Geology topics

E. D. Attanasi

Publications and source records attributed to E. D. Attanasi.

41 records · Page 3Linked to original sources

USGS1981

Design of exploration and minerals-data-collection programs in developing areas

This paper considers the practical problem of applying economic analysis to designing minerals exploration and data collection strategies for developing countries. Formal decision rules for the design of government exploration and minerals-data-collection programs are derived by using a minerals-industry planning model that has been extended to include an exploration function. Rules derived are applicable to centrally planned minerals industries as well as market-oriented minerals sectors. They pertain to the spatial allocation of exploration effort and to the allocation of activities between government and private concerns for market-oriented economies. Programs characterized by uniform expenditures, uniform information coverage across regions, or uniform-density grid drilling progrmas are shown to be inferior to the strategy derived. Moreover, for market-oriented economies, the economically optimal mix in exploration activities between private and government data collection would require that only private firms assess local sites and that government agencies carry out regional surveys.

Socio-Economic Planning Sciences↗

USGS1981

Economics and coal resource appraisal: strippable coal in the Illinois Basin ( USA)

Coal-resource appraisals generally describe the location and general characteristics of coal beds. Estimates are made of the average overburden depth (depth of the coal bed below the surface), bed thickness, and perhaps certain chemical properties of the coal [1]. Although such resource compilations represent an important initial step, neither they nor current estimates provide sufficient information to determine the costs of alternative options for National energy policy. Because coal is expected to provide an increasing part of future overall U.S. energy supply, it is crucial for long term planning that coalresource appraisals convey sufficient information regarding the degree of economic resource scarcity (escalation of unit costs for mining remaining deposits as the best deposits in an area are mined out) expected as coal consumption increases. However, assumptions embodied in most large-scale models of coal supply [13; 20] imply that the coal reserves that exist can be commercially produced as needed. As demonstrated by the embargo of 1973-1974 and more recent difficulties in obtaining crude oil, even a slight temporary commodity shortfall will result in significant economic losses when the commodity supplies a large proportion of the total energy used by an economy. For the United States, crude oil resource estimates did not give warning of a decline in domestic petroleum product. In this paper we argue that coal-resource estimates, as they are now made, will not give warning of future supply difficulties. A method for incorporating an economic dimension into appraisals of strippable coal resources is presented and is applied to a major U.S. coal-producing region, the Illinois part of the Illinois basin. Illinois accounts for nearly 70% of the demonstrated strippable coal reserve base of the Illinois basin [12]. In particular, a long-run incremental cost function (that is unit costs vs. cumulative reserves extracted) is estimated for strippable coal in Illinois. The estimated cost function exhibits an initial range over which costs increase at a constant rate-followed by a range where costs increase very rapidly and the function becomes quite inelastic. This long-run incremental cost function is significant for two reasons. Comparison of the demonstrated reserve base for strippable coal (14.8 billion tons) with cumulative production (since 1920 of 1.1 billion tons) might suggest that future depletion will not be significant when, in fact, the cost function presented here indicates otherwise. Because the only states having more reserves of strippable coal than Illinois are Montana and Wyoming [18], these results have implications for national coal-resource appraisal. Secondly, most models used to study the effects of alternative public policies in coal markets are static in nature [15; 16] and cannot consider the effects of increasing costs. Furthermore, models which are multi-period in nature [11; 13] appear to have little empirical basis for their assumptions regarding the escalation of production costs resulting from depletion. The plan of the paper is as follows. First a description of the analytical approach for constructing the long-run incremental cost-reserve function is discussed. Following this, the descriptions of the Illinois basin and the basic physical data are presented. In the concluding section, the main results are presented and their implications are explored

Southern Economic Journal↗

USGS1980

Petroleum-resource appraisal and discovery rate forecasting in partially explored regions

