Oil & Gas

The exploitation of natural resources – in particular, oil and gas reserves – involves heavy investment, often against a background of considerable risk. The question of which exploration assets to develop can be as much about ‘feeling’ as tangible assessment. Geographic and political risk and other ‘soft’ risk variables add to the difficulties. Technology has made location more certain but it is often still a judgment call as to how much can be recovered and how difficult it will be. At every point, from valuing assets to maintaining plant and safety standards, poor risk assessment and decision-making can cause considerable damage to finances and reputation, and ultimately to shareholder value.

Oxford Risk can help the oil and gas sector by ensuring that the risk attitudes of employees in key roles fit with the needs of those roles. In particular, we can provide tools and services that model ‘soft’ risk, inform investment appraisals and remove human biases from major decision processes. We can advise on whether the corporate culture, processes and remuneration schemes are aligned with the expected attitudes towards risk-taking and risk aversion. We can provide tools to ensure that the most appropriate people are recruited or placed. In effect, the ‘riskiness’ of the organisation’s own decision-makers can be evaluated and corrected or compensated for.