Decision Making under Risk and Uncertainty in the Oil and Gas Industry

Author:

Boachie Christopher1

Affiliation:

1. Central University, Ghana

Abstract

The energy system studies include a wide range of issues from short term to long term horizons. The decision making chain is fed by input parameters which are usually subject to uncertainties. The art of dealing with uncertainties has been developed in various directions and has recently become a focal point of interest. Decision making is certainly the most important task of Oil and Gas managers and it is often a very difficult one. The purpose of this chapter is to review and investigate the decision making processes under risk and uncertainty of Oil and Gas companies. Questionnaires were distributed to eight Oil and Gas companies in Ghana to solicit their view on decision making under risk and uncertainty. Results indicate that most managers use Maximax, Minimax Regret and Expected Value when making decisions under risk and uncertainty.

Publisher

IGI Global

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3. American Institute of Chemical Engineers (AIChE). (2000). Guidelines for chemical process quantitative risk analysis (2nd ed.). New York: AIChE.

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