- Risk is a word that everyone's familiar with and many of you probably use in a day-to-day basis. Risk comes in many forms and can be defined in various ways. For this set of six separate presentations on geologic risk associated with oil and gas exploration and development we will be using an underlined definition for Risk as defined by the International Organization of Standards. They define Risk as the effect of uncertainty on objectives. Note that this is a very broad definition that takes in both the positive and negative aspects of uncertainty. With regard to the oil and gas industry Risk is categorized in four major groups. First, there is geologic risk, which is basically or roughly the chance of making an oil and gas discovery. Again, geologic risk will be the focus of this series' presentations. Second, there is economic risk. It's not enough to find and produce hydrocarbons. These ventures must be done is such a fashion, their profit can be realized. Third, we have political risk. These come in various forms varying from total political upheaval to legislation that impedes a development opportunity. There are many incidents around the world where major discoveries have been made but then suspended due to adverse political situations. Finally, we have environmental risk. When exploring and developing hydrocarbons, operations must be carried out in an environmentally friendly fashion. The risk of harming the environment must be considered in every project no matter its size, and every effort to eliminate a chance of an environmental error must be considered. Upon completion of this six part series on Risk the fog should have risen and you will have first, an understanding of the various aspects that make up geologic risk as it's associated with oil and gas exploration. Second, how those risk factors can be affected either in a positive or a negative direction via the use of various exploration techniques. And finally, you'll have an idea of how that risk can be quantified and then used to compare or contrast various oil and gas opportunities. [upbeat music] [crunching sound]