As two of the most important instruments for dealing with the issues of energy supply security, strategic petroleum reserves (SPRs) and oil import tariffs have been proven effective in developed countries. While China is currently building up its strategic oil reserves to ensure energy security,...

This paper applies real options theory to overseas oil investment by adding an investment-environment factor to oil-resource valuation. A real options model is developed to illustrate how an investor country (or oil company) can evaluate and compare the critical value of oil-resource investment...