This book discusses the multicriteria analysis of project portfolio in the petroleum industry, detailing the major decision-making methods as well as introducing new approaches and considering new findings on scale problems for multicriteria portfolio selection. Beginning with an overview of the oil and gas sector, it offers a brief introduction to oil and gas exploration and production (E&P) projects, before going on to detail the conceptual basis for the development and application of the proposed decision-making models. The authors discuss project analysis, the multi-objective nature of the decision context, and the importance of synergy assessment, providing readers with a solid grounding before continuing on to portfolio selection. The remaining chapters address the methodological basis for utilizing additive multicriteria approaches to tackle the portfolio problem in the petroleum industry. They explore portfolio selection based on additive multicriteria portfolio analysis (AMPA), and give an outline of multi-attribute value theory (MAVT) and multi-attribute utility theory (MAUT). The authors contend that as portfolio selection is a problem of choosing from a set of feasible portfolios, it makes sense to aggregate multicriteria information at the portfolio level of outcomes; they therefore put forward two additive approaches to portfolio selection for this purpose. Lastly, reality-based applications are set out to fully demonstrate each model's steps, as well as to discuss their usefulness and the practical issues that may arise. This book is a valuable resource for decision-makers within an industrial context, and to graduate students and researchers in both operational research and the petroleum industry.

Author Biography

Adiel Teixeira de Almeida is Full Professor of management engineering at Universidade Federal de Pernambuco and founding coordinator of the CDSID (Center for Decision Systems and Information Development - www.cdsid.org.br). Before his current position, he worked in business organizations as engineer and manager, including project manager and program manager of R&D projects. He holds a PhD in management engineering from The University of Birmingham, UK. He has a research Grantee for Productivity in Research from the Brazilian NRC (CNPq), since 1996. His main interests are in decision-making related to multiple objectives and group decision problems, which includes methodological issues and applications. Also, he has been working as a consultant and with R&D projects for private and public organizations, where he has applied decision models in many contexts, such as: risk analysis, reliability and maintenance, project portfolio, R&D project portfolio, project management, strategic modeling, outsourcing, information systems, supply chain, and water management. He authored or co-authored several scientific papers in reviewed journals related to a variety of topics such as: Operational Research, Group Decision, Decision Systems, MCDM/A (Multicriteria Decision Making and Aid), Risk, Reliability, Maintenance, Safety, Quality, and Water Resources. He serves on the editorial board of management and engineering scholarly journals, such as: Group Decision and Negotiation, IMA Journal of Management Mathematics and Journal of Quality and Reliability Engineering. He has been an active member of the main societies related to Operational Research, Group Decision, MCDM/A, Risk, Reliability and Maintenance topics.