The oil companies are concerned to replace the petroleum reserves they produce in order to maintain their future level of activity. Booked reserves also represent an important input when analysts value these companies. Many producer countries want to control their own resources, a goal which can...

The paper focuses in the calculation of the oil capital value in a small open economy depending on oil rents. The Venezuelan case is used as an example. In valuing the oil capital, two issues are recalled and discussed: how should the exploration costs and the capital gains be treated? It is...