PART A: A model of the discovery process can be used to predict the size distribution of future petroleum discoveries in partially explored basins. The parameters of the model are estimated directly from the historical drilling record, rather than being determined by assumptions or analogies. The model is based on the concept of the area of influence of a drill hole, which states that the area of a basin exhausted by a drill hole varies with the size and shape of targets in the basin and with the density of previously drilled wells. It also uses the concept of discovery efficiency, which measures the rate of discovery within several classes of deposit size. The model was tested using 25 years of historical exploration data (1949-74) from the Denver basin. From the trend in the discovery rate (the number of discoveries per unit area exhausted), the discovery efficiencies in each class of deposit size were estimated. Using pre-1956 discovery and drilling data, the model accurately predicted the size distribution of discoveries for the 1956-74 period. PART B: A stochastic model of the discovery process has been developed to predict, using past drilling and discovery data, the distribution of future petroleum deposits in partially explored basins, and the basic mathematical properties of the model have been established. The model has two exogenous parameters, the efficiency of exploration and the effective basin size. The first parameter is the ratio of the probability that an actual exploratory well will make a discovery to the probability that a randomly sited well will make a discovery. The second parameter, the effective basin size, is the area of that part of the basin in which drillers are willing to site wells. Methods for estimating these parameters from locations of past wells and from the sizes and locations of past discoveries were derived, and the properties of estimators of the parameters were studied by simulation. PART C: This study examines the temporal properties and determinants of petroleum exploration for firms operating in the Denver basin. Expectations associated with the favorability of a specific area are modeled by using distributed lag proxy variables (of previous discoveries) and predictions from a discovery process model. In the second part of the study, a discovery process model is linked with a behavioral well-drilling model in order to predict the supply of new reserves. Results of the study indicate that the positive effects of new discoveries on drilling increase for several periods and then diminish to zero within 2? years after the deposit discovery date. Tests of alternative specifications of the argument of the distributed lag function using alternative minimum size classes of deposits produced little change in the model's explanatory power. This result suggests that, once an exploration play is underway, favorable operator expectations are sustained by the quantity of oil found per time period rather than by the discovery of specific size deposits. When predictions of the value of undiscovered deposits (generated from a discovery process model) were substituted for the expectations variable in models used to explain exploration effort, operator behavior was found to be consistent with these predictions. This result suggests that operators, on the average, were efficiently using information contained in the discovery history of the basin in carrying out their exploration plans. Comparison of the two approaches to modeling unobservable operator expectations indicates that the two models produced very similar results. The integration of the behavioral well-drilling model and discovery process model to predict the additions to reserves per unit time was successful only when the quarterly predictions were aggregated to annual values. The accuracy of the aggregated predictions was also found to be reasonably robust to errors in predictions from the behavioral well-drilling equation.

Professional Paper↗

USGS1976

Leasing policies for the extractive resources

Much of the available analysis of policies for the disposal of publicly held resources is based on comparatively straightforward extensions of the neoclassical pricing and allocation theory. As such, these analyses have to a large extent not fully incorporated the fact that firms normally acquire rights to these resources in sealed tender markets. In this paper, a simple bidding model is used to show that the choice of disposal policies can influence the firm's bid and also the public revenues obtained from the sale of the resource. It is additionally shown that the implications of such policy choices are conditioned by the firm's attitudes towards risk. Finally, it is argued that a modification of existing prescriptions may be necessary if a more realistic specification of the disposal problem taking account of the sealed tender market in which rights are obtained, is considered.

The Annals of Regional Science↗

USGS1975

Techniques for water demand analysis and forecasting: Puerto Rico, a case study

The rapid economic growth of the Commonwealth-of Puerto Rico since 1947 has brought public pressure on Government agencies for rapid development of public water supply and waste treatment facilities. Since 1945 the Puerto Rico Aqueduct and Sewer Authority has had the responsibility for planning, developing and operating water supply and waste treatment facilities on a municipal basis. The purpose of this study was to develop operational techniques whereby a planning agency, such as the Puerto Rico Aqueduct and Sewer Authority, could project the temporal and spatial distribution of .future water demands. This report is part of a 2-year cooperative study between the U.S. Geological Survey and the Environmental Quality Board of the Commonwealth of Puerto Rico, for the development of systems analysis techniques for use in water resources planning. While the Commonwealth was assisted in the development of techniques to facilitate ongoing planning, the U.S. Geological Survey attempted to gain insights in order to better interface its data collection efforts with the planning process. The report reviews the institutional structure associated with water resources planning for the Commonwealth. A brief description of alternative water demand forecasting procedures is presented and specific techniques and analyses of Puerto Rico demand data are discussed. Water demand models for a specific area of Puerto Rico are then developed. These models provide a framework for making several sets of water demand forecasts based on alternative economic and demographic assumptions. In the second part of this report, the historical impact of water resources investment on regional economic development is analyzed and related to water demand .forecasting. Conclusions and future data needs are in the last section.

Open-File Report↗