Risk and the rate of return on arctic natural gas: An illustrative analysis

Edited book (chapter)


Watkins, G. Campbell, Kirkby, R. G. and Lawrey, Roger. 1984. "Risk and the rate of return on arctic natural gas: An illustrative analysis ." Pearce, David W., Siebert, Horst and Walter, Ingo (ed.) Risk and the Political Economy of Resource Development. United Kingdom. Springer. pp. 87-109
Chapter Title

Risk and the rate of return on arctic natural gas: An illustrative analysis

Book Chapter CategoryEdited book (chapter)
ERA Publisher ID3337
Book TitleRisk and the Political Economy of Resource Development
AuthorsWatkins, G. Campbell, Kirkby, R. G. and Lawrey, Roger
EditorsPearce, David W., Siebert, Horst and Walter, Ingo
Page Range87-109
Chapter Number6
Number of Pages23
Year1984
PublisherSpringer
Place of PublicationUnited Kingdom
ISBN9781349069804
9780333361917
Digital Object Identifier (DOI)https://doi.org/10.1007/978-1-349-06980-4_6
Web Address (URL)https://link.springer.com/chapter/10.1007/978-1-349-06980-4_6
Abstract

‘Megaprojects’, as the name implies, have a discernible impact on a national economy and an even greater impact on the economy of the region in which they are located. Once embarked upon, they are not easy to curtail or abandon, acquiring a momentum of their own and the support of what become vested interests. The potential for dislocation associated with megaprojects accentuates the need for careful evaluation of their sensitivity to changes in underlying circumstances. More specifically, evaluating downside risk is crucial, since any financing assumes special significance. Moreover, if such projects run into difficulties, their size will tend to attract government action, thereby translating what might have been solely private risk into social risk as well.

KeywordsCapital Cost; Exploration Cost; Estimate Capital Cost; Assumed Probability Distribution; Shrinkage Cost
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Byline AffiliationsUniversity of Calgary, Canada
DataMetrics Limited, Canada
School of Business
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