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A Stochastic Model for Determining the Economic Prospects of Petroleum Exploration Over Large Regions

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1970

Year

Abstract

Abstract It is hypothesized that the spatial occurrence of petroleum reservoirs can be represented by a Poisson process and that the sizes of the individual reservoirs are lognormally distributed. The total petroleum reserves occurring in any unit of space of arbitrary size within a region can thus be represented as a sum of lognormal random variables where the number in the sum is determined by a Poisson process. These hypotheses are tested, and a sampling experiment is conducted to demonstrate the estimation procedure.