Project risk analysis and assessment in oil and gas industry Essay

Project risk analysis and assessment in oil and gas industry - Essay Example However, the main aim of this paper is to focus on limitations and problems of the tools and techniques of project risk analysis and assessment.   Risk and uncertainty examination has a few limitation and pitfalls in the principal idea. Every one of these strategies makes solid component of intervention and absence of crucial premise in risk and uncertainty examination. These insufficiencies will bring about shameful treatment of uncertainties. Those limits are exhibited here to give the pursuer a reflection on the utilization of current risk and uncertainty investigation in the down to earth instance of the reasonable undertaking stage (Perminova et al, 2008). Focus the discriminating parameter for subject of examination. This basis can be addressed. Sensitivity examination is not vulnerability investigation. Sensitivity just concerns on yield result as adjustment of info parameter. Dubious info parameter is not decided through utilization of sensitivity examination. The investigation on how dubious information parameter is excluded in this investigation. The target of risk and uncertainty examination is to anticipate future execution of dubious noticeable amounts that are not known at the season of examination. Envision the impact of oil stores to combined NPV of a field. In the event that saves has substantial measure of oil contained, venture NPV may be positive. Something else, NPV may be negative on the grounds that cost will be higher than oil deals given that saves are beneath sure measure of worth. Sensitivity investigation is led to explore how oil stores affects NPV. It has nothing to do with how indeterminate the stores, vulner ability of stores beneath certain quality, or total likelihood of stores in the middle of high and low esteem. Sensitivity investigation is not used to focus unverifiable data parameter for risk and uncertainty