(1) ChevronTexaco, Houston, TX
ABSTRACT: Improving the Value Proposition of Exploration in Our Industry
Over the past 10 years, the Oil & Gas industry has struggled in its efforts to
replace and grow its reserve and resource base through exploration. Recent studies have
suggested that the value added from exploration in many areas is no longer as evident or
compelling as in the past. What can (and have) we, as an industry, done to address these
issues? This can be broken down to 3 key solution sets; (1) Improving our performance
through better portfolio management of the assets and technologies we currently have, (2)
Developing new technologies to improve our abilities to find and develop hydrocarbons, and
(3) gaining access to previously untapped resources that have, in one way or another, been
excluded or restricted from participation.
The industry must improve the value proposition of exploration by becoming more efficient at deploying the human and financial resources it expends in the pursuit of new hydrocarbons. The key to this is a rigorous and consistent portfolio management process, which allows management to make educated and objective decisions on their programs. If done properly, this management will not only improve the efficiencies (and results) of our short term programs, but also help guide us as to where the best potential may be for future programs. This in turn will provide us direction as to where to put our limited technology resources, as well as where to expend our political and commercial energies in the attempt to gain previously restricted access. The key will be efficiency...
AAPG Search and Discovery Article #90026©2004 AAPG Annual Meeting, Dallas, Texas, April 18-21, 2004.