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Essay text:
If the
projected return is less than this level the development is usually postponed, while at higher rates the project could be expected to proceed.
Oil companies share a characteristic which is common to most economic entities—they are not charities. It is quite natural that they
Commercial — The prospect yields an economically attractive rate of return to the oil company when conventional technology is applied to its exploitation.
Uncommercial — The prospect is unlikely to yield an economic return to the oil company under any foreseeable technical or fiscal scenarios.
Marginal — The prospect may be capable of yielding an economic return to the oil company but only by using some innovative, technical and/or financial options
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