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Published byDoris Neal Modified over 9 years ago
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Avoiding Environmental Remediation Through “Temporary” Closure Lucija Muehlenbachs University of Maryland
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Alberta: 350,273 oil and gas wells 42,000 are inactive Texas: 354,616 oil and gas wells 114,259 of which are “shut-in, depleted and are not expected to produce another barrel of oil”
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Environmental Impacts Gas migration Drinking water contamination Naturally Occurring Radioactive Material
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Real Options in Natural Resources Brennan and Schwartz (1985) Paddock, Siegel and Smith (1988) Dixit and Pindyck (1994) Slade (2001) Mason (2001) Moll (2001) Moel and Tufano (2002)
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Option to Reactivate
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Option to Abandon
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Option to Reactivate Option to Abandon Maintenance Cost
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Value of Abandoning Or Mothballing
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