Exploration Risk
Hydrocarbon exploration is a high risk investment and risk assessment is paramount for successful exploration portfolio management. Exploration risk is a difficult concept and is usually defined by assigning confidence to the presence of five imperative geological factors, as discussed above. This confidence is based on data and/or models and is usually mapped on Common Risk Segment Maps (CRS Maps). High confidence in the presence of imperative geological factors is usually colored green and low confidence colored red. Therefore these maps are also called Traffic Light Maps, while the full procedure is often referred to as Play Fairway Analysis. The aim of such procedures is to force the geologist to objectively assess all different geological factors. Furthermore it results in simple maps that can be understood by non-geologists and managers to base exploration decisions on.
Read more about this topic: Hydrocarbon Exploration
Famous quotes containing the words exploration and/or risk:
“Typography tended to alter language from a means of perception and exploration to a portable commodity.”
—Marshall McLuhan (1911–1980)
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—Herman Melville (1819–1891)