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The development of Canada’s energy infrastructure requires significant investment at all
levels. Energy companies considering such investments require a complete understanding of
the projected value of the prospective asset, as well as the associated risks. Often, a
significant portion of the value comes from the flexibility provided by the asset. This project
will use option pricing techniques to value transportation assets for crude oil in Western
Canada. In this case, the flexibility consists of the ability to market the oil to different locations
around the world. The model developed in this project will allow Nexen to assess the value of
this optionality under different market conditions.
Tony Ware
CNOOC Petroleum North America ULC
Mathematics
Mining
University of Calgary
Accelerate
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