Level: Advanced
Author(s): Dr. Nick J. Lavingia, PE
Venue: 2017 AACE International Annual Meeting, Orlando, FL
Abstract: A structured project development and execution process facilitates optimal use of resources such as dollars, people and technology over the life of the project to maximize value. The desired outcome from this process is to select the right project by making the best decision between competing alternatives and then execute the project with excellence. This paper addresses how decision and risk analysis is used in the energy industry to make informed decision by comparing alternatives, quantifying risks and uncertainties and evaluating financial outcomes. Tools such as decision hierarchy, strategy table, influence diagram, tornado chart, decision tree and S-curve will be presented and how they are used to make complex decision on mega oil and gas development project.
Author(s): Dr. Nick J. Lavingia, PE
Venue: 2017 AACE International Annual Meeting, Orlando, FL
Abstract: A structured project development and execution process facilitates optimal use of resources such as dollars, people and technology over the life of the project to maximize value. The desired outcome from this process is to select the right project by making the best decision between competing alternatives and then execute the project with excellence. This paper addresses how decision and risk analysis is used in the energy industry to make informed decision by comparing alternatives, quantifying risks and uncertainties and evaluating financial outcomes. Tools such as decision hierarchy, strategy table, influence diagram, tornado chart, decision tree and S-curve will be presented and how they are used to make complex decision on mega oil and gas development project.