Peculiarities of making management decisions in the oil and gas industry

• Main Authors: Z. D. Darmilova, E. I. Darmilov, N. I. Krivenko
• Format: Article
• Language: Russian
• Published: Southern Institute of Management 2020-01-01
• Series: Научный вестник Южного института менеджмента
• Subjects: management decisions; normative approach; descriptive approach; intuition; uncertainty; risk; framing; modeling; criteria; attribute
• Online Access: https://www.uimjournal.com/jour/article/view/439

The constant growth of recoverable volumes of oil and gas, the increasing remoteness of fields from developed infrastructure, political pressure and regulation, the development and complication of the technologies used, and the ever-growing volume of information create multilevel decision-making systems in the oil and gas industry. The further socio-economic development of not only individual corporations and regions, but also the state as a whole, depends on rational and timely decisions made in this area. The article is devoted to the development of management decision-making tools in the oil and gas industry. Peculiarities of the process of making managerial decisions in this industry are identified, associated with special geographical restrictions, the large disunity of production facilities and control centers, the difficulty of obtaining reliable information about the resources mined at great depths underground, market volatility and political influence. A methodology for making managerial decisions is proposed, consisting of three stages, each of which uses a specific set of tools. Five elements are identified that can be identified in almost all decision-making situations. It is shown how the preferences of the decision maker form a hierarchy of goals and values.