Understanding Uncertainty to Optimize Your Exploration and Development Strategy
Oil and Gas (O&G) exploration and development, both conventional and unconventional, has always been filled with complexity. However, in the past decade the complexity has increased significantly.
- Conventional exploration and development is moving further and deeper offshore. This has lead to the need for new technologies and a better understanding of the subsurface, as well as significantly higher costs.
- Unconventional exploration and development is faced with all kinds of challenges ranging from the subsurface structure to regulatory compliance.
The key objective for conventional oil exploration is deciding which geological plays warrant further investigation and commitment of company resources. The focus of the strategy should be on estimating the probability that a significant accumulation of hydrocarbons exists in a specific location (a “prospect”) within a viable play and, if the accumulation exists, the volume of producible hydrocarbons. For unconventional exploration the objective is the same, but the exploration strategy focus is generally to determine whether the play itself has the potential for profitable development.
Decision Strategies works with upstream O&G companies to guide them through the complexity involved in the evaluation of the potential value of a given play or “prospect”. By leveraging our proven, scalable approach (IDM), which incorporates the evaluation of risk and uncertainty into strategy development, we work collaboratively with you to develop coherent winning strategies to manage your risks and capture available opportunities, thereby maximizing the return on the commitment of your resources.
Development is usually the single largest capital expenditure throughout the life cycle of an oil or gas asset, and the key objective of this stage is economic optimization. The focus of the strategy should be on which facilities to build (and where) and how many wells to drill.
Decision Strategies works with upstream O&G companies to guide them through the complexity of their proposed development. By leveraging our proven, scalable approach (IDM), which incorporates the evaluation of risk and uncertainty into strategy development, we work collaboratively with you to develop coherent winning oil exploration strategies that find the correct balance between maximizing field production and minimizing capital and operating expenses.
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