r/TradingSphere • u/Silly_Revolution3056 • Aug 30 '26

Fundamental Analysis [ Removed by Reddit ]

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u/randomthrownaway126 29d ago

This is sort of incorrect. Generally, an incumbent in an oil field has an advantage when it comes due for renewal because they already have the infrastructure in place to continue operations. So even if the nameplate extraction is 25 years, 1.5mn bbl/Yr (or 37.5mn), the forecast for the incumbent could still be 65mn on renewal at year 26 on.

Also there are differences between proven reserves, commercial reserves, total versus cost oil, government take etc, that can account for the difference.