• Cost and Economic Modeling

    The net benefits analysis enumerates three levels of domestic benefits and costs associated with the program: incremental net economic value (NEV), incremental environmental and social costs, and domestic economic surplus. All three are combined in the calculation of the incremental net benefits. Figure 1-1: Components of the Net Benefits Analysissummarizes the calculations completed for each program area to quantify the private and social gains and losses associated with adopting the proposed decision option for that area, as opposed to choosing the No Sale Option.

     Components of the Net Benefits Analysis



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    Lifting costs (also called production costs) are the costs to operate and maintain wells and related equipment and facilities per barrel of oil equivalent (boe) of oil and gas produced by those facilities after the hydrocarbons have been found, acquired, and developed for production.




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