Monte Carlo Simulation and Decision Tree in Petroleum & Gas Upstream Projects - ERP Spain.com - España y América Latina

Increasingly, the Petroleum market becomes costlier and riskier, what turns the decision making process into something highly complex, but extremely necessary. In this paper some unique tools and methodologies are used in order to simulate an effective economic viability analysis and a well-designed decision making structure of three distinct projects related to the upstream (exploration and production) oil industry. Considering the levels of investment, uncertainty and risk involved in these projects, an analysis of the options of investment available for each kind of investor is made, so that one can point out the best investment to be made for either a more aggressive or a more conservative profile. Keywords: petroleum, feasibility, risk