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 language | English |
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Pages (from-to) | 377-387 |
Number of pages | 11 |
Journal | International Journal of Energy Research |
Volume | 14 |
Issue number | 4 |
DOIs | |
Publication status | Published - 1990 |
Externally published | Yes |
Keywords
- Crude oil
- Economic efficiency
- Economic rent
- Import reduction
- Marginal extraction cost