Please enable JavaScript for this site to function properly.
OnePetro
  • Help
  • About us
  • Contact us
Menu
  • Home
  • Journals
  • Conferences
  • Log in / Register

Log in to your subscription

and
Advanced search Show search help
  • Full text
  • Author
  • Company/Institution
  • Publisher
  • Journal
  • Conference
Boolean operators
This OR that
This AND that
This NOT that
Must include "This" and "That"
This That
Must not include "That"
This -That
"This" is optional
This +That
Exact phrase "This That"
"This That"
Grouping
(this AND that) OR (that AND other)
Specifying fields
publisher:"Publisher Name"
author:(Smith OR Jones)

Valuation of Natural Gas Property

Authors
Ralph E. Davis (Consultant) | Eugene A. Stephenson (U. of Kansas)
DOI
https://doi.org/10.2118/953071-G
Document ID
SPE-953071-G
Publisher
Society of Petroleum Engineers
Source
Journal of Petroleum Technology
Volume
5
Issue
07
Publication Date
July 1953
Document Type
Journal Paper
Pages
9 - 13
Language
English
ISSN
0149-2136
Copyright
1953. Original copyright American Institute of Mining, Metallurgical, and Petroleum Engineers, Inc. Copyright has expired.
Downloads
1 in the last 30 days
336 since 2007
Show more detail
View rights & permissions
Get PDF

The appraisal of natural gas properties is a complex problem affected bymany non-engineering factors. Attention will be brought here to the moreimportant matters that influence value of such properties, such as thenecessity of competent estimates of reserves, availability of the products andof market outlets, the expected rate of recovery, the anticipated prices ofproducts and future costs, the effect of the graduated income tax on profitswhich lead to greater value of a property to one owner than to another, andother items. To a degree, in each appraisal the problems are unique in that theapproach must be suited to the particular case.

During the past 30 years and more, many engineers and geologists haveaccumulated considerable experience in the problems of evaluating propertiescapable of producing oil and natural gas. An extensive literature has developedoutlining the principles and methods that govern appraisals. Emphasis is placedherein on the importance of careful analysis of the various factors whichshould lead to a determination of value, and to point out the inadequacy ofrather common engineering appraisals that frequently have little relation towhat has been termed "fair market value." In a Delaware court someyears ago an engineer admitted freely on cross-examination that his appraisalwas "an engineering valuation - not a determination of the fair marketvalue. Such so-called "engineering appraisals" are perhaps interesting,and occasionally may be of some use, but must not be considered of fairvalue.

During the past few years the effect of the graduated income tax has becomeespecially important in the appraisal of properties yielding income, andpromises to continue to be so far a long time. This tax places somecorporations in the 52 per cent bracket and subjects individuals to rates thatmay be as high as 85 to 90 per cent. To those institutions whose income is nottaxed, a property can be worth two or three times as much as it may be to theindividual in a high tax bracket.

File Size  619 KBNumber of Pages   6
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
    • Issue 12
    • Issue 11
    • Issue 10
    • Issue 09
    • Issue 08
    • Issue 07
    • Issue 06
    • Issue 05
    • Issue 04
    • Issue 03
    • Issue 02
    • Issue 01
Show more

Other Resources

Looking for more? 

Some of the OnePetro partner societies have developed subject- specific wikis that may help.


 


PetroWiki was initially created from the seven volume  Petroleum Engineering Handbook (PEH) published by the  Society of Petroleum Engineers (SPE).








The SEG Wiki is a useful collection of information for working geophysicists, educators, and students in the field of geophysics. The initial content has been derived from : Robert E. Sheriff's Encyclopedic Dictionary of Applied Geophysics, fourth edition.

  • Home
  • Journals
  • Conferences
  • Copyright © SPE All rights reserved
  • About us
  • Contact us
  • Help
  • Terms of use
  • Publishers
  • Content Coverage
  • Privacy
  Administration log in