Decision analysis (DA) is presented as
A tool for carrying out a thorough and logical evaluation of alternative strategies,
A means of systematically determining the best available reservoir management strategy with the objective of maximizing the net present value of the asset and the company.
Decision analysis is a framework for conducting integrated reservoir management. It is possible to integrate reservoir engineering, environmental regulations, environmental impact assessment, geochemistry, geological studies, process design, risk analysis, QC and financial appraisals with the aim of maximising the return on investment.
The value of decision analysis is not only in helping to structure information and thinking, but also in providing a vehicle for communication between different groups and technical disciplines. A complex decision problem is decomposed into separate components, often in the form of a decision tree, on which perceptions of options, uncertainties and values can be explicitly represented. Decision analysis is an ideal tool for decision making in an environment of risk and uncertainty.
The selection of a strategy for produced water handling and disposal is presented as an example of an application of decision analysis involving the integration of a variety of disciplines.