Improving the Risk Management System in Oil Production

Abstract

The article describes an original approach to assessing the risks in investment projects of oil-and-gas companies and proposes an improved methodology for risk management in oil production, which accounts for the special nature of investment projects of oil producers. For each field development program, it is proposed to produce a risk evaluation map that would allow for the most unbiased assessment of risks to be faced by the company to let it focus the efforts on managing those risks typical for each project phase. The companies will be able to quantify the risks of the oil-and-gas field development project by the life cycle phases of an investment project.