The Impact of Information Uncertainty on the Effectiveness of Oil and Gas Exploration

Abstract

Summary Search and exploration of oil and gas fields are accompanied by the implementation of various research works and include the analysis of various amounts and quality of information. The economic efficiency of any exploration project and field development depends largely on geological risks. They are caused by the uncertainty of the geological structure and the history of its study: the more complex the geological structure and the less its study, the greater the information uncertainty and the greater the geological risks. Since, during the development of the field there is a gradual understanding of the geological model of the field, determining the reliable size of reserves and their structure, the information obtained allows to establish the economic efficiency only in the final stages of development. The article analyzes the ratio of “invested funds - profits” in the exploration of the gas field in conditions of information uncertainty.