Making important decisions in the petroleum
industry requires incorporation of major uncer-tainties, long time horizons, multiple alternatives,
and complex value issues into the decision model.
Decision analysis can be defined on different
and embedded levels in petroleum exploration
and production stages. Raiffa (1968) and Keeney
(1982) defined decision analysis as a philosophy,
articulated by a set of logical axioms, and a meth-odology and collection of systematic procedures,
based upon those axioms, for responsibly analyzing
the complexities inherent in decision problems