Investment Decision-Making Model Applied to Upstream Projects Under Risks and Uncertainties

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Abstract

A substantial portion of the literature on organizational routines has traditionally focused on the stability and transformation of organizational operational activities. This study extends this perspective by emphasizing that organizational routines may also play a significant role in investment decision-making processes within oil companies, particularly in the upstream segment of the oil and gas industry. Based on technical, business and academic literature an Investment Decision-Making Model was developed to illustrate how organizational routines support strategic investment decision-making related to new capital assets under conditions of risk and uncertainty in this segment. Furthermore, the study identifies and discusses the principal macroprocesses (higher-level routines) employed within the upstream sector.

Keywords:

dynamic capabilities, exploration and production, investment decisions, oil and gas industry, organizational routines
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72a63fbe-c8dd-46e1-818c-f2c260487bb2

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2026-07-31

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