Necessity to Study of Risk Management in Oil and Gas Industries (Case Study: Oil Projects)

Abstract

This paper examines the necessity to study of risk management in oil projects. Annually, a number of large-scale projects face operational problems. Risk management can play a significant role in identifying and taking precautionary measures in this regard. Because the projects of the oil and gas industry have many complexities and uncertainties and therefore, investment in these projects is associated with high risk. Today, however, the use of risk assessment methods and techniques has become very common due to advances in hardware and software. The importance of these projects in the Iranian economy and the need for massive investments in the upstream oil and gas sector of the country, it is necessary to identify the evaluation and prioritize the risks of the upstream oil and gas sector. In the implementation of huge projects, the existence of risk is one of their intrinsic and natural features and identifying and evaluating these risks will help project managers to plan better.