PROJECT RISKS AND MITIGATION TECHNIQUES FOR THE OIL AND GAS INDUSTRY Reservoir Uncertainty This may be the biggest project management risk in the entire sector. Exploratory wells can only provide limited information to the reservoir engineering team, who in turn must take this limited information and provide an educated guess of the quantity of reserves to the production team who will soon report back to the project team. Potential oil and gas projects are only advanced from the conceptual stage if it is believed that the reserves can be recovered safely, efficiently and, most importantly, economically. Initial recovery estimates routinely fall within only a fraction of the actual reserves recovered at the end of the project's life cycle. After reviewing a project, the total recovery of reserves will ultimately define whether the project was successful or not. Mitigations • Design facilities to allow for future expansion if production exceeds originally planned estimates. • Strategically place (or install) facilities near other unexplored (but identified) reservoirs to allow other potential developments to use the same common facility. • Have a plan to use secondary or tertiary recovery methods (e.g. water injection, artificial gas lift, etc.) if initial recovery methods are not producing satisfactorily. Health, Environment and Safety (HES) HES is a major concern for the entire oil and gas industry. Poor management of HES could result in injury or death of personnel, adverse environmental impacts and damage to facilities, all of which will have enormous negative impacts on a project and all those who have an interest in it. For this reason, HES is commonly managed at the project team level and by others outside the project team... halfway through the document... all the effects of factors such as the current recession, tighter access to capital and decreased reimbursements all impact healthcare capital projects and will continue to slow spending. However, essential projects will continue to be implemented despite the overall economy. Works CitedACE Group (2012). Emerging Environmental Risks in the Healthcare Industry, http://www.acegroup.com/Attachments/Emerging-Environmental-Risks-in-Healthcare.pdf Accessed 4/5/2014.Arredondo, R. (2012). A Working Approach to Managing Healthcare Project Risk, http://www.cedarcrestone.com/blog/?p=510.Campobasso, F., & Kucharz, J., O'Keefe, M. (2009). Managing Capital Project Risks in a Challenging Environment: What Healthcare Boards and Executives Need to Know, http://www.americangovernance.com/resources/monographs/09-managing-capital-projects.shtml Access 4/.6/2014.