Exploration Strategies as Integral Part of Corporate Strategic Planning: ABSTRACT

Abstract

With rising exploration costs, recent stabilization of world oil prices, and local surpluses of natural gas, the bloom is off the sage for just finding hydrocarbons as an exploration strategy. Now the explorationist must tie his exploration strategies to his company's strategic planning or, in smaller companies, to their long-term goals and objectives. Without these considerations, the company's exploration efforts will not be successful over the long term. The explorationist must now realize that exploration is a business, not merely a function. There are two critical areas that need to be defined to combine exploration strategy and strategic planning. The planners' strategic criteria must be consistent and reasonable. Criteria should be designed so that the explorationist can clearly understand his responsibility. The explorationist will need to define his exploration environment. Questions like the following should arise in the explorationist's mind. Should I be exploring in this basin? What field sizes are left to be found? What is a realistic chance of wildcat success for a specific prospect, play, or basin? What mix of prospects will give my program a realistic chance of success? Recent techniques and methods are available tools for defining the exploration environment. In the mature domestic areas, historical digital data bases can be used to describe the present environment and can project future environments. From these environments, along with geologic considerations, geophysical input and physical restraints such as capital and lease position, an exploration strategy can be created that will be compatible with the company's strategic planning. End_of_Article - Last_Page 621------------