ECON366 Lecture 25: Economics of Fossil Fuel Supply
12 May 2017
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Econ 366 lecture 25 - economics of fossil fuel supply. Fossil fuels were formed from animals and vegetal remains through a process that took millions of years. Various exploration methods: surface geographical studies, geophysical exploration, exploration drilling. Oil reserves most attention in terms of exploratory activities. Gas is often found while searching for oil, and coal deposits are often found while exploring other materials as minerals. Schematic of wells: leading to additions to reserves in discovered fields. Exploration: drilling oil and gas wells: infill well (low risk, shallow and deep pool (low-medium risk, extension (medium risk, new pool (high risk) Exploration success curve: accumulative resources change with number of wells. Creaming curve : geographical and geophysical studies point wildcatters towards likely fossil fuels deposits, fossil fuels deposits are highly uneven in size, and larger deposits are more likely to find than smaller deposits even when drilling randomly. Commercial development began in 1859 in pennsylvania.
