Assessment of potential oil and gas exploration investments : management perspective

Abstract

Assessment of potential oil and gas exploration investments is a crucial initial step for petroleum companies to ensure the success of the investments. The study explores the decision-making processes of the upstream investments in U.S. petroleum companies. Two hundred and twenty-one high-level decision-makers representing 221 U.S. petroleum companies completed mail questionnaires concerning decision-making processes in assessing potential oil and gas exploration investment employed by their firms. The result of the study established and empirically described the management view of the current practices of assessing oil and gas exploration investments. The study also identifies the relationshi ps between the decision-making processes and the performance of the company.