Seeing the Forest As Well As the Trees: Creating Value with Portfolio Optimization

摘要

"Can't see the forest for the trees" is an old adage that is bringing valuable new insight to oil and gas companies to- day. While portfolio management (PfM) in the oil and gas sector is not completely new, dramatic shifts in the industry over the past five years-marked by reduced availability of new resources, scarcity of technical personnel, and increasing interest in unconventional sources-is stoking interest in PfM at higher levels in many oil and gas organizations. Yet, PfM can require substantial effort and all too often has failed to deliver the expected decision making insight, perhaps be- cause the analysis structure was too complex to yield strategic insights or it was not focused on actionable resource allocation choices.