Uncertainty as the overlap of alternate conditional distributions

An important task in modern geostatistics is the assessment and quantification of resource and reserve uncertainty. This uncertainty is valuable support information for many management decisions. Uncertainty at specific locations and uncertainty in the global resource is of interest. There are many different methods to build models of uncertainty, including Kriging, Cokriging, and Inverse Distance. Each method leads to different results. A method is proposed to combine local uncertainties predicted by different models to obtain a combined measure of uncertainty that combines good features of each alternative. The new estimator is the overlap of alternate conditional distributions.     

Learning to trade ethically: Knowledgeable capitalism, retailers and contested commodity chains

This paper explores what happens when corporations engage explicitly in practices of organisational learning not only to become better capitalists by generating ever more innovative ways of maintaining profitability, improving competitiveness and maximising shareholder value, but also to become more responsible corporate citizens in their business practices. In particular, I evaluate the ways in which UK food and clothing retailers are learning to develop their ethical trading programmes in response to political calls for more responsible trading. Thrift’s [Thrift, N., 2005. Knowing Capitalism. Sage, London] notion of ‘knowledgeable, or soft, capitalism’ is adopted to understand the creative and experimental ways in which retailers and their mentors (ethical consultancies, social auditors and multi-stakeholder organisations) are learning to trade ethically. Two specific examples of formal learning spaces experienced by UK food and clothing retailers are examined: (i) training courses on social auditing and (ii) corporate awareness-raising courses on ethical trade. These courses are shown to encompass various participative and affective practices of learning. And while particular limits to the success of these courses are argued to exist, ethical learning practices discussed in this paper are nonetheless suggested to play a role in the making of new, albeit moderate, forms of responsible capitalism.     

UK seismology – 2002 and beyond

Alex Brisbourne reports on a one-day discussion meeting organized by SEIS-UK for seismologists to discuss current seismological research undertaken in the UK and to consider how the provision of new seismic equipment and training facility may enhance that work.     

Size Scaling of Cross Correlation Between Multiple Variables

Reservoir models have large uncertainty because of spatial variability and limited sample data. The ultimate aim is to use simultaneously all available data sources to reduce uncertainty and provide reliable reservoir models for resource assessment and flow simulation. Seismic impedance or some other attribute provides a key source of data for reservoir modeling. These seismic data are at a coarser scale than the hard well data and it not an exact measurement of facies proportions or porosity. A requirement for data integration is the cross-covariance between the well and seismic data.The size-scaling behavior of the cross correlation for different measurement scales was nvestigated. The size-scaling relationship is derived theoretically and validated by numerical studies (including an example with real data). The limit properties of the cross-correlation coefficient when the averaging volume becomes large is shown. After some averaging volume, the volume-dependent cross-correlation coefficient reaches a limit value. This plateau value is controlled mainly by the large-scale behavior of the cross and direct variograms.The cross correlation can increase or decrease with volume support depending on the relative importance of long- and short-scale covariance structures. If the direct and cross variograms are proportional, there is no change in the cross correlation as the averaging volume changes. Our study shows that the volume-dependent cross-correlation coefficient is sensitive to the shape of the cross variogram and differences between the direct variograms of the well data and seismic data.     

Stepwise Conditional Transformation for Simulation of Multiple Variables

Most geostatistical studies consider multiple-related variables. These relationships often show complex features such as nonlinearity, heteroscedasticity, and mineralogical or other constraints. These features are not handled by the well-established Gaussian simulation techniques. Earth science variables are rarely Gaussian. Transformation or anamorphosis techniques make each variable univariate Gaussian, but do not enforce bivariate or higher order Gaussianity. The stepwise conditional transformation technique is proposed to transform multiple variables to be univariate Gaussian and multivariate Gaussian with no cross correlation. This makes it remarkably easy to simulate multiple variables with arbitrarily complex relationships: (1) transform the multiple variables, (2) perform independent Gaussian simulation on the transformed variables, and (3) back transform to the original variables. The back transformation enforces reproduction of the original complex features. The methodology and underlying assumptions are explained. Several petroleum and mining examples are used to show features of the transformation and implementation details.     

Indicator Simulation Accounting for Multiple-Point Statistics

Geostatistical simulation aims at reproducing the variability of the real underlying phenomena. When nonlinear features or large-range connectivity is present, the traditional variogram-based simulation approaches do not provide good reproduction of those features. Connectivity of high and low values is often critical for grades in a mineral deposit. Multiple-point statistics can help to characterize these features. The use of multiple-point statistics in geostatistical simulation was proposed more than 10 years ago, on the basis of the use of training images to extract the statistics. This paper proposes the use of multiple-point statistics extracted from actual data. A method is developed to simulate continuous variables. The indicator kriging probabilities used in sequential indicator simulation are modified by probabilities extracted from multiple-point configurations. The correction is done under the assumption of conditional independence. The practical implementation of the method is illustrated with data from a porphyry copper mine.     

Transformation of Residuals to Avoid Artifacts in Geostatistical Modelling with a Trend

Trend modelling is an important part of natural resource characterization. A common approach to account for a variable with a trend is to decompose it into a relatively smoothly varying trend and a more variable residual component. Then, the residuals are stochastically modelled independent of the trend. This decomposition can result in values outside the plausible range of variability, such as grades below zero or ratios that exceed 1.0. We transform the residuals conditional to the trend component to explicitly remove these complex features prior to geostatistical modelling. Back transformation of the modelled residual values allows the complex relations to be reproduced. A petroleum-related application shows the robustness of the proposed transformation. Furthermore, a mining application shows that when this conditional transformation is applied to the original variable, instead of the residual, simulated values are assured to be nonnegative.