Economic factors in the longevity of resources

Abstract

If it is economically feasible to exploit a resource, the period of exploitation will be affected by a number of economic factors. In the discussion below, the role of the following variables in the lifetime of oil, gas, and geothermal resources will be presented: the rate of interest or discount rate; future prices and costs; monopolization, import quotas, and prorationing; rules of capture and unitization; severance taxes and royalty payments; property taxes; depletion allowances.