CICERO - Center for International Climate Research

Arctic petroleum extraction with increased rates of return

L Lindholt, Solveig Glomsrød

This study looks at the potential effects on the oil and gas extraction in the Arctic if petroleum companies increase their required rate of return (RRR) on investments. The required rate of return serves as an economic criterion for investment decisions and is also used as the discount rate for expressing future income in present value. Various trends indicate that the required rate of return for the petroleum companies may be higher today than only some years ago as companies increasingly focus on projects that deliver high rates of return rather than high reserve volumes.

More details

  • Year: 2021
  • Language: English