17 lines
1.0 KiB
TeX
17 lines
1.0 KiB
TeX
\begin{frame}{Oil and Gas Production }
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\begin{block}{Well Profitability Before Bitcoin Mining}
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\begin{equation}
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\pi_{w}=\int_{t=0}^{\infty}\left[e^{-rt}\left(P_{o,t}\cdot q_{o,t}+\theta_{GL}\cdot P_{g,t}\cdot q_{g,t}-C(t)\right)\right]dt
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\end{equation}
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\end{block}
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Where \(P{t} \) is price of the oil (o) or gas (g) at time t, \(q_{t}\) is the volume of the product produced, C(t) is the cost function, and \(\theta_{GL}\) is a dummy that is one if a gas hookup line attached to the well.
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\begin{block}{Well Profitability Post Bitcoin Mining}
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\begin{equation}
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\pi_{w}=\int_{t=0}^{\infty}\left[e^{-rt}\left(P_{o,t}\cdot q_{o,t}+(\theta_{GL}\cdot P_{g,t}+\bm{\right|\theta_{GL}-1\left|\cdot P_{g,btc}})\cdot q_{g,t}-C(t)\right)\right]dt
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\end{equation}
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\end{block}
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Allowing a Bitcoin miner to purchase gas is equivalent to subsidy to oil production.
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The size of the subsidy depends on the path of the GOR, the discount rate, decline rate of the well , and the max willingness to pay for gas of Bitcoin miners.
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\end{frame}
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