This chapterdraws onthe oil industry literatureto present a brief description of the
industry that highlights the main challenges facing it in the 21
st
century. Since the
current study focuses on oil and gas companies that operate in U.K., the effects of
these global changes on the U.K. industry are examined. This indicates the growing
complexity ofthe business environment ofthose companies operating inthe upstream
oil and gas sector and highlights why decision analysis is beginning to receive
increasing attention in the industry and, consequently, why it provides such a useful
context in which to study investment decision-making