Analysis of MCDM methods output coherence in oil and gas portfolio prioritization

Abstract

This research paper aims at developing a triplex multi-criteria decision model to achieve an optimum allocation of resources to a portfolio of oilfields based on a number of criteria that pertain to the oilfields’ technical and contextual characteristics. It also offers an approach for validating the prioritization results generated by the methods used through a two-dimensional test that compares the internal and external prioritization stability of three multi-criteria decision making (MCDM) methods against a conventional Intuitive approach. The MCDM methods used include Analytic Hierarchy Process (AHP), Preference Ranking Organization METHod for Enriched Evaluation (PROMETHEE), and Technique of Order Preference Similarity to the Ideal Solution (TOPSIS). The internal and external consistency testing results are outlined in nine possible scenarios through which a conclusion is derived confirming the competitive advantage of MCDM methods.