The Evolution Of Planning In The Petroleum Industry

The development of planning in the petroleum industry is de- scribed and the current status analyzed. Worldwide transportation networks led to corporate models which caused a differentiation between operations research and planning groups. Ranking of projects solely by ROI proved infeasible because of the diversified nature of the industry. Qualitative elements such as synergism with ongoing operations and the external socio-economic environment had to be included, leading to business plans based on scenarios of possible futures and stressing growth-opportunities over cash-flow rich mature product lines. In addition, decision analysis is finding applications in large capital, high uncertainty situations such as planning for synthetic fuel development.