Students: Dissertation: Mohd. Razif Abd. Razak
Mohd. Razif Abd. Razak
ABSTRACT
The study focuses on identification, evaluation and selection of petroleum exploration and development (E&D), and reserve acquisition investments in U.S. petroleum companies. It has two objectives:
To investigate the decision-making processes of identification, evaluation and selection of the investment alternatives by oil companies.
To identify the relationships between such processes and the performance of the company, when such relationships exist.
The dissertation presents and discusses the results of a survey conducted among the petroleum companies, and identifies the relationships between decision-making processes and performance of the company. The information was gathered through a combination of literature survey, input from an expert panel and responses from decision-makers in U.S. petroleum companies who are directly involved in the E&D and/or reserve acquisition investments. The results of the study represent the opinions and practices of the industry. It identifies important investment decision-making components, which include the objectives of the investments, the information sources used to identify the investments, the influencing variables, the methodologies used, and the sources of information used for the evaluation and selection (E&S). Each decision-making component comprises several items. These items are identified in the study. The survey collects empirical data from decision-makers in the petroleum companies on the relative importance of each objective, the extent of usage of each information source for identification, the extent of usage of each methodology, the extent of usage of each information source for E&S and the level of consideration of each influencing variable in E&S.
The hypotheses tested in the study revealed the relative importance of the extent of usage of items within each decision-making component. Items that have statistically significant differences within each decision-making component were summarized. Factor analysis was then utilized to summarize information at item level within each decision-making component. It effectively reduced the number of variables, which were then used in the subsequent analyses such as Kruskal-Wallis and multiple regression. A further analysis established differences in decision-making processes with regards to different characteristics of companies by looking at each factor within each decision-making component. From the Kruskal-Willis analysis and box plots, it is found that there are significant differences in decision-making processes between companies that have different characteristics. In relation to the second objective of the study, it was found that there is a statistically significant relationship between decision processes and performance of the company. Based on the results of the study, several recommendations are forwarded to petroleum companies.
Tuesday, November 2, 1999
DISSERTATION COMMITTEE
Dundar Kocaoglu, Chairman
Timothy R. Anderson
Dragan Milosevic
Wayne W. Wakeland
James A. Paulson, Graduate Studies Rep.
