05.07.2009

Field/well that is only marginally productive or profitable. As technology improves though more marginal fields are able to be developed profitably. In addition, some countries that originally had a price cap on oil or gas are removing the cap to incentivize international oil companies to undertake further exploration activities. A good example of this is India where the price of oil to the local market was capped for many years at approximately $35/bbl. Development of a marginal field often offers a unique set of challenges. In addition premature abandonment of marginal fields is a growing problem in many countries. Marginality is inter alia based on size of field and proximity to market

Gina Cohen
Natural Gas Expert
Phone:
972-54-4203480
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