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Profitability Analysis of Oilfield Projects using Non-Time Dependent Economic Tools
Subject area: Science,Engineering and Technology · Area of research: Engineering
DOI: https://doi.org/10.64388/IREV9I7-1713709
Abstract
Oilfields projects demand reliable profitability evaluation tools, especially under volatile market conditions and limited data availability. This study applied non-time dependent economic indicators?Internal Rate of Return (IRR), Average Rate of Return (ARR), Return on Assets (ROA), Return on Equity (ROE), Return on Sale (ROS), and Unit Technical Cost (UTC)?to assess project viability. Using standardized inputs on costs, reserves, oil price, income, asset, and equity, spreadsheet simulations revealed competitive unit technical cost costs and strong returns on assets and equity, confirming operational efficiency and financial attractiveness. This optimization of resources not only secures immediate financial gains but aligns with circular economy principles by minimizing waste and maximizing asset utility. Although return on sale was modest, the overall analysis validates non-time dependent tools as practical alternatives to time-dependent models, offering quick, transparent, and effective measures for petroleum project appraisal.
Keywords
Oilfield projects, Profitability indicators, non-time dependent tools, Petroleum economics, Unit technical cost.
How to cite this paper
@article{1713709,
author = {Adaobi Stephenie Nwosi-Anele, Kaine Bene Chinwah},
title = {Profitability Analysis of Oilfield Projects using Non-Time Dependent Economic Tools},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {9},
number = {7},
pages = {1679-1686},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1713709.pdf},
abstract = {Oilfields projects demand reliable profitability evaluation tools, especially under volatile market conditions and limited data availability. This study applied non-time dependent economic indicators?Internal Rate of Return (IRR), Average Rate of Return (ARR), Return on Assets (ROA), Return on Equity (ROE), Return on Sale (ROS), and Unit Technical Cost (UTC)?to assess project viability. Using standardized inputs on costs, reserves, oil price, income, asset, and equity, spreadsheet simulations revealed competitive unit technical cost costs and strong returns on assets and equity, confirming operational efficiency and financial attractiveness. This optimization of resources not only secures immediate financial gains but aligns with circular economy principles by minimizing waste and maximizing asset utility. Although return on sale was modest, the overall analysis validates non-time dependent tools as practical alternatives to time-dependent models, offering quick, transparent, and effective measures for petroleum project appraisal.},
keywords = {Oilfield projects, Profitability indicators, non-time dependent tools, Petroleum economics, Unit technical cost.},
month = {January},
doi = {https://doi.org/10.64388/IREV9I7-1713709}
}