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Real-Life Decision Making -- Solution

You delay your findings.

You meet with an engineer a few weeks later and she confirms your discovery. There's definitely oil down there.

Still, it's a good thing you waited, because the area is unstable. Special care is going to have to be taken in drilling the well. It could have been a disaster if the company had started drilling not knowing it should take certain precautions.

With this new information, you present your good news to the company, along with some advice about the drilling process.

This is the real-life decision made by geophysicist Neil Anderson.

"In many instances, senior management decisions are based on geophysical research," he says. He admits the decision to drill or not to drill is a tough one for a geophysicist.

"If a geophysicist recommends drilling and is proven to be wrong, the company may have wasted a million dollars or more on an exploratory well. On the other hand, if they recommend against drilling, it could cost the company a potential profit of $20 million."


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