Auctions for natural resources like oil or minerals need to be well-designed to be fair and profitable. The type of auction depends on how competitive the market is and how complex the values are. If there's not much competition and values are simple, a basic auction can work. But if values are more complicated, a dynamic auction with package bids is better. Also, it's better for the government to ask for a share of production instead of just a one-time payment to get more money from oil or mining companies.