Implementing Effective Risk Analysis at Getty Oil Company

Risk analysis is having a major influence on management decisions involving investments totaling billions of dollars at the Getty Oil Company. It is now used for all major decisions on investments in exploration and production and in refinery additions. In addition, it is used for decisions on major divestments and acquisitions, where some of the most significant risk analysis work has been done.

• Making risk analysis a practical management tool has involved

• development of simple but effective techniques,

• development of management understanding and support, and

• implementation of an income uncertainty analysis system which has helped build risk analysis skills and concepts.