Is it profitable to explore for oil and gas in Indonesia? Will the next bidding round in Colombia provide some new exploration and production (E&P) investment opportunities? IHS Energy Group is in the business of determining hard numbers to answer questions like these, and the @RISK Developer's Kit is essential to the process.
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An important player in the "upstream" (exploration, drilling and production operations) part of the oil and gas industry, IHS Energy serves companies involved in exploring, developing and producing oil and gas worldwide. Although IHS Energy provides an enormous amount of E&P data on historical upstream activities in every country in the world, it also creates software that clients use to analyse this data, make projections of the future and ultimately, make investment decisions on which opportunities to pursue. Dennis Smith, an international economist at IHS Energy, is in charge of building this software - a product called AS$ET. When it became clear to Dennis that Monte Carlo simulation would improve the numbers AS$ET churned out for IHS Energy customers, he began looking for ways to incorporate the technique.
"We could have written our own algorithms," Dennis says, but as soon as he found the RDK, he realised there was no need to go through the work of writing and verifying sampling routines and correlation effects. "The RDK sampling engine integrated very seamlessly," he says. "It was simple. Logical. And clean-like a little handshake passing data into the system."
For IHS Energy, the beauty of this is that the RDK simulation engine appears to be part of AS$ET. The simulation interface, menus and all, looks like AS$ET. And he says the number of distributions available in the RDK far exceeds what he and his development team would have been able to create on their own. He says the company has not had to go through the inevitable phase in which customers want more choice in distributions, because IHS Energy has already made them all available.
With the addition of the RDK functions, he says, "We made a big leap into the world of simulation in a relatively short period of time, greatly exceeding our customers' expectations."
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