Abstract
This Energy Insights Perspective examines 21 specific aspects of risk and
uncertainty in the upstream oil and gas industry through real-world examples.
These examples are further qualified through a discussion on the business
environment, drivers, and processes. The role of technology in mitigating risk
and uncertainty is also explored. Oil and gas companies are generally averse to
uncertainty and risk and as a result are slow adopters of new technology. The
future reserves situation calls upon the need to try newer technologies, and
the economic risks associated with not doing so could be significant. According
to Energy Insights research manager Sekhar Venkat, "As business, operations,
and IT staff within oil and gas companies increasingly collaborate toward
common company mission statements, there is a significant need for each of
these role players to gain a more holistic understanding of the complete
picture of risk and uncertainty in upstream business processes. This will pave
the way for more active and transparent communication on enterprise-level and
project-level risk across the entire organization, thereby providing the
foundation for uncertainty and risk mitigation, a necessary prerequisite for
higher and sustained profitability."
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