Optimizing Oil & Gas Project Economics: A Methodological Approach for Enhanced Decision-Making **
Introduction: This article explores the challenges facing the oil and gas sector in a changing energy landscape and proposes a novel methodological approach for economic evaluation of projects. Sections: ① The Evolving Oil & Gas Landscape: Discusses the complexities of geological settings, increased competition, and the push towards decarbonization, highlighting the need for improved project feasibility studies. ② Comparative Analysis of Economic Evaluation Methods: Examines various methods like DCF, DPNV, binary discounting, and reverse discounting, highlighting their strengths and weaknesses in the context of oil and gas projects. ③ A Risk-Informed Approach: Explains the rationale for using a risk-free rate for outflows and a combination of reverse rates for inflows, incorporating the theory of real options to account for geological and technical risks. ④ Impact of Engineering Solutions on Project Value: Demonstrates how the proposed approach allows for a detailed evaluation of the influence of engineering decisions on the net present value of the project, considering the impact of risks. Conclusion:** The proposed methodological approach provides oil and gas companies with a robust framework for evaluating project economics, enhancing decision-making and optimizing project value in a dynamic and challenging environment.