There is intrinsic value in the application of intelligent strategies. Pockets of "value" have been calculated in isolated situations. Yet the resistance to change has created a strong barrier to execution. Robust models for valuing intelligent strategies do not appear to be prominent. At the Digital Energy Conference in Houston in April, several presenters from large oil companies publicly admitted to not having a process in place to quantify the results of their efforts. This paper seeks to provide suggested models to pave the path forward.

This paper will especially highlight the critical success factors for effective valuation:

  • Valuation that supports integrated decision management

  • Valuation that takes into account uncertainties

  • Valuation that clearly models risk vs. reward

  • Valuation that speaks to the organizations multiple levels of stakeholders (Executive/ Investor, Mid-level management, Field Operators)

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