International Journal of Technology (Dec 2023)

Risk Modeling in the Oil and Gas Industry

  • Dmitriy Rodionov,
  • Marcel Gataullin,
  • Irina Smirnova,
  • Evgenii Konnikov,
  • Darya Kryzhko,
  • Alexey Shmatko

DOI
https://doi.org/10.14716/ijtech.v14i8.6852
Journal volume & issue
Vol. 14, no. 8
pp. 1663 – 1674

Abstract

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The oil and gas industry is a sector that is prone to risks that can have severe consequences for both the environment and the economy. In this study. the aim is to develop an effective mathematical tool for risk modeling in the oil and gas industry. The research proposes a simulation modeling approach that focuses on two key risk parameters - frequency and severity. By using differentiated distributions. the unique properties of risk in the oil and gas industry can be effectively described, and an algorithm can be developed for practical applications. The findings of this study have significant implications for the oil and gas industry, policymakers, and investors. By using an effective mathematical tool for risk modeling. they can identify and manage risks more effectively, reduce the likelihood of accidents and other events that can have severe consequences. and minimize the potential impact of these events. Overall, this research provides valuable insights into the development of an effective mathematical tool for risk modeling in the oil and gas industry. By using simulation modeling and differentiated distributions. this study proposes an algorithm that can be practically applied to manage risks effectively in this important sector.

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