Introduction
There is a high risk involved in the exploration and production of petroleum and other hydrocarbons. The high risk can be attributed to the uncertainty of geological concepts such as reservoir seal, geological structure and hydrocarbon charge. Also, there are economic evaluation uncertainties such as those related to costs, probability of striking reservoirs that are economically viable, oil price uncertainties etc. The engineering parameters contain a high degree of uncertainty even at the production stage. The critical variables that pose uncertainties in development and production stage are; the production schedule, the oil quality, the cost of operations, the characteristics Continue reading...