Geothermal Reservoir Insurance Program: Evaluation of Alternatives and Assessment of Needs
In this paper we present some thoughts on a study that would helpin laying the groundwork for drafting regulations for the geothermalreservoir insurance program. The objectives of this study would be1) to assess the likelihood and the financial consequences ofpremature depletion of reservoirs2) to evaluate the advantages and shortcomings of alternativeschemes for reducing the financial risks of geothermaldevelopment3) to assess the need for government-sponsored reservoir insuranceprograms, and4) to delineate the areas and conditions under which a reservoirinsurance program would be most useful in promoting nationalgoals .In view of the importance of the government-funded reservoir insuranceprogram and the complex nature of the problem, four issues must beconsidered in defining the scope and objectives of this study. First,the goals and expectations of the government must be specifically definedand a procedure be developed to allow for measuring the achievement ofthese goals. Second, the reservoir-related risk should be assessed anda framework should be developed for resolution of differences among theviews expressed by segments of the industry on the likelihood of prematurereservoir depletion and the financial consequences of such events.Third, given the diversity of opinion among interest groups, it is importantthat the viewpoints of various segments of industry and the public besought and incorporated into the study.Fourth, the study should avoid recommending a policy that would be "optimal" from an overall point of viewyet would involve so many compromises that no group would consider it beneficial.With these points in mind, we propose the following four steps: DEFINING THE GOALS OF THE GEOTHERMAL DEVELOPMENT PROGRAM; ASSESSING THE RISK OF PREMATURE RESERVOIR DEPLETION; EVALUATING ALTERNATIVE SCHEMES; ACHIEVING CONSENSUS AND RECOMMENDING GUIDELINES.
Year of publication: |
2006-09-18
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Authors: | Golabi, Kamal |
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