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Artificial Intelligences

Each OilFinancier seminar has six artificial intelligences (AI) to compete against. These six AIs use payout calculations to determine their bids. From top to bottom in the table below, each AI uses a more progressive calculation.

AI Payout Calculation based on:
Roughneck Economics qi & D only
Old Boy Oils qi & D, abandonment costs
Venus Petroleum qi & D, royalties
Keiretsu Energy qi & D, royalties, abandonment costs
Silk Road Oil & Gas qi & D, royalities, taxes & operating costs
Standard Oil of Atlantis qi & D, royalties, taxes & operating costs; abandonment costs

All six AIs have these characteristics:

  • If they don't win a bid, they will increase their time frame for their next payout calculation by one OF Day.
  • If they win a bid, they decrease their time frame by 50%.
  • They always bid if they have a positive cash balance.
  • They never bid when they have a negative balance.
  • They never suspend a well.
  • When they start losing money in a province (post royalty revenue is less than operating costs), they abandon the well with the lowest production.
  • They never buy or sell wells privately.
  • They don't consider operating or financial synergies.
  • They don't perform incremental business analyses.
  • They don't discount cash flows.
  • They base their calculations on the current oil price.

The AIs have two purposes. First they drastically minimize the lucky chance of a real financier acquiring a really good property at a very low cost, thus making it difficult for other financiers to catch up. Second, the AIs create the lower threshold of competence. All real financiers should beat all six AIs because these AIs are really not that bright.

 
© 2014 Dave Volek. All Rights Reserved.