Economic and Political Incentives to Petroleum Exploration: Developments in the Asia-Pacific Region

The collapse of the price of oil since 1986 has reshaped private and public sector economic decisions. Lower prices have constrained exploration and development activities worldwide, particularly in the US. Overseas exploration ecomonics are now more attractive than domestic economics as governments have begun to redistribute the costs, risks and benefits of developing oil reserves. This has occurred at a time when oil-related commercial bank lending and foreign direct investment have declined sharply. Authors representing public, private and multi-lateral institution perspectives evaluate investment policies, financing techniques, market structure, and joint governmental development necessary to respond to radically changed economic circumstances.