Development and operation of oil and gas production facilities requires an enormous investment of time, money, and technology. Given the nature of the industry, there are a large number of uncertainties (technological, economic and political) that are inherently present. As a result, critical investment decisions are often made based on sparse and uncertain data and qualitative analysis. Probabilistic risk assessment and analysis using GoldSim simulation software can facilitate better planning and risk management in the face of these uncertainties.
By creating a quantitative framework that explicitly accounts for uncertainties and also represents complex dynamics (something that cannot be realistically done in spreadsheet models), GoldSim can be used to identify and quantitatively compare alternatives. Large capital investments, long lead times against uncertain revenues, uncertainty of yield size and production, and market and political risks beyond company control are all harrowing challenges that make probabilistic simulation a valuable tool for the oil and gas industry.
- Compare GoldSim to spreadsheet modeling approaches