Project Management Report: Risk Appraisal for UK Oil Project Analysis

This report provides a risk appraisal for the UK oil project, focusing on potential risks and their impact. It examines drilling, hydraulic fracturing, and their associated challenges. The analysis includes a categorization of risks based on stakeholder relevance, considering factors such as improper drilling, hydraulic fracturing, improper testing, natural causes, and fracking. The report assesses the impact and probability of each risk, identifying key stakeholders involved. Furthermore, the report references relevant academic sources, providing a comprehensive overview of the project's risk landscape and potential mitigation strategies. The report highlights the complexities of oil extraction, particularly in the context of the UK, and the importance of effective project management to address these challenges.

Running head: PROJECT MANAGEMENT
Project management
Name of the Student
Name of the University
Author’s note

1
PROJECT MANAGEMENT
Table of Contents
1. Risk appraisal for the UK oil project...........................................................................................2
2. Categorization of the risks as per the relevance of different stakeholders..................................3
References........................................................................................................................................9

2
PROJECT MANAGEMENT
1. Risk appraisal for the UK oil project
It is found that the firm generally drilled a well near the Horse hill and the analysis helps
in suggesting that the local area will be around 158 million barrels of oil per square meter.
However, it is found that only a fraction of around 100 million of total oil would generally be
discovered. As per the UKOG, majority of the oil generally lies within the Kimmeridge
formation at the depth between 2500 ft and 3000 ft. On the other hand, as per the report of the
last year, the government mainly estimated that shale oil generally ranges between 2.2 billion to
8.5 billion of barrels (BBC News 2019). However as per UKOG, deepest oil was drilled which
generally changes the understanding of the entire area of the potential oil resources. As most of
the experts believe that hydraulic fracturing as well as fracking will be helpful in getting proper
commercial quantities of oil within the region however the concerns that are related with
fracking large-scale protests (Aven 2016). Other challenges associated with fracking can be
created including pumping of water as well as chemicals into rocks at very much high pressure
for liberating the oil as well as gas that is mainly trapped. Moreover, improper drilling as well as
testing can cause a number of issues as well as challenges.
2. Categorization of the risks as per the relevance of different stakeholders
Risk ID Risk Description Impact Probability Stakeholders

3
PROJECT MANAGEMENT
1 Improper
drilling
If the workers
are not
experienced
then they face
a number of
challenges in
drilling the oil
and as a result
the quantity of
oil that will be
recovered is
very much less
that will
further create a
significant loss
(Almeida,
Hankins and
Williams
2017).
High Medium Trainer
2 Hydraulic
fracturing
Hydraulic
fracturing
causes
pumping of
Medium Medium Operations
manager

4
PROJECT MANAGEMENT
water and the
sands as well
as different
types of
chemicals
generally
create proper
pressure within
the rocks in
order to
liberate the oil
as well as gas
that is
generally
trapped.
3 Improper
testing
Due to
improper
testing, a
number of
technical
issues as well
as challenges
occurs that
High High Tester

5
PROJECT MANAGEMENT
generally
reduces the
generation of
oil (Hornstein
2015).
4 Natural
cause
It is identified
that as the firm
generally drill
a well near the
hill then a
proper analysis
was done for
helping the
local area with
158 million
barrels of oil
but it is
identified that
only a fraction
of around 100
million of total
oil would
generally be
High High Manager

6
PROJECT MANAGEMENT
discovered as
UKOG helps
in suggesting
that the oil
generally lies
in the depth of
2500 ft and
3000 ft in
Kimmeridge
formation
5 Fracking It is found that
as fracking is
required in
order to get
proper
commercial
quantities of
oil however it
is identified
that there are a
number of
concerns that
Medium High Manager

7
PROJECT MANAGEMENT
are associated
with fracking
and as a result
a large-scale
protest
generally
occurs when
Cuadrilla
drilled at
Balcombe

8
PROJECT MANAGEMENT
References
Almeida, H., Hankins, K.W. and Williams, R., 2017. Risk management with supply
contracts. The Review of Financial Studies, 30(12), pp.4179-4215.
Aven, T., 2016. Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research, 253(1), pp.1-13.
BBC News. (2019). Gatwick oil find 'significant'. [online] Available at:
https://www.bbc.com/news/business-32229203 [Accessed 20 Jul. 2019].
Hornstein, H. A. (2015). The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2), 291-298.