The Aberdeen Centre for Research in Energy Economics and Finance (ACREEF) was launched on 30 July 2009 by Finance Minister John Swinney.
ACREEF aims to provide a focus for the identification and implementation of high quality research in the areas of energy economics and finance, and to make a substantive contribution both to academic understanding and to policy debate in energy economics in the UK and worldwide.
The work in Petroleum Economics builds on the University of Aberdeen's research in this area undertaken over an extensive period by Professor Alex Kemp. Over the years he has advised oil companies, several governments and the World Bank on petroleum taxation and licensing and other policy issues, and was awarded the OBE in 2006 for his services to the oil and gas industry. He has recently completed The Official History of North Sea Oil and Gas for the UK Government, a major reference work for research into government policy making in the United Kingdom Continental Shelf (UKCS).
Current research in Petroleum Economics using financial and econometric models includes the economics of exploration and development, the examination of the design of petroleum taxation and licensing, the economics of decommissioning, an evaluation of effectiveness of Research and Development policies, security of UK oil and gas supplies including gas storage, and the exploration of issue of third party access to infrastructure in the UKCS.
Research here also has an oil and gas focus with several aspects of the economics of CO2 capture and storage being examined, including modelling of the different capture technologies and the design of a least-cost CO2 transportation network in the UK and UK Continental Shelf. Recent work includes examining the impact of the phase II of the European Emissions Trading Scheme (EU ETS) on the UKCS.
Research in this area also includes general equilibrium modelling of the impact of growth in renewable energy on GDP growth and employment in the rural and regional economy in North East Scotland.
This research has focussed on the use of incentive mechanisms in environmental and resource policy, including the design of market related mechanisms and how these mechanisms can be used to implement public policy, e.g. in Treasury auctions, in assessing the performance of the UK Emission Trading Scheme for Carbon.
Recent work has also considered the usefulness of Long-term Option Contracts for CO2 Emissions.