Managing E and P assets from a portfolio perspective
- Portfolio Decisions Inc., Houston, TX (United States)
- Columbia Univ., Palisades, NY (United States)
- Bentz Engineering, Stonington, CT (United States)
Modern portfolio analysis tools give decision-makers in the oil and gas industry analytical support and specific guidance to the intuitive sense that the best balance for the business lies in a combination of tactics and simultaneous actions on multiple projects. Because of the complexity of considering several projects or tactics simultaneously, decision-makers tend to treat their projects and tactics as independent of anything else in the business. Yet all of the projects in the business interact with one another. Project interactions arise from factors such as price-resource sharing, performance targets, commercial and market interactions, and technical risk. Knowledge of how projects interact and how the aggregation of all projects sum to meet balanced business requirements should guide decisions. A portfolio perspective helps the decision-maker understand the total impact on business balance resulting from a single decision. With portfolio tools, the decision-maker is ultimately able to frame options in terms of the probability of meeting a suite of balanced performance targets.
- OSTI ID:
- 289386
- Journal Information:
- Oil and Gas Journal, Journal Name: Oil and Gas Journal Journal Issue: 48 Vol. 96; ISSN 0030-1388; ISSN OIGJAV
- Country of Publication:
- United States
- Language:
- English
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