Preliminary Study of Economic Law3 of Petroleum Development Projects

The technical economical characteristics of petroleum development projects are different with that of ordinaryindustrial projects. The production (crude oil) declines progressively and income decreases successively resulting inthat investment profit margin and tax rate decrease gradually. This paper presents a preliminary discussion oneconomic law of petroleum development project based onits general production law and technical economicalcharacteristics which can be used to guide oilfieldeconomic forecast and decision making.