The marginal cost of extracting light crude oil in Australia and the analysis of specific policy issues

Dodo J. Thampapillai*, Rudi Kolednik

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

The paper illustrates a method to derive the long run marginal cost (LMRC) of extracting light crude oil in Australia. This LMRC function is then used in the evaluation of domestic crude oil production operations in the context of changing world oil prices. The criterion for evaluation is economic rent. This criterion is applied in terms of two social objectives, namely economic efficiency and import reduction.

Original languageEnglish
Pages (from-to)377-387
Number of pages11
JournalInternational Journal of Energy Research
Volume14
Issue number4
DOIs
Publication statusPublished - 1990
Externally publishedYes

Keywords

  • Crude oil
  • Economic efficiency
  • Economic rent
  • Import reduction
  • Marginal extraction cost

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