Research on Economic Evaluation of Low Permeability Oilfield Development Based on Real Option Method

Abstract

In order to improve the accuracy of the economic value evaluation of low-permeability oilfield projects, this paper proposes the application research of the real option method based on the net present value method. The Black-Scholes model is selected as the research tool to design the real option method evaluation plan. The practical application results show that, compared with the evaluation results of the net present value method, the real option method analyzes the project value more comprehensively, and the market changes are the evaluation basis, which makes the project economic value analysis flexible and greatly improves the accuracy of the evaluation results. For the decision-making of low-permeability oilfield projects, it is recommended to select this method as an evaluation tool to design project development plans flexibly.