstream tasks emphasise margin optimisation, operational efficiency, and call for dynamics, with monetary overall performance intently related to product rate spreads, potential utilisation, and environmental compliance fees. with the aid of relatively analysing capital expenditure profiles, operating costs, revenue stability, and chance elements throughout all 3 sectors, this study provides an integrated framework for evaluating undertaking profitability, resilience, and strategic suitability in an unstable and transitioning power marketplace. The findings underscore the importance of region-specific financial equipment and incorporate financial planning to enhance fee management and opportunity management in oil and gas investments.
Keywords
Oil And Gas Economics; Upstream, Midstream and Downstream Analysis; Capital Expenditure (CAPEX); Cash Flow Modelling; Project Valuation; Risk and Uncertainty; Energy Investment Analysis; Price Volatility; Financial Performance; Energy Transition
Citations
IRE Journals:
Arindam Mukherjee, Akhil Jeet Singh Rathore "Reservoir Optimisation and Economic Model Analysis During the Oil Exploration Project in Upstream, Midstream and Downstream Operations" Iconic Research And Engineering Journals Volume 9 Issue 7 2026 Page 1031-1088 https://doi.org/10.64388/IREV9I7-1713530
IEEE:
Arindam Mukherjee, Akhil Jeet Singh Rathore
"Reservoir Optimisation and Economic Model Analysis During the Oil Exploration Project in Upstream, Midstream and Downstream Operations" Iconic Research And Engineering Journals, 9(7) https://doi.org/10.64388/IREV9I7-1713530
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