What's it?

• The subject of this www place is related to corporate finance (capital budgeting) and the general theory of investment decision under uncertainty, and particularly in petroleum E&P (exploration and production) investment.
  This site may be useful to management and financial economics students and teachers, economists, managers working with investment decisions, feasibility studies practitioners, sophisticated businessman, petroleum engineers, and possibly for educators interested in new teaching techniques.
  
  
• This site is hosted by PUC-RIO server since October/95, and remains in the same internet address (URL)!

  

• The Site is a Partnership with the Department of Industrial Engineering, from PUC-Rio.
  
  
• Real Options is a modern and consolidated tool for economic analysis of firm-specific projects and industry aggregate investments. The use of this approach is more important when the uncertainty is relevant and/or in presence of managerial flexibility embedded in the investment opportunity. This is the rule, not the exception, in petroleum investments. The alternative name of this site could be the title of my M.Sc. dissertation: "Investment under Uncertainty in E&P of Petroleum".
  
  
• Real Options approach also is highly recommended to social economics valuations and decisions in both, macro level (environmental policy, monopoly regulation, subsidies, antitrust and trade policies and so on) and micro level ( marriage, divorce, suicide, career mobility, legal reform, and so on). Although some insights and bibliographical material are mentioned, the main focus of this site is on investment decision at the firm level, especially in petroleum exploration and production decisions.
  
  
• This Web place has a real valuable growth option! This site is forever under construction and with your stochastic contributions and suggestions, it's possible to construct an interesting site. :-)
  
  
• One desirable contribution are specific software (may be freeware, shareware or demos). Others contributions like abstracts, papers, charts, material from speeches, comments, and so on, are very welcome too.
  Send by e-mail your comments, contributions and suggestions:
  E-mail by clicking here

  For binary files contributions (like pictures, software, and so on) there are alternatives to send the files, but nowadays I think the simplest way is by using file attachment to e-mail.
  
  

• In the 1998 update I removed almost all links that did not work. Only in the bibliographical lists, some pages about papers remains with links to comments that do not work yet (but the no comments feature is mentioned in that page). I hope to have time to set the comments of these papers in near future. New papers and books will be also include to these lists, with the growth of the real options literature.
  The contributions will dictate the growing rate of this page, too.
  
  
• This was (1995/6) one of the components from my M.Sc. Dissertation in Production Engineering, Financial and Investment Analysis Concentration Area, from the Industrial Engineering Department, PUC-RJ, Brazil.
  After my M.Sc. title, I have been exercising the option to expand the website contents through new updates (with rough annual frequency).
  
  
• The support of my M.Sc. program and of many software used in this page is from Petrobras S.A., a Brazilian petroleum company, where I have been working since Feb./83. More information, see the item: "About the author and acknowledgments".
  
  
• This site exploits the elementary potential of the Hypertext Markup Language (Html), and this one also can be considered a hypertext working paper about real options in petroleum state-of-the-art, from a practical point of view.
  Looking for a HTML editor? Why not to use the shareware Htmleasy? I has been using this one in some web-pages. For download the file heasy13.zip, click the FTP button
  File heasy13.zip with 328869 bytes.
  
  
• All the technical figures may be reproduced with educational (not commercial) objectives, but it's necessary to MENTION THE SOURCE (at least the name) and the sub-source (some figures are adapted from other mentioned sources).
  
  
• For decorative pictures (icons, background and bars) is not necessary mention this source, although many of then has been specially created or adapted for this site.
  
  
• This page is in English because it is the language that most people interested in this subject understand. So, English eases the exchange of knowledge on this topic.
  In future, I intend to create a Portuguese version.
  I'm sorry for the grammar mistakes and others English errors/typos: I'll be grateful if you point out the mistakes (I'll correct as soon as possible).
  
  
• Thanks for your visit and invite your friends and colleagues to try this Web site.