Caesar Petroleum Systems announce new risk management software (June 1998)

A new product from Caesar Petroleum Systems, Petroleum Venture and Risk (PetroVRTM), combines integrated E&P development engineering with economics and risk analysis.

PetroVRTM allows users to "measure money while they measure barrels," equipping engineers, economists and project managers with better control over the evaluation process and better knowledge of project risks. PetroVRTM takes account of key exploration, engineering and financial uncertainties. Caesar is led by 24-year industry veteran Jerry S. Blinten who developed and tested PetroVRTM under industry conditions as a decision support software for oil and gas project teams. Versions of the program are currently in use on several high profile developments in the former Soviet Union. "This is a product that has proven itself time and again as an essential tool for project evaluation, exploration, production, risk management and analysis," said Blinten. "It puts quick answers to a myriad of fundamental project questions at one's fingertips thereby saving time and money better spent on the exploration and production process." Blinten has assembled a team of specialists at Caesar Petroleum Systems to offer support and service to PetroVRTM users.

A new feature, Function Programming allows any input variable to be a function of any other input variable and a selection of calculated values, such as OIP and reserves so that, for instance, facilities cost and capacity used in the model can depend on the size of the reservoir. This makes the model self adjusting and avoids complex decision tree analysis. Computation can be performed deterministically or by Monte Carlo simulation.

Country specific models are now available at the Caesar web-site. In the development model, depreciation methods, salvage value and useful life can be defined for each facility and well type. Cost categories are now user definable. A "Land Purchase" or an "Offshore Pipeline" category can be created to facilitate cost center accounting.