In many tournaments it is the contestants themselves who deter-mine reward allocation. Labor-union members bargain over wage dis-tribution, and many …firms allow self-managed teams to freely determineinternal resource allocation, incentive structure, and division of labour.We analyze, and test...

Why does individual performance pay seem to prevail in humancapital intensive industries? We present a model that may explainthis. In a repeated game model of relational contracting, we ana-lyze the conditions for implementing peer dependent incentive regimeswhen agents possess indispensable...

Can added value be obtained from better collaboration between oil companies and contractors? The topic is addressed by analysing organisational patterns, contracts and compensation formats.Specific issues raised in this paper include the following questions. Are adjustments needed to contractual...

A real choice exists today on a number of discoveries between platform-based or subsea development solutions. Statistics from the Norwegian continental shelf (NCS) show that fields developed with fixed platforms have a substantially higher recovery factor. The potential for a later commitment to...

The decline in oil prices, combined with high costs which are slow to deflate, has brought forward the date when some fields on the Norwegian continental shelf (NCS) will cease production. Measures are therefore urgently required to extend the producing life of these fields and to improve their...

Drilling expenses has increased sharply in recent years. The productivity of drilling operations - in terms of meters drilled per day - significantly influences exploration costs. This study analyzes the effect of different types of learning on offshore drilling productivity. The econometric...

This article analyses commercial decision criteria for climate projects. The latter willnormally be executed by private players, for whom decision criteria developed from acommercial perspective are important. But such criteria are also important for the governmentin calculating the size of...

The article presents a commercial investment analysis of the carbon capture project at theKårstø gas processing plant in south-western Norway. We update an earlier analysis andcritically review the methods used including those applied for cost estimating. Ourconclusion is that carbon capture...

Recently, we have seen falling oil prices combined with sticky costs at a high level in thepetroleum industry. This causes project postponements, thus challenging reserve replacement ofoil companies and security of supply for consumers. Costs are particularly high for drilling. Highrig rates are...

Because of a long time frame, irreversible and specific investments, incomplete contracts andpolitical constraints, it is generally difficult for governments to commit themselves in a credibleway to a fixed petroleum tax regime. Many controversial renegotiations and tightenings of suchsystems...