Risks Analysis And Countermeasures Of Oil And Gas Exploration Project

The investment risk management in Oil and Gas Exploration dealswith risks whenever or wherever the risks emerge during the projectimplementation, for the purpose of identifying, evaluating, andcontrolling all the practical and potential risky events, to reduce thepossibility of losses, lessen the range of negative effects, and lower theintensity of risks. In order to realize this goal, a series of the scientificand integral systems of risk-avoiding measures are needed. Researchesinto this field, however, are just at the beginning. In order to meet therequirements of managements of the modern enterprises, we need toestablish a scientific and integral risks-controlling mechanism to helpthe enterprise to get better benefits and self-development.Based on the characteristics of Oil and Gas Exploration, this paperclassifies all risks into 6 categories as natural risks, technological risks,management risks, policy risks and other risks while discussing aboutthe goals, the contents, the procedures, and the requirements of theemployed personnel.In the part of risks countermeasures, according to thecharacteristics of high risks and intense investments in Oil and GasExploration industry, This paper suggests that the government shouldparticipate in the risky exploration and encourage the Oil Companies togo abroad to explore and find excellent oil and gas resources.This paper uses the methods and experiences used by Finance,Insurance industry, with mathematical theory, AHP method are arguedto be used to analyze the risks and to help making investment decisions.AHP and Bayes formula has been used to define the probability. I wishit will be helpful to the analysis of Oil and Gas Exploration...