Geologic risk, economic assessment, and optimal decision making of petroleum plays in the Bohaiwan Basin, northern China

A system of play (trap) assessment based on the analysis of geological characteristics of five different types of petroleum plays in the Bohaiwan Basin, northern China, is proposed. The system makes use of conditional probability, fuzzy logic, and Monte Carlo simulation to assess geologic risk for estimating the undiscovered petroleum resources in a region. Combining the estimates of undiscovered resources with the subsequent economic evaluation of discovered resources by using techniques of optimization, the expected monetary value can be estimated to determine the overall benefits of an investment. A software program has been developed to carry out the calculations.