The Risk Police - Evil Naysayers Or Exploration Best Practice

Glenn E. McMaster
Global Renewal Group, BP, Houston, TX

The Prospect Quality Team (PQT), Exploration Excellence (XX), Exploration Review Team (ERT), Risk Consistency Team (RCT), Risk Normalization Team (RNT), Gang of 8 (G8) etc. are all pseudonyms for a group of people who came into existence in the 90’s, in response to declining success rates, declining field sizes, the rising cost of failure and low oil prices.

Their responsibility was to review, evaluate and assign risk and resource values to opportunities in their respective companies. Many of these groups have been highly successful, increasing wildcat success rates from the mid teens to the high sixties. However their impact is considered by some to have stifled creativity, made geologists and geophysicists risk adverse, reduced wildcat drilling activity, led to staff reductions and all but shut down true frontier exploration.

As one of those evil naysayers for the last 17 years I truly believe that the risk police do add significant value if they are recognized, utilized and empowered to act in the appropriate fashion. The ability to challenge assumptions, identify gaps, focus technology and discuss openly the strengths and weaknesses of each and every opportunity helps management to make better decisions. If done properly these groups can overcome the barriers to success, enhance the technical capabilities of all staff and have a very positive effect on company performance.

AAPG Search and Discover Article #90078©2008 AAPG Annual Convention, San Antonio, Texas