The Similarities and Differences between Mining and Petroleum Investment: A Comparison of Investment Characteristics, Company Decisions and Host Government Regulation
Article from: OGEL 2 (2007), in In the Spotlight
Abstract
The distinctive features of investment in the extractive industries are generally well known. Exploration risk, long investment lead times, large up-front capital outlays and a wide range of technical, commercial and political project risks constitute the key parameters within which investment decisions are made by both mining and petroleum companies. Beyond these basic similarities, however, are substantive technical, organisational and economic differences that crucially influence the risks and rewards of mining and petroleum investment yet have rarely been explored ...