Choosing the best projects to fund is easy. The true challenge is weighing the complexities of the projects that are at the threshold for funding in a capital-constrained environment. One exploration-and-production (E&P) company has found that implementing and sustaining a portfolio process require technical solutions and application of best practices for three critical elements: production forecasting, project modeling and economic evaluation, and portfolio management and decision making.
Introduction
When capital is a limited resource, a bottoms-up approach to budget proposals does not provide a clear view to the optimal suite of projects to fund. Fig.
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