Risk, Probability and Decision-Making in Oil and Gas Development Operations

The late years of the 1950's and the early years of the present decade were notable for the outpouring of words and ideas on how best to evaluate opportunities for capital investment. For the most part, argument focused on the relative significance of various profit indicators – how they should be developed and how they should be interpreted. It is probably true to say that out of the debate there has emerged general agreement that measures of present worth in their several forms are economic indicators of prime significance when comparing alternative courses of investment action.